Latte Factor

I just discover this article, how come I never discover this column in TheStar before...hmmmm... so just read it and practice it.... probably I should order only plain water when dining out... my fancy drinks could be my 'Latte Factor'


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Monday April 15, 2013

We need to look at the small things we spend our money on ‘unconsciously’ every day

Financial Snacks by Lee Mun Wai

What has a cup of coffee made with espresso and steamed milk got to do with your finances? Actually, nothing! However, LEE MUN WAI wants to introduce you the “Latte Factor” which has everything to do with your finances.

THE “Latte Factor” is based on an extremely simple concept − we need to look at the small things we spend our money on unconsciously' every day and redirect that spending to enrich ourselves.

Putting aside that odd ringgit or two a day for your future instead of spending it on purchases such as expensive lattes, bottled mineral water, cigarettes, too much alcohol, magazines that you don't read, and handbags that are kept in the cupboards, you'll be amazed the difference your latte factor can make between accumulating wealth and living from paycheck to paycheck.

We often don't even realise how much we are actually spending on these little purchases. If we did think about it and changed our habits just a tad, we could actually change our destiny.

Just to prove the point, let's assume we manage to redirect RM10 every day. That's RM300 a month into our special Latte Account for the next 30 years. Assuming an interest rate of 6% per annum, we will have in excess of RM300,000 in our account!

Get your Latte Account working just a little harder by setting up a well-constructed and efficiently managed investment portfolio to return you 12% p.a., you will amazingly become a millionaire in the next 30 years! Are you surprised?

Do this for the next one week. Identify your actual “Latte Factor” by tracking your daily spending in detail and then calculate just how much you could save in a few years.

The “Latte Factor” is not rocket science; it just makes good financial sense. This simple exercise can possibly be life-changing. It all adds up, so start checking out on your lattes today with your financial planner.