Back to the Basics with the Latte Factor®

Getting a handle on your spending can be a big challenge. You have to really work to keep what you work so hard to earn. Luckily, there’s an easy, fun way to do that. You have to find what I’ve termed, The Latte Factor.

What is The Latte Factor®?If you’re a regular reader of my books and articles or if you have seen any of my appearances on various TV shows such as NBC’s TODAY show – Money 911, you may already know about this phenomenon that I call the Latte Factor.

The Latte Factor® is based on the simple idea that all you need to do to Finish Rich® is to look at the small things you spend your money on every day and see whether you could redirect that spending to yourself. Putting aside as little as a few dollars a day for your future rather than spending it on little purchases such as lattes, bottled water, fast food, magazines and so on, can really make a difference between accumulating wealth and living paycheck to paycheck.

Example: In purchasing a $3.50 latte every day for a year, one would spend $1,260. If that money were invested at 10% over 10 years, it would grow to $21,870!

Use the Power of The Latte Factor®
Over the years, I have received thousands and thousands of emails, letters and thank-you cards from people who have used the Latte Factor—and the Latte Factor Challenge—to change their lives by changing how they think about spending money and how they really spend it. Some saved $5 a day by brown-bagging a sandwich from home instead of buying one at work. Others saved hundreds of dollars a month by giving up cabs for buses, dropping their premium cable channels, and foregoing regular manicures and massages.

Everybody’s spending habits are different, and so are everyone’s solutions. What we all have in common is that every one of us is capable of cutting back. Find your Latte Factor now! Go to, to calculate your Latte Factor, download the Latte Factor worksheet and your complimentary Latte Factor iphone app!


Wow! I picked The Automatic Millionaire up in frustration over my finances. My frustration quickly disappeared to give way to excitement. What a great read a real eye-opener! I did your latte factor test and found that I was spending $5-$10 a week just on the cheap movie rentals each week at the Drug Mart. I have a habit of going there after work to get something for unwinding and relaxation in the evening. The Latte worksheet is very clear and amazing in the reality of compounding interest in the few entertainment dollars. Just eliminating this habit will increase my cash allocation for more practical and long-term purposes. I realized that little spending habits like these does not help with debts. I am 28 years old and have credit and loan debt. I am setting up automatic deposits for savings to pay myself and making extra payments on my debts in advance such as the examples in your book suggest. This feels amazing and liberating. Thank you so much for your awesome book to empower anyone in every situation.
- Amber, Mount Gilead, OH

As I was reading about the Latte Factor, I already knew what my “latte” was. I travel a lot and get bored on airplanes so I buy magazines…about 4 per week. At $3.99 and $4.99, that adds up. What I didn’t realize was all the other little incidentals I pick up in airports. Gum $1.99, bottled water $1.99, playing cards $4.99 and I even spent $40 on wine at an airport last week! In fact, in one day, I spent over $90 of my own money on a company expensed trip. I wasn’t even paying for my own food or gas! And I complain that my debt is too high and I never have enough to pay bills, much less save, but after seeing this I think I can find free ways to entertain myself and carry a refillable water bottle and SAVE $90! Thanks David for opening my eyes.
- Joy, Burleson TX

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One thought on “Back to the Basics with the Latte Factor®

  1. I wanted to download Latte Factor worksheets but can’t find the link to do that on the website. I can create my own, but was hoping to find the one from the book online to just print out! Where is it? I don’t have an iPhone, so I want the hard copy !