The Latte Factor and Beyond

Jeremy Biberdorf  |

Written by Jeremy Biberdorf

Having a good financial plan for your life is important, if you want to be able to escape the cycle of just scraping by. Planning your finances starts with the small stuff and expands into new horizons. You do not need to run before you can walk. Take a look at the way you spend your money each day and you will be surprised at just how many savings you can make. Then it's time to decide what to do with the money that you save, and how you can make it work for you.

It's like David Bach said in his book Finish Rich; the latte factor is more important than you know. Simply put this means that the lattes, or other seemingly insignificant items that you buy each day, could be costing you far more that you think. A couple of dollars each time soon adds up. Cutting back on this spending, and making better financial decisions all round, means that you can start to think about investing the money you save. But, what should you do with it?

Look at the best advice online

Never forget that you are not alone when it comes to making financial decisions. Someone, somewhere has been there and done that, and you can take advantage of their advice. Take a look at some of the top finance blogs and you can get access to an array of tips and information that can help you as you plan your financial future. Here are some investing options that you might want to research further.

Choosing a savings account

Anyone can save money, if they take account of tips such as the latte factor, even if they do not earn much money. One of the most basic ways of keeping this money to one side is to use a savings account. There are different types of account to choose from. Some require a minimum investment; some can be opened with a dollar. Some accounts offer a higher rate of interest but provide limited access to savings.

If you are thinking of opening a savings account, you need to do your research, so you get the best account for you. However, there may be better options, if you want your money to grow and work for you.

Deciding to flip property

Property investment is an option if you want to secure good returns. However, as with most forms of investment, there are risks involved. If you are looking to buy a property to flip, you need to plan carefully including:

  • Checking property values in the area where the property is located.
  • Checking out the property itself.
  • Looking into additional financing if required.
  • Researching issues such as building restrictions.

Before investing for the first time, it helps to take a look at the best house flipping books, to get the ideas and information that you need.

Trying your hand at trading

Trading can be a risky enterprise, but it can also help your money to grow significantly, if you are successful. It's important to get the help you need and learn how to improve trading skills along the way. When trading, remember that you should always rely on data. It's easy to get carried away by the noise and listen to rumor instead of fact. You should also never be afraid to take on new strategies. Always be confident when you trade, and see setbacks as opportunities.

It may seem like a long way from cutting back on a latte or two to investing to earn but once you start working on improving your finances, they can grow quicker than you might think. Now is the time to start.

Stock price data is provided by IEX Cloud on a 15-minute delayed basis. Chart price data is provided by TradingView on a 15-minute delayed basis.


The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:

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