"Skip the expensive coffee and you'd be rich."
We've all heard that advice. It's even the thesis of "The Latte Factor," by self-made millionaire and financial adviser David Bach.
The basic idea is that if you ditch your $4 latte every morning — or any small luxury you spend on each day — you'd have quite a bit of money to contribute towards savings instead. Over the course of a few decades, that money could grow substantially, thanks to compound interest.
I happen to have a weakness for almond milk lattes, particularly the ones sold at the coffee shop a few doors down from my apartment. And while I don't buy a latte every morning, I shell out $5 at Cafe Grumpy at least three times a week.
I'm fortunate enough to not have student loans and put about 30% of my income towards various investments each month. Coffee is an expense I've made room for in my budget and can afford.