Friday, September 29, is National Coffee Day, meaning there are a handful of chains offering free or steeply discounted java to its customers. I'll take advantage of the freebies today, but you can bet I'll also have at least one latte this weekend, even though I've been told over and over: "Skip the expensive coffee and you'll be rich."
We've all heard that advice at some point. 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 or $5 latte every morning — or any small luxury you indulge in on a regular basis — 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, and while I don't buy one every morning, I still shell out $5 at least three times a week.
I'm fortunate enough to not have student loans and put about 30 percent of my income towards various investments each month. Coffee is an expense I've made room for in my budget and can afford.
Still, that's $60-$80 a month that I could be putting to work and letting accumulate over time. Trust me, I know.