Senna Laxative Did Not Work

a couple of months ago we published an article here entitled "Surviving a drop in salary " in which we talked a point that I would come into depth, "the latte factor."

"Latte Factor" is a term popularized by writer David Banch regard to those little expenses that we do every day and which together would represent a big savings. There are many articles written about it basically saying that if you save those small daily expenses and invest until you are old, you could end up being a millionaire.

Imagine your latte factor is a Starbucks latte that costs 4 €. If you keep these 4 € under your mattress for 40 years would have € 4 at age 65. But if those 4 € invested in an investment with an interest of 5% over 40 years was about € 28.16.

If you do the same with each of the cafe latte that you take every day, this savings guarantee you a pension based on the quality of investment and the rise in coffee prices, vary from 100,000 € up to about one million euros.

For internet you have many calculators that will let you do the math.

course, the key is that money saved is invested in retirement, it is no use stopping cafes if you saved us spend on a TV.

Each has its particular latte factor, perhaps not as exaggerated as this. You can be the snuff, or going to the movies on Friday or dinner outside the Sá Bados or consuming a brand over another. Sure that smokers who are reading me, sometime in your life have done the math on how much money could be saved if dejasen this service (and mind you I do, 1 pack a day for 30 years, 4% are invested € 75,000 .)

are, in short, these little quirks that make us happy. As a friend of mine, when we a good wine for dinner (exact words) "For something like bastards work the rest of the week . " Sure, my friend is a dentist and do not like just the Don Simon ....

Is it worth taking off of those pleasures daily / weekly to have a better jubiliación? Could not get the savings become a punishment?

We are facing, what we baptize, and see in the books of economic history, the dilemma latte . To what extent do we need to feel rewarded every day to stay motivated? At what point the savings can become counterproductive?

Perhaps the solution is not saved in the small daily expenses, plus well we should do in the great expense. A saving of 500 € is achieved both leaving to buy 100 times as some € 5 after failing to buy some 500 € . Therefore our efforts should be used in large costs, for example, analyze While housing need or the car you want we may seem ironic, but a daily coffee (or your latte factor) may become more happy and do more good for our state of mind that an extra room in your home.

There are multiple ways to maintain the lifestyle without removing those small rewards that gives us such a good time. Mind you, I'm talking provided we have a finance sound as there is no life of higher quality than that which comes later this month .

Written by Carlos Lopez ( http://www.euribor.com.es/2010/07/21/el-dilema-latte/ )