How much could you save in 1, 5, and 10 years by skipping daily coffee?
The Latte Factor refers to small daily expenses (coffee, snacks) that add up to significant amounts over time. Coined by David Bach in his book.
We assume monthly deposits of your savings into an investment with monthly compounding. Actual returns may vary by investment type.
It's conservative, between savings account rates (3-4%) and index fund averages (6-8%). Adjust to match your actual expected returns.
Calculate how much you could save in 1, 5, and 10 years by investing your daily coffee money with compound interest. Visualize the Latte Factor effect.