The Latte Factor--Can it Really Make You a Millionaire

Some claim the Latte Factor can help you become a millionaire. Others say it deprives you of life’s small pleasures. We put the Latte Factor to the test to see if it’s a legit way to build wealth.

A few years ago, best selling author David Bach created a bit of controversy in the world of personal finance. What he said was that rather than folks buying a latte every day, they should take the $5 that a latte costs and invest it. And if they did this over time, they'd become a millionaire.

He called it the latte factor. Pretty simple concept. But it generated a huge backlash. Today in this video, we're going to talk about some of that backlash. But before we do, we have to ask a really important question. Is it legit?

Can you really become a millionaire on $5 a day? Today we're going to get our hands dirty. We're going to look at the math and we're going to put the latte factor to the test.

RESOURCES

Latte Factor Calculator: https://www.doughroller.net/budgeting/latte-factor-calculator/

CIT Bank: https://www.doughroller.net/banks/cit-bank-review/?utm_source=youtube&utm_medium=video&utm_campaign=yt-2

Personal Capital: https://go.robberger.com/empower/yt-latte-factor


ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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