Buy the Latte
If a daily latte brings you joy, buy it! I am an advocate of spending your hard-earned money on the things that bring you joy in life. Big or little, if they are important to you, they should be in your financial plan.
Why do you work? Dig deep, why do you really work? Not only to pay bills, and beyond (hopefully) feeling fulfilled by your work – is it to have money for vacations, your hobby, splurges, leisure time with family? It’s a question I like to ask of clients in order to get to know their values and what brings them joy in life.
You may have come across savings advice that suggests cutting out all of the unnecessary splurges, such as your fancy morning coffee. The problem with general money advice like stop blowing money on fancy coffee is that everyone is different; having different resources, financial plans, and values. What is a complete waste of money to one person might bring much joy to another.
Chances are that cutting out your daily latte is not going to allow you to retire much earlier. Buying a $5 latte every work day is $108/month and $1,300/year. Now, I do have strict money rules before spending $1,300/year on lattes:
Have an emergency savings fund greater than 6 months of your household’s total expenses
Be saving an adequate amount for retirement and taking advantage of your full employer retirement plan match
The daily latte should not be combined with multiple other recurring splurges
With these rules met, go ahead, enjoy your latte!
This blog is for general educational purposes and does not constitute specific financial, tax, or legal advice. Please contact our firm for precise advice applicable to your personal financial situation.