David Bach made headlines by basically going around and telling people how much richer they could be by demonstrating what he called the latte factor. It basically shows that if you cut out an expensive daily trip to Starbucks (latte and a muffin) you could take that $5 and put it into the market instead – and you would accelerate your retirment (or become an automatic millionaire).
Take away my lattes? …from my dead cold hands!
Here’s my solution (as alluded to recently):
Less $100 credit for espresso pods: -$100 (special promotion)
Equals total cost of $213.99 + tax for “capital outlay”.
Cost of pods (including shipping) = $0.60 per drink
Cost of milk (approximation) = $0.10 per drink
Equals total cost of drink of $0.70.
Since a Starbucks latte is $3 (for a tall), I save $2.30 per drink 5 times per week (yeah, more like 10). That means I pay off the machine with the savings after about 19 weeks (8.5 weeks). At that point, I’m starting to realize real savings even over and above regular coffee from Tim’s!
Oh, and the quality of the lattes is actually just as good (if not better) than Starbucks.