We are richer than we think and more powerful than we know, according to New York Times Best Selling Author, David Bach. In his new book, “The Latte Factor, Why You Don’t Have to Be Rich to Live Rich,” David reminds us that small amounts of money can change your life and he encourages us to give up a little something today to have a lot later.
“The Latte Factor” is a parable. Because it is told in story form, it’s easy for most readers digest. This works great for me, because I don’t enjoy reading financial journal style literature...snore... The book is a metaphor to inspire dreamers like you and I to live the life of our dreams. The intended audience is youth of today, the next generation, but there is something in this book for everyone.
Wherever you are right now with your the state of your money, you can start building your future from where you are today, it is just important to get started. David shares some interesting stats in his book. He says is the math that people don’t understand. Well, $2M captured my understanding; a person at age 25 today can put aside $300 a month and have $1,943,000 by the time they reach age 65. Another person at age 35 puts aside $300, will see that money grow to $684,000 by their retirement age.
Obviously the later we wait, the older we get. It takes more to save to catch up to building a nice bit of cash for our latter years. Having something is better than nothing, so start building your nest egg today.
“When you fix your money, you fix your life.”
In “the Latte Factor,” we learn that 7 out of 10 people live paycheck to paycheck, most Americans can’t get their hands on $400 in the event of an emergency and many have less an six days worth of expense money set aside. These numbers are staggering and drive home the fact that we really need to take time to assess where we are currently in life and where we want to be in the future.
“If you don’t know where you’re going, you might not like where you end up.”
How you think about money, your mentality has roots that run deep. For most of us, we are trained to make more money. The more we climb our way up the money chain the more we feel we have to spend. How many times have you seen an increase in your take home pay and figured, great now I can go buy something shiny and new!
What about those credit cards, it feels good to get your limit bumped up ... just so you can buy more stuff you likely don’t need, and the debt continues to grow.
As we make more, we spend more. Stress and unhappy levels grow until you start to wonder if it even makes sense to make more money? David says we can find our happy place by living rich now, and we do that by living below our means. As you make more money, maintain the lifestyle you’re at. Spend the same amount you did before you got that bump in pay. Instead of focusing on getting more stuff, focus on the experience of your daily living.
Apps like Acorns help you to save more with automatic investments.
According to David, who was also a financial expert on Wall Street before he became a world renown best selling author, there are two escalators to building wealth: owning stock and real estate. The financially rich have known this game very well for a very long time. They know the rules, for those of us don’t, well we are going to continue to lose in the game.
"Change your mind, change your life."
“The Latte Factor” follows a young woman’s journey to becoming more knowledgeable about money. It is a well told story that encourages the reader to easily learn along the way and apply simple strategies that can truly change lives.
The concepts of saving, investing and compound interest are so easily explained that it makes you wonder why most of us don’t know this stuff already. David says not to worry because the average person is not taught money management or how to think positively about money. This should all change because now that you know better, all you have to do is make a conscious decision to be more present in your life and begin to make small changes, a little sacrifice here and there to educate yourself more about money.
Where are you in your life? Be conscious of the way you live today because you don’t want to end up living a life of regret. Change your mind, change your life.
Disclaimer: Valerie Winrow is not a financial expert. Financial related articles/information published here and presented on the all related platforms are Valerie's opinion only and meant to inspire/motivate others to seek financial well being. Anyone/everyone should consult a financial expert/do their own research when making decisions about money.
Be sure to check out the "Yes, I'm That Girl Podcast" for more inspiration on how you can live a more rich and fulfilling life of purpose, and follow Valerie on social @yesimthatgirlblog.
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