What would your daily coffee be worth if invested instead?
Spending $5.50 on a daily coffee costs $2,007 per year. Over 30 years that same money invested at 7% annual return grows to $227,000. The latte factor concept shows how small daily spending habits compound dramatically over decades. Cutting one $5 daily habit and investing it from age 25 adds approximately $150,000 by retirement.
The latte factor is a personal finance concept popularized by David Bach that illustrates how small recurring daily expenses compound into significant sums over decades. This calculator shows the exact opportunity cost of any daily spending habit over your chosen time period.
If that $119/month was invested instead for 30 years:
$299,871 could fund 6.0 years of retirement at $50,000/year
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