The Latte Factor

A few years ago, I read the book The Automatic Homeowner Millionaire by David Bach. He is the "Finish Rich" guy (http://www.finishrich.com/). Bach contends that most people are able to purchase homes and rent them out to make money. Clearly, this book was written a while ago- long before the mortgage crisis we face today. Back then, the author encouraged people to live cheaply and save, and soon, they would find the money they need to put a down payment on a house. Then these people will find renters to cover the mortgage and upkeep, and before you know it, you're a millionaire. I'm being overly simplistic and trite here, but that is the general idea. And in the proper real estate market, I believe it's a strategy worth pursuing. Yet for me, the flatal flaw in this plan is the latte factor.

Early in his book, Bach dicsusses what he calls the latte factor. He wants the reader to take a long, hard look at the things they spend money on which are unnecessary. For a lot of people, it's expensive coffee drinks. This issue is close to my heart, because I love blowing a few bucks on a latte. Bach would encourage me to make coffee at home, or cut down on my caffeine intake for better health, anyway. But it just isn't that simple. I know I can make coffee at home. I know I should consume less caffeine. I don't even love coffee that much. I really like it, but it's not an uncontrollable adoration that draws me to Starbuck's or Caribou Coffee every day.

So what does? A few things. One, I like getting out of my house. Getting a cup makes me feel like I'm out there interacting with the world, which I don't always do when I'm busy working at home. And for people who do work outstide of the home, I think it's a nice break in the day or a part of a daily routine one can look forward to.

Two, it's such a fun premise under which to get together with a friend. When I was a kid, it was totally respectable to go to a pal's house and just hang out. But now, I'm an adult, and my house is not always clean/guest-ready. And there's something less exciting about it. It's hard to keep the momentum up when your at someone's house. It can also be disctracting-- you catch a glimpse of a picture or a new kitchen appliance, and it ends up being a long conversation about Mexico or pizza dough. Which is fine, but it's not the best coffee talk. There is something about disposable cups of coffee at a cafe that is highly condusive to pure gossip. And I love my gossip. It's probably because you know you can't sit there forever and you want to get to the good stuff. Cafes are also far superior to restaurants in this regard, because you don't have to spend a lot of time thinking about what you want, discussing the menu, and being interrupted by the waiter.

Additionally-- I know this is a horribly consumeristic fat American thing to say-- but, I love to spend the money. I mean, it's not a splurge at Bergdoff's, it's only like four bucks. I don't know why, but it feels good to unleash it. Certainly it's good for the economy, but I don't think that's why I do it. Maybe deep down I like throwing away that money because I know I can. On some level, I don't ever believe that things will get so bad for me that I can't get my lattes. Meanwhile, the truth is that considering my financial goals, I really should not be buying coffee. But when I do, the world/my finances does not actually come to an end. And that makes me feel better about my world/finances overall.

I don't know what the reason is, but I don't think I will ever stop with the lattes. If you ever want to grab a cup, just let me know. I can't resist.