The Latte Factor: Why You Don't Have to Be Rich to Live Rich Kindle Edition

This book tells the story of a New-York-City twenty-something magazine editor who learns the "secrets" of financial freedom from a wise old barista. (Spoiler: He OWNS the coffee shop!)So that you don't have to wade through hours of really clunky writing, here they are:#1: Save part of your paycheck in a 401K or IRA. Pay more than your minimum credit card payment every month.#2: Use automatic transfers so you don't have to think about it.#3: Go have fun as if you had lots of money.The last one is what the book promises: "Why You Don't Have to Be Rich to Live Rich."Exactly how that's supposed to happen gets glossed over. We're told that the wise old barista was once an architect who felt unfulfilled until he quit his job and bummed around Europe for months, only to return to the States, get a business loan and start a coffee shop, which became the core of his financial empire.Of course, he somehow already had enough savings to just drop everything and go to Europe. And being White and educated, he was able to get a small business loan. His coffee shop was an unmitigated success, even though according to the Small Business Administration, 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10. But his somehow magically succeeds.The main character follows suit and requests six weeks off a year from her job so that she can bum around Europe. So she takes a pay cut (never mentioned) and then spends a bunch of money (never mentioned) traveling. Her boss kindly holds her job for her. Of course, the author glosses over the fact that taking off that much time would put her below full-time employment, which would mean she loses her benefits--including the vaunted 401K. Her boss doesn't say, "Who will do your job when you're gone?" but instead agrees on the condition that the protagonist mail postcards back to the office.She manages this while also building a savings for retirement at $25/day and creating travel and photography funds that she contributes to every month. The wise old barista shows her how for just $25/day, she can retire as a multi-millionaire due to the "Miracle of Compound Interest." Of course, for thirty days, that's $750--Over $9K a year.Where does the money for this come from? Not from getting a higher-paying job or even using a job offer as leverage for a raise--no, it comes from the protagonist's "Latte Factor": the fact that she spends about thirty bucks a day on lattes, fresh juice, and eating at her work cafeteria instead of bringing her lunch. Of course, the barista/coffee shop owner is quick to remind her that she doesn't actually have to quit drinking lattes; in fact, she becomes a regular at his shop.For a book about financial freedom, the math doesn't add up.Along the way, we get introduced to a stereotypical oil baron (reformed to be into green energy now) and his drawling wife. In typical New York fashion, NYCers are portrayed as the default and outsiders are comical stereotypes who only got their lives together with the help of the New York barista/real estate mogul.We also get treated to the dramatic deathbed conversion of the main character's mother, who falls ill at a moment critical to the plot, such as it is.My advice: Skip this book and put the money in your 401K.

The Latte Factor is a parable about a young women named Zoey Daniels who is struggling to meet her life goals while living paycheck to paycheck. As she seeks to make some changes in her life, she meets people who share three life lessons. The lessons are simple but profound. Zoey is changed during her journey of discovery. I was blown away by the simplicity of the book and the strength of the message. This book is geared to young people, and I have already ordered fifteen additional copies to share with millennials who should enjoy the story and can benefit from it. But I, a women in my 60’s, was so impacted by the book that I have decided to pursue a passion that I never thought I would be able to do. I highly and enthusiastically recommend this book.

The Latte Factor is an easy to read story which teaches you how small amounts of money saved over time can change your life. Despite what some people think, the book does not say you must stop buying lattes. Instead, it teaches you ways you can fulfill your current dreams while also saving for your future. I have personally used some of David Bach's methods from previous books and they have worked for me. This book would be especially good for high school or college students, but it's never too late to start using these methods. You are richer then you think! I only wish I knew about them when I was much younger.

This book has inspired me to live richer and teach others to do the same! Amazing book. Thank you David Bach

I was up in the wee hours for way too many nights worrying about bills and how to pay them - and then I found David Bach's easy to read and implement books over ten years ago. I read and use every book he has written, and our bank account breathes a sigh of relief because of his easy steps. I went from paying credit cards with other credit cards (ugh!) to "Paying myself first", building a retirement account, savings accounts, and having money to take a vacation with the family each summer. David Bach has a huge heart and believes your values come first. Then he gives you the way to use your current income to live what is most important to you. It's not about coffee, but I have saved money buying less coffee out, and applying the "Latte Factor" idea to eating out less, buying clothes I didn't really need, and watching my savings grow. Finding my money leaks and understanding how money invested grows and grows has given me calm, contented, anxiety-free nights. Thank you, David Bach!

This is such a great book. Easy to read and great to give as a gift. Similar to The Alchemist, this story fallows Zoey as she comes to a point in her life where she decides if she wants to pursue money or her dreams. It is an investment book that doesn't feel like one. The ideas are very simple but powerful and you can start at any age. Some critics might say that it is impossible to make money using these simple, maybe even boring, ideas. The point of this story is to examine your life and see what steps you can take to make it better. What money are you wasting that you could put towards your retirement. Are you in credit card debt? Are you thinking "how did it get so high so fast?" That is how investing works! This book shows you how to use compound interest for you, instead of against you. I am giving this book to everyone I know! It makes a great graduation gift! I am also giving them Daivd Bachs other books including Smart Women Finish Rich and The Automatic Millionaire.

This book contains information that everyone should learn. I first stumbled upon David Bach when I was in high school and read Smart Women Finish Rich. 10+ years later I bought the updated version of Smart Couples Finish Rich. This book is an easy read which takes all of that information and more and makes it even more relatable. I'm giving this book as graduation gifts this year because as we learn in the book, it's never too soon to invest in yourself.

This is a very quick read, about 90 minutes and you will be done. It highlights three main principles that helps to live rich and it does this through a parable of a 27 year old Zoey who worked as an associate editor for a large publishing company and has always had difficulties to become financially abundant and manage her money better.Some people will read the book and be angry at how small it is or the fact that it is very simple/basic. If you already are in a habit of saving money and understand the principle of compound interest then this may not give you much in the way of new information. However, for anyone who finds it difficult to have a budget or not able to set aside any money for savings then this can be a powerful book to help them get inspired to change this.It would probably help someone who has just graduated and get some perspective on long term savings and financial abundance. You can pick up lots of the information in the book from the interviews that David Bach has been doing e.g. With Lewis Howes or Marie Forleo. However, the book looks to bring this to life through a story, it also then quantifies and demonstrates some of the Maths on how the savings can work out over a long period of time. For example it shows that if you saved $5 a day for 40 years then you could save up close to a million dollars with a 10% interest rate, highlighting the power of compound interest.Now, it may be difficult to find an investment vehicle that will give you a consistent 10% but the principle is showing how you can save with what you have even with a lower interest rate, you are richer than you think and also whilst in 40 years the value of the your savings will not be as great as today due to inflation, you will non-the-less have some sort of savings which is better than having nothing or being in debt and you can be in control now by at-least starting the process.The book is American based so talks about a 401k for saving. Whilst it doesn't talk about other specific techniques, the principle is all about putting aside small amounts of money and saving this, leveraging the concept of compound interest.Whilst the book is called the Latte Factor, it is not just about stopping drinking Lattes from expensive coffee shops and saving up the money but more about looking at what expenses do you already have that you can cut back on and put towards a savings pot and how can you automate this so you don't have to figure out complex budgets.The story brings in different concepts as it develops the character of Zoey and as she interacts with a wise Barista in a coffee shop. I found it inspiring and thought provoking. It could be life changing for you if you are at a stage where you are not able to save as much money and are worried about your future and what you can do to make it better. I have given this 4 stars as I think it could have gone into more depth and also maybe provided further resources in understanding next steps.What I really liked is two things:- He is not trying to sell you any product in the book. He is simply demonstrating concepts through a parable- There isn't too much waffle in it. He uses a short story to demonstrate powerful concepts and this can have a great impact depending on what stage of your life you are in.

At 42, I'm kicking myself AND feeling so hopeful for both the present and future. I never EVER read financial books but somehow managed to finish this in an evening. It's a lovely story about a young woman trying to navigate her life (and financial future) in the big city (ie this was me about me 15 years ago) with the help of the unlikeliest of encounters. It's the kind of parable your grandmother would tell you - elegant, beautiful and full of wisdom.Next, I'm planning on reading "The Automatic Millionaire", followed by "Smart Women..." and "Start Late...". I don't know about you but I'm super excited! :)Thank you David and John, I'll keep you posted on my progress.

Easy and quickly digestible information, the story helps to make sense of some difficult topics to get your head around. Upbeat and light makes the topic of finances seem not too heavy. Great advice for any age but especially younger people after university. Only issue is how hard it is to find the opportunity of 10% interest and I feel a bit more information on this would be useful otherwise the numbers can feel a bit misleading for the average market. It does mention a chart with smaller percentages and how much can be saved, and it is still an eye opening amount. Overall is very useful!

I have read the other book, Automatic Millionaire but this is another master piece. I literally finished reading it in 24hrs. I was surprised by how easy it is to read and understand, Its basic. Like a story book. Read and give to anyone under 20 to read for head start. Amazing book

The Latte Factor is not a book about stopping buying coffee but rather about focusing attention and money on what is important to you. I think this book is a great gift to give young people starting out who wouldn't want to read a heavy book about investing in the Stock markets and rates of return. I wish I had read this book when I was younger as there are some valuable lessons to be learnt in a friendly and easy to understand way. Thank you David Bach for this and all your other books.