15 Simple Living Tips to Bring out the Best in You

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2. DECREASE “THE LATTE FACTOR” SPENDING

Every time we go to Starbucks, my husband asks me if I want to order my usual “cost-a-latte.” Even one drink a week for a month adds up to $15-20 which is why we only frequent the place if we’ve been given gift cards.

These little purchases can eat away at your budget and leave you wondering where all your money disappeared at the end of the month. The financial planner we consulted described these small amounts as “holes in your bucket.”

This metaphor creates the perfect visual to what these small purchases will do to your budget over time.

David Bach coined the phrase “latte factor” to relate these small purchases to the expensive coffees being sold. He has a great calculator that will show you how much those little purchases would be worth over the course of several years.

That $4 coffee each week for 10 years at a modest 3% interest would be worth almost $2500. If you instead saved the $4 per week, you could pay for a semester’s worth of college for a child.

Try these 22 simple living tips which work together to create an amazing, well-oiled machine. It’s easier than you think to create a simple life for your family.

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