There’s this tired cliche in the personal finance world that if you just “skip your latte” you’ll save X dollars per month and be rich over time. Let me be clear: Your coffee ain’t your problem. We make serious progress with money by focusing on the BIG things. Increasing income, paying down debt, minimizing housing and transportation costs, and investing the difference between income and expenses.

BUT a lot of people when they’re jumping on the bandwagon to knock the “skip the coffee” thing do some bad math. They add up all the costs of the coffees over the years and point out that it wouldn’t even be enough for a down payment for a house. THAT’S TRUE, but we shouldn’t just be putting our coffee savings under the mattress. We should be INVESTING it. Investing in the stock market has returned an average of 10% per year for the last 100 years or so. 10% vs 0% can turn your mocha money in to big bucks!

So enjoy your life! Drink your starbs when you want it. But don’t forget to invest too along the way. You’ll be happier today knowing you’re building something and happier later when you’re rich! 🙂

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy