‘Latte Factor’ A technique for turning trivial expenses into a lump sum of money

Even though we have earned a lot of money, how come there’s never any money left to save? Today ACU PAY will present you an interesting saving technique called “Latte factor”

Latte factor means ‘money that we have overspent on something’ The more things that are considered as Latte Factor, the more causes that make your money disappear. How to apply this technique and how to overcome those latte factors? Let’s find out by reading this article!

What is a Latte Factor?

Latte is the name of a type of coffee. This is a concept of David Bach, a Financial Advice Expert and American Writer, this concept came from a young woman who asked him: “A little salary, little savings, where do the money to invest come from?”

This theory arises from the lives of ordinary people who buy coffee every day. Unconsciously spending a small amount of money, but when thinking about calculating it as a lump sum spent on coffee per year, it was found that this is not a very small amount.

Latte factor is not only coffee costs like its name but it is just a theory name to imply expenses, including expenses that we may not think about such as

  • Costs of coffee, beverages, and snacks 
  • Costs when you are eating out
  • Costs of entertainment media
  • Cost of telephone bill
  • Cost of lottery tickets
  • Costs of goods being purchased to win a  prize
  • Costs of online shopping


Those costs, if we spend without thinking, might seem like a little cost. However, if we just think about those expenses, for example, if you buy a lottery ticket of 1,000 baht per time and in a  month there will announce the lottery prize 2 times, which means that you have to pay for lottery tickets 2,000 baht per month or 24,000 per annum. This is an example of money where we don’t even know where it went.

How to defeat Latte Factor

Of course, something we have been doing for a long time isn’t easy to quit immediately, but there are four ways to beat the Latte Factor, turning small money into big money.

  1. Keep a record of income and expenses

Have you ever wondered where your money goes? There may be a lot of people asking themselves ‘where did my money go?’ because a few days after you received your salary, all of your money in the bank account is all gone. Doing a record of income and expenses will let you know what items you have spent money on the most each month to see what trivial expenses that have to be eliminated. 


  1. Do not rush 

Some trivial expenses do not need to be 100% eliminated from our lives or else our lives will become too gloomy. Try lowering the rate of expenses such as coffee costs: From those who eat only famous brands, you may try to order coffee that is affordable and of the same quality. At least you can save tens of baht in one day.


  1. Question yourself before spending

When you see cute miscellaneous things with cheap prices and you buy it without thinking whether it is necessary for you or not. Those may seem like little expenses, but they can be accumulated into a great amount of money.  Try asking yourself whether you need this thing or not. If you can reduce these expenses, why don’t we try it!


  1. Take the remained money to invest

When you can be self-controlled by stopping spending money on everything you want, these small amounts of savings can be used to increase value and generate future returns, such as buying long-term funds to produce growth.

This is a technique of turning a very trivial expenditure into a lump sum of money. If you want to be more disciplined in saving, try doing this and apply it to yourself. It is guaranteed that you will surely have the savings you are looking for.

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