Do you have a latte factor ? Rich people are different from what you think !
"The rich people have money because they value money very seriously. They used to compare this and that. They don’t think it’s okay to spend a small amount of money, and they don’t want to spend money to buy things that are “meaningless” because they are just It's a waste of money!"
"Latte Factor" may be the reason that makes you poor
"A cup of Starbucks coffee priced more than 100 pesos is ridiculous" ! Today, most Filipino employees receive less and less salaries and must strive to pursue the era of small bliss, but a cup of coffee with more than 100 pesos is definitely not affordable for ordinary people.
You might think that money for a cup of coffee is nothing at all. However, rich people don’t think so. Many rich people would rather drink their own coffee instead of paying a higher price for a cup of US$2.5 Latte, because in their eyes, the price of coffee in chain coffee shops such as Starbucks is "ridiculous", "It only costs 20 cents to make your own coffee at home."
The term "latte factor" is derived from the proposition of David Bach, "the chief financial guru of the United States": If you save a cup of latte money every day (assuming about 150 peso per day), invest it with a good return rate, with an annualized interest rate of 5%, wealth has increased to 6,944,477 pesos after 40 years. Are you surprised to see this ? And this is the effect of compound interest in general !
As for the "latte factor" formula, a very important premise is "time." The earlier you plan, the more beneficial you will accumulate wealth.
Find out the loopholes in financial management similar to latte in time, don't let bad habits steal your money mindlessly, accumulate wealth from scratch, and let yourself become rich slowly !
4 things that rich people insist not to buy: coffee, clothes, taking a business class, keeping a car...
The rich are really different from what you think! In addition to being unwilling to spend money on coffee, they also don't like spending money on clothes. You may hardly imagine that the founder of Quantum Fund Jim Rogers wears holes in his clothes. In this regard, he not only Not ashamed, but generously expressed that my desire is very low: "I rarely buy clothes. I buy clothes only once in 4 to 5 years. Not only clothes, but I rarely buy other things."
Jim Rogers takes himself as an example to remind young people: "Young people love to spend but don't like to save. This is not a good habit. Save as much as possible while young..." In his concept, young People just have to save more money ! Although today he is a world-renowned investment guru with a super wallet, Jim Rogers has reduced his personal consumption desire to "lead by example". His daughter has practiced using piggy banks to save money since she was 5 years old. Until now, there are 5 piggy bankers. He couldn't help sighing: "Young Americans now really love to spend money..."
In addition to the aforementioned coffee and clothes, rich people don’t want to spend their money on taking "business class" or keeping "cars." Among them, the main reason for choosing to take economy class is that it’s a waste of money, "I just can’t convince myself to go" Fly in business class or first class..." They have their own "method", which is more comfortable and atmospheric than sitting in business class, like bringing their favorite food, preferably another glass of wine, and eating It seems to be more delicious.
Also, more and more wealthy people choose to take public transportation or use ride-sharing services. They believe that they don’t need to spend money to keep a "car", "car maintenance and insurance cost money, and depreciation..." , In terms of estimation, if you spend US$25,000 on a car, you may only have US$12,000 left after two years. Taking public transportation or sharing a ride with others can save a lot of money. That's great !