The Power of Money by @JulieMoneyCoach

The Power of Money - The Latte Factor

by Julie Feuerborn, CFP© | Featured Contributor

These two simple concepts are the most powerful tools when it comes to saving money.  They will transform how you think about savings and spending.

They are the Latte Factor and the Sprinkle on Top.

Here’s a Latte Factor example:

A latte at Starbucks costs $2.95 (We’ll say $3 to make it easy.)  If you buy one latte, 5 days per week on your way to work, that works out to:

$ 3/day

$ 15/week

$ 60/month


Over 10 years that is $7,200!  The question that needs to be asked is whether that latte today is worth not having $7,200 ten years from now. Or do we want to create the opportunity to save?

Now it gets even better.  Let’s say that you invested that $15 every week into an account that earns 6% interest.  After 10 years you would have an account balance of $10,898.  After 30 years is would be worth $60,271.  And that is the effect of compound interest which is interest earned on the interest that was already earned.  (That is the Sprinkle on Top.)

It’s not just the latte, but also all of the other items that we unconsciously spend money on.  If we add them all up, what would that total be?

If you want to feel the power of saving, challenge yourself to save every week for a month and watch your account grow.  Soon you will be in the habit and could have a sizeable nest egg in your future.  It doesn’t matter how much you start with, but starting is the key.  When that Latte Factor gets bigger and bigger as you become aware of where you spend money, you will be motivated to find other ways to save.

If $50 is saved every week, that total after 30 years is $200,903.  Wow!!

We all know that we are supposed to save.  Having money saved reduces stress and frees us to enjoy life knowing that we are preparing for the future.


Julie The Money Coach Julie Feuerborn, CFP© is Julie The Money Coach which is the business she founded to empower others to take control of their financial destiny.

Clarifying the financial world for her clients is her passion.  She eliminates the fear around making financial decisions by educating and mentoring (and sometimes hand holding) which creates financial confidence.  She loves when a client understands the role money plays in her life because it creates peace of mind and because it adds a whole new level of possibilities for her clients to live the life they deserve.

Julie has followed her dream and since 1994 Julie has divided her time between Colorado and the UK with her husband and the youngest of their four children.  She currently lives in rural England where she enjoys going for long walks and watching the sheep in the fields.  Her other passions include international travel, reading, yoga, meditation, hiking and camping.

To read more about what Julie has to say go to:  Julie The Money Coach blog

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