The problem of spending every month is certainly not the same for everyone. Sometimes there are expenses that are not realized and trigger a risk called latte factor for some people.
Each person also has a different list of needs and wants, so how to manage spending is different. For those who are already earning, what about your monthly expenses?
Have you ever heard the term and danger latte factor? Term latte indeed refers to the hobbies of people who often drink coffee and hang out, without thinking about the future effects.
The effect here is not about gastric health, but financial.
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Related to the extravagant lifestyle who likes to hang out and drink expensive coffee
Latte factor increasingly familiar in the community after being introduced through a book by David BachLatte Factor (2019). Although in fact this term has been known since several years ago.
David Bach himself is a motivator and entrepreneur who is fairly successful in America.
According to Bach, many people in their daily lives are not aware of small expenses, but over time it becomes an extravagant lifestyle.
This extravagant lifestyle arises because of the habit of often buying small things, for example while hanging out at coffee shop famous and buy drinks like coffee latte which is relatively expensive.
Because the amount is large, so not a few people regret it later on
Actually, the dangerous expense here is not only coffee, but also anything that is done everyday.
For example, buying snacks, even though the nominal is small, but if it is calculated for a month or even a year, then the nominal will shock you.
For example, let’s say for example that you always buy coffee or snacks at night for Rp. 20 thousand.
In one week, the money spent is Rp. 140 thousand. If multiplied by a year, then the total spent can be up to 7 million more.
Not a few later regretted because a hefty amount of expenditure should have been saved, invested, or for more important purposes.
The danger of this latte factor can occur in young people to adults. That’s why in this era of practically nothing, basic skills about managing finances are very necessary.
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Not only coffee, but also applies to transportation costs and secondary needs
It turns out latte factor This doesn’t just apply to coffee or food and drink.
What is more is spending on secondary needs such as new shoes, new clothes, grooming, branded bags, or accessories you don’t really need.
Another big expense is online transportation or taxis which can actually be saved by using public transportation such as trains or buses.
In fact, the awareness of Indonesians in terms of setting aside income is still relatively low.
According to survey Share Wallet from Kadence International Indonesia, it can be seen that people only collect 8% of their income for savings.
When you realize the impact, then try to overcome it
Realizing the danger latte factor which is quite fatal in the long term, but not realized. So we should be aware of the bad effects.
Like how? Here are some practical steps.
Make a daily expense list
What needs to be done is to identify some daily expenses that are not really important. If so, try to minimize spending as much as possible, especially for things that are desirable.
Understand the purpose of spending
It must be understood carefully, whether the money spent can add more value to yourself or just fulfill a momentary desire.
Spending to add skills and experience is certainly smarter than for consumptive things.
Challenge yourself to save
Sometimes people who are less controlled about money are due to a lack of motivation. Even though you have long-term goals, sometimes there are still a lot of temptations.
That’s why it’s so important to challenge yourself to save. Periodically can provide present to yourself when you have reached the target savings amount.
You could say that everyone has latte factoritself and the amount is not the same. But with a disciplined way of recording income and expenses, the negative effects can be avoided.