The Latte Factor

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Well-known member
Oct 7, 2008
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Somehow this dude got wind of this as I INVENTED THIS! Yes, I did. My friend the real estate appraiser making 3 figures and went bankrupt, and this was ten years ago. Before this bankruptcy fall we sat down with a calculator and worked out the latte cost involved in her job. This is in SEATTLE, so you have espresso stands even out in the blinkin' woods!
So her drink of choice "double tall breve latte" was at that time rounded off with tax about $4.50 (For those who do not know BREVE means made with 1/2 and 1/2 instead of milk, this is another thing we GIVE away at our inns, people use the creamer like it is SOUP instead of whitening their coffee they use it like a latte!)
She had one in the morning as she headed out. She often would have one in between appraisels as she would go in and write it all up or wait the 1 hr for the "comp" photos to be printed at the hour photo place so she could overnight the whole thing (this was pre digital, I actually gave her my very first 2 megapixel digital camera) and it wasn't that long ago! haha.
So that was two per day. $ 4.50 + 4.50 = $9.00 per day is $3,168 per year, $15,840.00 is 5 years. (this is just for a coffee for herself)
There were two appraisers in their family, she and her husband, and he drank the sweeter blended drinks, Frapps, etc. You could easily double these figures.
So we worked it out. We did not even need to discuss how much YOU COULD HAVE should you have invested even with the most meager savings percentage rate.
$9 per day at 3% interest
$3,383.55 in 1 years.
$6,868.61 in 2 years.
$10,458.21 in 3 years.
$14,155.51 in 4 years.
$17,963.73 in 5 years.
$38,788.61 in 10 years.
$62,930.36 in 15 years.
$90,917.26 in 20 years.
$160,973.80 in 30 years.

The Latte Factor Calculates How Cutting a Small Expense Adds Up to Big Savings[/h1]
click here
So we can use this for ourselves or our businesses. Hopefully each one of us realizes the cost per expense in this B&B business. As I have shared, the little soaps, the little chocolates, the little extras do add up. Are we getting the best bang for our buck?

Now if you are like us, going to a coffee on the weekend is an event, or used to be. It was an outing, a fun get together with friends. But grabbing them for the convenience factor when we could make them at home, is another story. This is when it becomes a wasteful luxury item we need to watch. As the authro states, this is the difference between accumulating wealth and living from paycheck to paycheck. By changing our habits just a little we may impact our future!
Latte Factor Calculator here


Staff member
May 22, 2008
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Several years ago we pointed out to our middle son how much his cigarette habit was costing - something he had not thought about until we put it into an annual cost.


Well-known member
Feb 24, 2011
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Several years ago we pointed out to our middle son how much his cigarette habit was costing - something he had not thought about until we put it into an annual cost..
When I taught, I did this as an exercise in Excel. At $9.50 a packet and a packet a day it quickly adds up. The students in their 20s soon found out that with inflation and taking interest into account, they could have a million dollar retirement fund.... or cigarettes.


Well-known member
May 30, 2008
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South Carolina
My $6.99 Bodum Latte Milk Frother more than paid for itself in just a couple of coffees!!