Wednesday, February 07, 2007

The latte factor

I've been looking for ways to increase my savings without having to take a second job. Why? Several things. Like A changed jobs last year and his income decreased, plus we had some added expenses. And a couple of years ago, I had to help my family out and that took a chunk of change; thank goodness we had the money saved. I want to make sure we are set if another emergency comes up again. I want to retire early. Enough reasons?

I've been doing some reading online and discussing this with some friends. But as you know, money is a touchy topic and there are only so many people you can discuss money with honestly and without judgement. Most of the online reading is for people who are worse off than we are. I don't need to learn how to decrease my credit card debt since I don't have any. I'm pretty sure we spend less eating out than most middle class couples. I know that we spend as much in a month on dining out, as a friend spends in a week. Though both amounts are probably extremes rather than the norm.

A friend loaned me a book by David Bach, Smart Couples Finish Rich. He and Dave Ramsey and other financial gurus talk about the "latte factor." Basically, if you take the money you "waste" on lattes (or eating out or buying things full price, etc.), you could save hundreds if not thousands of dollars a year. My "problem" is I don't spend money on things like that. I buy maybe 10 fancy coffees a year. I usually have leftovers for lunch. Hardly ever buy books, music, clothes. Our biggest splurge is our cars. Not that they are fancy or anything, just that we like to buy them new. Since my car is twelve years old and A's car is three (but we'll keep it until it's in the double digits), we're willing to take the depreciation.

I feel like I'm already making sacrifices for my future and not enjoying my life now. Do you have any advice for me?

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