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Naturally Curious

We are all told, “live your life to the fullest”; I am here to do just that. My Ways serves as a vessel to project my passions and clue in my loyal readers as to what inspires me in this crazy world. So, sit back, relax, and read on.

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3 Effortless Ways to Build Wealth and Be Happy- The Latte Factor

What if I told you, you can live the life of your dreams and be rich without the need of making more money?

We often think that for one to be rich, we need to work more. True, there is a strong positive correlation between working more and earning more; however, do you know what that means as well? Working more hours= making more money= less time spent at home = less time to focus on family = less time to focus on oneself = decreased level of happiness = decreased level of life satisfaction. As humans, we are always chasing for more but think about it. Do you want to work 70-80 hours per week just to make an extra couple of bucks in a job that perhaps doesn't fulfill your purpose?

Here is where the Latte Factor comes into play. After reading the book- The Latte Factor written by David Bach, the author revolutionized the concept of smart spending and teaches us valuable money lessons on how to build wealth effortlessly from a cup of latte.



1. Little actions matter- What is the Latte Factor? The concept is very easy. It is about those meaningless, day- to day discretionary purchases ( such as a cup of a latte) that when cut down and put into investing can have a surprising effect. We all love our morning coffee, but do we really need it? Why not make coffee at home and carry it with us? Let's do a simple experiment on how much we can make by saving 5$ per day for one year. Let's suppose you save $5 a day for 365 days. That's equal to $1825. Invest it in the stock market with an annual interest of 10% return for 10 years. That's equal to $4733.58! This clearly shows you how small cost-cut actions which are equivalent to a cup of latte can have a powerful financial effect and contribute to a wealthy life. The concept is not just applicable to lattes, but to any insignificant expenses that add no value to our lives.



2. Be an Owner, not a Buyer - As human beings, we have the tendency to compare ourselves to other people in terms of looks, possessions, and success in life. When we look at someone wearing fancy, extravagant, and lavish apparel, we tend to say "wow this person must be really rich." Here is what I think - you can deceivingly look rich, but not be rich. Being rich doesn't come from owning depreciating items like expensive bags, clothes, shoes, but rather owning assets that appreciate in value over time such as stocks and real estate.

The stock market is the easiest way to build wealth. There is a huge misunderstanding behind the stock market that to be an investor you need to be an expert in the field. I think that with a bit of research, and with a little of a bit of money, you can start owning shares of any companies you like, that you believe will significantly grow over time, and boom- here is the secret to building a wealthy life.

Imagine if you bought Amazon's stock when it first went public at $18 and how rich you would have been by now. Yes, I know!



3. Put everything in Autopilot - For some people sitting down with pen and paper and writing down all their expenses can be a real hassle. One solution? Automate everything! David Bach suggests putting all your expenses in automation. If you have savings account, emergency funds, retirements, debt to pay, and brokerage accounts, put everything in automation. All you need to do is decide how much you want to allocate and where!



In life, it is the little actions that matter and contribute to one's success.

The Latte Factor illustrates the concept of building a prosperous and well-off life by simply making smart lifestyle choices and using your current income without hunting for $$$! If your end goal is to retire early, travel more, then start with as little as $1 dollar a day, and let the magic of compounding do its trick. Don't chase for more; you are richer than you think.








It's the little details that are vital. Little things make big things happen.

- John Wooden