Common financial advice says if you sacrifice your daily latte, you’ll be a millionaire in less than a year! Ok, so maybe not that quick and maybe that’s a bit snarky.
The intention of the advice is well-meaning but it’s missing the point. It focuses only on the cost side of using your money and says nothing about the outcome or the result of your spend.
- What if your latte keeps you in a positive mood throughout the day so when you go home from work, you hug your wife and play with your kids.
- What if your latte is spent on catching up with your parents, when someday you will wish you had more time with them.
- What if your latte was shaping the next generation to be better than the one before or was spent with the greatest generation to learn life lessons from those that have been through it all.
- What if your latte was with your best friends laughing about the craziness of life.
- What if your latte was growing and maintaining your industry network to continually improve and innovate.
- What if your latte helps you wake up and crush your morning workouts.
Daily lattes are merely an example of an input that derives an output. Investing is all about allocating a cost to yield a return.
Start looking at your costs from an input / output perspective and know that some of the output won’t be financial. Experiences can be more valuable than “stuff”.
We also value experiences more than the things that clutter our house and collect dust. Dollar for dollar, experiences can be better investments. Maybe millennials are right. See below for a study done by Cornell University.
So go ahead and have your latte.
P.S. It’s been a while since I’ve written. We had a great time as a family in Minnesota and just the two of us in Bermuda so I’ve been MIA for a while. School’s back in now and I am back on the routine train along with prepping for next triathlon season!
P.p.s. I am more an Americano fan.