Everyone of us I guess have been bombarded by media directly or indirectly that investing is one of key of wealth creating. There are lot of means of commanding your money to work harder for you such as you buy property, you invest in shares market or through mutual fund and etc. Either you are born rich or you just do not believe or do not care about, I guess most of us would have considered any chances presented in front of us if it can make us richer even by small margin. In fact this is the most important of mindset that the rich have in mind. We must strive more positive increment of our wealth. I heard lot of my friends or colleagues complain that they have too much commitments that their salary merely enough to cover. They have no extra left to invest. I believe it's true till certain extent and myself was a believer of the above comment too. We just hope that next year we can get salary increment to facilitate our investment dream. We got increment as expected and that's why we are still working in same company or same field. But I challenged that u still have not squeezed out the little extra to start investing unless you deliberately being conscious. Everyday we are all exposed to fallacies merchants are imposing through their glamor advertisements. So we end up getting new 3G hand phone, branded clothes and etc to match our income level. So we are back to square.
For most of us, the faster and most effective way to control our financial fate is to identify how much we have wasted our potential wealth on unnecessary small things such as morning dose of starbucks coffee which cost about 3.5 dollars. That's the concept of Latte Factor popularized by David Bach.In the nutshell, it's just very simple concept, you just got to cautious of every small money you spend and think twice whether you can indeed convert it back to yourself. This is powerful when it put into daily practice. This idea indeed help me to make decision to cut down my satellite tv channels subscription or switch to a lower cost mobile service provider. Let's me tell you, it's just a myth that everyone should abandon that their life quality have been compromised by living below one's mean. We are so used to living in premium standard even thought we only have 24 hours a day and we can't fully utilize resources that we purchase.The extra money we just savage are to be channeled back to our investment pipeline.
The first exercise you got to do is track your daily expenses to weed out the Latte Factor. If that amount is insignificant compare to your investing plan, try further to identify your double Latte Factor. You got to believe me you do not need to keep tracking long term basis if you have sincerely perform an analysis. I stopped tracking once my latte factors are surfaced. Here is my reason.
Good luck trying.
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