Creating a budget was somewhat of a challenge as I had no benchmark from which to start. So I created a first pass and these past few weeks I have been diligently writing down every cent that I spend so that I can truly know where I stand.
It is amazing how the knowledge of later having to write down my expenditure, that small bit of accountability makes me reconsider every purchase.
Richard Bach coined the term “latte factor” in his financial guidance books. Your latte factor are the things you spend only small amounts of money, perhaps even pocket change, but over the course of weeks, months and years it truly adds up to significant amounts. This can be $3 a day on coffees or other purchases that can be cut without significantly altering your lifestyle. I am eagerly anticipating the identification of my own latte factors and determining what can be reduced.
