Highly sought after expert in personal finance, Elaine King, appeared as a guest on one of the most popular network programs in the Hispanic market, Un Nuevo Dia.
During the interview, the expert and author gave practical advice for individuals hoping to curb their spending. Using practical examples from everyday life, King highlighted how expenses can quickly add up. For example, if you buy a $3 cup of coffee every day, do you know how much you’d have spent by the end of the year? $1,095.
Expenses like a daily cup of coffee can add up fast over longer periods of time such as a month or a year. These expenses are known as “The Latte Factor”, explained Elaine King during an interview on Telemundo’s program, Un Nuevo Dia.
Over the course of the interview, King, a bilingual financial planner, shared how small, unnecessary expenses like snacks, bottled water, cigarettes, and of course, coffee, can have a negative impact on your budget. Instead, the founder of Family and Money Matters Institute says that people should make their coffee and prepare snacks at home.
However, to save money, King recommends that you should have a goal in mind. The goal might be to go on vacation or build up an emergency fund. In any case, the goal will help motivate you to stop spending money on “Latte Factor” items that drain your bank accounts before your very eyes.
This doesn’t mean that you have to say goodbye to treating yourself! Once you reach your savings goals, King, a Certified Financial Planner, suggests that you indulge yourself with a small reward. Whether you enjoy a meal out, get your nails done, or buy yourself a new clothing item, the reward will help keep you motivated to save again! Just remember that the cost of your reward should be reasonable.
Learn additional tips and tricks for avoiding The Latte Factor and how to improve your personal finances by watching the whole interview!