Latte Factor is more than Coffee

A few years ago, David Bach coined the phrase "Latte Factor" in his book, The Automatic Millionaire. Latte Factor refers to the small expenses that drain money from your wallet without you noticing such as buying coffee. Even though it is called the Latte Factor, it can refer to many things such as bottled water, magazines, etc.

There was a recent article about frozen yogurt becoming the new Latte Factor.

It is okay to spend money but it is important to realize how much you are spending and what you are spending your money on. It is referred to as conscious, when you are thinking before spending money on something and deciding if you really need to purchase the item.