TNFG Weekly is a dose of my favorite content on the internet on one specific topic. It’s like free styling with one concept.

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Table of Contents

Three key Concepts of the Latte Effect

To quote my Brother-in-Law when he is dealing Blackjack, “Two cups Too many.”

Focusing just on coffee misses the point entirely. The Latte Effect applies to everything from how much we pay for TV subscriptions, gym, Peloton, multiple cars in the parking lot of your home.

Most families have a problem with over spending as a mean to derive happiness. It’s important to rethink old habits that got you here in the first place and regain control of the direction of your life.

Understanding, the Latte Effects can help you see the power of your earned income. Every dollar that comes through our hands has multiple possibilities attached.

Compounding Side Effect: Money invested over time compounds. Even small amounts, $3.50 a day at 6% results $106,000 in 30 years.
Time: You are literally buying back your own time. You can retire earlier while enjoying café in Italy, paid for by dividends from your investments.
Return: Time in the market is always better than timing the market.

All of these three are the basic variables of wealth. Wealth equals CONTRIBUTIONS x TIME x RATE OF RETURN. The more fuel you add to the fire the better. The more time you let the ball roll down hill, the faster. The better the ROI, the more money you will get back.