Habit Wealth Impact
Habit Cost Calculator
See how much daily small expenses like coffee runs, takeout meals, or small treats compound into lost wealth over time.
Habit Details
Compounded Savings Potential
Monthly Cost
$162.50 / mo
1-Year Cost: $1,950
5-Year Cost: $9,750
10-Year Invested Potential (7%): $27,965
The Latte Factor: How Micro-Habits Drain Wealth
The concept popularized by financial author David Bach as "The Latte Factor" demonstrates how daily micro-purchases ($5 coffee, $15 takeout lunches, $10 snacks) compound into tens of thousands of dollars in lost investment growth over a decade.
Compound Wealth Equation
Investing a daily $7.50 coffee habit ($162.50/mo) into a index fund returning 7% annually turns into $27,965 in 10 years and over $83,000 in 20 years. You don't have to eliminate every vice, but understanding opportunity cost puts you in control.