4 ms·

One thing I like about the HN crowd is that they’re typically data people, who can probably add up in their heads how much a $4 latte a day for 10 years equals,

One thing I like about the HN crowd is that they’re typically data people, who can probably add up in their heads how much a $4 latte a day for 10 years equals, and what that same return would look like if invested in the S&P 500. Most people won’t come to the conclusion to invest $4 a day in an index, but might instead buy a nice espresso machine to make the drink at home because they know exactly when the payoff date is. A successful person probably won’t stop drinking lattes, but they’ll change their habits, which is often very hard in practice. Being successful in finances is about being disciplined, not necessarily about living a spartan lifestyle. Often times that means trading comfort and convenience for something else (money) and I’d wager that mental trade is a winnowing fork for people who will have very different life outcomes.

jadell 7y ago
It's an old joke, but relevant to the discussion: Woman: Do you drink beer? Man: Yes Woman: How many beers a day? Man: Usually about 3 Woman: How much do you pay per beer? Man: $5.00, including tip Woman: And how long have you been drinking? Man: About 20 years, I suppose. Woman: So a beer costs $5 and you have 3 beers a day, which puts your spending each month at $450, or $5400 annually. Not accounting for inflation, you have spent $108,000 in the last 20 years! That money could've been put into an investment account and, after accounting for compound interest for the past 20 years, you would now have enough money to buy a Ferrari. Man: Do you drink beer? Woman: No Man: Where’s your Ferrari?
- lostmsu 7y ago
  In my backyard o-O
gist 7y ago
The latte argument (popularized by that other writer) completely ignores the fact that buying and drinking a latte (or money spent on any entertainment, travel etc) provides in theory an uplift in someone's day which may actually have a long term benefit. In happiness, interactions with other people, mood and so on. (Note I say some not all people). Also it's never a good idea to assume that something that is not important to you personally (or that you can forgo) is the same to someone else. This argument even comes up with respect to the number of hours someone works. Some people love to push this idea that 'you have to relax and take time off' as if everyone feels the same way and does not like to work like a 'workaholic'.
- ghaff 7y ago
  Lattes are a convenient example of a "money leak" because I suspect they don't really add value for many people but are instead a rote thing they stand in line to do every morning. If they're an important step in starting your day or they're a "tax" to give you an hour or two of coffeeshop work time, great! But it's pretty reasonable to think about routine or automated purchases that are just habits.
yks 7y ago
By buying a $4 latte you're depriving retired yourself of $8 (if you're going to buy a latte per day until retirement)

jadell 7y ago

It's an old joke, but relevant to the discussion: Woman: Do you drink beer? Man: Yes Woman: How many beers a day? Man: Usually about 3 Woman: How much do you pay per beer? Man: $5.00, including tip Woman: And how long have you been drinking? Man: About 20 years, I suppose. Woman: So a beer costs $5 and you have 3 beers a day, which puts your spending each month at $450, or $5400 annually. Not accounting for inflation, you have spent $108,000 in the last 20 years! That money could've been put into an investment account and, after accounting for compound interest for the past 20 years, you would now have enough money to buy a Ferrari. Man: Do you drink beer? Woman: No Man: Where’s your Ferrari?

lostmsu 7y ago
In my backyard o-O

gist 7y ago

The latte argument (popularized by that other writer) completely ignores the fact that buying and drinking a latte (or money spent on any entertainment, travel etc) provides in theory an uplift in someone's day which may actually have a long term benefit. In happiness, interactions with other people, mood and so on. (Note I say some not all people). Also it's never a good idea to assume that something that is not important to you personally (or that you can forgo) is the same to someone else. This argument even comes up with respect to the number of hours someone works. Some people love to push this idea that 'you have to relax and take time off' as if everyone feels the same way and does not like to work like a 'workaholic'.

ghaff 7y ago
Lattes are a convenient example of a "money leak" because I suspect they don't really add value for many people but are instead a rote thing they stand in line to do every morning. If they're an important step in starting your day or they're a "tax" to give you an hour or two of coffeeshop work time, great! But it's pretty reasonable to think about routine or automated purchases that are just habits.

yks 7y ago

By buying a $4 latte you're depriving retired yourself of $8 (if you're going to buy a latte per day until retirement)