"Cut that daily $5 latte adored by the middle class" In theory (as presented by David Bach's latte factor (haven't read it but have heard of it)) but in practi

"Cut that daily $5 latte adored by the middle class" In theory (as presented by David Bach's latte factor (haven't read it but have heard of it)) but in practice unless it's forced savings people tend to spend differently if they have money and resources just because they feel secure and have a safety net. So they can take more risk. The other thing that the "latte factor" doesn't take into account is the positive benefits of that $5 purchase. You go somewhere, you feel good perhaps that has an impact greater than just drinking coffee that you make yourself. There is a psychic benefit.