The Latte Factor: Why You Don't Have to Be Rich to Live Rich

Thank you to NetGalley and the publisher for providing me with an advanced copy of this book in exchange for an honest review. This is the first personal finance book I've read in this particular format. David Bach tells a parable of 27-year old Zoey who feels lost and seeks guidance for her future. Zoey travels from Brooklyn to the Freedom Tower in Manhattan everyday for work. Her job demands around 50 hours a week but it doesn't ever seem to pay enough to keep up her lifestyle. She doesn't live extravagantly; she has a roommate, she doesn't have a car, she doesn't travel, etc. However, she still has a mountain of debt in credit cards and student loans. Whenever she finds something she'd love to do like traveling or purchasing a beautiful piece of art, she spits out the common refrain, "I can't afford it". She ends up meeting a man of seemingly humble means who teaches her the three simple lessons to financial freedom. I believe I had first heard about David Bach on one of my favorite podcasts, "HerMoney" with Jean Chatzky on Episode 63 about his 18-month sabbatical. I didn't quite relate to that story of his, but this parable of Zoey did speak to me. While I am not 27, I am close to that age and she has many of the same spending habits that catch me up when trying to save. Bach lays out three very simple keys to success. They seem commonsense but many many people don't realize they aren't doing these things and they should! I'm a huge fan of personal finance books and I would highly recommend this fast but motivating book. Fans of Jean Chatzky or Gaby Dunn would love this book. Honestly, immediately after reading the galley, I pre-ordered the book and signed up for follow-up materials on Bach's website. I also checked out two of his previous books, "The Automatic Millionaire" and "Smart Couples Finish Rich", from the library to read next. No more lattes for me! ;)

I read this book, and then a few days later, I reread it. Here is why it inspired my perspective and attitude change toward taking responsibility for my financial independence. It made me aware that only I could guarantee this independence, and it made me aware of the simple and sure ways of how I can do it. It is that simple, that multidimensional, and that powerful. I am a writer myself, also of motivational books. Reading this book reinforced my wish to write some of my books in the form of a parable where the doubts and feelings of the learning character are shown and to which the readers can relate. I felt for Zoey, I rooted for her, I understood what she felt, and as she was, I was inspired by what Henry had to share with her. Just like Zoey, I could see the general misunderstanding of what paying ourselves first truly meant. While reading the book, I applied the ideas described in it to my finances, especially to how I was approaching them. That brought relief because I stopped putting the responsibility on others, or blaming others, or hope for my finances to take care of themselves somehow, and instead, I took care of them myself, in simple and proven ways. I can't recommend enough reading this book. And not only reading but doing so many times. Read it, and you will feel empowered and in control. I will surely read it the third time soon, and sometime later again. Update several rereads and almost two years later: Upon the latest reread in 2021, I became aware of one more area where the Latte Factor can be utterly helpful. It is about engaging in upsets. We can't avoid becoming upset, but we can choose either to stay upset or move on. I heard about this idea from other authors, but reading The Latte Factor helped me recovering from an upset a little bit faster than maybe I otherwise would. Here's how: as soon as I observed myself getting upset about something and didn't judge it, I asked myself if I could save myself trouble and drama by labeling the upset as my latte factor and moving on to what motivated and empowered me. So The Latte Factor approach can help you concentrate on what is important in your life, not only from the financial investment perspective but also how you "invest" your emotions. I found this experience enlightening. I am curious now, what else I will discover when I reread the book next time.

I have read dozens of self help books over the years, many of them devoted to building wealth and prosperity. A common thread that runs through them is the concept of developing a “wealth mindset.” The Latte Factor is the first book to walk me through one person’s story of personal growth, not just in the area of wealth. David Bach has created a beautiful parable of Zoey, a young girl on the path to a rich and fulfilling life. As Zoey’s mentor tells her, “You don’t have to be rich to live rich.” She finds her mentor in the most unlikely place: as a barista in her favorite coffee shop. Henry, who turns out to be much more than “just” a barista, teaches Zoey the building blocks of wealth. The Latte Factor isn’t just about giving up your daily latte or scrimping and scraping to build a nest egg. It’s about setting goals and priorities, and then ensuring that you reach them by paying yourself first. It’s not about creating a budget, eating ramen every day, and never going out with friends. It’s about making those payments to yourself automatic so that you never even miss the money. David Bach, known for financial management books such as The Automatic Millionaire and Smart Women Finish Rich, has paired up with John David Mann to tell a story that is sure to inspire generations of young people to start consciously creating their lives and their financial freedom. And, while the story may be geared toward twenty-somethings, this fifty-something found it inspiring and enlightening. Using a fictional format and the tale of how one young woman learns the key concepts Bach has espoused in his other books, The Latte Factor is sure to become a perennial bestseller.

Great book. It’s clear that the book is written from a man’s perspective. A slight criticism is that sometimes the descriptions of the main character’s feelings and environment’s are flat and repetitive (i.e., her work is in a “production frenzy”, “production uproar”). Overall, it’s a quick and thought-provoking book. I listened to the author’s podcast interview with Paula Pant about the book and I can certainly see the influence of The Alchemist. I’m sure I’ll be visiting this book often in the years to come.

Gave this book to my daughter who is in college, I had done the audible, but the book is always better to have! Small enough to keep in a purse. You will definitely learn some money saving tips, a very easy read!

I really like that this is written as a novel or a parable. This is a great book of simple financial truths for anyone at any age. It will especially appeal I think to those who would not normally read a "financial" book. I had access to an advance copy of the book and found it to be a quick and enjoyable read. I liked it so much I've ordered additional copies to give to my family. This will most likely be my go - to book for graduation gifts as this could change a person's financial life. Personally, I was struck by the the emphasis on having dreams whether they be big or small. It was hard for me to think about putting a small amt aside each month to save for my dream account as I am a late starter to saving for retirement and have children in or starting college. But I was inspired to put aside a small amt each month (even $5/month is better than nothing) so that I can do some of the things I'd like to do for enjoyment. We have to be able to enjoy our lives now as well as thinking about our financial future. I think that is where David's teaching are so different from other financial books I have read. We don't have to deprive ourselves now. We just have to find small areas where we can save some money and then invest that money wisely. I highly recommend the book.

My initial reaction to David Bach’s The Latte Factor was - please don’t tell me that I have to give up my occasional almond milk cappuccino because it is one of the few simple pleasures in my otherwise complicated life. Thankfully, the book is about creating financial health and success so that we can all enjoy the things in life that brings us joy, without any guilt. This motivational book follows Zoey, a 27-year-old editor who is working long hours, living in a cramped apartment in New York and struggling to pay her bills. She gets financial and life advice from Henry, the “barista” at her favorite coffee shop, and her boss, Barbara. It is a very realistic story that unfolds in a manner that keeps the reading invested in the main character and her life choices. The three secrets to financial freedom are: Pay yourself first, make it automatic, and live rich now (after you narrow down what is most important in your life). The most important takeaways for me were: - Get clear on what matters to you. Eliminate some of the extravagances and frivolities and redirect it towards your future. Pay yourself first and then spend responsibly. You don’t have to put off your best life until you retire but you have to make wise decisions. - If you can afford this daily latte, perhaps you are richer than you think - the solution to your money problem isn’t more money; it’ is changing your habits. Your money habits will not change because your income has increased. Invest in a tax-deferred account because your money grows exponentially faster when it is not taxed when you are growing it. - Own instead of renting, and purchase used cars, preferably using cash. The strength of the Latte Factor is that it will surely motivate you to identify what matters the most in your life and put yourself in a position to be financially able to live your best life. Once you are motivated and ready to take action, also read David’s book, the Automatic Millionaire for more detailed instructions.

This is such a great book. Easy to read and great to give as a gift. Similar to The Alchemist, this story fallows Zoey as she comes to a point in her life where she decides if she wants to pursue money or her dreams. It is an investment book that doesn't feel like one. The ideas are very simple but powerful and you can start at any age. Some critics might say that it is impossible to make money using these simple, maybe even boring, ideas. The point of this story is to examine your life and see what steps you can take to make it better. What money are you wasting that you could put towards your retirement. Are you in credit card debt? Are you thinking "how did it get so high so fast?" That is how investing works! This book shows you how to use compound interest for you, instead of against you. I am giving this book to everyone I know! It makes a great graduation gift! I am also giving them Daivd Bachs other books including Smart Women Finish Rich and The Automatic Millionaire.

The way the author presents the topic is nice.

Ottima libro, da consigliare a chi si approccia per le prime volte a questa tematica e non vuole qualcosa di troppo tecnico

Os detalhes do livro ajudam muito a ter uma leitura linear e interessante. Ideias simples, mas que, realmente, quase ninguém faz!

One of the best books of my year, A very refresh book to read at the end or beginning of the year . Highly recommended , specially for young people.

Very interesting if you are trying to get ticher by reevaluating your expenses mindset