Latte Factor Calculator
David Bach popularized the term "Latte Factor" to symbolize the high cost of small, periodic spending. It is why Starbucks is rich and you are not. For example, just input $5 daily for fancy coffee over a period of 40 years at 10% and see what happens. You'll be shocked. Now add in the magazines you don't read, eating lunch out for convenience, the boat you don't use, the storage locker fees to hold your junk, and so on... Now you know why saving money can seem so difficult.
What you will notice is the true cost of spending is the forgone interest earnings compounded over many years - not the actual money spent. Few people really understand this.
A few things to keep in mind: