Optimal Finance Daily · Wednesday, September 16, 2026
Lama Faron, a certified money coach, explains the 'latte factor' as the phenomenon of small, everyday expenses accumulating significantly over time. She suggests that tracking spending for a month can reveal these common money leaks, which often distract from building wealth.
“Maybe the biggest misconception about building wealth is that it is a function of our income. In reality, is much more a function of our spending habits.”
“He describes the small amounts we spend here and there as the latte factor. It comes from the notion that if we added up the cost of our daily lattes and saved it or invested it, we could build up wealth significantly faster.”
“I challenge them to track every expenditure for one month. I can almost guarantee that those who complete the challenge will be surprised to discover where their money has been disappearing to.”