by
Garrett Clark
Wealth Management
How Skipping a $6 Coffee Could Turn Into $60,000
The Power of Small Habits and Big Financial Wins
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We’ve all heard it before—“Just skip the coffee.” It’s a common personal finance mantra that often gets dismissed as simplistic or even annoying. But behind this cliché lies a powerful truth: small, consistent habits can have massive long-term results.
What if that $6 coffee you grab every morning wasn’t just a pick-me-up… but a missed opportunity?
Let’s dive into how something as ordinary as skipping a $6 coffee can turn into a $60,000 financial boost—and more importantly, what that lesson means for building your retirement fund, especially if you're young, self-employed, or just getting started.
The $6 Coffee That Costs More Than You Think
Let’s set the stage:
You buy a $6 coffee on your way to work, school, or the gym. It’s not a big deal—it’s $6. But like most habits, you do it often. Let’s say five times a week.
Here’s what that looks like in a year:
$6 x 5 days/week = $30/week
$30/week x 52 weeks/year = $1,560 per year
That’s $1,560 that vanishes annually, usually without a second thought.
Now, extend that habit over a decade or two. That’s $15,600 to $31,200 in spending—not on life-changing experiences, investments, or retirement—just on coffee.
And again, this is just one spending habit. Factor in fast food, extra streaming services, spontaneous Amazon buys, or unused subscriptions, and you’re easily spending thousands a year on things that don’t build your future.
What Happens If You Invest That $1,560 Each Year?
Let’s take that exact $1,560 and put it to work instead of putting it in a cup.
If you consistently invest $1,560 per year in a retirement account with an average 7% annual return (a realistic historical return based on diversified stock market investing), here’s how your money can grow:
Years | Annual Contribution | Total Invested | Estimated Value (7% Return) |
|---|---|---|---|
10 | $1,560 | $15,600 | $21,848 |
20 | $1,560 | $31,200 | $51,893 |
25 | $1,560 | $39,000 | $74,368 |
30 | $1,560 | $46,800 | $105,745 |
So yes, that $6-a-day habit—if redirected—can very realistically become $60,000+ in 25 years.
If you start at age 25, by the time you're 50, you’ll have a solid extra cushion without doing anything radical—just redirecting a small, everyday expense.
We’ve all heard it before—“Just skip the coffee.” It’s a common personal finance mantra that often gets dismissed as simplistic or even annoying. But behind this cliché lies a powerful truth: small, consistent habits can have massive long-term results.
What if that $6 coffee you grab every morning wasn’t just a pick-me-up… but a missed opportunity?
Let’s dive into how something as ordinary as skipping a $6 coffee can turn into a $60,000 financial boost—and more importantly, what that lesson means for building your retirement fund, especially if you're young, self-employed, or just getting started.
The $6 Coffee That Costs More Than You Think
Let’s set the stage:
You buy a $6 coffee on your way to work, school, or the gym. It’s not a big deal—it’s $6. But like most habits, you do it often. Let’s say five times a week.
Here’s what that looks like in a year:
$6 x 5 days/week = $30/week
$30/week x 52 weeks/year = $1,560 per year
That’s $1,560 that vanishes annually, usually without a second thought.
Now, extend that habit over a decade or two. That’s $15,600 to $31,200 in spending—not on life-changing experiences, investments, or retirement—just on coffee.
And again, this is just one spending habit. Factor in fast food, extra streaming services, spontaneous Amazon buys, or unused subscriptions, and you’re easily spending thousands a year on things that don’t build your future.
What Happens If You Invest That $1,560 Each Year?
Let’s take that exact $1,560 and put it to work instead of putting it in a cup.
If you consistently invest $1,560 per year in a retirement account with an average 7% annual return (a realistic historical return based on diversified stock market investing), here’s how your money can grow:
Years | Annual Contribution | Total Invested | Estimated Value (7% Return) |
|---|---|---|---|
10 | $1,560 | $15,600 | $21,848 |
20 | $1,560 | $31,200 | $51,893 |
25 | $1,560 | $39,000 | $74,368 |
30 | $1,560 | $46,800 | $105,745 |
So yes, that $6-a-day habit—if redirected—can very realistically become $60,000+ in 25 years.
If you start at age 25, by the time you're 50, you’ll have a solid extra cushion without doing anything radical—just redirecting a small, everyday expense.
“Wealth isn’t built overnight, it’s built one small decision at a time. Even $6 can shape your future.”
Garrett Clark
Director of Sales
The Latte Factor Isn’t About Deprivation—It’s About Leverage
The “latte factor” was coined by bestselling author David Bach. It's not literally about lattes—it's about the idea that small, everyday expenses we don’t track or question are silently preventing us from building wealth.
This isn’t about making you feel guilty for buying coffee. It's about giving you a choice:
Keep spending $6 a day for a short-lived benefit, or
Reallocate those dollars toward a future with more options, freedom, and peace
We’re not suggesting you live without any luxuries, but by choosing intentionality over impulse, you unlock financial leverage.
The Real Hero: Compound Interest
Compound interest is often called the “eighth wonder of the world.” Why? Because once your money starts earning returns, those returns start earning more returns. Over time, your money grows faster than it seems possible.
Here’s a visual:
Year 1: You invest $1,560 → You earn $109 in interest
Year 2: You invest another $1,560 → Now your interest is based on $3,229, not just $1,560
Year 10: You’ve invested $15,600 → But your account is worth $21,848
Year 25: You’ve invested $39,000 → But your account is worth $74,368+
It’s not about how much you invest—it’s about how early and consistently you do it.
Solo 401(k) or Roth IRA: Where Should You Put Your Coffee Money?
If you’re self-employed, run a side hustle, or earn 1099 income, one of the best places to invest this money is in a Solo 401(k) or Roth IRA.
Here’s a quick comparison:
Feature | Roth IRA | Solo 401(k) | |
|---|---|---|---|
Tax Treatment | Tax now, grow tax-free | Tax-deferred or Roth (your choice) | |
Contribution Limit | $7,000 (under 50) | Up to $69,000 (2024 limits) | |
Investment Options | Stocks, EFTs, Mutual Funds | Traditional or self-directed | |
Income Limits | Yes | None |
If you’re just getting started, a Roth IRA is simple and powerful.
But if you want control, especially over alternative investments (like real estate or precious metals), a Solo 401(k)—especially one structured with an LLC—offers more flexibility and higher contribution limits.
And yes, that small $1,560 investment could serve as your entry point.
Practical Tips to Make This Shift
You don’t need to abandon joy or live on instant ramen. Here’s how to painlessly start turning coffee money into retirement gold:
1. Automate Your Investing
Set up a recurring weekly deposit of $30 (or a monthly $130) into your Roth IRA or Solo 401(k) account. You’ll barely notice it’s gone.
2. Use “No-Spend Days”
Challenge yourself to skip non-essential purchases one or two days a week. At the end of each no-spend day, transfer what you would have spent into savings.
3. Get a Round-Up App
Use apps like Acorns or Stash that automatically round up your purchases and invest the change. You’ll be surprised how fast it adds up.
4. Start a “Guilt-Free Spend” Fund
Give yourself a monthly allowance for things like lattes—but keep it capped. What’s left over can go straight into your retirement account.
5. Track Your Progress
Watching your retirement balance grow is addictive in the best way. It keeps you motivated and reminds you that every skipped impulse is building a better future.
Peace of Mind Beats Instant Perks
Imagine you’re 60 years old.
You’ve built a $100,000 nest egg from small, simple financial decisions made decades earlier. That money could:
Fund your travel dreams
Cover medical costs
Help your kids pay for college
Allow you to retire earlier than your peers
Give you the peace of mind that you don’t have to worry
Now ask yourself—was the daily $6 coffee worth giving all that up?
Build Wealth One Day at a Time
Financial freedom isn’t about giant paychecks or windfalls. It’s about what you do with the money you already have.
The $6 you spend every day isn’t the problem. The real problem is not realizing its potential.
So, whether it's a coffee, a subscription, or daily takeout, know this:
Every dollar has a future. It’s either spent today… or invested for tomorrow.
Start small. Start now. Because your tiny habits today shape your massive success tomorrow.
Want to learn how to turn small savings into serious retirement growth?
Visit Survival401k.com and discover how a Solo 401(k) can help you maximize your future—even if you're starting with just coffee money.
The Latte Factor Isn’t About Deprivation—It’s About Leverage
The “latte factor” was coined by bestselling author David Bach. It's not literally about lattes—it's about the idea that small, everyday expenses we don’t track or question are silently preventing us from building wealth.
This isn’t about making you feel guilty for buying coffee. It's about giving you a choice:
Keep spending $6 a day for a short-lived benefit, or
Reallocate those dollars toward a future with more options, freedom, and peace
We’re not suggesting you live without any luxuries, but by choosing intentionality over impulse, you unlock financial leverage.
The Real Hero: Compound Interest
Compound interest is often called the “eighth wonder of the world.” Why? Because once your money starts earning returns, those returns start earning more returns. Over time, your money grows faster than it seems possible.
Here’s a visual:
Year 1: You invest $1,560 → You earn $109 in interest
Year 2: You invest another $1,560 → Now your interest is based on $3,229, not just $1,560
Year 10: You’ve invested $15,600 → But your account is worth $21,848
Year 25: You’ve invested $39,000 → But your account is worth $74,368+
It’s not about how much you invest—it’s about how early and consistently you do it.
Solo 401(k) or Roth IRA: Where Should You Put Your Coffee Money?
If you’re self-employed, run a side hustle, or earn 1099 income, one of the best places to invest this money is in a Solo 401(k) or Roth IRA.
Here’s a quick comparison:
Feature | Roth IRA | Solo 401(k) | |
|---|---|---|---|
Tax Treatment | Tax now, grow tax-free | Tax-deferred or Roth (your choice) | |
Contribution Limit | $7,000 (under 50) | Up to $69,000 (2024 limits) | |
Investment Options | Stocks, EFTs, Mutual Funds | Traditional or self-directed | |
Income Limits | Yes | None |
If you’re just getting started, a Roth IRA is simple and powerful.
But if you want control, especially over alternative investments (like real estate or precious metals), a Solo 401(k)—especially one structured with an LLC—offers more flexibility and higher contribution limits.
And yes, that small $1,560 investment could serve as your entry point.
Practical Tips to Make This Shift
You don’t need to abandon joy or live on instant ramen. Here’s how to painlessly start turning coffee money into retirement gold:
1. Automate Your Investing
Set up a recurring weekly deposit of $30 (or a monthly $130) into your Roth IRA or Solo 401(k) account. You’ll barely notice it’s gone.
2. Use “No-Spend Days”
Challenge yourself to skip non-essential purchases one or two days a week. At the end of each no-spend day, transfer what you would have spent into savings.
3. Get a Round-Up App
Use apps like Acorns or Stash that automatically round up your purchases and invest the change. You’ll be surprised how fast it adds up.
4. Start a “Guilt-Free Spend” Fund
Give yourself a monthly allowance for things like lattes—but keep it capped. What’s left over can go straight into your retirement account.
5. Track Your Progress
Watching your retirement balance grow is addictive in the best way. It keeps you motivated and reminds you that every skipped impulse is building a better future.
Peace of Mind Beats Instant Perks
Imagine you’re 60 years old.
You’ve built a $100,000 nest egg from small, simple financial decisions made decades earlier. That money could:
Fund your travel dreams
Cover medical costs
Help your kids pay for college
Allow you to retire earlier than your peers
Give you the peace of mind that you don’t have to worry
Now ask yourself—was the daily $6 coffee worth giving all that up?
Build Wealth One Day at a Time
Financial freedom isn’t about giant paychecks or windfalls. It’s about what you do with the money you already have.
The $6 you spend every day isn’t the problem. The real problem is not realizing its potential.
So, whether it's a coffee, a subscription, or daily takeout, know this:
Every dollar has a future. It’s either spent today… or invested for tomorrow.
Start small. Start now. Because your tiny habits today shape your massive success tomorrow.
Want to learn how to turn small savings into serious retirement growth?
Visit Survival401k.com and discover how a Solo 401(k) can help you maximize your future—even if you're starting with just coffee money.
We’ve all heard it before—“Just skip the coffee.” It’s a common personal finance mantra that often gets dismissed as simplistic or even annoying. But behind this cliché lies a powerful truth: small, consistent habits can have massive long-term results.
What if that $6 coffee you grab every morning wasn’t just a pick-me-up… but a missed opportunity?
Let’s dive into how something as ordinary as skipping a $6 coffee can turn into a $60,000 financial boost—and more importantly, what that lesson means for building your retirement fund, especially if you're young, self-employed, or just getting started.
The $6 Coffee That Costs More Than You Think
Let’s set the stage:
You buy a $6 coffee on your way to work, school, or the gym. It’s not a big deal—it’s $6. But like most habits, you do it often. Let’s say five times a week.
Here’s what that looks like in a year:
$6 x 5 days/week = $30/week
$30/week x 52 weeks/year = $1,560 per year
That’s $1,560 that vanishes annually, usually without a second thought.
Now, extend that habit over a decade or two. That’s $15,600 to $31,200 in spending—not on life-changing experiences, investments, or retirement—just on coffee.
And again, this is just one spending habit. Factor in fast food, extra streaming services, spontaneous Amazon buys, or unused subscriptions, and you’re easily spending thousands a year on things that don’t build your future.
What Happens If You Invest That $1,560 Each Year?
Let’s take that exact $1,560 and put it to work instead of putting it in a cup.
If you consistently invest $1,560 per year in a retirement account with an average 7% annual return (a realistic historical return based on diversified stock market investing), here’s how your money can grow:
Years | Annual Contribution | Total Invested | Estimated Value (7% Return) |
|---|---|---|---|
10 | $1,560 | $15,600 | $21,848 |
20 | $1,560 | $31,200 | $51,893 |
25 | $1,560 | $39,000 | $74,368 |
30 | $1,560 | $46,800 | $105,745 |
So yes, that $6-a-day habit—if redirected—can very realistically become $60,000+ in 25 years.
If you start at age 25, by the time you're 50, you’ll have a solid extra cushion without doing anything radical—just redirecting a small, everyday expense.
“Wealth isn’t built overnight, it’s built one small decision at a time. Even $6 can shape your future.”
Garrett Clark
Director of Sales
The Latte Factor Isn’t About Deprivation—It’s About Leverage
The “latte factor” was coined by bestselling author David Bach. It's not literally about lattes—it's about the idea that small, everyday expenses we don’t track or question are silently preventing us from building wealth.
This isn’t about making you feel guilty for buying coffee. It's about giving you a choice:
Keep spending $6 a day for a short-lived benefit, or
Reallocate those dollars toward a future with more options, freedom, and peace
We’re not suggesting you live without any luxuries, but by choosing intentionality over impulse, you unlock financial leverage.
The Real Hero: Compound Interest
Compound interest is often called the “eighth wonder of the world.” Why? Because once your money starts earning returns, those returns start earning more returns. Over time, your money grows faster than it seems possible.
Here’s a visual:
Year 1: You invest $1,560 → You earn $109 in interest
Year 2: You invest another $1,560 → Now your interest is based on $3,229, not just $1,560
Year 10: You’ve invested $15,600 → But your account is worth $21,848
Year 25: You’ve invested $39,000 → But your account is worth $74,368+
It’s not about how much you invest—it’s about how early and consistently you do it.
Solo 401(k) or Roth IRA: Where Should You Put Your Coffee Money?
If you’re self-employed, run a side hustle, or earn 1099 income, one of the best places to invest this money is in a Solo 401(k) or Roth IRA.
Here’s a quick comparison:
Feature | Roth IRA | Solo 401(k) | |
|---|---|---|---|
Tax Treatment | Tax now, grow tax-free | Tax-deferred or Roth (your choice) | |
Contribution Limit | $7,000 (under 50) | Up to $69,000 (2024 limits) | |
Investment Options | Stocks, EFTs, Mutual Funds | Traditional or self-directed | |
Income Limits | Yes | None |
If you’re just getting started, a Roth IRA is simple and powerful.
But if you want control, especially over alternative investments (like real estate or precious metals), a Solo 401(k)—especially one structured with an LLC—offers more flexibility and higher contribution limits.
And yes, that small $1,560 investment could serve as your entry point.
Practical Tips to Make This Shift
You don’t need to abandon joy or live on instant ramen. Here’s how to painlessly start turning coffee money into retirement gold:
1. Automate Your Investing
Set up a recurring weekly deposit of $30 (or a monthly $130) into your Roth IRA or Solo 401(k) account. You’ll barely notice it’s gone.
2. Use “No-Spend Days”
Challenge yourself to skip non-essential purchases one or two days a week. At the end of each no-spend day, transfer what you would have spent into savings.
3. Get a Round-Up App
Use apps like Acorns or Stash that automatically round up your purchases and invest the change. You’ll be surprised how fast it adds up.
4. Start a “Guilt-Free Spend” Fund
Give yourself a monthly allowance for things like lattes—but keep it capped. What’s left over can go straight into your retirement account.
5. Track Your Progress
Watching your retirement balance grow is addictive in the best way. It keeps you motivated and reminds you that every skipped impulse is building a better future.
Peace of Mind Beats Instant Perks
Imagine you’re 60 years old.
You’ve built a $100,000 nest egg from small, simple financial decisions made decades earlier. That money could:
Fund your travel dreams
Cover medical costs
Help your kids pay for college
Allow you to retire earlier than your peers
Give you the peace of mind that you don’t have to worry
Now ask yourself—was the daily $6 coffee worth giving all that up?
Build Wealth One Day at a Time
Financial freedom isn’t about giant paychecks or windfalls. It’s about what you do with the money you already have.
The $6 you spend every day isn’t the problem. The real problem is not realizing its potential.
So, whether it's a coffee, a subscription, or daily takeout, know this:
Every dollar has a future. It’s either spent today… or invested for tomorrow.
Start small. Start now. Because your tiny habits today shape your massive success tomorrow.
Want to learn how to turn small savings into serious retirement growth?
Visit Survival401k.com and discover how a Solo 401(k) can help you maximize your future—even if you're starting with just coffee money.