You may be asking, “What is the definition of the automatic millionaire latte factor?”
This video/blog review will help. “The Latte Factor” phrase was coined in The Automatic Millionaire by David Bach.
Click this link to find out how you can get big returns from a home-based business!
Automatic Millionaire Latte Factor
There are a couple of principles in here that I believe you will get a lot of value out of and I’m going to put my own spin on it to include the home based business industry, because that is where I make a lot of my money.
I’m going to cover “The Latte Factor,” “Pay Yourself First,” and “Set Up Automatic Payments”
Automatic Millionaire Latte Factor – My Story
For four years as I built an income from home, my income would go up and down. Some months I would make up to $7,000 and other months I made next to nothing. Finally, in 2012 the income became more regular and it was my best year ever. I made the most amount of money I’ve ever made in the home based business industry. (Obviously, 2013 is better already than 2012, but that was the first year that I had over six figures.)
On January 1, 2013, I looked at my savings, my investments and net worth and it was pretty much nothing. I had my best year ever, yet my net worth wasn’t very much. I looked at that and realized that I was doing something wrong. I went back to this book, The Automatic Millionaire and remembered the Latte Factor.
I learned my automatic millionaire latte factor. My new focus became not only making money, but keeping the money I make. There is a huge epidemic in this world…
There are actors and musicians that make millions and spend millions. Even in our profession, people make hundreds of thousands of dollars and will spend hundreds of thousands of dollars.
Towards the end of 2012, we were averaging $10K to $15K in personal income, and we were spending all of that money, interestingly enough.
We spent the money on little things, dumb things. We would go buy couches, televisions, crazy fun stuff and we weren’t keeping any of the money.
This is a disease that I think a lot of people have. The Automatic Millionaire really covers this issue.
What if you don’t have any money? David Bach talks about The Latte Factor…
Automatic Millionaire Latte Factor Explained
What does the Latte factor mean? You want to go through your day and you want to track all of your expenses.
In the book, there was a lady that told the author that it was easy for him to say to save money and invest it. She told him she didn’t have any money.
So, David Bach broke it down. He asked her a series of questions to see what her spending habits were.
She was buying a Starbucks Coffee with a bagel for breakfast. She would purchase a juice while she was at work. The woman had spent over $11 before lunch.
This was the inspiration for automatic millionaire latte factor.
There are small things in our budget that we don’t account for.
Let’s say you cut out $5 a day in expenses you are already doing. Whatever you can cut back $5 a day on… Starbucks, cigarettes, alcohol, going out to for lunch…
Just $5 a day equals $150 a month in savings or investments. In 40 years, that is almost $1 Miliion at 10% annual earnings.
$10 a day would be $1.8 Million. Sometimes you don’t realize how far a few bucks a day can go.
A lot of people are not doing a home based business because they don’t think they can afford it.
Even if you just skipped a latte every day for 30 days, that amounts to $150 per month. Most home based businesses don’t have that overhead every single month. You can afford to get involved in a home based business and also save on taxes. The average person saves $450 per month by having a home based business.
You can have literally millions of dollars by saving only $5 a day. I had my best year and I wasn’t even saving $5 a day. How dumb is that?
Millions of Americans do this. We have an epidemic of financial illiteracy.
My focus in 2013 is not only to make more money, but to save more money, invest more money and teach those principles to our families and our kids.
Automatic Millionaire Latte Factor – Pay Yourself First
Invest in your retirement and your future first, before anything else – at least 10%. Also, put the savings program on automatic payments.
Figure out your latte factor. Take some of that and start putting it into your home based business, investments and future.
I believe that you get more returns on a home based business than any investment out there. Put that money into something that is going to better your future and save the money you earn. Put a little bit aside every single month for retirement, for investing, for building your wealth.
Don’t fall victim to what I did when I made a bunch of money and spent a bunch of money. Sadly, it is human nature. Don’t fall for it. I found my automatic millionaire latte factor.
Automatic Millionaire Latte Factor
Set Up Automatic Payments
Pay your bills automatically. Pay your investments automatically.
I recommend The Automatic Millionaire by David Bach to learn financial principles as well as home based business principles. Find out what your automatic millionaire latte factor is!
If you are looking for more money; maybe you are broke, maybe you don’t know what to do to make money. We have been successfully building a business since 2007. You will be able to get involved and make more money and read books like this to learn how to keep it.
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Results are not guaranteed, they are earned.
Click this link to see average earnings!
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~Mike Hobbs~
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