The Latte Factor

David Bach, author of "The Automatic Millionaire", discusses his "latte factor" in an article on Nightingale-Conant's website. A woman named Kim who attended the Bach's personal finance seminar complained that she didn't earn enough to save, and was not participating in the 401(k) available to her through work.

"If Kim took her $5.00-a-day latte allowance and put it into her 401(k) plan instead, by the time she turned 65 she would have approximately $1,742,767 saved for retirement."

You can read the complete article here.