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“Purchase Your self a F*^king Latte” was one of many extra fashionable items I wrote in 2019. It was a debunking of a ridiculous declare by Suze Orman that purchasing espresso was like “peeing $1 million down the drain.”
Uh, no.
One other foolish spending scold, guilting folks into not shopping for issues they’ll simply afford is one factor. That’s dangerous sufficient, however take into account the hypocrisy of those of us who themselves purchase the types of overpriced baubles they counsel towards.
Helaine Olen (MiB; see endnote right here) has been calling out these of us for longer than any else I recall. However I by no means knew the place these absurd finger-wagging anti-Latte scolds got here from.
Till now.
Right here is Mark Dent of The Hustle:
“The concept fewer lattes may resolve millennials’ monetary woes has been round for greater than 20 years and will be traced to 1 man: a monetary adviser and writer named David Bach.
“Are you latte-ing away your future?” Bach requested in a 1999 e book. “Everybody makes sufficient cash to develop into wealthy. What retains us residing paycheck to paycheck is that we spend greater than we make on stuff we don’t want.”
Bach’s components featured some questionable math. (The annualized returns on the Dow Jones, as an illustration, had been ~9.7% between 1949 and 1999 — not 11% — and even assuming the latter charge, Bach’s personal “Latte Issue Calculator” exhibits that saving $5/day for 40 years wouldn’t produce something near $2m.)”
Now we all know who in charge for this ongoing BS…
Other than the dangerous math and total silliness of the Latte nonsense, the true concern is it ignores the a lot larger concern about median wages. Regardless of current positive factors, median wages haven’t stored up with larger ticket objects like houses over the previous half-century:
Specializing in minutia whereas ignoring a lot larger considerations could also be a fantastic plotline for an episode of Seinfeld, however it’s a horrible approach to interact in monetary planning…
Beforehand:
Purchase Your self a F*^king Latte (April 5, 2019)
Kawhi Leonard, Please Purchase a New Automotive (January 17, 2020)
‘By no means Purchase a Boat’ and Different Misguided Monetary Recommendation (October 3, 2015)
Advise accordingly ( January 15, 2020)
Supply:
‘Simply cease shopping for lattes’: The origins of a millennial housing fantasy
by Mark Dent
The Hustle, June 18, 2022
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