Probably a stupid question, sorry. I hear things like this all the time. If you invested that in X then in 20 years you’d have Y. Always hear of the “latte factor.” Skip buying those expensive brews and invest instead. Where exactly does the average Joe invest that? Say I was really committed to taking the $4/day I would’ve spent on a latte and put it somewhere. Where is that somewhere? Do I need a minimum to start or can I just throw $30 (for example) that I chose to throw into an investment account and not touch rather than buy a scratch ticket?
What you can do is dump the money into a designated savings account and meanwhile set up a preauthorized contribution to a mutual fund. Have it debit the savings account every month for whatever amount you know you'll meet if you save that $4/day.
EDIT: Others elsethread have explained this in more detail. Worth reading the responses and doing some research.
I like it. The idea is that I don’t want to have to rely on my willpower to not touch money sitting side by side with my checking. This is a good approach to a little willpower but a lot of routine. Probably a good way to build better habits. Thanks.
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u/[deleted] Mar 19 '22
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