Enough with the coffee talk.
A huge percentage of personal finance advice revolves around espresso-based shame, or trying to convince people their small daily indulgences are paving the road to ruin. And a huge percentage of people ignore personal finance advice. Coincidence?
That’s Nick Maguilli’s view on his blog, Of Dollars and Data, and we concur. In place of guilt, he offers this advice: “Anytime I want to splurge on something, I have to take the same amount of money and invest it as well.” Go ahead, buy yourself those AirPods Pro — but be sure to drop $350 in equities. And if the combined cost of $700 is more than you’d like to spend, then … don’t. It’s effectively a 100% tax on unnecessary spending levied by your future self.
Latte guilt makes no sense if lattes are fulfilling and affordable.
Maguilli also recommends weighing each purchase by how much long-term fulfillment it offers, an immensely worthy exercise that leads back to some serious reflection about who you are and what you truly value (lattes). Which you should do! But in the meantime, double each splurge and invest the rest.