The Case For Treating Yourself

It’s not just about the latte.

If you’re new to my financial advice, you may think to yourself: what\’s with all this talk about lattes? She must really, really like coffee. Even though yes, I do really, really like coffee—my latte motto is not just about caffeine; it\’s a financial philosophy.

Other financial experts will tell you that giving up your daily coffee-shop-runs will save you more than $1,500 per year. I hear it all the time: if you invest $5 a day for 40 years, you could earn close to $1 million if you manage to get a return of 10%. But remember: not drinking coffee doesn’t mean you will become a millionaire automatically. Cutting out lattes doesn’t mean that you won’t spend that $5 a day elsewhere.

A financial diet is like a regular diet: crash-dieting rarely works, and only leads to binging. Allow yourself the small indulgences—lattes, takeout from your favorite restaurant, a Netflix

NFLX
subscription—while keeping an eye on the bigger picture. Stick to those harmless pick-me-ups so that you don’t blow your money on something more expensive in the heat of the moment. Chances are that when you go on a spending binge, the results are more costly than you expected, which will only lead to more of an emotional roller coaster ride.

Here’s my advice:

Nix the guilt around splurging on yourself. You shouldn’t feel guilty if your small indulgence is planned and accounted for in your overall spending plan. I always say that investing in yourself is the best investment you will make. Studies have shown that taking care of yourself and your happiness is directly correlated to doing better at work.

Plus: if you do better at work, then you make more money. If that morning latte is going to help you feel better and be more productive, it’s worth it.

Keep in mind, in the end, money is there to enjoy. It’s not worth your valuable time to get overly bogged down in the small expenses. Don’t add to your stress levels by worrying about the small things that make your day better.

Cheers to your latte!