The Latte Factor

By Linda Stern
Wed Dec 7,12:31 PM ET

If you've read it once, you've read it a dozen times: Cut out those daily lattes if you want to save enough for retirement.

The so-called "latte factor" is so widely used in this context that it's now in dictionaries, defined as "seemingly insignificant daily purchases that add up to a significant amount of money over time."

That is certainly true. But it's a little preachy, too, isn't it? Aren't you grown up enough to figure out how much you can and should spend on your morning cuppa?

You probably already know it's smart to brew your own and bank the savings. But sometimes (here comes the heresy) that caramel macchiato, enjoyed with friends, is worth more than $5 in the bank, isn't it?

What would really help are some big money savings: Tips for trimming your expenses in ways that you might not know about and that would save you far more than the price of a cup of coffee.

Go here to read a list of cost-saving opportunities.