Summary

The article argues that small indulgences like a morning latte contribute to personal happiness and productivity, which are essential for successful investing and overall success.

Abstract

The author of the article challenges conventional investment advice, suggesting that the common recommendation to forgo small daily luxuries, such as a morning coffee, for the sake of saving money is flawed. Instead, the author emphasizes the importance of doing things that make one happy, like enjoying a coffee or taking a walk, as these activities can lead to increased productivity, creativity, and well-being. The article highlights the personal journey of the author, who experienced significant improvements in physical health, mental clarity, and financial success after incorporating daily rituals and prioritizing self-care. The author advocates for a balanced approach to saving and investing, where occasional spending on things that bring joy and motivation is not only acceptable but beneficial for long-term financial health.

Opinions

Conventional investment advice, such as skipping daily luxuries to save money, is not practical or beneficial for everyone.
Engaging in activities that bring happiness, like buying a morning latte, is crucial for maintaining a positive mindset and successful investing.
The author's personal experience shows that overworking and neglecting personal well-being can lead to negative outcomes, both physically and mentally.
Taking time for oneself, such as going for walks or enjoying a coffee, can enhance productivity and creativity, ultimately leading to greater financial success.
The article suggests that a strict focus on saving money at the expense of all non-essential spending is an unrealistic and inhuman approach to life.
The author believes that investing in daily rituals and experiences that contribute to one's happiness is a form of investment in personal success.
The pandemic provided the author with an opportunity to reassess work habits and prioritize health and well-being, leading to increased earnings and better financial management.

Don’t Give Up Your Morning Latte

You’ll still be able to retire

So much conventional investment advice stinks.

Like “pay yourself first.” For many of us, it simply doesn’t work. It can cause you to quit investing altogether, as it did me.

Or the notion that you’ll need at least a million bucks saved to retire. Not true.

Then there’s the idea that if you just kicked the morning Starbucks (or your local coffee shop) habit, you’d end up rich.

**My Local Coffee Shop in Silverlake, Los Angeles / Source: Author**

The retirement experts make you feel guilty for buying a latte every morning.

Because if you didn’t, you’d save $5 a day. And $5 a day equals $35 a week. And $35 a week equals $1,820 a year, which invested every year over forty years at an 8% rate of return, turns into $471,482.86.

In theory, that sounds great.

As someone who advocates as low a cost of living as possible, it even makes me think twice about my coffee habit. But then I think again. Because it’s not about the cup of coffee. It’s not about the $5 a day. It’s bigger than that.

If you’re not doing things — seemingly small things — that make you happy, you’re not going to be a successful investor. You’re not going to be successful at anything.

You’ll probably be physically and mentally unhealthy as well.

I used to work 12 to 16 hours a day. I rarely exercised. I considered taking a walk or going for a run leisure. If I wasn’t working, I wasn’t making money. So doing anything other than work made me feel irresponsible, even worthless.

Then I got fat. Close to 200 pounds. I’m only 5' 6". I hated my job. I was disgusted with myself. I was anxious and depressed.

While I wasn’t happy with my weight, that wasn’t the reason why.

There was a restlessness alongside angst I couldn’t kick. I was working so hard I thought, why wasn’t I crushing it?

So I quit my job writing about stocks and started bartending.

Being in a more social job helped. I lost weight. I was having more fun.

But I still wasn’t close to where I wanted to be physically and mentally.

Then the pandemic hit. Being forced to stay at home and go back to writing was the best thing that ever happened to me.

With so much time on my hands, I realized something.

When I work less, I produce more. When I produce more, I make more money. When I make more money, I save and invest more of it, especially without the opportunity to blow it in bars and restaurants.

I love walking, but I never let myself do it.

When the quarantine hit in March, I forced myself to take advantage of the time. I started walking a minimum of four miles a day, at least six days a week. Some days I walk well over four miles. I frequently hit double digits.

I do 100 push-ups most days of the week.

I am 40 pounds lighter than I was five years ago. I am gaining muscle, losing fat. I look better than I did in high school. I feel better too.

I don’t feel guilty when I take walks. In fact, I never regret taking a walk. That’s when the article ideas flow. That’s when I strategize most effectively about life and my next steps.

The simple act of walking makes me more productive, creative, and content.

Same with the morning coffee. Sometimes I get one in the afternoon too.

There’s something about the ritual of it all. The interaction with the barista. The waiting in line. Savoring the drink. If I gave it up, I’d miss the experience.

I view this quick, daily act the way I view a walk.

Technically, I am spending money I could be saving, but the coffee ritual sets my day on track. It establishes a healthy mindset for my day.

I’m making and investing more money than I ever have.

You might not drink coffee. Or maybe you make it at home. You might not like to walk. Maybe you jump rope or go to the gym.

Whatever.

If you’re not doing things that help settle you. If you’re not making an investment in things that help keep you in the right mindset most days, you’re going to be less productive.

Very few people — I’d go so far to say — nobody can work all of the time and spend money only on necessities. It’s not only impossible, it’s not human and can be counterproductive.

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