How Latte Factor Ruins Your Dream of Buying a House



Laila Afifa

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  • TEMPO.CO, JakartaHave you ever heard about the 'latte factor’ lifestyle? This term was popularized by financial expert David Back, which refers to the small yet routine daily expenses that could be eliminated.

    According to him, several activities within the definition of the Latte Factor includes spending time in 'hip' coffee shops, constantly purchasing bottled water, buying snacks, up to the extra charges in conducting bank transfers.

    It is believed that these activities are frequently done by the millennial generation for the sake of social media existence, following trends, or impulsive shopping. However, this tendency is also the cause of this generation to not be able to own a property. 

    “Because without realizing it, the latte factor can eat a person’s income that would lead them to not be able to save money,” said Managing Partner Grant Thornton Indonesia, Johanna Gani, in a release on October 30.

    The lifestyle is viewed to be unfortunate as properties can be profitable investments in the long run. It can also become an asset and basic need to protect oneself. It is unsurprising that Joanna calls for people, especially millennials, to realize what the latte factor is doing to a person’s life. 

    Ways to control it can be done by taking notes on daily spending and by the end of the day determine which ones are insignificant and can be eliminated to eventually form a stable financial condition. Money saved can be diverted to managing a down payment for a property If a person is able to control or these small and continuous expenses.