Do Not Cut Latte Money

Financial planners often say to "cut latte money" when building assets, but I do not give that kind of advice.

This is because those few hundred yen are exactly what become the seed money that generates millions in the future.

Today, I will dare to write about the reasons why I am a proponent of latte money.

What is latte money?

In the first place, latte money refers to small, habitual expenditures, like the cost of a single cafe latte, that accumulate unconsciously and put pressure on household finances.

This includes things like impulse buys at convenience stores,
drinks from vending machines,
in-game purchases for smartphone games,
and ATM fees.

It is considered a hindrance to asset building because "dust piled up becomes a mountain" when it comes to large expenditures. It seems to be a concept where the money saved is redirected toward savings or investments, leading to future asset growth.

I agree with managing latte money, but I am against cutting it.

In financial planning consultations, it seems to be a rule to always give the advice to "cut latte money."

I think, "Are they stupid?"

Is that cup a waste? Or is it achieving a purpose?

The reasons why people use cafes vary from person to person. If you are just going in to "kill time," then it might be a target for reduction. However, if it is for a rich experience or for relaxation, then that coffee money has already achieved its purpose.

If it has been achieved, it is not a target for reduction.

From my time as a company employee to the present, I have actively utilized cafes. I especially like Starbucks, and it was not rare for me to use it three times a day. Cafes were not just rest stops, but strategic workspaces for expanding my thinking.

I always carry a plain, white Kokuyo Campus notebook that becomes A3 size when opened. I draw charts and scribble ideas there to visualize my thinking. This time spent sweating with my brain became the foundation that supports my business skills.

If you are going to force yourself to work in a bad environment and stop thinking, it makes much more sense to pay a few hundred yen to secure a place where you can perform well. I believe that cutting that is the same as incurring a massive, invisible "opportunity cost."

Thinking stopped in the name of saving

In the first place, why are so many people so eager to cut back on latte money? I think it's because saving money seems like the easiest and most actionable thing to do.

However, I hate saving money. This is because excessive frugality limits your actions and significantly lowers your life satisfaction.

When it comes to asset formation, what I value most is the ability to deposit funds. There is a limit to how much you can cut through saving, but there is no upper limit to increasing your income.

Yet, many people look away from the difficult task of increasing their income and escape into the comfort zone of saving, pinching pennies here and there. Financial planners who jump on the bandwagon and smugly tell you to 'cut your latte money' are simply helping you cut away your own prosperous future.

People sometimes say to me, 'That's easy for you to say, Mako-san, because you have money,' but the order is reversed. It is precisely because I have continued to invest in myself since I was young and had no money—never skimping on self-improvement or latte money—that I am where I am today.

Have the spirit to spend first and recover later

Has saving money become an end in itself?
Money is not the 'goal,' but a 'means' to live a rich life.

Up until now, I have spent money without hesitation on things that align with my values.

Even when I talk about advance investment, it doesn't have to be anything grand.

Like the financial literacy to continue index fund investing,
or online English conversation classes I started at 48,
or playing the acoustic guitar, which brought me new encounters,

I think anything is fine. All of thesestart with an expenditure. However, the knowledge and experience gained are accumulated as mental assets and continue to generate large returns later. In investment terms, this return is a dividend. It has been the foundation of a rich life, paying out dividends all along.

I don't think you should skimp on the latte money that leads to such high dividends.

You need the spirit to spend money first and then recover it many times over, rather than saving by cutting back. That is the determination to fully believe in your own human capital.

Many people who are unsuccessful in their work or cannot save money seem to lack this determination to 'invest in themselves' and are indulging in the short-term sense of security.

Expenditure without purpose is the true 'waste'

I don't want you to misunderstand me here; I'm not saying you should 'consume everything and anything.'

For example, if your only goal is to spread out your MacBook at Starbucks and pretend to be a nomad worker, you should stop that latte money immediately. That is an expenditure based on others' eyes, not your own core values.

What is important is the sense of purpose: 'Does this expenditure lead to the future me?'

I view my second life as a 'bonus stage.' It is the best time, free from enemy characters like unreasonable bosses or organizational constraints, where you can freely use your items (your time and knowledge).

I believe that only those who did not hesitate to invest in what I call 'latte money' during their working years and continued to polish their own capital can spend this stage in abundance.

Your own 'standard of happiness'

They say that "money is something that circulates in the world." By spending it, it circulates and eventually returns to you.

I recommend reconsidering measuring your life by the "yardstick of others," such as financial planner advice or common social wisdom. If a cup of coffee at a cafe sparks new ideas and gives you vitality for tomorrow, that is a fine investment.

Ignorance leads to poverty. However, if you have the courage to gain knowledge and act with purpose, you can obtain a life of freedom where you are not pushed around by money.

How about thinking of it as an investment that creates the future, rather than saving that cuts into your own potential? I intend to continue spreading out my handwritten notebook at my favorite cafe and writing down an exciting future.

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Satoshi-san left a comment on my note article, "The 'True Nature of Money' I Realized After Retiring Early at 56, Having Been Unable to Enter Komeda Coffee". I wrote today's note based on that comment. Thank you, Satoshi-san.

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A request from Mako-san:
I hope this article serves as an opportunity for you to question your "common sense about money." If you found it even slightly "interesting," please support me with a "like" or a "tip." All support received will be carefully utilized for educational support for children in poverty in the Philippines.

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