Very good comment.I think this rule is aimed at meeting a need many people have, and if this rule has problems I'd be interested in what a better rule might be. In order to build a high net worth starting from $0 you have to be very frugal and have a high savings rate, and over 20-30 years of building a nest egg those daily habits of saying "no" to things you want become deeply entrenched even in small transactions. Yet it seems obvious the financial value of being a tightwad is only relative to how much you already have. How does one judge for themselves how much room they have to loosen up after decades of tightwaddery have made them rich but have them habitually saying "no" to things they can afford?
For those starting out from zero (or negative) net worth, the daily latte is probably imprudent and a violation of this rule. For those who have built a good nest egg, a latte or even much more is of little concern. (Monetarily. The calories have their own way of compounding in that other balance we should be watching.)
Statistics: Posted by Svensk Anga — Wed Sep 17, 2025 12:53 pm — Replies 76 — Views 8964