The Five Biggest Myths About Saving Money, According to a Millennial
J Thoendell stashed this in Personal Finance
Ethan Bloch has some financial advice for his millennial peers: “Just have your f------ latte!”
The 30-year-old founder of Digit, an online financial company, can get heated about espresso drinks when discussing the clichéd financial advice given to his generation. In this case he is peeved about the “Latte Factor,” a term popularized by the author David Bach to signify how people can save by cutting back on little things. Bloch doesn’t buy it. “Just having that conversation in your head and using self-control over $3 is time and energy misspent,” he says.
Bloch isn't against saving. He just believes that technology—specifically, his—is better suited to help people get the job done. An algorithm developed by Digit tracks a user’s checking account to analyze income and spending patterns; when the software judges there’s “extra money” on hand, an automatic transfer whisks the surplus into a savings account. The average age of Digit users is 27.
Using self control over $3 is time and energy misspent. I agree.
Then again, not having lattes really does save lots of dollars and calories.