Dear David:

I just wanted to let you know what the Latte Factor has done for me. I am 43, a mother of 3, and debt free – and have been debt free for years. I work from home and with all my combined income, I make about $50,000 year. Because I don’t work for someone else, I started my own retirement plan which I call the 369C Plan. The 369C Plan stands for every 3 years I need to be to a certain level in my savings, my children’s savings, career and mortgage payoff, and the C stands for Cheryl. My youngest turns 18 in 9 years which is why I call it my retirement plan. The Latte Factor of my plan is where I cut back on McDonald’s, use coupons for everything (which saves me a lot of money) and other spending areas to save an extra $300 to $400 a month. If my 369C Plan and Latte factor work together, by the end of 9 years, I should have a fair amount saved and invested, my mortgage paid off and my children will be started with a savings of their own in which to invest. I do not have a lot of bad spending habits (i.e, the Latte factor) but my children do and so I involve them in the whole Savings and Spending Plan to also help them with their future. It is a teaching and learning experience for us all.