I am a supporter of the $5-lattes-will-make-you-wealthy theory, but I also think you need to spend money on things that make you happy. If that $5 latte every morning brings happiness and comfort to your life — do it. I rarely spend money on take-out drinks, but I spend it on sushi a few times a month. That money can also be invested. The bottom line is, we all have different interests.

Instead of giving up the lattes, you can just invest $150 monthly into a high-yield investment fund. It would have the same impact. If you can afford both — go buy as many latte as you wish.

I, personally, don’t like spending money on things that are overpriced. For example, I can make a latte for 50 cents instead of $5. I invested in a coffee machine 6 years ago, and it has saved me a ton of money. I also stopped spending $5 on Starbucks’ delicious iced teas, because I learned how to make them at home myself: same syrup, same recipe (or very close). Guess what? It costs me 50 to 75 cents to make them at home. BUT, it doesn’t mean that others should do the same. This works for me, but it may not work for you. I will keep spending $40–60 a month on sushi, because THAT makes me happy.