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1-Page Summary of The Latte Factor
Overview
When was the last time you wanted to do something, but didn’t have enough money? Whether it’s a dream vacation or learning an instrument, most of us don’t have the resources.
But what if it were much easier to save up for retirement and achieve your dreams? Well, meet Zoey. She works hard at a well-paying job but still doesn’t have enough money to do the things she wants.
In this article, we’ll explore the story of Zoey and her financial troubles. Through a series of events, she meets an old man named Henry who helps her get out of debt.
You’ll also discover how to make a million dollars with compound interest, why automation is more important than budgeting, and how saving $5 per day can lead you to financial freedom.
Big Idea #1: Like so many of us, Zoey can’t afford the life she wants to live.
The main character of these key points is a 27-year-old woman named Zoey, who works at a travel magazine. She lives in Brooklyn and has plenty of debt to pay off. Her salary isn’t high enough to cover her expenses, so she barely saves any money each month.
She has a problem: She doesn’t have any money. That’s the reason why she can’t go to photography school or travel around the world.
Three years ago, on a Monday morning commute to work, Zoey stopped at her favorite coffee shop. She bought a latte and noticed one photograph in particular: that of a seaside village at dawn. Even though she only had a moment to glance at the photo while ordering her latte, it caught her attention and seemed to call out to her.
Zoey continued to her destination, the World Trade Center station. On the way, she saw an advertisement on a screen that looked like the one in the cafe. The ad contained a similar photo of someone holding up a latte and read: “If you don’t know where you are going, then it is possible that your life will not lead anywhere good.”
The author then asked herself some questions. Where was she going? What were her dreams? She realized that she was late for work and decided to continue on to the office, where she worked as a travel magazine editor. A few hours later, it was time for lunch with her boss Barbara. Although something seemed off about Zoey that day, Barbara asked what was on her mind. The author told of the print at Helena’s and how much she would have liked to be able to afford such photos for her own living room.
Barbara suggested that Zoey talk to Henry, the old barista at her favorite coffee shop. Barbara thought that he might know something about the print.
Big Idea #2: Henry introduced Zoey to the Latte Factor.
The next morning, Zoey stopped by Helena’s to take a closer look at the seaside photo. A price tag was on it. It cost $1200 for this one picture. Still, she remained and admired its beauty and tried to figure out where it was taken until someone behind her said that it was Mykonos Island in Greece.
Zoey almost spilled her latte when she saw Henry, the barista Barbara had told her about. They both admitted their admiration for a photo and he asked why Zoey didn’t buy it. She shyly said that she couldn’t afford to spend so much on one photo.
Henry told Zoey that if she could afford a latte, she could also afford the photo. Zoey politely brushed off this comment and continued on with her day. However, Henry’s comment stuck with her throughout the day.
On Wednesday morning, Zoey was back at Helena’s and noticed that Henry had taken a special interest in her favorite photo. She struck up another conversation with him, and he explained his Three Secrets of Financial Freedom to her. The first step is to set aside some money for yourself before you pay any expenses or taxes. This means that even before the state takes its share of your income, you should put some money into a 401(k) retirement plan for yourself.
