The Origin of Late Nonsense – The Big Picture

“Buy Yourself a F * ^ king Latte” was one of the most popular articles I wrote in 2019. It refutes a ridiculous claim by Suze Orman that buying coffee is like “pissing off $ 1 million”.

Uh, no.

Another stupid expense is the rebuke, the one thing that makes people guilty of not buying things they can afford. This is bad enough, but consider the hypocrisy of these people who advise against buying expensive baubles themselves.

Helaine Olen (MiB; see last note here) I remember calling these people for a long time. But I never knew where this irrational finger-wagging anti-lat reprimand came from.

So far.

Here’s The Dentist’s Mark Dent:

“The idea that less lettuce can solve millennial financial problems has been around for over 20 years and can be found in one person: David Bach, a financial adviser and author.

“Are you pushing your future away?” Bach asked in a 1999 book. “Everyone earns enough to become rich. What saves us from paycheck to paycheck is that we spend more than we need. ”

Bach’s formula features some questionable mathematics. (For example, the Dow Jones annual income between 1949 and 1999 was ~ 9.7% – not 11% – and even at subsequent rates, Bach’s own “late factor calculator” shows that saving 40 5 / day for 40 years would save 2 2 million). Don’t build anything nearby.)

Now we know who is to blame for this ongoing BS …

Aside from the overall stupidity of bad math and bad talk in Lat, the real problem is that it ignores the much bigger concerns about the middle wage. Despite recent gains, average wages have not kept pace with big ticket items like home in the last half century:

Focusing on the minute while ignoring the big concerns can be a great plotline for an episode of Seinfeld, but it’s a terrific way to get involved in financial planning.

Before:
Buy an F * ^ king Latte (April 5, 2019)

Kaohi Leonard, please buy a new car (January 17, 2020)

‘Never Buy A Boat’ And Other Misleading Financial Tips (October 3, 2015)

Advise accordingly (January 15, 2020)

Formula:
‘Just stop buying lattes’: The source of a millennial housing myth
By Mark Dent
The Hostel, June 18, 2022

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