Can a single mother of two children afford to eat out everyday at work on a $20K salary? No way. Can Steve Jobs afford to eat out for lunch every day? You bet. Time is a crucial factor for some individuals. An executive would gladly fork over the extra hundred dollars for lunch every week to spend more time at the office doting over reports. A middle class mother who keeps her finances and investments in good shape may also deem it worth spending the extra $50 a week to buy lunch so that she can spend her free time at home with her family.

However, the more common reality is that the small purchases do squat away our wealth like you said. It can only help the bottom line to evaluate your purchases and attempt to reduce. I easily go days without spending a penny anymore, and it feels great!

I’ve always “sweated the small stuff” when it came to money and spending. The concept of money making more money, or putting every dollar to work for you, is the mindset that has helped me make great strides in the last few years.

I picture every single dollar, literally, as an employee of mine. When I save one dollar, I am sending him off to work for me. The more employees I save, the bigger my workforce, the more profit I earn.

I would re-run the numbers on the difference in costs as opposed to the entire amount to be more realistic. The only exception is smoking where if you stopped the cost would really be zero. I would also make the smoking example for 365 days as you most likely smoke everyday.

Either way the video makes it’s point. As long as you have the discipline to put that money you save into investments and not spend it in some other way it will most certainly pay off!

@Leylan Lo – Good point, you must balance. If you manage your life right you should have the benefits of a decent life today and a comfortable life tomorrow. As noted above, most are not aware, they are spending their future today.

It is always easier to save a dollar than to make a dollar! I prove it here… http://bit.ly/8wpvD

Great job Jim!!! Keep of the good work.

Thanks for the video. The “latte” factor is definitely a money 101 topic that people must be aware of.

One thing that I think would’ve have been cool to add, is if you also covered the “cost of waiting”. I think pretty much everyone knows that they need to save those daily dollars and in the back of their mind, I’m sure a lot of them are saying, “I’ll do it someday”, “I’ll start saving later”, etc. So I think if you showed people how much they would lose out if they waited 5 years, 10 years, 15, etc. This really shows the true power of compounding interest.