David Bech Essay Example | Topics and Well Written Essays - 500 words

David Bech - Essay Example The Latte Factor is a term to emphasize the non-necessity spending we do such as getting latte everyday which are simple things we spend on without thinking if we really need them (Bach, D., 2003). Chapter 3 centers on welcoming the idea of paying yourself first. â€Å"Paying Yourself† means setting aside a certain amount from one’s paycheck and putting it in one’s savings before one busies themselves with paying bills. This kind of habit will train someone to prioritize savings first and adjust one’s lifestyle accordingly (Bach, D., 2003). In line with the last chapter, this chapter makes sure it happens. Making sure you regularly deposit on your savings, has a lot to do with making things automatic such as directly making your company deposit a certain amount of your paycheck to your savings account. With this, your savings will never be sacrificed (Bach, D., 2003). This Chapter teaches us to be financially prepared for emergency spending. Just like we would automatically deposit on our savings account, one should also allot money for the rainy days through opening a rainy day fund and/or investing money where it surely will grow (Bach, D., 2003). This chapter impresses on the need to stop renting a home and take the plunge to buy one. This might be overwhelming but in doing the math, buying a house does not only lessen your spending in the long run but also increase your financial leverage and value (Bach, D., 2003). Get rid of your credit card. This chapter suggests doing this to start an automatic debt-free lifestyle. The rule of thumb in spending is if you cannot pay it in cash, you cannot afford it (Bach, D., 2003). This chapter teaches us that there is more to life than money. We should put high value of which not only with regards to what we can get from it, but rather what difference our money could do to help change the world for the better (Bach, D.,