Will giving up your daily latte make you a millionaire?

Will giving up your daily latte make you a millionaire?

I see advice that I should give up my daily latte, invest the money, and retire a millionaire. Is this good advice?

Answer: No, it's not. That's because in order for this to happen, over the next 40 years, you need to take that $5 a day you save and invest it and earn a 10% after-tax, after-fees return. Hmm.


Question 2: Is that likely?

Answer: No. The stock market has gone up, let's call it 5.6% annually over the past five years, so you gotta get close to doubling. Individual investors have earned about 1.9% over the same period, so less than the stock market has. So is it possible that individual investors could do five times better? I guess it's possible. I guess anything is possible. It's not likely. 10% better? That's a stretch. 20% better? That's huge. Five times better? I wouldn't bet my retirement on it.

Question 3: Anything else bother you about this advice?

Yeah, you know, it's a little simplified, a little bit "give up the small luxuries," and a little bit — since so much of it tends to be aimed at women, and women finishing rich, and retiring rich — it tends to be a bit patronizing. The litmus test of this is if they're not talking about it on CNBC, if Jim Cramer and Mike Santoli aren't discussing it, you know … meh.

More from GZERO Media

U.S. President Donald Trump speaks with Democratic Republic of the Congo's Foreign Minister Therese Kayikwamba Wagner and Rwanda's Foreign Minister Olivier Nduhungirehe on June 27, 2025.
REUTERS

On June 27, the Democratic Republic of Congo and Rwanda signed a US-mediated peace accord in Washington, D.C., to end decades of violence in the DRC’s resource-rich Great Lakes region. The agreement commits both nations to cease hostilities, withdraw troops, and to end support for armed groups operating in eastern Congowithin 90 days.

What if the next virus isn’t natural, but deliberately engineered and used as a weapon? As geopolitical tensions rise and biological threats become more complex, health security and life sciences are emerging as critical pillars of national defense. In the premiere episode of “The Ripple Effect: Investing in Life Sciences”, leading experts explore the dual-use nature of biotechnology and the urgent need for international oversight, genetic attribution standards, and robust viral surveillance.

A woman lights a cigarette placed in a placard depicting Hungary's Prime Minister Viktor Orbán, during a demonstration, after the Hungarian parliament passed a law that bans LGBTQ+ communities from holding the annual Pride march and allows a broader constraint on freedom of assembly, in Budapest, Hungary, on March 25, 2025.
REUTERS/Marton Monus

Hungary’s capital will proceed with Saturday’s Pride parade celebrating the LGBTQ+ community, despite the rightwing national government’s recent ban on the event.