Cutting out the latte has become a budgeting flashpoint.
Some claim you must “CUT” the expense out of your budget. Think how much the $4 could climb when invested over thirty years, they cry.
Others say, “KEEP” your latte. It’s not a large enough expenditure to make a significant difference to your savings rate, they soothe.
Neither side is correct. Neither side is wrong.
It’s up to you whether the latte matters enough to KEEP or to CUT.
That’s the heart of budgeting for YOU. If you enjoy a latte, then what else can you remove to afford the expense? If you prefer tea more, then you have something you know you don’t need.
Budgeting isn’t universal. One person’s expense is another person’s need.
Your decision to KEEP or CUT the latte will lead you to KEEP or CUT other items in a budget that reflects YOU.