Why Cutting Coffee Won’t Make You Rich

Introduction: The Coffee Cutting Myth

Cutting coffee to get rich is a myth popularized by David Bach's "latte factor," but it overlooks larger expenses, per CNBC. In 2025, with inflation, this guide debunks the myth and focuses on high-impact savings using Onu’s AI to identify big wins.

With Onu, prioritize meaningful savings without giving up small joys.

Why Cutting Coffee Doesn't Work

Small cuts have limited impact, per NerdWallet:

• Limited Savings: $5/day coffee saves $1,825/year, but housing costs more.
• Deprivation: Leads to burnout and rebound spending.
• Opportunity Cost: Time spent on small cuts ignores big expenses.

Example: $5 coffee daily = $1,825/year, but reducing rent by $100/month saves $1,200 with less effort.

Small vs. Big Savings

Comparison, per Forbes:

Insight: Big cuts save more with less effort.

Step-by-Step: High-Impact Savings

30-day plan to focus on big wins:

1. Audit Expenses (Days 1–5): Use Onu to list costs. Example: $1,200 rent.
2. Identify Big Items (Days 6–10): Focus on housing, insurance. Example: Negotiate rent.
3. Cut or Negotiate (Days 11–15): Reduce large expenses. Example: Switch insurance, save $50/month.
4. Automate Savings (Days 16–20): Onu auto-routes. Example: $100/month to fund.
5. Enjoy Small Joys (Days 21–25): Keep coffee. Example: Budget $5/day.
6. Review (Days 26–30): Adjust for balance. Example: Reinvest savings.

Real-Life Example: Beyond Coffee Cuts

Meet John, coffee lover:

• Audit: Found $300/month on unused subscriptions.
• Identify: Big item: car insurance $150/month.
• Cut: Switched insurance, saved $50/month.
• Automate: Onu routed $350/month to savings.
• Enjoy: Kept $5/day coffee.

Result: Saved $4,200/year without deprivation.

Financial Impact of High-Impact Savings

Benefits:

• Growth: $300/month at 5% grows to $3,900/year.
• Wealth: Focus on income increase over small cuts.

Example: Saving $100/month on big items funds retirement.

Context: Savings Myths in 2025

Trends from CNBC:

• Myth Busting: Small cuts overrated.
• Focus: Big expenses like housing.

Example: Negotiating salary > cutting coffee.

Final Thoughts

Cutting coffee won’t make you rich, but high-impact savings will. Onu’s AI helps focus on what matters. Start today for real wealth.

Sources: CNBC (2024), NerdWallet (2024), Forbes (2025). This article is for informational purposes only and not financial, legal, or tax advice.