Step 2: Track Your Spending and Find Extra Money to Pay Down Debt

Find Your Latte Factor^®

Now that you know how much debt you really have, you need to know where it’s all going! David Bach, best-selling author of The Automatic Millionaire and Start Late, Finish Rich, offers a simple concept that can help you get out of debt – the Latte Factor. If you put just $10 towards your debt every day instead of spending it on expensive hot beverages, cigarettes (they’re bad for your health anyways!) or eating out, you could put $3600 towards your debt in one year!

Every day, you’re probably spending money on unnecessary things. That money could be used to get out of debt.

Below is a link to download David Bach’s Latte Factor Challenge form. Take it with you everywhere you go tomorrow and write down every penny you spend.

Print the Latte Factor Challenge Form
You need the Adobe Acrobat Reader to view the contract. Download it here.

The Latte Factor Calculator

Track your expenses for a day and then plug them into this calculator. Now you can see how much money you could free up to pay down debt if you cut out the unnecessary small stuff!

Latte Factor for Investing

Now, would you like to know the value of your savings if you invested your Latte Factor?

Step 2 Summary

You can now:

• track your daily spending to identify areas to cut back on
• calculate your Latte Factor to see how much money you can save each day and use to pay down your debt by thousands of dollars every year
• calculate how much money you can acculmulate by investing your saved Latte money

Congratulations! That’s the end of Step 2.

Now you’re ready to go on to Step 3: Learn to Play the Credit Card Game

or go back to step 1

Top Debt Resources

• Lexington Law Firm
• Fico Scores/Reports