The Latte Factor
Ladies and gentlemen, forget about the latte factor.
There’s a new factor in town, and it’s called “The Mimosa Factor.”
But before we get into “The Mimosa Factor,” what exactly is the latte factor?
It’s where financial gurus tell you to stop buying your $4 cup of coffee every morning and make it yourself at home to save money.
Assuming you only work business days:
$4 X 20 days/month X 12 month/year = $960 a year.
That’s almost $1000 a year you could save if you make coffee yourself at home for only a few cents.
Invested monthly for X amount of years, you’re one step closer to paying off debt, or reaching financial independence.
However, abundance mentality says you should be able to have your coffee and drink it too.
Or technically in this case, your mimosa.
I was inspired after having brunch one day in Seattle with Purple from A Purple Life, a fellow FIRE blogger, and Rachel Slifka, also an F.I. blogger, when the conversation turned to mimosas and brunch.
“Wouldn’t it be nice to brunch everyday for the rest of our lives?” I mused.
I forgot, but I think they agreed.
And indeed, I live for the brunch.
It’s the best time of day.
It’s right after breakfast, and before lunch.
You work hard late into the night, writing your books and blogs.
Then you sleep in, a whole 8 hours.
By the time you wake up around 11am, and roll out of bed and do your morning routine, it’s 12pm.
By the time you leave your house/apartment and make it for brunch, it’s 1pm.
Perfect timing because the outdoor ambient temperature has had time to warm up.
No more cold knees in cold jeans.
People are bustling to and fro because they’ve been awake since 7am and had breakfast and lunch already.
None of that refreshing, crisp, cool morning air filled with groggy morning commuters who haven’t had their $7 bulletproof coffee yet.
The Math of The Mimosa Factor
$10 for a mimosa was the standard I saw at Lost Lake in Seattle, one of my favorite brunch places for fresh, homemade brunch foods like eggs Benedict with sausage gravy.
This is assuming you don’t make the mimosa yourself because you love brunch and have fatFIRE dividends supporting you.
I’m talking about a cool $5,000,000 or more invested in the Vanguard S&P 500 index fund.
Because 2% dividends on $5,000,000 is a decent $100,000 a year.
Assuming you have a mimosa everyday:
$10/mimosa x 360 days/year (assuming you took 5 days off) = $3,600.
$3,600 a year to have other people pour mimosas for you isn’t so bad.
And let’s be honest, you have better things to do than to pour your own mimosas.
Those instagram foodporn pictures aren’t going to put filters on themselves, ya know?
Couple that cost with the $15 sausage and eggs Benedict, taxes and tip = $20.
If you ate brunch everyday for a year that would be $20 x 360 days = $7,200.
Or roughly 10% of your annual pre-taxed dividends income, and you haven’t even touched the principle yet.
Not too shabby, ey?
Abundance mentality says you should be able to have it all.
There are more than enough mimosas for everyone.
Aim for fatFIRE.
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