Save Yourself from the Latte Effect

i juz tink the piggy bank is so cute!

If you haven't heard of the Latte Effect, you probably haven't met with your financial adviser since, oh, the late '80s.

If you have heard of it, you probably are wondering why it would ever fall under the Daily Indulgence demarcation.

It's true: The Latte Effect is what happens when you give up a small daily, uh, indulgence and save the money instead, thereby resulting in huge compounded-interest windfalls.

If you gave up that $3 cup of coffee, you could save $90 every month.

If invested properly, those savings could grow to $18,000 in 10 years, $206,000 in 30 years and $1.6 million in 50 years -- give or take, depending on whether you can go without your morning jolt for that long.

Just imagine the jackpot if you forgo a $7-per-day cigarette habit. Do $3.6 million and the health to enjoy it sound doable?

So, don't see this particular email as the anti-indulgence.

Look at it as a financial indulgence where you replace one minor treat today with a major one down the road.

According to Smart Money magazine, experts across the nation claim that the Latte Effect is the easiest and most recommended way to get out of debt; increase savings for a big purchase, such as a house or a vacation; and plan for early retirement.

Side note: Environmentalists are supporting the Latte Effect too.

Those who prefer a pit stop at Starbucks or other gourmet coffee shops add so much mileage to the morning commute that they're actually increasing traffic congestion, air pollution and gas consumption.

If that doesn't put you off your breakfast beverage...