The Latte Factor vs. Funeral Insurance: Small Daily Savings That Change Everything

Published on Wed Feb 26 2025 in Money

We all have those little daily splurges—maybe it’s your morning flat white, an extra streaming service, or an impulse snack at the checkout. These tiny purchases seem harmless, but have you ever added them up?

There’s a concept called The Latte Factor, popularised by financial expert David Bach. It’s the idea that spending small amounts every day—like $5 on coffee—adds up to thousands over time. The real kicker? If you redirected just one of these daily expenses into something meaningful, like funeral insurance, you could ease the financial burden on your loved ones when they need it most.

Breaking Down the Numbers

Let’s say you spend $5 a day on a takeaway coffee. That’s:

☕ $35 a week

☕ $151 a month

☕ $1,820 a year

Over 10 years? $18,200. On coffee.

Now, what if you put just a fraction of that towards funeral insurance? For as little as $1 a day, you could have coverage that ensures your family isn’t left with unexpected costs when you pass away.

It’s About Priorities

Nobody’s saying you should give up coffee (we wouldn’t dare!). But imagine making a wise investment like getting a coffee machine, and enjoying the benefits of the tangible savings that follow. It’s a simple shift that can change everything when the time comes.

With Momentum Life Funeral Insurance, you get:

✅ Guaranteed acceptance for New Zealanders aged 40–75

✅ No medicals or paperwork—just a quick online application

✅ A lump sum payout to help cover funeral expenses and other costs

A Small Change, A Big Difference

We often don’t think about funeral costs until it’s too late. But with a little planning—maybe even with one less coffee a week—you can make sure your family is financially protected when they need it most.

So, what’s worth more to you? A few extra lattes or the peace of mind that comes with knowing your loved ones won’t struggle when you’re gone?

It’s your call. But the next time you order that extra-large caramel mocha, maybe—just maybe—you’ll think twice.

 

The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.

All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.