The S$5-latte problem and a radically conservative solution

I CALL this the latte problem, where two competing philosophies of personal finance are expressed in a single cup of coffee and milk.

You've heard it before. Save S$5 on that latte every morning and start on the path to financial independence! Because, you know, S$5 times 365 days is S$1,825 of savings a year, compounded over 50 years at 4 per cent to become S$280,000 that you could have had if you just stopped downing that perk-me-up coffee.

The trivial things we spend on in life can add up and steer us away from our financial goals, goes the argument.