The 'latte factor' argument that small purchases are the source of financial problems is both right and wrong in ways worth distinguishing.

Where it's wrong: the math. A $6 coffee daily is $2,190/year. That's real money but it's not the primary driver of most people's financial problems. Housing, transportation, and food are the big three. Cutting the coffee while paying $2,200/month for an apartment that's $400/month more than necessary misses the primary lever.

Where it's right: spending awareness. The coffee isn't the number — it's the habit of mindless daily spending without considering whether it aligns with your values. The problem the latte argument is pointing at is real; the specific example is a misleading proxy.

The most useful reframe: don't ask 'how much does this daily habit cost annually?' Ask 'does this daily habit align with my actual values and bring me genuine satisfaction?' For some people the morning ritual is genuinely important. For others it's pure habit with no real enjoyment.