Mark Cuban’s $14,600 Case for Skipping Daily Coffee in Favor of Investing
Billionaire entrepreneur Mark Cuban recently hit a hot spot for many millennials and Gen Zers, going back to the often-used latte exercise in personal finance. He claimed this strategy can result in thousands of dollars after five years instead of being broke and looking back at the lattes.
In an interview with Washington Post contributor Jules Terpak, Cuban told viewers to skip the latte and put that money into a money market account, framing it as pushing back on instant gratification and not letting short-term pleasures ruin your long-term finances.
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Here’s how the advice holds up and why many have become more critical of it over the years.
The Math Is Still Logical
Although it’s easy to grumble about how inflation has increased the prices of various key purchases beyond wage growth, the old example of skipping your daily Starbucks run still has merit.
The math is pretty simple, and that’s the strength of Cuban’s argument. Someone who spends $8 per day on coffee can save $240 per month, which comes to roughly $14,600 in five years, before compound growth.
Even if you’re not wasting money on coffee or avocados, you may be wasting it in other ways, especially if you have not reviewed your statements for several months. Cuban and Terpak brought up food delivery and streaming subscriptions as two prime examples.
Skipping the latte will undeniably save you money and move you closer to your financial goals, but is it enough? It’s far better to save $14,600 in five years than waste all of it, but it only comes to a 3.3% down payment on a median home, if you’re looking at the National Association of Realtors’ (NAR) June data.
That’s assuming home prices don’t climb even higher within the next five years. It’s also assuming you can find a median-priced home in your area. People who live closer to cities for work may be looking at prices closer to $1 million.
Gaslighting Rising Costs
Of course, many have grown tired of hearing about lattes and avocado being the reason why younger generations' finances aren’t in a good place. Critics believe this argument ignores how rising costs have made it far more difficult for good savers to reach key milestones like a marriage or down payment.
Conversations about high living costs have to center around housing, since it is the largest expense most people pay. The NAR found that the median house price has increased for 36 consecutive months, and was up by 1.8% year-over-year in June.
Research from the U.S. Census Bureau found the median home price increased from $317,100 in Q2 2020 to $410,700 in Q2 of 2026. That’s a 29.5% increase, and it also comes with mortgage rates surging from near-zero to above 6%.
Younger generations will point out that an average salary got people a lot further a few decades ago. An infographic from Visual Capitalist showed the median annual U.S. household income is up by 252% since 1985, while median sales prices of U.S. homes have surged by 403% over the same stretch.
It’s worth noting that rates were 12.4% APR in 1985 compared to 6.8% APR now, but housing prices have still marched higher despite rate hikes over the past few years. Housing isn’t the only thing that has gone up. Groceries, college tuition, cars and other regular costs have outpaced wages. Those are often cited as the bigger reasons why millennials and Gen Z are in dire financial straits.
Making Optimal Decisions in a Challenging Environment
Everyone would love to have today’s salary amounts and purchasing power from the 1980s, but that’s not the current environment. Cuban’s advice on skipping lattes still holds sound, but there are limits to how much financial progress you can achieve by saving money.
If you don’t want to ditch your $8 daily coffee spending habit, often the best thing you can do is develop new skills and pick up side hustles that boost your income. Cost-cutting can alleviate some of the pain, but raising your income over multiple years while living below your means can solve many of your current financial obstacles.
A joint survey between CNBC and SurveyMonkey found 81% of households earning less than $50,000 per year are living paycheck to paycheck. This figure gradually decreases as household income goes up. For instance, 64% of people who earn between $50,000 and $99,999 are living paycheck to paycheck. Less than half of households earning between $100,000 and $249,999 can say the same, and only 12% of households that earn $250,000 or more identify as living paycheck to paycheck.
A higher income does not guarantee you will get out of a paycheck-to-paycheck lifestyle. However, it statistically increases the probability of getting out of that lifestyle. Saving money when you can is good, especially if you have not reviewed your expenses for several months. However, the real financial breakthroughs happen when you focus on increasing your earnings. Skipping lattes and advancing your career both require discipline and delaying instant gratification. In that way, Cuban’s advice still holds — short-term sacrifices now for long-term gains later.
Editor’s note: Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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