August 7, 2008 6:45:08 PM PDT
Have you heard of the latte factor? -- That's where consumers can save a lot of money by forgoing their daily coffee or latte. Well the same theory applies far beyond the coffee shop.

It is one thing to say save a couple bucks a day and another thing entirely to see what it actually would mean if you did.

So a calculator now available on Yahoo, and 7 On Your Side took it out for a spin.

Helping me with this is Mendy Paul. We met at a San Francisco coffee shop.

"First of all do you drink coffee every day?" asked 7 On Your Side's Michael Finney.

"Every day," said Paul.

"One to two," said Paul.

"How about if we cut out a cup of coffee a day," said Finney.

"Ok," said Paul.

"Ok," said Finney.

At \$2 a pop, that's \$60 a month.

She works in the San Francisco Financial District and parking there isn't cheap.

"If I get there before 9:00 a.m. it is \$24," said Paul.

So if she car pooled, or took a bus just two days a week she could save \$200 a month, just in parking.

"Am I depressing you?" asked Finney.

"That's a pair of jeans, that's what I am thinking," said Paul.

For her lunch habits, Mendy eats out almost every day.

"So let's say you packed your lunch a couple days a week what would you save?" said Finney.

"At least \$25 dollars. \$30," said Paul.

Let's be conservative, \$100 a month. We cut down on dinners and entertainment too, saving another \$200 a month.

Her car lease is about up, if she buys cheaper this time she will save another \$100 a month.

"I don't want to know what this is. You don't want to know. No, I've tried to do this in my head a couple of times. Logically thinking how much I am spending, adding it up," said Paul.

With all the figures put into the calculator, with interest compounding at eight percent for 30 years actually the savings is worth \$ 1,140,224.

"Oh my gosh, oh my God. Are you serious?" said Paul.

"Anything is doable, but is what we put down here realistic?" said Finney.

"Yes, absolutely realistic," said Paul.

"You should do this with all of my friends. Let them know what they are spending," said Paul.

"It is amazing when you put in perspective like that," said Finney.

A: It is stunning, little things you can change and save a lot of money," said Paul.

If she chooses to just cut out the coffee and cut back nowhere else. In 30 years she'll have an extra \$90,000.