Ever window shopped and wished that you could afford that pricey handbag or longed to take a vacation but didn't think it was in the buget? Well if you're like many of us, you think nothing of spending anywhere from $2 to $5 for a cup of coffee each day, a small indulgence that adds up over time to translate into some real change. When you do the math, the "Latte Factor" is no laughing matter.

At the end of the year that Latte Factor really adds up – upwards of $730 if you figure one cup of coffee at $2 each day. Now if you regularly frequent hot spots like Starbucks and get a specialty coffee you're looking at an average of $4.50 per cup, which equates to a whopping $1,643 at the end of the year. Other java-lovers do a combo of pricey in the morning and a quick cup in the afternoon or evening averaging $6.50 per day ($2,373 at the end of the year). If you drink more or less just do some quick math and you'll find your Latte Factor is anywhere from $350 to $4,000 a year. This is the small change that adds up over the months and can really make a shocking difference when you really stop and do the numbers.

Economists and televison chat show hosts like Suze Orman are bringing this Latte Factor to the forefront, stressing that if you cut back on the non-essential things you can pay off debts, get control of your finances, and establish a savings plan that works for you. Well don't stop there - look at it in from the die-hard shoppers perspective, especially with Black Friday and holiday shopping over the next few weeks. This fund - this spending that you never count, can translate into some fantastic gifts if you swear off the pricy stuff and promise to make your own coffee for a year. Call it an early New Year's resolution.

Imagine what you could do with an few extra hundred dollars. If you just gave up one daily cup of $2 coffee per year that's about $730 or two of this season's hottest handbags from Coach (about $300 each) and a little extra to treat yourself to a manicure and pedicure. You could also treat someone special to a getaway and head to a Broadway show for the night. Orchestra seats at the hottest shows average $140 a piece, add that to dinner at about $200 (go somewhere nice), and an overnight stay at a nearby hotel during the holiday season and you're easily at the $700 mark.

On the pratical side, that $730 could equal the new washer, dryer, or dishwasher that you've been meaning to get but keep putting off.

Maybe you've been wishing to head someplace warm and tropical. An all-inclusive weekend stay at a luxury resort plus airfare for two averages $2,000. If you're one of the many who hit Starbucks a few times a day you can easily afford the trip in no time if you save your cash and use the office coffee pot instead.

Now, the Latte Factor isn't just about giving up that cup of designer joe, it's about finding all the spare change in your life you don't notice. The bagel you pick up in the morning on the way to work or the deli sandwich that was great in a pinch but cost $8 - these add up.

At the end of the week many people spend on average $50 for small ticket items like snacks, convenience lunch, and yes, coffee. Cutting back really adds up if you take a close look at the numbers. You can start a savings plan or factor how to use that extra cash on luxury items you really desire.

If you look at the coffee cup and are dreaming of the vacation – you now know that it can become a reality sooner than you thought.