Home Personal Finance If you stopped buying avocado toast, you could afford a home

If you stopped buying avocado toast, you could afford a home

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People are trolling the guy who said to stop buying Avocado Toast in order to afford a house.  But he is right, and the trollers have no idea what they are talking about.

Price is what you pay, value is what you get.  A piece of 5c bread with about 50c of avocado on it costs you $6.50.  If you made it yourself, you’d save almost $6/day.  Over a year, that’s around $2200/year.  If you invest that money in the stock market, with an average compounded rate of 12%, that’s $42,453 in 10 years.  That’s just based on the savings on the avocado toast alone.  That’s a 20% downpayment on a $212k residence.  On the coasts, that’s enough for a condo.

If you want to finance your daily latte or avocado toast with the downpayment on your house, then nobody can tell you different.    There is a better way, though, and that is what Tim Gurner was getting at.  If you aren’t a millionaire, don’t spend like one.

Are young people prioritizing brunch over investments?

Source: Millionaire tells millennials: If you stopped buying avocado toast, you could afford a home