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
