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Millionaire to Millennials: Stop Buying Avocado Toast If You Want to Buy a Home

E

EdibleKnife

Member
Chairmanchuck said:
You cant generalize though. Even if they spend shit on that, it doesnt matter when during my parents time housing was far cheaper than nowadays.

Every craftsman could buy land and property. Nowadays craftsmen here in Germany couldnt afford that and even university graduates earn less compared to 20 years ago and have to pay more for housing.
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This. By painting this as a, "millennials just don't know how to manage money" idea, people start to ignore or outright deny that it's inherently more expensive to afford necessities today than it was 20 or 40 years ago. Too many people are focused on their bootstrap ideology and all it takes is to hear "27 year old spends $X on dumb shit" for them to dig into the belief that all millennials are only poor and struggling because their generation is a bunch of unprepared bums rather than the fact that there are a multitude of young people who are trying to adjust to a world and market that isn't adjusted to the reality of the modern job market and wage earning.
 
wolfhowwl

wolfhowwl

Banned
jwk94 said:
I kinda see where this dude is coming from (the billionaire). Basically, he's saying (very poorly), learn to save. When I was in college (1.5 years ago), way too many people would talk about being poor and then go drinking every thursday, friday and/or saturday.
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Yeah I saw that too. Now I'm in the Army where they outright pay for your housing and food and these motherfuckers are still somehow broke a week after payday.

They complain about being poor and underpaid when they get a new tattoo every month, get smashed every weekend, eat out every day, and drive a lifted F-250 or Camero with a 22% interest rate.

But it's someone else's fault of course. 😂😂
 
G

Grym

Member
What is avocado toast?!

Also, I own a home




EDIT - Well...shit...that looks delicious. I may be in the market to sell

poached-egg-and-avocado-toast-horizontal.jpg
 
J

jwk94

Member
reKon said:
How do you all feel about those people you meet in college who complain about student loans and expenses yet spent $2,000 on their Macbook Pro, which they use for browsing Facebook and writing papers?
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That always made me scratch my head. Most of the people in my classes had Macbooks, but didn't really need em.
 
S

Somnid

Member
Hoo-doo said:
There absolutely is something to say about living within your means and knowing the fucking value of a dollar.

Buying a 6$ coffee, a 9$ sandwich and spending 15+$ on eating out every day and still complaining that you can't possibly make ends meet is fucking stupid. Savings have to start somewhere, and small reductions in everyday spending will invariably lead to results.

But this guy is a grade-A dick in the way he chose to word this though.
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In terms of housing it's not significant. To afford a 700,000 house (which is the median in some places) you'd have to not buy $6 coffees every day for the next 319 years.
 
Hari Seldon

Hari Seldon

Member
Chairmanchuck said:
You cant generalize though. Even if they spend shit on that, it doesnt matter when during my parents time housing was far cheaper than nowadays.
Every craftsman could buy land and property. Nowadays craftsmen here in Germany couldnt afford that and even university graduates earn less compared to 20 years ago and have to pay more for housing.

I know people who spend a lot on shit they dont need and complain.
I also know people who dont who are actually trying to save money. And that also doesnt work when you put your money in a bank, get 0,25% interest while the inflation each year is 2% and even lose money every year like that.
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I agree in the macro view that things could be better. But in the micro view, if you want to maximize your own wealth external to other factors, step #1 is budgeting your money properly. I don't know how it is in Germany, but in the US we are pretty god damn ridiculous when it comes to consumerism. When I was in college they were handing out credit cards to 18 year olds like free candy. My sister and her husband make twice as much money as my wife and I (being doctors) but we are worth far more than they are because we don't blow money on ultra expensive vacations, leasing luxury cars, and blowing money on contractors for work that we can do ourselves.
 
A

andycapps

Member
I was curious on if this guy did what he says millennials should do to pull themselves up by their bootstraps. Apparently he was given $34k by a relative to start a gym, went to university, and had a great corporate job.

His recommendations ring a little hollow with me. I say this as an older millennial with a house and a decent corporate job. We're making it, but we're not swimming in cash either. His idea that you can just cut out these things and it'll fix all the problems is reductive.
 
R

Rival

Gold Member
I understand the point he's making about sacrificing things in order to be able to buy a home but the vast majority of millennials that would buy a home couldn't even if they gave up everything that wasn't completely essential due to the high cost of things like education, transportation, and rent. How can the average young kid save enough for a down payment when there's barely anything left already after paying for only essentials? It seems out of touch for a millionaire to make a statement like this.
 
T

TheCochese

Banned
Somnid said:
In terms of housing it's not significant. To afford a 700,000 house (which is the median in some places) you'd have to not buy $6 coffees every day for the next 319 years.
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You're assuming that $6 coffee is the only poor budgeting decision they make.

Poor decisions don't typically occur in a vacuum.
 
J

jwk94

Member
wolfhowwl said:
Yeah I saw that too. Now I'm in the Army where they outright pay for your housing and food and these motherfuckers are still somehow broke a week after payday.

They complain about being poor and underpaid when they get a new tattoo every month, get smashed every weekend, eat out every day, and drive a lifted F-250 or Camero with a 22% interest rate.

But it's someone else's fault of course. 😂😂
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Yep. Like I said, college and even HS kids need finance classes. Not even super serious "learn to invest" classes either. Just something to prepare them for basic adulthood. Throw in relationship classes too.
 
M

Morts

Member
Where is the reality show where these millionaires put their assets in a trust and spend six months living at their county's median income to show us millenials how it's done?
 
Amory

Amory

Member
RionaaM said:
What, do you think poor people deserve to live like human beings? Nah, screw that, if they are poor they should suffer and not have a single nice thing!

The sad thing is there are lots of people who actually think like that. Zero empathy or compassion.
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That's not what the guy said though.

Everyone should be able to treat themselves every now and again. But as times have changed and the consumerist culture has advanced, a lot of people don't see a daily coffee and bagel, or lunch at a fast food restaurant, or a meal out, or a new piece of tech as a treat. It's just something we buy as if it's a necessary or normal expense.
 
J

Junior Mint

Member
I'm pretty sure he's talking about buying avocado toast at a restaurant / cafe. Avocado toast at home is a pretty tasty breakfast but spending $7 on something so ridiculously easy to make for yourself - like avocado toast - is kinda dumb.
 
C

Chairmanchuck

Member
Hari Seldon said:
I agree in the macro view that things could be better. But in the micro view, if you want to maximize your own wealth external to other factors, step #1 is budgeting your money properly. I don't know how it is in Germany, but in the US we are pretty god damn ridiculous when it comes to consumerism. When I was in college they were handing out credit cards to 18 year olds like free candy. My sister and her husband make twice as much money as my wife and I (being doctors) but we are worth far more than they are because we don't blow money on ultra expensive vacations, leasing luxury cars, and blowing money on contractors for work that we can do ourselves.
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In Germany you cant really get that. A credit card usually has a limit (like 1000€ each month) and you cant just get a credit/lease if you cant afford it. The bank wants to see your salary and stuff like that, how much you have in your account already etc.

I totally know a lot of people who live from paycheck to paycheck, because they spend money on stuff they dont actually need. But like I said I also know people who try to save, but cant really save when the highest interest the bank will give you are 0,25% and the inflation is 2% each year here.

And also housing IS really more expensive compared to 20-30 years ago. A new university graduate usually earns as much as a craftman did around 30 years ago. And craftsmen jobs are now really really low jobs here.
 
P

PeskyToaster

Member
OR since you realize that if a large percentage of the population can't afford houses then the prices will have to come down so instead of giving up my avocado toast I'll just wait until the unsustainable prices comes to me rather than wasting money rising up to them.
 
C

cubicle47b

Member
So Tim Gurner was given $34K by his grandfather when he was 19 to open a gym. I'm sure he worked very hard to grow his business into what it is today, but I don't think he's the right person to relay the message of sacrificing now for future rewards (it's an important message, though).
 
D

Doominated

Member
For all the backlash he'll get for being out of touch, he absolutely has a point. It still doesn't change the fact that it's extremely difficult to buy a house compared to 30/40/50 years ago, but it certainly doesn't help when we're all buying Starbucks coffee and expensive sandwiches every day instead of just fucking buying the sandwich ingredients and cheaper coffee (or giving it up because it's completely unnecessary once you kick the habit of drinking it, but that's a different argument entirely).
 
B

benicillin

Banned
Amory said:
That's not what the guy said though.

Everyone should be able to treat themselves every now and again. But as times have changed and the consumerist culture has advanced, a lot of people don't see a daily coffee and bagel, or lunch at a fast food restaurant, or a meal out, or a new piece of tech as a treat. It's just something we buy as if it's a necessary or normal expense.
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It's almost like that's the way our economy is designed and supposed to work or something. So we live in a culture that perpetuates this, then blame the people living under it.
 
G

grumble

Member
He hasn't done the math, obviously. You could spend zero dollars of anything discretionary at median wage in any urban centre in the west and you stuff aren't getting a home. Not even a house - a home.

Not saying that spending isn't a bit high, but it just doesn't make a difference. The difference is too large.
 
Ron Mexico

Ron Mexico

Member
Somnid said:
In terms of housing it's not significant. To afford a 700,000 house (which is the median in some places) you'd have to not buy $6 coffees every day for the next 319 years.
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See, I can math too. In the case of that $700,000 house, at today's rates, that daily lunch money is 10-15% of what the mortgage payment would be. And $700k is far from the median for an overwhelming part of the country, but to say 15% of my mortgage payment isn't significant? Nah.

Again, there's so many problems and so much blame to go around. Without question, basic budgeting should be taught in every school, just like critical thinking and the like. It's a failure of education, not a willingness to work.
 
andythinkpad

andythinkpad

Member
The Millennials can't afford a house even they can eat instant noodles anyway.

The property price all over the world has increased much faster than the Millennials salary grow in recent years. US is probably one of the few countries that the real estate price has not shot up.
 
M

marrec

Banned
i3allistic said:
My boy opened up a poke restaurant and took him a few months to hire a full staff and still looking for kitchen help, he recruited in HS and Colleges around SF/Milbrea area...problem is nobody wanna fucking work! You would think HS kids or College kids willing to work but these damn kids these day think there worth more and won't work in a restaurant...and my boy pays more then min. Wage...crazy these day...also heard about a ramen restaurant that having hard time hiring and his opening day been push back because the lack of staffing
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lol, Damn kids from every era piss off old people with their lack of work ethic, it's not just these days my dude.
 
D

DeaconKnowledge

Member
Somnid said:
In terms of housing it's not significant. To afford a 700,000 house (which is the median in some places) you'd have to not buy $6 coffees every day for the next 319 years.
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What?

First off, 700,000 is an extreme case saved for the most affluent parts of New York, California, and Florida. Median house price is 188K as of January 2014.

Second, cutting out that $15 expense daily $15 x 260 (the amount of weekdays in a year) = 3900 dollars. 10 percent of the 188K median = 19000 (Rounded up).

19000 / 3900 = 4.9. Less than 5 years.
 
M

Muppet of a Man

Member
Ron Mexico said:
See, I can math too. In the case of that $700,000 house, at today's rates, that daily lunch money is 10-15% of what the mortgage payment would be. And $700k is far from the median for an overwhelming part of the country, but to say 15% of my mortgage payment isn't significant? Nah.

Again, there's so many problems and so much blame to go around. Without question, basic budgeting should be taught in every school, just like critical thinking and the like. It's a failure of education, not a willingness to work.
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The problem isn't the monthly mortgage payment. It's the 20% downpayment, which is $60,000 on a $300k house.
 
C

Chairmanchuck

Member
DeaconKnowledge said:
First off, 700,000 is an extreme case saved for the most affluent parts of New York, California, and Florida. Median house price is 188K as of January 2014.
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That actually sounds pretty pretty cheap...
A normal family house in a city is around 358.000€, so around 400k$. For 180 square meters its 545.000€.

My parents home is around 210.000, was around 300.000€ in todays prices when they built it.
 
P

Poodlestrike

Banned
There is some data to indicate that people today are more consumption oriented than they were in the past, but the bigger issue has obviously got to be wage stagnation.
 
F

Fuchsdh

Member
Doominated said:
For all the backlash he'll get for being out of touch, he absolutely has a point. It still doesn't change the fact that it's extremely difficult to buy a house compared to 30/40/50 years ago, but it certainly doesn't help when we're all buying Starbucks coffee and expensive sandwiches every day instead of just fucking buying the sandwich ingredients and cheaper coffee (or giving it up because it's completely unnecessary once you kick the habit of drinking it, but that's a different argument entirely).
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Yep.

If you don't want a house—then more power to you, ignore him entirely. If you do, then you have to be willing to make that happen, and that means compromises (like not spending an extra $20, $30, $40 or more on food that isn't giving you any return besides inches on your waistline.) Given that our generation can't largely be arsed to do anything useful in the political realm, looks like you gotta' deal with the hand you're dealt rather than magically hoping the second coming of Sanders will transport you to a utopia where your loans are forgiven and you can buy a house in the city.

I have way too many friends who complain about money but spend way more than they need to on clothes, living in a trendy part of town, going to brunch every weekend. If you value those things, okay, but don't be complaining at the same time. These people have the ability to make smarter choices with their money—they aren't destitute and their struggle is self-inflicted.
 
Ron Mexico

Ron Mexico

Member
DeaconKnowledge said:
What?

First off, 700,000 is an extreme case saved for the most affluent parts of New York, California, and Florida. Median house price is 188K as of January 2014.

Second, cutting out that $15 expense daily $15 x 260 (the amount of weekdays in a year) = 3900 dollars. 10 percent of the 188K median = 19000 (Rounded up).

19000 / 3900 = 4.9. Less than 5 years.
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And to take this even further, without factoring in any 1st time homebuyer programs, 3.5% down would get you the down payment in just under 21 months.

The fact that it's always 20% or bust means we've done a shit job at even explaining what the options are out there. Disappointing.

Muppet of a Man said:
The problem isn't the monthly mortgage payment. It's the 20% downpayment, which is $60,000 on a $300k house.
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As mentioned above, 20% is not a requirement.
 
EviLore

EviLore

Expansive Ellipses
Staff Member
bomb said:
I have a friend that maxed out a credit card and cannot make the payments. Yet, still buys a $6 frappuccino everyday.
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Maybe this absolutely appalling, outlandish, idiotic, totally unnecessary and laughably short-sighted daily luxury expenditure of a fucking coffee helps your friend make it through the day a little easier, what with that crushing burden of credit card debt actively ruining their life and all.

Unless you're friend is a robot, in which case your robot friend is pretty silly for going through the motions of mimicking typical human coping mechanisms in adverse circumstances. Silly robot, what are you doing with all that coffee?! It's just going to run straight through you and out your robot anus.
 
I

Instro

Member
It's fair to say that young people overspend on inane shit, although those also are not usually people looking to own a home either. Having said that, it's really hard for people to manage with current prices/inventory and wages. My fiance and I bought a couple years ago while the market was still a bit down, but that was with us saving a ton of money while living with our parents which offset our student loan debt. I can imagine it being damn near impossible for folks who have to pay rent and student loans unless they come out of college with a relatively high paying job.
 
R

riotous

Banned
There are loads of people out there with spending issues who are a bit oblivious to the situation it puts them in; I just don't know what this has to do with age. I know frugal as hell millennials and I know 70 year old's who spend themselves into poverty by buying a ton of pointless crap.

Just look at the damn numbers people; millennials are buying less houses because the housing market is ridiculous and because wages are lower than past generations. Does that mean there are some millennials who could afford a house if they were more frugal? Sure; just like there are people of all ages with the same problems.

In fact there's data suggesting that millennials are frugal like the generations raised during other recessions or the great depression; http://www.pymnts.com/news/retail/2016/millennials-spending-problem-minimalism/
 
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