Why Avocado Toast Won’t Make Or Break Your Budget
The ultra-trendy, heart healthy avocado isn’t just bad for the environment anymore. According to Australian millionaire and property tycoon, Tim Gurner, the super fruit is the reason why you can’t afford to buy a house. If it’s true, this is bad news for your taste buds, your financial future, and the newly opened up hipster avocado bar in Brooklyn, Avocaderia.
Gurner, who is now worth nearly half a billion dollars, started with nothing like most other Millennials. He claims it was his value of hard work, his commitment to saving money, and his realistic expectations that got him where he is today. The only reason why his fellow Millennials aren’t sharing his success is because they expect to have the lifestyle of Kanye and Kim without any of the effort.
He shared his sage advice during an interview with the Australian 60 minutes, saying, “When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each.”
People who struggle with money have heard this argument before. It’s the very foundation of the American dream, which states that anyone will get what they want as long as they work hard and stay focused. The only reason why people are poor is because they choose to be. Just eliminate that Starbucks or avocado toast and you’ll be able to save until you too can have half a billion dollars in the bank, right?
Wrong. Just like the American dream is broken, the wisdom of this advice is defective. There’s no savings to be found in skipping avocado toast if you never go to brunch to begin with, and there’s no way to work harder if you’re already working two jobs and thinking about picking up another.
Rich people like Gurner find it easy to attribute their success to industry and tenacity without acknowledging the fact that the mechanisms that allowed their climb of the corporate ladder don’t exist for most people anymore, Millennials in particular. This generation faces a 12.8% unemployment rate, nearly 8 whole percentage points above the national average. They also face the worst student debt and wage stagnation in years while inflation continues to climb steadily.
Meanwhile the jobs they are landing are temporary contracts that pose no opportunity for benefits or living wages, let alone room for advancement. As a result, many of them are overusing credit cards (and damaging their credit rating) or engaging in what’s called the Millennial side hustle where they work several under-paying jobs just to get by.
It’s part of the reason why a growing number of Millennials are using payday loans. According a study completed by Pricewaterhouse Coopers and George Washington University, roughly 30% of college-educated people ages 18 to 36 are turning to these short term products for help.
It’s easy to understand why. Traditional lenders deem the financial profile of a Millennial facing underemployment and wage stagnation as undesirable, but direct lenders such as MoneyKey don’t share these reservations. A direct lender of payday loans like MoneyKey offers quick, convenient cash to a variety of financial profiles, including those who have less than excellent credit scores.
Though they have shorter terms and therefore higher risk, these financial products are just one of the many ways Millennials can cover unexpected cash shortages and prepare for the future. When used correctly, they can act as a perfect stopgap between contracts and side hustles.
In any case, they provide a more responsible solution to financial problems then the lazy counselling of Tim Gurner. Cutting out avocado toast will only work if you’re recklessly spending all of your cash on the super fruit — which is highly suspect for anyone who isn’t co-owner of Avocaderia. For the vast majority of people in their 20s and 30s, the real reasons why Millennials can’t buy a house are economic factors outside of their control.