The Myth of the Unaffordable Avocado and Coffee: Debunking Society's Financial Myths

There is a growing movement of people who consider everyday expenses like minuscule food and coffee outings to be verging on a ‘mortal sin’. This perception is perpetuated by articles like the one in the Guardian, which quote individuals like Tim Gurner, an Australian millionaire, who claims that younger people should forgo such expenses if they hope to purchase a home.

Exposing the Idiocy of the Seasoned Millionaire's Words

Recently, Tim Gurner made headlines with his statement, “When I was trying to buy my first home, I wasn’t buying smashed avocado for 19 and four coffees at 4 each.” He further added, “We are at a point now where the expectations of younger people are very, very high.” This statement sparked a debate over whether it is inherently wrong to spend money on food and coffee, particularly when pursing homeownership.

Gurner's comments were part of a larger narrative that suggests young people's love of avocado toast and coffee is hindering their ability to buy homes. Demographer Bernard Salt even went so far as to say in the Australian that if young people stopped going to “hipster cafes,” they could purchase property. However, such statements are often rooted in a misunderstanding of what these expenses actually cost and their impact on personal finance.

The Reality of Everyday Expenses

Avocado toast has become a cultural symbol for the middle-class lifestyle, often associated with younger generations. However, in many places, an avocado toast typically costs around $4 to $6, and a large coffee can range from $3 to $5. When we consider these prices, it becomes clear that such expenses are not exorbitant. In fact, many individuals can manage to incorporate these foods into their budget without significant financial strain.

For instance, if a person spends $4 on a coffee and $6 on avocado toast daily, that's a total of $10 per day. Over a year, this amounts to $3,650, which is a considerable sum, but it still represents a manageable expense for many people, especially when balanced against other costs. Moreover, the benefits of spending money on such items cannot be ignored. For example, coffee shops often provide a conducive environment for work and social interactions, and avocado toast is a healthy and convenient breakfast option.

The Myth of Lost Savings

A common narrative in these discussions is the idea that these everyday expenses are making it impossible for young people to save money. In reality, the amount of money spent on a coffee or avocado toast is relatively small compared to other financial considerations, such as rent, transportation, and medical expenses. For example, saving just $400 a month could mean saving $4,800 a year, which is certainly a commendable target, but it is unlikely to significantly impact the cost of buying a home.

Making calculations, let's consider the cost of a coffee and avocado toast regularly: if a person buys 4 coffees a day at $3.50 each and an avocado toast for $5.50, the total per day is $21. This comes to $7,825 per year. If this expense is solely to blame for not purchasing a home, it would mean that this person is facing an incredibly high cost of living, with no other income or expenses. Usually, housing prices are many multiples of this amount, making it clear that these expenses are not the primary barrier to homeownership.

A Monumental Achievement: Buying a Home

Buying a home is a monumental financial achievement, especially in many high-cost housing markets. However, the picture painted by articles and statements like Gurner's is exaggerated and somewhat disingenuous. In reality, buying a home requires a long-term strategy, including saving for a down payment, managing debt, and demonstrating financial stability. While expenses like coffee and avocado toast take up a portion of one's budget, they are not the sole or even a significant factor in preventing people from achieving homeownership.

Moreover, the financial advice provided by Gurner and Salt often lacks nuance. It dismisses the value of small pleasures in life and the fact that many individuals are managing their finances well despite these minor expenses. The truth is, achieving financial goals often involves balancing immediate wants and long-term dreams. Investing in a healthy diet and a pleasant work environment can contribute to better overall well-being, which in turn can improve one's ability to handle financial stress and achieve long-term goals.

Conclusion

The discussion around the affordability of avocado toast and coffee in relation to homeownership is part of a broader discourse on financial myths. While it is essential to manage one's expenses wisely, it is equally important to recognize the value of small pleasures in life. Gurner's and Salt's statements, while well-intentioned, oversimplify complex financial scenarios and neglect the broader context of achieving homeownership. The key to successful financial management lies in a balanced approach that considers both immediate necessities and long-term goals.

In conclusion, the expenses of coffee and avocado toast should not be seen as the nemesis of homeownership. They are, at worst, minor inconveniences in the grand scheme of financial planning. The real challenges lie in understanding personal financial management, saving strategies, and making informed decisions about major purchases. Let us remember, sometimes the joy of a simple meal or a comforting cup of coffee is what life is all about.