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How to Afford a House When You're Spending All Your Money on Avocado Toast

May 21st, 2017 8:10 AM by Jackie A. Graves, President

Photo by Jeremy Keith.

If you’re a millennial and having trouble saving up for a home, Australian millionaire Tim Gurner has some simple advice for you: stop eating so much avocado toast. You’ll never be able to save for a home that way.

“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” he told 60 Minutes. “We’re at a point now where the expectations of younger people are very, very high.”

All you have to do is lower your toast expectations a little. Try our handy calculator to see just how easy it is to save money with this tweak to your routine. Just enter the price of the home you’d like to buy, the price of avocado toast (around $20, I’m told), and the number of times a week you eat this extravagant restaurant meal. Type the numbers on the line below each label:

Avocado Toast Savings Calculator

Top of Form

Inputs

Price of your dream home:

 

Price of avocado toast in your neighborhood:

 

How many times a week do you currently eat avocado toast?:

Bottom of Form

Outputs

You will need to skip this many avocado toast dinners:

 

To be able to afford a 20% down payment on your house in this many years:

 

 

The median house price in the US right now is $196,500. If avocado toast costs $22 a serving, and you currently eat it twice a week, skipping those meals will allow you to save enough for a 20% down payment in just 17 years! You’ll probably lose some weight in the process, too.

If you currently don’t eat $22 avocado toast, then perhaps you can’t afford a house in this economy. Even Gurner needed a loan to get started in the real estate business—about 1,700 avocado toasts’ worth.

 

 

By Beth Skwarecki - To view the original article click here

Posted by Jackie A. Graves, President on May 21st, 2017 8:10 AM

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