Categories

LOL at this avocado toast advice from a millionaire

Ramit Sethi

Well, well, well. Today I got the greatest gift of my life — I realized I’ve been living life wrong all along. If I want to save up enough money for a house…

I NEED TO STOP BUYING $19 AVOCADO TOAST.

YES. THAT’S RIGHT. ADVICE STRAIGHT FROM A MILLIONAIRE.

Quiz: What is your earning potential? Choose the answer you agree with the most
View Results

Screen Shot 2017 05 16 at 10.04.57 AM

Let me see if I got this right, guys.

If I cut back on $19 avocado toast and $4 coffee, I can afford to put a 20% down payment on a house, and a house represents happiness and Americana, so finally, I can be happy. With the purchase of a house.

And this MUST be true, since a MILLIONAIRE said it.

A MILLIONAIRE, guys!!!

Well, I’m also a millionaire, and I’m about to lay down some fucking real talk. 10 points, that’s it.

1. No amount of saving avocados is getting you a house. The median price of houses listed in America is $245,000. (Laughable, since the median price of an apartment in NYC is over $2 million, but just go with it.) If you want a 20% down payment on that $245,000 house, you’ll need to cut back on 2,578 avocado toasts. At one $19 toast per week, that would take you 49 years to save a 20% down payment. In other words, according to this advice, you’ll be able to save enough for a down payment when your name changes to Mildred and you find yourself really into 10% off Tuesdays at Ross.

2. HOW FUCKING DUMB IS THIS ADVICE. AND WE’RE ONLY ON POINT #2 SO FAR.

3. This guy (and many others) also tell you to cut back on $4 coffees. Aside from the fact that I like coffee, if you run the numbers, $4 every day doesn’t really add up to that much. In this case, it would take you eliminating 12,250 coffees to save up for a 20% down payment on a $245,000 house. That’s eliminating buying $4 coffee every day for 33 years. Good luck, you poor caffeine-deprived bastard.

4. Why is the goal in America always to buy a house? Could it perhaps be the decades of propaganda by the National Association of Realtors? Why are more and more people choosing to rent (including me)? Oh, I don’t know…maybe it’s the fact that in large cities, it makes no financial sense to buy. Or that as an asset class, real estate dramatically underperforms the stock market. Or the phantom costs of real estate that nobody talks about (except me, in Chapter 9 of my New York Times bestselling book, where I show you the real numbers behind buying a house). If you want to read about why real estate isn’t always the best investment, click here. If you get angry because this is contrary to everything you’ve been told your whole life — even though I back it up with concrete numbers — please email me your angry comments right to straighttothetrash@iwillteachyoutoberich.com.

5. What are they not telling us? What are the experts not telling us? Hmm, let’s dig in. This guy, who became a very wealthy multimillionaire, claims we need to cut back on expensive food and coffee. I wonder if he did that…I wonder if possibly, maybe, he had a little help he doesn’t like to talk about. Let’s just look around at the TIME article for a second…

pasted image 09
Source

Wait a second…what’s this???

pasted image 08
Source

OK, ok, he just forgot to mention that. Let me adapt it for him:

Step 1 to buying a house: Stop buying $19 avocado toast

Step 2: Stop buying $4 coffee

Step 3: GET A 34 FUCKING THOUSAND DOLLAR LOAN FROM YOUR GRANDPA TO START OUT

Just an innocent oversight, I’m sure. (Thanks to @maxwelltani for the find.)

So many of these personal finance experts preach one thing to you, then do another. You really think the person on that national TV show is cutting back on lattes? Their dress (or suit) costs $2,000. You think they’re counting their pennies when they have a 3BR apartment in Tribeca? Get real.

By the way, if you want to hold my feet to the fire, please do. I started out writing about personal finance — which is where you should start, and where I’ve made considerable money. More importantly, I sleep well at night because my finances are automated. Then I’ve talked about freelancing, finding a dream job, salary negotiation, and starting an online business — all of which I’ve done. Above all, putting in the work to become truly great at your craft and loving what you do. Walk the walk, talk the talk.

6. Why don’t personal finance experts talk about earning more money? Answer: Because they don’t know how. They’re not financial experts, they’re journalists. That’s why they write about cutting back — it’s all they know. They don’t know about Big Wins or how to automate your money. They will never tell you how to afford a $1,000 dream coat or $5,000 dream vacation (even though they take them themselves).

But they sure do know how to tell you what you SHOULDN’T do with your money. Here’s an article that goes into other cost-cutting strategies. According to them, you need to cut back:

  • No coffee
  • No taxis
  • No dinners out
  • No nights out
  • Cut back on one subscription service
  • No lunches out
  • No overseas travel
  • No weekends away
  • No bottled water
  • And, inexplicably, a random photo of two half-naked women (???)

According to them, if you do all of this…in 4 years, you’ll have enough for the $34,000 that millionaire guy got from his grandfather. Do these people look at themselves in the mirror when they write this stuff?

Hey guys, if you give up water and oxygen, you can also save money too. In fact, you’ll never need to spend another cent after implementing this strategy for approximately 2 minutes.

7. Some of the advice is actually good. In general, Americans DO spend too much. Yes, you. Yeah, you eat out too much. No, you don’t even know how much you spend. You have no savings goals, you don’t know how to invest, and you say “you don’t want to lose money in the stock market” but you don’t know what the hell you’re talking about. When you tell people this (including that 69% of Americans have less than $1,000 in savings), they get really mad and try to argue that they can’t save. Everyone can save. Most of you have never even read one good personal finance book in your life, until the predictable day (in your 40s) where you realize… “Oh shit, what is all this money stuff?” The sad truth is it will be too late then. Wake up and take control of your money. I spend less than 1 hour/month on it. You have the time for one of the most important areas of your life.

8. It’s not hopeless. But if you follow the old rules, you’re screwed. If you believe you need to (1) cut back on tiny things like coffee to (2) ultimately save up for a house, then (3) buy it and live happily ever after, you are screwed. You’re playing the wrong game and you don’t even realize it. You’ll spend your life chasing a goal where you cannot win — and you’ll never realize why. Dig deep into your invisible scripts about your happiness and money. This is really challenging, but what you’ve been told — “real estate is the best investment” and “if I just buy a house, I’ll be okay” — might not be relevant for you any more.

9. Follow better advice that actually rings true for you. As you can tell, I think this typical advice is bonkers. But I also have zero tolerance for people who just want to complain about how hard we have it. “Waa, our generation is screwed…student loans, Baby Boomers, waa.” Shut up. We have more opportunity than ever before. Instead of complaining about the government or Baby Boomers, what have you done to live a Rich Life?

Let other people cut back on random $2 packs of gum. There’s a limit to how much you can cut, but no limit to how much you can earn. Get really good at your job and negotiate your salary. Start a side business. Set your finances up to automatically save and invest for you. Learn how to improve your social skills, master your inner psychology, & get more productive. When you’re ready, start an online business. READ. God, I don’t even care if you read my material or other people’s. Just get off your ass, stop taking bad advice, and create YOUR Rich Life.

10. Forward this to 3 of your lazy-ass friends who need it. Tell them to get on the newsletter at iwillteachyoutoberich.com from this weird Indian guy who wrote a New York Times bestseller and takes no shit.

Love me or hate me, I don’t care. What I do care is that you do something today. Nobody else is gonna do it for you.

Do you know your actual earning potential?

Get started with the Earning Potential quiz. Get a custom report based on your unique strengths, and discover how to start making extra money — in as little as an hour.

Start The Quiz

Takes 3 min

78 Comments

 
  1. Brandon

    Ramit tells it straight. I believed this type of stuff all the way through college, and I was miserable whenever I thought about money. I would stay up at night thinking about the ways I could have saved during the day. But not anymore. It's so much more fun and rewarding to buy and do what I want (within reason) while making up for it by making some extra cash. I really appreciate the great lessons, Ramit.

  2. John

    Ha I saw this headline on another site and instantly thought, "oh man this is the shit clickbait Ramit loves to destroy." Not disappointed.

    • Pete

      I thought the exact same thing! I'm glad Ramit tells it like it is and he never fails to disappoint.

    • Robin

      LOL. Same here!

  3. Ben

    I'm very glad you wrote this article Ramit!
    Why?
    – I'm Australian.
    – I spent $4 a day on coffee and don't feel guilty.
    – I own an investment property.
    – I've followed your blog for years and also read (and put into action) your book.
    – I read the quoted article yesterday and thought "I wonder what Ramit would say about this?"

    The media in Australia loves to go on about how hard it is for people to buy a house. In the same article, they also explain that you need a 20% deposit and they always quote the median house price.

    In Australia, you don't need a 20% deposit (or "down payment"). A 10% deposit is sufficient and is better because you get into the market sooner, and prices often go up faster than your savings rate.

    Also, the median in Melbourne/Sydney is about $700-$800k. But if you're a first home buyer, you don't buy median. You buy much less. So you buy a house for 300k-400k. All of a sudden that's a lot easier.

    And I 100% agree that personal finance sites (and our trashy clickbait media websites like news.com.au) like to go on about cutting back expenses, but don't mention the earning upsides that you have mentioned. If people really wanted to save for a house they would do anything they could to help themselves (like earning extra money).

    Love the article.

    • Darryl

      A key component of quality of life is travel time to work. If you are a younger person, almost all your initial career opportunities are in the city. However you can only afford to live on the far outskirts. It's that commute that will degrade your life quality.

      Sydney is the 2nd most expensive city in the world to buy a home (median income vs median house price). Melbourne is the 6th. That's why this is a significant issue in Aus.

  4. Eric Mueller

    Good stuff. You're one of the few (about the only one I actually know of) who lives what you write.

    Quick point on house buying: while it should not be the universal goal of everybody, in some cases (like those of us who don't like in San Francisco or NYC), it can make sense, assuming it's done realistically. Buy what you need, not some $500k McMansion (unless it makes sense). In my area, at current interest rates, a mortgage for somebody with decent credit is far less than rent. Most rentals are in bad neighborhoods, and you don't want to live there. For veterans, a VA loan doesn't require a down payment.

    I saw a meme recently that gave me a good laugh: "If your financial advice to me is to cut out $5 coffee, you're already assuming I have far more money that I actually do."

    • Shanae A Turner

      loL! @ LAST PART :W

  5. Carmen

    LMAO!

    When that article was trending, the first thought that crossed my mind was "I'm quite sure Ramit has a mouth full to say about this!"

    I agree with you one hundred percent and the amount of people who are green lighting this man's advice just because he's a millionaire is mind blowing.

    I think it goes to show how we equate millionaire status with smarts and hard work ethic. Sure, those two things help but the majority of the time, such people were lucky enough to have a financial boost from a benevolent benefactor.

    I might not buy Starbucks but I'll continue to eat my avocados! Thank you very much!

  6. Michael

    Ramit-

    I really enjoyed this piece. I'm a Realtor (I know, I know) who specializes in buying investment properties so I see the propaganda of home buying all the time and I just roll my eyes. It never ceases to amaze me the never-ending cycle of people trying to "cut back" instead of just earning more.

  7. scott springer

    You my friend are truly an idiot!

  8. Andrew Williams

    My first thought on reading this – WTF is avocado toast?! (Well, obviously it's avocado ON toast, but this is still a bizarre concept to me.)

  9. Elizabeth

    Yes! This is why you are my hero, Ramit. Thank you.

  10. Rafeh Qazi

    This article WAS SO GOOOOOOOOOOD!

    I jumped out when I saw Ramit get angry haha. This was awesome

  11. Karen L Dudek-Brannan

    The thing I hate the most about absolutist recommendations is that it doesn't take in to account someone's personal situation or preferences. If having a home is much more important to you and would bring you a lot more happiness than expensive coffee and breakfast, then it's decent advice (as long as you know that cutting that cost alone isn't going to get you a down payment). If you'd rather have the freedom to eat what you want when you want it and real estate isn't that important to you, then it's terrible advice.

  12. Netta Kanoho

    Rant On Ramit! You go, dude! I am getting really tired of people trying to tell me that I can cut my way wealth and happiness. Dum-de-dum-dum….

  13. VINAY CARDWELL

    This is why I love your stuff my Indian brother. Preach on!

  14. Josephine

    HA. You're actually the first person I thought of after I read that avocado toast article. This made me crack up. Thx.

  15. Sonja B

    THANK YOU! I was just working in the yard and thinking what a crock the "American Dream" of home ownership is! We have averaged $7k/yr maintaining our average home in addition to the (historically small) interest payments we make with our mortgage payment every month. When I calculated this and thought about large upcoming projects, I was reminded "you can deduct your interest, owning is a great investment" was marketing to keep the economy humming. And this isn't even factoring how much TIME we spend on maintaining the stuff.

    I used to work in mortgage and if people really looked at the amortization tables when looking at mortgages they would freak out at how much money they will pay the lender to buy a piece of the dream.

  16. Peg

    I just love you, Ramit – you make me laugh out loud! 🙂

  17. Will

    I called out a connection of mine on LinkedIn bc they shared this article. Channeled my inner Ramit, but far less effective than this! Blasted the article for having such a scarcity mentality.

    Love Ramits response here!!

  18. Jen Holmes

    Oh God. I'm glad I made a tea and got a biscuit before I settled down for this one. 😂

  19. Mansell

    I see it both ways. My sister was a big saver and will retire very comfortably at 55…no side hustle…no huge deprivation…just being very wise with saving and spending. I was the family grasshopper, all fun in the sun, and am now looking for a side hustle because even with my reformed spending habits I'll be eating cat food as a little old lady if I don't wise up and make more money. Even without starting my own business, I would be so much farther ahead had I just saved more of the money I earned. The lesson here…wise spending, started at a young age can really make a difference. If only I had listened to my big sister when we were younger.

  20. victoria

    "Hey guys, if you give up water and oxygen, you can also save money too. In fact, you’ll never need to spend another cent after implementing this strategy for approximately 2 minutes. "

    How I knew that guy's advice really pissed you off. Was literally LOLing.

    Are there no avocado trees in Australia? Why does it cost $19 to get avocado toast? My goD!

    • Michael

      That is what the hipster cafe's charge with the $4 mocha late for you to be served by a uni student with an ironic beard and bad attitude….welcome to Sydney and Melbourne cafe culture!

  21. Jeff

    Right on Ram-IT!! Love IT!!

    You know, millionaires are the ultimate authority–if this schmuck or The Donald can be a "self-made" man (with a simple $1M "gift" loan) then clearly we ALL can — it's simple really, all you need is to live off beans and rice!–hell by lifting those 100 pound bags you don't need a gym membership let alone a personal trainer.

    I'd love to see what happened if that bastard followed his own advice — cut out all of his coffee and watch his pennies accumulate while he suffers not being able to stay awake …

  22. Megan

    Amen! I read this yesterday at lunch and eye rolled my way through it. Thank you for the excellent rant – particularly pointing out the 34k.

  23. Kristin

    Why is avocado toast $19? It's one slice of bread and half an avocado.

    • jaya

      depends on where you buy it. and trust me, people are happily paying that amount. makes me sick to see it, but their money, their ferrari.

  24. JaneB

    Thank you, thank you, thank you. You just gave me the best laugh of the day! This was a good rant. I too don't want to give up my $4 coffee for some supposed idyllic life in some supposed future retirement. So glad you are calling out the bullshit. And while I respect your target audience is younger people like yourself or a certain demographic, you might want to think about the bunch of 'baby boomers' who yes, left it to late and now in their 40s/50's, know there is no retirement in site and yet they too still need to find ways to pave a path forward. Only person whose talked about this so far is Elizabeth White in her book '50, Unemployed and Faking it.' You may not be able to address this from the point of your own personal experience – but you have a product/marketing machine that could pull the right resources together. Just an idea. 🙂

  25. Jonathan

    This was so refreshing. F'kin A and well said, Ramit!

  26. Cameron

    I agree with both sides, I think the "Avocado Toast Guy" was very simplistically referring to the mentality of the general population and how they prioritize their spending. Instead of making their money work for them they just mindlessly spend on stupid things like avocado toast because it looked cool on some Instagram "Influencer" feed. Everything has to be post worthy these days and it creates a high snob factor for people who have no business being snobby about brand names or fancy dining. He did however totally blow his credibility by receiving a buttload of cash from his Grandpa. Good for him and his good fortune, but he has no right to claim being an expert on being in the trenches and starting from scratch.
    Ramit is also right that a person isn't going to get far by cutting all things joyful out of life, but there has to be boundaries (aka priorities). Especially when those $4 lattes are going on the credit card and collecting an endless 30% interest when the minimum payment is made at the end of every month. So many people have no boundaries because there's no glamour in restraint and discipline, it's quickly being dissolved from Western middle-class culture. In turn people remain stuck and the easiest thing to do is complain. Instead of finding ways to make personal finances work in their favor or coming up with new income streams altogether, they do nothing because nothing is comfortable and easy. I know because I battle leaving my comfort zone every day.
    Bottom line, if you want to buy a house that's fine, but don't complain about not being able to afford one when you spend $1K/mo on X (insert mindless spending habit here).

    • Jaya

      good point well made.

  27. Sally

    This is the same guy who said that millennials travel because they don't know what they should be doing with their lives… When I read both those articles, I thought:
    1) The guy is in real estate and of course wants as many people buying houses, whether they need them or not.
    2) If he considers travel as "putting your life on hold" *eye-roll*, he's obviously never heard of Tim Ferris and The 4 Hour Work Week.
    3) Saving on coffee is supposed to help you get rich..? Wonder what Ramit will say to that lol

  28. Jed Pike

    All I could do was laugh. Articles like these are great examples of business advice that will leave you in debt and always wanting…

  29. Mert

    Can it get ANY better than this? Oh, I guess not.

    I saw this 'avocado' article yesterday and thought the same.

    Thanks for putting my brain here. Oh boy, I am entertained.

  30. Julie

    While I still won't invest in the stock market, I loved the straight talk here. If you want to invest in real estate, buy rental properties that you can earn money with.

  31. Skip Gue

    My thoughts EXACTLY. Brilliant!

  32. Yaina

    I discovered you 5 months ago and within weeks I joined ZTL & ACC, this is my favourite post yet 😀 Absolutely hilarious!!

  33. Dan Khadem

    Thank you for calling out enough rich person on the Internet who gives advice and talks about how hard they worked to get to where they're at, BUT, they never come clean on the "loans" and help (free college) they received growing up in a family with money.
    Some people are born on third base and go through life thinking they hit a triple.

    • Bob

      "Born on third base and go through life thinking they hit a triple". Outstanding!

  34. Mariana

    Oh my! Thanks Ramit, for being so you! When I saw this article I felt sorry about all young people who really believe in this lie! Go word! Work hard! Stop being lazy and eat your avocado toast!

  35. Cynthia Wolf

    Thank you, Ramit, for another great article. I agree with you! I'm for earning more money, making more on line consistent sales and living a rich full life!

  36. Dave

    Epic rant. This shit makes me so happy Ramit. You're the man.

  37. Faridah

    Absolutely 100% agree with you Ramit! It's not just an American problem – it's the "messaging" all over the world – including where i live in Asia – that "owning a home means you will be happy". I've never been on that bandwagon because I never wanted to be tied down to a 30 year mortgage. It would have sucked the soul out of me. Thank you for being contrarian – which is why I enjoy your take on things. It's how I think too!

  38. Jacqui Pretty

    Lol – I remember when this guy first showed up last year (the avocado toast guy, not Ramit). I'd ordered a smashed avocado for brunch with my family, and everyone thought it was hilarious because my husband and I were both saving for a house. Two months later, we bought our house – no cutting back on avocados or coffees required!

  39. Ryan

    Fuck yeah! Ramit said/ shouted everything I was thinking when I read this millionaire's post. Instead of serving avocado toast, he served up a big ole shitburger.

    It's amazing how much advice one can get, but eventually we individually have to realize what's for real versus what's for sale. I don't always agree with Ramit and some of the other comments that follow, and that's what makes many of the posts great. It gets you to think! Agree? Great, try to follow one path or network with someone who can share. Dont' agree? Fine, find your own way that works for you and build from it.

  40. Peter Fritz

    Goddamit, this is one of the best damn articles I've ever read on personal finance and money mindset! Now I have to buy your book.

    I agree that Tim's advice is a little simplistic and misguided but it points to a symptom that's common amongst young people (I see it with my own kids). They say shit like, "But I CAN'T go to the prom for less than $500, and I CAN'T just hang out with friends without doing lunch at a cafe, and I CAN'T blah, blah, blah." This is from my 16-year-old who's still in school.

    If they're going spend like they're rich when they're this poor, they'll just do it bigger when they're actually making proper money. They'll make $200k a year and spend $220k.

  41. Cam H Lynch

    Rock on Ramit!
    I live in Australia and the dinosaur media here love to trot out garbage like this and expect the wider readership to take it as personal finance gospel as opposed to actually doing their jobs and creating real content.

    99% of the time an "Australian Property Mogul" is some first home buyer who lucked out when it came to location of their first property buy in the late 90s to early 2000s, rode the mining and property boom with newfound equity – multiple properties later they are now a "mogul"?
    Eat shit.

    This douchebag is the worst of the worst as he now tries to tell other how to create wealth by a methodology HE NEVER EVEN USED HIMSELF!!!!

    Ramit picked up on this and it made me really happy that a guy of Ramit's influence still loves to tear a-holes like this a new one from time to time.

    Thanks for the rant Ramit. They are always welcome.

  42. Hoa Chu

    Mr. Ramit!

    I'm surprised with this article. It's too right !

  43. Alex

    God fucking damn! Love this post, Ramit. Not only are you right about the fact that there's a limit to how much you can save every month and that there's no limit to how much you can earn simply due to the fact that earning potential in an online business is the sky because of scaling, but I love your style of writing, especially in this post. The bluntness and emotional emphasis is awesome.

    But also, that guy clearly didn't practice what he preached. Yeah because EVERY fucker on the planet is going to get a 34,000 gift from their grandpa to use as a down payment on a house. Yes, some people will, but a lot WON'T so he fucked his credibility for citing something that not many could implement in real life. Good on you for setting that dude straight, Ramit.

    Man it's fun to read you ripping those "expert" dudes a new one!

    PS: Avocadoes and toast is $19?! I gotta try that out, sounds tasty.

  44. Adrian

    Hi, Ramit. Love your rant man. Straight to the point. Everything you said is so true. If we don't focus on how to earn more and we start cutting on everything that makes our lives enjoyable, why the fuck keep living? Like you said, we can cut our freaking oxygen and be done with it.
    And these gurus that preach all this shit and they never do any of it, they should stop giving advice to everybody and go on with their lives.

    I would like more posts like this in the future and I hope everybody reads it. Cheers.

  45. Yury Lapshin

    What realy bothers me in cut-latte advices is the false goal those experts put behind it.

    Why cut lattes?
    You need less lattes because you drink too much coffee and that coconut syrop is sugar+sugar mixed with some sugar, that's why!

    But when you do it to save money, not only you'll fail on saving and become a little less happy in the process. You'd most likely mark the idea as poor.
    So when you'd start to care for your health and think what to change to improve it, your previous ill-goaled experience will drive you from this particular change and thus from your goal (because for this goal this change IS helpfull).

  46. Russell

    I want some avocado on toast now- and I don't even like avocado!

  47. Peggy

    Have an avocado in the fridge, cost me 33p, never had on toast so will try that as a cheap money saving lunch. Thank you 😉

  48. Matt

    Holy shit, you guys going off half-baked are as bad as the news article that baited you with the story. I actually watched the story on the Australian 60 Minutes show. The story was about a generation of Australian's who think they'll never afford their own home. Tim's point was to have realistic expectations, work hard, and stop whining.

    Tim Gurner, at 35, is apparently worth half a billion dollars from building apartment blocks in Australia. He's not a fucking idiot and he's not a "finance guru". He's clearly smart, and knows how to level up, and increase his salary. Wow. All the stuff Ramit talks about.

    I've just wasted 5 minutes of my life responding to this blog post. I'm pissed at myself that Ramit baited me with that email. Don't bother flaming me in a reply as I won't be back to respond.

    I'm going back to working on my ZTL side business.

  49. Shane

    I loved this rant.

    Plus, I'm glad I can keep drinking hipster coffee without letting you down, Ramit.

  50. Stephanie

    Best fucking thing I've read all week. Thank you.

  51. Caris

    I wish I'd been a fly on the wall when you read the original article and your head exploded. I love everything about your response, but #10 is my favorite. Can't wait for your next rant 😀

  52. Elliott Pearce

    I fucking love this. I don't want to cut back on Ubers and bring my own lunches to work so that I can be rich. I want to be rich so I can Uber whenever and wherever the fuck I want to and eat a $20 lunch every damn day. I don't even have to be that rich to do that.

  53. Denis

    Hi Ramit, I get your point – to much focus on savings is detrimental. In order to make it you need to know how to: earn, save and invest money. If you just save your money without investing it, inflation will eat it away. But the real leverage is the earning potential. I agree with you here.
    However, I dont agree with your math. If you buy an avocado sandwich for 19$ and a 4$ latte every working day it is 23$ a day. Lets say you have 21 working days a month on average. Thats 483$ a month. Not a lot of people save 500 bucks in a month…
    If you invest this amount at 7% interest (average return of stock market in the last 70 years) you get 245.000 $ in 20 years. I assume you are smart about taxes here 🙂 OK, you might not get the same house for 245.000 in 20 years. As I said inflation takes its toll.
    But if you only need a 20% downpayment (which is 49k) you can get there in 6 years and 8 months.
    Not too bad…

    Kind regards
    Denis

    • Bogdana

      Hey,

      Just one little thing – you will not save $23 a day, because instead of an avocado toast and a coffee for lunch, you will buy some other meal anyways.

      So it sounds good on paper, but doesn't work in reality.

      I am not arguing, just decided to share my thoughts 🙂

      Best regards,

      Bogdana

    • Sean

      I'm with Denis here. Stop drinking coffee. Buy avocado and toast for $3, total daily savings is now $20/day, which is ~13% less savings per day. Which puts out your 20% downpayment to 7 years and 6 months. If you follow the same mentality for your other meals, you can save even faster.
      I think the point no one is mentioning is that spending 600% more for convenience will slow you from achieving your financial goals. All in moderation, striking a balance and having self control will get you there. Most people I know who have a better lifestyle than me either earn more money, but have less assets, or they're completely in debt.

  54. Glenda

    This was spot on and hilarious at the same time!! Thanks for your opinion and realistic points of views!

  55. Bogdana

    I just LOVE this article so much!

    I feel like this "cut back on coffee" are made just to make people feel guilty.

    But this nice little treat every day can make actually someone a little bit happier and more capable of earning more money, than a person, who is constantly cutting back on something!

    I LOVE avocados, and I don't care how much they cost, if I will have to choose between avocado toasts every day or buying a house, I would choose avocado toasts! Because why would I need a house when I can't afford eating well?

    Avocados rule the world.

    • Elizar

      How the hell is coffee going to make you more capable of earning more money? I've had days where I work with coffee and where I work without coffee and there is no correlation between coffee and earning more money. Training new skills might help you earn more money but coffee is just a little pick me up.

      It's funny to me how people want the "freedom" to have their Starbucks coffee. They are referring to something that is their bondage as their freedom! They can't go a day without a coffee but they are calling it freedom!

  56. Maria Killam

    Hahaha OMG such a great post, love it so much, especially because my partner read that headline to me the other day in passing, and here you are doing a rant about it.
    You're the best Ramit, can't wait to meet you at Forefront!
    x
    Maria

  57. Antonieta

    Rarely I stop to read all the comments on your posts, not sure if you do the same, and that's why I don't write either. But this time, it was HILARIOUS and I needed to stop by and thank you for that. Since the moment I first found your blog, casually, looking advice on money, I absolutely adored your deep-black, sarcastic and brutal, sense of humor. So, I don't really know if you truly get positive feedback about it, as much as you mentioned it, but I frankly adore it, and it inspires me to be exactly the way I am, despite many are too slow to understand… I laughed so much/hard at this: straighttothetrash@iwillteachyoutoberich.com that if I ever meet you, dinner would be on me, just to show you mi gratitude, hahaha!!

  58. Mohit

    MJust made my day Ramit!

  59. Alice Chen

    I'm laughing so hard! Great wake up call for people making excuses.

  60. Alejandro

    " please email me your angry comments right to straighttothetrash@iwillteachyoutoberich.com."

    LOVE IT. hahaha

  61. Adam Jones

    Only here in Australia. Our real estate prices in Sydney and Melbourne are so disgustingly over inflated that no amount of not eating avocadoes is going to make a lick of difference.

  62. Budget On a Stick

    The whole thing is just ridiculous, sounds like something a senile Grandparent would be saying at Thanksgiving. Also, I didn't even know Avocado toast was a thing until last week. Is that a coastal thing or am I not going out to eat enough?

  63. Sarah De Diego

    How can I get your humour and truth into my inbox?

    Regards, Sarah

  64. Deb

    Jesus who is paying $19 for avocado toast? Avocado $1, Loaf of bread $2 (I am in the midwest so prices are a bit cheaper but still, get the stuff on sale). I'm going to assume everyone has a toaster but if not, get one for $5 at Target on Black Friday. Make avocado toast at home. Also, avocado toast is kind of gross so…no thanks. Nice take-down of douche Millionaire! Clearly that dude with his $34 grand in "loans" from his sugar granddaddy is way out of touch.

  65. jw

    I've never had avocado toast and I'm buying my own home right now so I think that proves Mr Gurner right and you, Ramit, as just jealous 'cos you didn't think of it! 🙂

  66. Christina

    I think you could look at avocado toast in a different way here. I've noticed it is usually the cheapest item on the breakfast menu so in fact someone may be making a frugal decision.

  67. Joel Walbert

    If you pay $19 for avocado toast and $ for coffee maybe you don't have the mental capacity to be a home owner.