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.
Photo by Jeremy Keith.
"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
The median house price in Sydney right now is $805,000. If avocado toast costs $20 a serving, and you currently eat it twice a week, skipping those meals will allow you to save enough for a 20 per cent down payment in just 77.4 years! You'll probably lose some weight in the process, too.
If you currently don't eat $20 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 1700 avocado toasts' worth.