Badass vs Dumbass
Master your Financial Kung Fu to be one and not the other.
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👉Go to Sifu’s Notebook for Avocado Toast and Your Wallet: Myth or Wealth Killer?
Primer: Who are Sifu & Ronin
Episode 48: Ronin Wins!
Ronin: Sifu! Help me solve the biggest mystery of the day.
Sifu: Huh? What’s that, Ronin?
Ronin: You know, “Can we blame Avocado Toast for ruining our future?” Do you think it spells financial ruin for my generation?
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Sifu: C’mon man … is that really a question? I guess it is pretty pervasive these days, isn’t it? I see it on people’s Insta, all the time. Young people overpaying for slices of bread with mashed green goodness every day. Do you do that?
Ronin: Me? Maybe … hee-hee. How can I not boss? You have to admit: avocados are a superfood. Coupled with perfectly toasted bread, it’s friggin delicious. Hard to say no to that!
Sifu: Hmmm. I do admit – it’s way better than a donut!
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Ronin: See! Even you agree it’s a great treat, and good for you.
Sifu: Just because it tastes fantastic, doesn’t make it great idea. Is it killing your future? Let’s get into this.
The Bigger Picture
Sifu: It’s not just the avocado toast itself. It represents a bigger issue of small, repetitive expenses adding up. That $10 might not seem much, but over time, it can add up. If you’re eating that daily, it’s over $3,000 a year. Your dollar store calculator still works, right?
Ronin: Sure, but what’s life without guac? Next thing you’ll tell me I need to skip the occasional artisan kombucha too. It’s a reprieve from the daily grind, man.
It’s Not Really About the Toast
Sifu: The real issue is lifestyle creep. People increase their spending as their income rises, often without realizing it. You remember The Creep, don’t you, #1?
Run Fer Yer Lives!
Ronin: Yikes! That’s bastard again. Can’t seem to shake him, eh?
Sifu: He is one sneaky sum-bitch, that’s for sure. The tendency is to upgrade everything when we earn more, instead of saving or investing.
Ronin: Pffft. Yuppers.
Where Your Money Really Goes
Sifu: Look at the bigger expenses—rent, healthcare, student loans. Avocado toast is a distraction from real financial burdens.
Ronin: Ah, so it’s not the toast! It’s the fact that rent is basically half my paycheck. So we shouldn’t blame my brunch habits.
Sifu: Pretty much. Cutting out toast won’t exactly fix the fact that people are paying too much in rent or have massive debt. But that added daily expense is in no way helping your cause either!
Ronin: Ai-ya. Heard.
Prioritize Your Goals
Sifu: Set clear financial goals. If buying avocado toast fits within your budget and doesn’t derail your savings plan, enjoy it.
Ronin: Wait, so you’re saying I can still eat it… as long as I’ve budgeted for it? Finally, some good news!
Sifu: The key is moderation, Ronin. You don’t have to deprive yourself of everything. Just be mindful of your spending. You know, you can easily make it at home too, and save like 80% on the cost.
Ronin: I know, I know. That’s gonna add up to some serious savings, isn’t it?
Sifu: See, who’s not a dumbass today?
The Happiness Factor
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Sifu: Denying yourself small pleasures like avocado toast can lead to burnout. Balance is key. Maybe have it once in a while – perhaps with friends on an outing. The goal is to treat yourself in moderation, not to let small indulgences turn into mindless spending.
Ronin: Aight, I get it, bossman. I’ll save it for “special occasions.” Like Mondays. Or days that end in ‘Y.’
Sifu: Smartass!
Mindful Spending, Not Deprivation
Sifu: Track your spending. Know where your money goes, and make sure it aligns with your long-term goals. If that’s what brings you joy, make sure you account for it. But don’t let it detract from your savings or bigger goals.
Ronin: The jury has spoken – the toast is innocent! Sounds like a WIN boss. All this talk about my favorite treat has my stomach grumbling!
Sifu: Ha! Guess the only way to shut down those gnarly guttural bombs is to feed you. Let’s go, on me.
Ronin: Winning!
Sifu’s Notebook
Avocado Toast and Your Wallet: Myth or Wealth Killer?
Avocado toast has been a hot topic in financial conversations, often cited as a symbol of frivolous spending, especially for millennials. But is indulging in this trendy snack really the culprit behind derailed financial goals? Or is it just a convenient scapegoat? Let’s break it down and examine whether avocado toast (and similar small luxuries) is truly sabotaging your financial dreams.
1. The Bigger Picture: It’s Not Just About the Toast
- Avocado toast has become symbolic of all those little expenses that add up over time—whether it’s daily coffee, takeout lunches, or trendy snacks.
- While it’s true that small, frequent purchases can accumulate, they’re unlikely to be the main factor preventing people from reaching major financial goals like buying a home, retiring early, or paying off debt.
- Focusing solely on avocado toast ignores the larger issues at play, such as stagnant wages, skyrocketing housing prices, and the growing cost of living.
2. The Math of Small Expenses
- Daily cost: Let’s assume an avocado toast costs around $10. If you buy one every day, that’s $70 per week or about $3,650 per year.
- Long-term impact: While $3,650 is a significant amount of money, it’s still far less than what you might spend on rent, a car, or health insurance. It’s more about how this amount fits into your overall budget.
- Cutting out small luxuries can help save, but it won’t fix deeper financial issues like insufficient savings or lack of long-term planning.
3. Lifestyle Creep: The Real Culprit
- What is lifestyle creep? It’s when your income increases, and instead of saving the extra money, you increase your spending on unnecessary luxuries, often without realizing it.
- How it impacts finances: Lifestyle creep can easily outpace your salary increases, making it harder to save for big goals.
- Example: Instead of just blaming avocado toast, think about the bigger upgrades you’ve made—buying a new car when your old one was fine, moving to a more expensive apartment, or splurging on vacations you can’t afford. These are the real dream-killers.
4. Prioritizing Financial Goals Over Small Sacrifices
- Set clear goals: Whether it’s buying a house, paying off debt, or retiring early, define your goals and how much they’ll cost. Once you know the target, you can plan for it.
- Budget smarter: Rather than giving up avocado toast entirely, focus on a balanced budget. Ensure that your spending aligns with your goals.
- Find balance: It’s okay to enjoy small luxuries if they fit into your financial plan. The key is moderation and making sure they don’t take away from your bigger objectives.
5. Where Your Money Really Goes
- Housing costs: Rent or mortgage payments are likely eating up a large portion of your income. In many urban areas, housing costs have skyrocketed, and cutting out avocado toast won’t make a dent in this category.
- Student loans: For many people, monthly student loan payments are a much bigger financial burden than occasional indulgences.
- Healthcare costs: Unexpected medical expenses can derail financial plans far more quickly than daily coffee or toast.
- Focusing on reducing major expenses and debts will have a far greater impact than skipping brunch.
6. The Value of Enjoying Life’s Little Pleasures
- Mental health: Constantly denying yourself small pleasures can lead to burnout. Life is about balance—cutting every indulgence to save a few dollars can make you feel deprived, leading to spending binges later on.
- Happiness factor: Treating yourself occasionally to things you enjoy, like avocado toast, can bring happiness and prevent feeling resentful of your financial plan. The key is to make sure those treats are intentional and don’t turn into mindless spending.
7. Mindful Spending Over Mindless Cutting
- Track spending: Know exactly where your money goes each month. You might find that other categories, like dining out, shopping, or subscription services, have a bigger impact on your budget than a weekly avocado toast treat.
- Evaluate priorities: If eating avocado toast brings you joy and fits within your budget, then keep it! But if it’s becoming a habit that conflicts with your financial goals, consider cutting back or finding cheaper alternatives.
- Be mindful of splurges: The real issue isn’t avocado toast—it’s spending money without thinking about the long-term consequences. Be intentional about your purchases.
Conclusion: It’s Not Just the Avocado Toast
Avocado toast isn’t killing your financial dreams. Rather, it’s how you manage your overall spending, lifestyle choices, and long-term goals that matter. Small indulgences are fine as long as they’re balanced with smart financial planning. Instead of demonizing the toast, focus on the bigger picture: budgeting, saving, and prioritizing what truly matters in your life.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
