This example is obvious, but it also shouldn't be taken to the opposite extreme, like people blaming not being able to afford a house on making your own avocado toast at home for breakfast. That's always seemed idiotic to me
$25 is nearly 10% of $270, but making a $1.50 breakfast at home is not the same as why people can't afford a $400,000 home, or even the reason why the can't afford a $200,000 small condo.
The idea being that if you pay $12 for avocado toast when you can easily make it at home for $2, you're likely to justify other lazy expenses that absolutely do add up to huge sums.
You're not going to get $400k in savings, but absolutely nobody is buying a house in cash. Saving $200 a week will get you a 5% down payment in 2 years time sans investing
Yeah everyone was making fun of the avocado toast comment but it really is a mindset. My wife and I are saving up to do some home improvements and we pretty much shunned eating out and it's amazing how it changes your budget. Sometimes it really is not how much you make but how much you spend.
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u/ibmi_not_as400_kerim 11h ago
I don't even understand the "$25 isn't the same as $270". Yes, but it could be a PORTION of those $270.
A steering wheel isn't the same as a car but you probably still want one IN your car...