Have Your Avocado Toast and Eat It Too – Fund Management/ REIT


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Written by Frankie Barnett

Does the term “Financial Responsibility” make you lose your eyes? The sad reality is that for many of us, when we finally land our dream job or get that big promotion, the excitement we feel is soon drowned out by all the homework involved: loan repayments, mutual fund investment, API, REIT. It can start to feel like the adult equivalent of eating your broccoli.

What if being financially responsible sometimes meant spending your money? This is perhaps the most repugnant idea of ​​all.

17,421 avocado toast

Ever since the word “millennial” entered the lexicon, it’s been dripping with connotations of laziness, entitlement, and irresponsibility.

In 2017, Australian developer Tim Gurner went viral for suggesting that the reason millennials can’t afford real estate is because they spend all their money on brunch. Gurner’s dismantling of so-called financial recklessness has been universally derided, and rightly so. The BBC’s Worklife column has broken down rising housing costs around the world and determined that the average down payment in London is roughly equivalent to 24,499 avocado toasts. It’s been one a day for almost 70 years. In Vancouver it will cost you 17,4211.

But while Gurner’s analysis is flippant, factually false and hypocritical (Gurner himself received a $34,000 loan from his grandfather when he entered the real estate market), it taps into a cultural myth. broader on the under 40s which resists logical rebuttals.

What happens in the night

Many of us are unsure of how we spend money. Not necessarily because we’re reckless with it, but because it’s been reckless with us. Young people have been brought up on horror stories of individual and corporate financial mismanagement. Perhaps you still vividly remember the vibe between your parents when the Visa bill arrived. Most likely, you or someone you love was hit by the financial crisis of 2007. And we saw the cost of living and tuition fees hit record highs as labor markets contracted.

It’s no wonder so many of us suffer from toxic relationships with money and are reluctant to even spend it.

Wealth: what is it for?

The lawyers’ financial adviser, Dustin Serviss, discourages scarcity mentalities among his clients.

Many of us may have adopted what he calls a “save, save, save mentality” from our parents, gearing our financial planning toward a distant retirement that rarely turns out exactly the same. way we might expect. “You don’t know what’s going to happen in twenty or thirty years,” Serviss says, recommending instead that we use more of our money now to enjoy what we love in our lives, whether it’s our hobbies, the trips or even reduce working hours.

In fact, for clients who have a strong financial foundation, Serviss sees a correlation between who spends and the opportunities they attract.

Many of us have adopted a saving, saving, saving mentality from our parents.

It’s not about racking up your credit card bill or worshiping the altar of consumerism. It’s about recognizing that when you have the opportunity to enjoy the income you worked for – with that first job after college or a big promotion – your money is yours, not the other way around.

So why can’t occasional personal luxuries be included as an aspect of your financial well-being? A date night, for example, costs about 0.00007% of a deposit in Vancouver. Or a quality cast iron pot, which will set you back about 0.00021% of a down payment in Toronto. Splurge on new sneakers for 0.00024% down payment in Calgary or a Reformation dress for 0.00048% down payment in Halifax.

But if the thought of letting go of some of your hang-ups about “unnecessary spending” still makes your stomach turn, you’re not alone. It’s part of what Serviss calls “the nerve of belief in your head.” You pick it up over time from your parents and friends and what you see on TV about all the different ways money can ruin you. And while it’s true that there are times when the economy can be crucial – when you were a student, for example – once those times are over, there’s no need to maintain the same mindsets, especially if they cause considerable stress and anxiety.

Think of it as a micro investment, but in this case the mutual fund is your own well-being. After all, although you’ve had your ups and downs, you’ve made it this far. Risks await us. In all likelihood, chess too. But your future isn’t something fragile, an avocado toast far from crumbling into oblivion.

Frankie Barnet lives in Montreal and is the author of An indoor girl.

Footnote

1. https://www.bbc.com/worklife/article/20170530-the-avocado-toast-index-how-many-breakfasts-to-buy-a-house

Originally published on April 12, 2022

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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