Chet Q Seely

🚴‍♂️✨ 8mi quick ride. Twilight wheels, love feels. Just two jawns pedaling through golden hour. Bridging sunsets and soulmates

You may have heard of the headlines that a daily cup of coffee at Starbucks is a waste of money, or that Millenials are ruining their chances for financial freedom because of avocado toast. That the claim is the only way to get rich is to cut out these daily expenses.

Actual self-made millionaire Ramit Sethi argues that “you can’t cut your way to growth,” and gives the example of the way millennials supposedly overspend on avocado toast.

“You may have seen an article going around telling you the only way to be a millionaire is to cut back on avocado toast,” he tells CNBC Make It. But the idea of getting rich by buying less, he says, is “horrible” advice.

“Do you know how many avocado toasts you’d have to forego to get just a 20 percent down payment” on a median-priced home? “Is it 100? Is it 1,000? No, it’s over 2,500 avocado toasts.”

In other words, eliminating small, regular purchases is unlikely to help you save enough money to become wealthy. “There’s a limit to how much you can cut,” Sethi says, “but there is no limit to how much you can earn. You’ve got your salary. Negotiate it.

“Think about how much you can grow versus how much you can protect, and that is how you start crafting your own rich life.”

I've often found the way I reach my financial goals is by having a solid budget. In my experience, I've found the multiple-account budgeting method is a way to put my money to work without having to keep track of a big spreadsheet. Give it a try and see how this method can be worthwhile!