Claims young adults are spending too much on dinners out instead of saving for a house

0:00And excuse is a sitting-based auctioneer at Kool-E-Oxins, Damien Kool-E-Good morning. Morning Tom. What do you require to the saying in today's finance review really resonated with me because I remember when I bought my first house, for example, I didn't know, I didn't understand stamp duty and something I've got a bill for, I think it was $10,000 from the state revenue office down here. And I had to sell my car to pay for it, I couldn't afford to have a relatively modern car and pay the stamp duty and I ended up driving a car that was 25 years old instead. Is this a lesson that's perhaps lost on younger people today? I think that, I'll go say to my kids all the time, you, it depends on what your goals are. If you want to put yourself in a position to buy a home, there are sacrifices that you will need to make and you need to be disciplined around your savings to put yourself in a position to be out of afford a deposit, to be able to buy a home. I think one of the lessons that I try and teach my kids is make money while you sleep. And if you can't work, what is your income?

1:06It's a really powerful question for everybody to ask themselves. If you weren't able to work anymore, what is the income that you are generating? And that's all about building passive income to be able to make sure that you leave a comfortable life as you get older. So for me and for my kids, like we regularly sit down and talk about how much they've saved, what pocket money they get, what they're saving out of their pocket money, what money they get for birthdays, and other putting it into what we call is our kids house accounts. So all three of my kids have a house account and we do our best to try and teach them about investing. And that's what it's all about, saving discipline. Yeah, and what is the lesson you impart to your kids and other young people about not spending money now versus having it for the future? Well, I say to my kids all the time, like any materialistic thing that you're going to buy now is more than likely going to be worth

2:06a lot less than what you paid for it and you're buying it for pleasure. And it's nice to have these things and it's nice to enjoy great experiences. But if you want to put yourself in a position to buy a home, you're going to need to save a significant amount of money to do that. And saving $100,000 seems impossible. But once you save $5,000 and that $5,000 becomes 10,000 and you invest this money into perhaps into the share market, which my kids are starting to do. You know, for them, it's all about watching that money grow and it takes a long time to do it, takes years to do it. But as you get more, it compounds and it also becomes a larger pool of money that you'd be able to spend on a house. There was another lesson if you like that I try and impart to my younger producers here, but they don't want to listen. When I was in my twenties, it was a very rare thing to go out for a meal, like to go to a restaurant. Basically, a method of socializing was we would take it in turns to cook a meal for our friends. It was

3:07usually something pretty basic like spaghetti, bolognese or, you know, chops and sausages on the barbecue. But it wasn't so much about the food, it was about getting together. But you know, it was much cheaper to entertain, to eat at home and then to go out. And these days when I look at young people's social media feeds, it's full of pictures of all this amazing food and these meals that are getting at restaurants. And I wonder if that's a smart thing. Well, I say this all the time, I say like, what a first-time buyer who really do, you know, have aspirations of buying a home, what are they doing to help themselves? And the dining out is just a, I guess, an easy analogy to look at and say, you know, are you going out the fancy restaurants and spending money there or are you cooking at home? If you're cooking at home, are you buying an eye-fillet steak and opposed to a rum steak? Are you having a lobster pasta at home instead of a spaghetti bolognese? Like you, for me, I was probably about 18 years old before I even went to a cafe. The thought of going out for a fancy dinner in our home, I was one of five

4:10kids, was unheard of, you know, perhaps it might have been a very special occasion, but, you know, mum always cooked meals at home and we were taught from a young age to save and to also try and choose a career where we were rewarded on our effort and we were rewarded based on our hard work. So, you know, for me getting into real estate at a young age, I mean, I started my business when I was 23 years old and I was, I think of kids now that are 23 years old and starting their own businesses, you know, some of them might feel like it's out of reach, but it actually isn't. It is all about what are your goals, how am I going to achieve them and what sacrifices do I need to make to achieve those goals? All right. Thank you so much for your time. Dominion Cooley there, Oxnere Cooley, Oxnere, Oxnere, I've been Sydney and look, I've never met him before, I wouldn't know him from Barrow's site, but I read an article that he appeared in in the financial review this morning

5:11and he specifically focused on the propensity of modern generations to eat out, you know, breakfast or or brunch at cafes, an endless stream of takeaway coffees, which they are cost $5, $6, $7 each. I think I paid $8 recently, that might have been for a large one, but yeah, coffees getting expensive, going to expensive restaurants, one of my producers said to me, oh, I went to Gimlet the other night, it was fantastic, well, Gimlet is a lovely restaurant, I've been there once, but it's also absolutely expensive and, you know, if you've got plenty of money and you're in your 40s or 50s, go for it, but if you're in your 20s and you're trying to save money, I mean, places like that should be off limits. And I just, again, in the 90s when, you know, unemployment was high, you know, people didn't earn very much money and Melbourne was a bit run down. If you wanted to save money, you just accepted that, you know, you wouldn't have a modern car, a car's back then where it nearly as good as cars now, that you wouldn't go out all that much,

6:11you certainly wouldn't go and get drunk at a nightclub, which is about the most expensive way to drink alcohol, and you save money for the greater good. I mean, if only have your own home, it doesn't stop because you've got to pay the mortgage, but the point is it is a wonderful thing later in life to own your own house. One of the three six, nine, three mornings at 3aw.com.au, but there is this trend these days called Yolo, you only live once, or all phoma, fear of missing out, other people are eating out, that looks nice, I should go and do it too.