This is an AI translated post.
[Finance Story] The Final Days of a 30-Year-Old Car-Poor Person
- Writing language: Korean
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Base country: All countries
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- Economy
0000-00-00 00:00:00
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Summarized by durumis AI
- Park (35), a self-employed businessman who drove a 70 million won Mercedes-Benz at the age of 29, experienced financial difficulties due to the high cost of maintaining expensive vehicles, and subsequently quit being a car-poor person.
- Finance is all about building a nest egg, which can then be used for investment or business to grow your wealth.
- It is important to build wealth by saving and investing in tandem, considering inflation, and buying a car can be considered after wealth accumulation.
'A 29-year-old self-employed person, Mr. Park (35), drove a 70 million won Mercedes-Benz and then a 120 million won used Porsche.
His monthly car maintenance costs were about 2 million won when he was driving the Porsche.
He lived in a 450,000 won monthly rent officetel when he had the Porsche, but later, due to difficult circumstances,
he now regrets it and has given up being a "car-poor" person.'
It is a personal choice and individual preference to drive a nice car and enjoy it.
It is not a matter of right or wrong to buy an expensive car compared to your income or assets.
However, if you are thinking about increasing your wealth through investment,
I would say the order is wrong.
Many YouTubers or books related to finance increase their wealth through their own methods.
Stocks (day trading, value investing, domestic stocks, foreign stocks, etc.), real estate (auction, redevelopment, apartments, commercial buildings, etc.), and coins
I have a friend who bought a 30-pyeong new apartment in Banpo through bond investment.
There are 100 different ways to increase wealth for 100 people.
However, there is a basic condition that applies universally: 'saving for a seed money'.
You need to have seed money to invest it meaningfully.
Seed money *(investment or business) = wealth formation
Just accumulating seed money doesn't increase your wealth. For someone with a 100 million won annual salary, their actual income is 6.5 million won,
and if they save 70% of that, it's 4.5 million won. If you save this for 10 years, it becomes 540 million won.
Currently, inflation is around 6% per year (9% in the US) and deposit interest rates are around 3%.
Saving alone makes it difficult to defend against inflation.
You need to tighten your belt, gradually increase your risk as money accumulates,
and start with inflation defense. After that, you can develop a high-win-rate investment method that suits you.
You can buy a car after experiencing this difficult process, or you can buy it now and delay your wealth formation time.
The choice is yours.
