[Finance Talk] The Downfall of a 30-Year-Old Kapu (Overspender)

A 29-year-old who drove a 70 million won Mercedes and then a 120 million won used Porsche.

Self-employed Mr. Park (35 years old) whose monthly car maintenance cost was around 2 million won.

He lived in a 450,000 won monthly rent officetel when he was driving the Porsche, but later faced difficulties and

now regrets it and has gotten rid of his 'car poor' lifestyle.

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Enjoying a nice car is a personal choice and a matter of individual preference.

Buying a car that is expensive relative to one's income or assets is not a matter of right or wrong.

However, if you are someone who wants to increase your assets through investment,

I want to say that the order is wrong.

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Many YouTubers or books related to investment talk about how people have increased their assets through their own methods.

Stocks (scalping, value investing, domestic stocks, foreign stocks, etc.), real estate (auction, redevelopment, apartments, commercial buildings, etc.), and cryptocurrencies.

I also have a friend who bought a 30-pyeong newly built apartment in Banpo through bond investment.

There are 100 different ways to increase assets for 100 different people.

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However, there is a common basic condition that applies: 'Saving money to create seed capital.'

You need seed money to be able to meaningfully increase it.

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Seed capital *(investment or business) = Asset formation

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Just saving money won't increase your assets. For someone earning 100 million won a year, their net income is 6.5 million won, and

if they save 70% of it, that's 4.5 million won, and if they save that for 10 years, it's 540 million won.

Currently, inflation is around 6% annually (9% in the US), and deposit interest rates are around 3%.

Just saving money makes it difficult to defend against inflation.

You need to start by protecting yourself against inflation by tightening your belt and gradually increasing the risk as you save money.

After that, you can develop your own investment strategy with a high success rate.

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You can buy a car after experiencing that difficult process, or you can delay the asset formation time and buy one now.

The choice is yours.