One thing you must eliminate from your living expenses
The most dangerous thing about summer living expenses
The summer vacation season has begun. One of the things that attacks our living expenses during the summer is vacation and travel expenses.
There have been reports that the tendency for revenge consumption is increasing as daily life recovers from COVID-19. However, revenge consumption is not Revenge Spending but Pent-up spending.
Retaliatory consumption is when income that could not be consumed due to disease or war is released all at once.
You all used up everything you could use during the coronavirus pandemic. Is there money you didn't spend that didn't go far?
If you have money that you didn't spend during the coronavirus or that you saved up because you couldn't travel, it's okay to spend it. In other words, you can engage in retaliatory spending.
However, if you are trying to consume additionally, it is not retaliatory consumption.
What we have to be most careful about during the summer vacation season is the cost of outings, travel expenses, and funds for events we never planned.
Just spend 1.25 million won
There is something that Donjjunam always said. Seasonal spending should be planned annually.
Seasonal spending refers to expenses such as summer vacation expenses, holiday funds, event funds, and winter clothing purchases. If you don't have this annual plan, you shouldn't spend your summer vacation money recklessly.
Seasonal expenses are one month's worth, or 1 time, of your average monthly income. Travel expenses must be determined within this, and the amount should be within 50% of seasonal expenses.
What if your average monthly income is 2.5 million won? The total budget for seasonal expenses per year should be around 2.5 million won, and travel expenses should be 1.25 million won.
This is because you cannot spend all of your seasonal expenses on travel. You have to take care of holidays and events, and buy winter clothes.
“Mentor, my monthly salary is 250 won, so does that mean I can only spend 1.25 million won a year on travel expenses?” of course. It's natural.
What if I go on a trip to Europe or Southeast Asia? It has to be within 1.25 million won. If you can't cover expenses with 1.25 million won, you have to save up for one, two, or three more years.
If you suddenly go on a trip instead of going on a summer vacation as planned, everything you have worked hard to save and spend so far will be ruined.
Even though there are no problems with consumption and savings in normal times, they suddenly collapse during the holiday season.
If you save this much, you can go on a trip to Europe.
It's a reward you give yourself. A person who saves 100 million won will be given a minimum of 5 million won and a maximum of 8 million won.
Should we save up money and go watch the World Cup abroad? Then, you need to save at least 100 million.
If I want to spend about 1 million won on a trip, I need to save up at least 20 million won.
A trip to Europe costs at least 6 million won to do properly. If you want to burn 6 million won on a trip to Europe, how much compensation should you prepare?
To be able to save about 20 million won per year, you need to save 1.63 million won per month.
If you save in this way, after 5 years you will have about 100 million won or 6.6 million won.
Then, you can travel abroad with 6.6 million won.
If you really need to go on a trip to Europe within 3 years, save at least 50 million won over 3 years.
To do this, you need to save 1.41 million won per month. If you complete 3 years, you can save 50 million won and receive compensation of about 3.5 million won.
However, it would be difficult to travel independently with only 3.5 million won. You should go on a package tour that only includes sightseeing and no shopping.
Rich people take it easy like this
It's good to have fun, but a true vacation is about getting away from everyday life and giving yourself a break.
Resting doesn’t necessarily have to be achieved by taking a plane and traveling abroad, right?
How about leisurely reading books you haven't read, sleeping in until you're exhausted, or working out to relieve stress? Why not plan a vacation that gives you the gift of relaxation away from your daily routine?
As you plan a healthy summer, we hope that you will be able to keep your wallet healthy and your living expenses healthy in July and August.