Saving and setting financial goals are not easy
According to Korea Times, the 2023 financial consumption report released by the Hana Financial Institute on December 29, has 86% of the average monthly income of a household, equivalent to 4.89 million won (3,800 USD), is used to pay for fixed payments, including insurance and mortgage payments.
Notably, the latest report shows that 13% of Koreans cannot save any money, because spending consistently exceeds income. Three out of 10 Koreans say that saving or setting financial goals is a luxury for them.
Based on a survey of 5,000 adults across Korea, the report aims to examine the multi-dimensional changing factors of consumer finances, as well as their opinions on current issues.
The results show that 3 out of 10 respondents do not have a financial goal because after deducting all the fixed amounts, they only have a small amount of money left. In which, 17.9% said that they face a burden when maintaining a simple daily life. Another 13.4% say they have never set financial goals.
This rate is especially high in the MZ generation (Millennials and Gen Z) and shows the fact that young people in the land of kimchi are not able to prepare for the future.
In addition, a survey by the Hana Financial Institute also showed that up to 8 out of 10 Koreans are involved in investing or have considered investing in cryptocurrencies. This reflects the investment boom of the past few years as young people seek high return on investment, becoming the ideal source of passive income.
However, not every investment decision has a positive outcome. The survey found that 71.1% of crypto investors suffered an investment loss of more than 10%, 2.7 times higher than those who obtained an investment return of more than 10%.
“No-spend Challenge” trend: Hope to gradually change habits
In the face of inflation, a new lifestyle trend is being passed around by people called “No-spend Challenge”.
If in the past, slogans like “YOLO” or “You only live once” made young people want to focus on enjoyment to satisfy the needs of the present, now they are gradually forming good habits thrifty spending. Typically, the trend of not spending money helps them learn to cut spending as much as possible.
Young people in Korea are taking on the challenge to change their spending habits. (Photo: Invested Wallet)
An office worker, more than 20 years old, in Korea said: “I have been doing this challenge for 8 months. Most likely my income level will not change so if I want to buy a house, in the future, I was forced to change the way I spend. So I took on this challenge.”
She also advises people: “For starters, you should set yourself short-term goals, for example within three days.”
The young female employee saw positive results after applying the challenge for the first month. She saved a lot of money by cutting most of her expenses, not going out for 22 days, almost no longer eating out or ordering home delivery.
She said: “My goal is to own a building so that I can make money for rent, without having to work. I am saving for this goal.”
Not only this young girl, but Korean social networks are also flooded with posts and hashtags that constantly revolve around the “no spending” challenge.
Eum Ji Young, a reporter for Arirang News, is also one of those who are taking part in the challenge to save as much money as possible.
Reporter Eum Ji Young takes on the “no spending” challenge. Photo: Arirang
Young revealed, “Instead of taking a taxi or bus, I left home early and walked to work. On rainy days, I would take a taxi. So by walking, I was able to save about 6 hours. USD At lunch, instead of eating out, I ate lunch at the work coffee shop and saved about 7 USD. I used to like coffee at Starbucks, but then I switched to coffee. Free at work, saving about $4. With dinner, I bring food from home so I don’t have to eat at the grocery store or eat out. In total, I can save about 24 USD/day.”
However, Arirang News also commented that, instead of cutting all expenses, people should prioritize what they value more. With what you deserve and have to spend, you should still spend accordingly. If you cut back too much, people will only get frustrated more quickly, then give up on saving and go back to their old way of life.
*Source: Koreatimes, Arirang
Source: Vietnam Insider