Saving money is challenging for everyone. But what if there is a way to save money faster and more effectively? Here, we introduce a strategy called “Extreme Savings” to accumulate a significant amount of money within a year. Through this article, we hope you gain positive energy to take on this challenge.
Why is Extreme Savings necessary?
Many people find it difficult to save money. Simply saving money is a short-term goal, but Extreme Savings aims for long-term financial stability and asset formation. For instance, even if your salary is 2 million won, saving 24 million won in a year is not easy no matter how frugal you are. However, Extreme Savings makes this possible.
How to practice Extreme Savings
1. Expense Management
To save money, you must manage your expenses thoroughly. This means keeping only the essential expenses and eliminating all others. For example, include only necessary items like food, transportation, and housing expenses.
2. Creating Additional Income
Besides fixed income (salary), you need to create additional income. Consider part-time jobs after work or on weekends, or start a side job using your talents. Piano lessons, English tutoring, and various other methods are available.
3. Improving Spending Habits
Reduce unnecessary meetings and spending, and focus on saving money. It would be good if the purpose of meetings is to exchange knowledge and information rather than meaningless spending.
In practice, a saving expert saved his entire salary of 2 million won and covered living expenses with additional income, accumulating 24 million won in a year. He said, “It is really tough, but the sense of achievement after reaching the goal is indescribable.” Furthermore, this sense of achievement can be a great inspiration to us.
Pros and Cons of Extreme Savings
Pros
- You can save a large amount of money quickly.
- It instills frugal habits.
- You gain financial freedom.
Cons
- The quality of life may decrease.
- It can be very stressful.
- Social relationships may be limited.
Conclusion: Still Worth the Challenge
Extreme Savings is not an easy method for anyone to try. However, the financial freedom and sense of achievement you gain through it are incomparable. Give it a try. Even a short period of practicing Extreme Savings can instill new financial management habits.