What happens if an office worker earns an extra 1 million won a month ? It is said that the annual salary for entry-level employees in Korea is around 36 million won . Then, to make the calculation easier, let's assume you earn 3 million won per month before taxes . Okay, I used to earn 300 a month, but now I earn 400. So, how much did it go up by? It went up by about 33%. But we should n't think that way, because what's important to us is my available investment income rather than my total income . Let's take a look . If I earn 3 million won a month, it amounts to about 2.7 million won in years. So, let's break down where we are spending this 2.7 million won . For now, I've estimated the monthly rent and maintenance fees at 500,000 won. Assuming you live alone and just rent a studio apartment, 500,000 won including maintenance fees is a very cheap estimate . And I budgeted 300,000 won including lunch and coffee. It's not easy to eat a meal for 10,000 won these days. So, if it comes out to 300,000 won including coffee, anyone can see that it is n't a lot. And I budgeted 100,000 won including mobile phone, internet, and subscription services. And for financial costs, I estimated 300,000 won, including insurance premiums, bank interest, and installments . Let's roughly estimate transportation costs at 100,000 won. We have to cover membership fees, congratulatory and condolence expenses, and social life, do n't we? I set this at a really minimum of 100,000 won. The reason this is the minimum is because we usually have one or two group accounts worth 30,000 or 50,000 won . If you factor in membership fees and expenses for family events on top of that, even 100,000 won is a very small amount . And for those just starting out in society, there are so many people around getting married . Okay, and for the travel and leisure, I budgeted 300,000 won. You might think, "Oh, I don't spend 300,000 won on trips," but even if I go on an overseas trip just once a year, if you split the costs, and even if I go camping just once, if you split the costs, on average I will spend at least 300,000 won a month . What is the total cost of living ? Drumroll please... it's 1.7 million won. So, since I earn 2.7 million won and spend 1.7 million won, how much can we spend on savings and investments? yes . You can spend 1 million won. But if we assume that we earn an additional 1 million won in income and do not increase our spending, how much can we save? You could immediately save or invest 2 million won . So, if your income increased from 3 million won to 4 million won, instead of thinking that your income increased by 33.3% or 3%, it is more beneficial from an investment perspective to think that your available investment income has increased by 100%. I thought there might be some of you who think, " What big difference could there be if I save 1 million won a month?" so I made a table. So, what is the difference between saving 1 million won every month and saving 2 million won every month ? Now, the monthly savers will naturally be 1 million won and 2 million won, so the annual savers will be 12 million won and 24 million won per year . So, when looking at how I save this money over the past 10 years, the return on SMP was 11 to 12%, and the NASDAQ was about 13 to 15%. So, let's take a slightly conservative approach and set the annual compound interest at 10% . How much do we need to save at 1 million won every month to accumulate 100 million won? If you save up for 6 years and 6 months, you can save 100 million won . But if we save 2 million won every month, how long will it take? It takes 3 years and 10 months. What that means is that if we save 2 million won a month, we can shorten the time by as much as 2 years and 8 months compared to when we save 1 million won a month . It means that the time it takes for me to achieve my goal will be shortened by 2 years and 8 months. So, you could say that we didn't earn an extra million won, but rather gained more time . However, since our goal is not to save 100 million won, we tried making this with a longer-term perspective . Now, if you save 1 million won a month for 5 years, that is about 77 million won. However, if you save 2 million won a month, it amounts to 155 million won, and the difference is 77 million won. Okay, and if you save 1 million won a month for 20 years, it amounts to 759 million won, but how much is it if you save 2 million won a month ? It is 1.519 billion won. Lastly, if you save 1 million won per month for 30 years, it amounts to 2.26 billion won. If you save 2 million won each month, it becomes 4.52 billion won. That's a difference of 2.26 billion won. When I was saving, the difference was 1 million won, but after 30 years, I found that there was a difference of 2.2 billion won. Shall I tell you something even more interesting? You know how you save 1 million won a month for 30 years. It's 2.26 billion won. Do you know how much the principal is here? If you save 1 million won a month for 30 years, the principal is only 360 million won, but the profit is 1.9 billion won. And if you save 2 million won each month, the principal is 720 million won, and the profit is 3.8 billion won. yes. The difference is much bigger than I expected . There is a saying that "a penny adds up to a penny." Even so, if you collect 30 pieces, one by one, it really becomes a mountain. And you collect the specks in pairs, not one by one. Then, it will retreat faster. You may know how great Bokmi's magic is, but if you actually look into it step by step, you can really feel it. So, instead of just looking at this and leaving it at that, it would be fun for you to try calculating for yourselves how much it would be if you earned a little more . It doesn't end here; once I save up a certain amount of seed money, I can use it as leverage to buy a house . Then, the houses I can access are completely different depending on whether my seed money is 200 million won or 400 million won . Let's take a look at it in a table. Although housing policies change a lot these days, let's take a look assuming the LTB for a primary residence is around 60% . If I have about 200 million won in cash, the amount I can borrow will be about 300 million won. Then, how much can I buy ? So, you can see up to 500 million . Then, with 500 million won, the apartments I could buy would be older buildings, suburbs, or new constructions. In terms of location, it would be the very outskirts of Seoul or the outskirts of Gyeonggi-do . And for a 500 million won house, residential use is the focus. Then we have 200 million more seed money, so we have 400 million. Then what will happen? So, if I have 400 million won in seed money, how much of a loan can I take out? Of course, there may be variables, but generally, you can receive around 600 million . Then, how much can I buy it for? I can purchase a house for up to 1 billion won . You can increase the leverage . Then with this 1 billion won, you could buy a nearly new apartment or a pretty decent apartment in Gyeonggi-do . To give an example based on region, you can travel from lower-tier areas of Seoul to core areas of Gyeonggi Province. And at this level, it goes beyond being a residence and takes on the nature of an asset. So, simply put, it means that if I have 200 million won, I can buy a 500 million won apartment, and if I have 400 million won, I can buy a 1 billion won apartment . Well, there are plenty of houses worth 2 or 3 billion won these days, but that is their business. As someone just starting out in society, this is a matter we need to consider realistically. how is it? Isn't saving an extra 1 million won a month a bigger difference than you might think ? I think that is also why I tried to reduce my spending and tried to generate extra income through side projects. People say these days that the value of labor is decreasing unbelievably, and I certainly agree . However, I think it would be good to interpret that not as "do n't work," but as meaning "use the money you earn from your labor for investment ." Because as much as the value of labor has fallen, the value of investment must have risen by that much. So, today we simply talked about what would happen if you earned an extra 1 million won, but we could expand on this a little further. You might think, "I need to earn an additional 1 million won," but since you are the sole earner, your spouse could end up earning an extra 1 million won, or your spending might decrease because you have less time to spend while working on a side project, or the return on investment could far exceed 10% instead of just 10% . And the most important thing is the experience gained while working on side projects. As I accumulate this experience, going from earning nothing at first to making 100,000 won, then 1 million won, and then 2 million, 3 million, or 5 million won, the possibility opens up that it could eventually replace my main job. Also, there are many instances where opportunities arise due to the relationships formed while working on side projects. We will certainly be able to feel the joy of watching the money accumulate in that account as we reinvest the extra earnings . When I talk about side projects like this, some of you might ask, "Oh, then when are you doing it?" Side projects are fun, money piles up in your bank account, and you can see yourself growing . Then you wo n't need as much rest as you think. Why? It's fun. Seeing money pile up in my bank account, seeing myself grow, and feeling that people seek me out—that is leisure. You will feel like it is a game and a trip . It's just like traveling . You wouldn't know just by looking at the trip itself, but once you get there, searching for what to eat and packing for the flight is so exhausting. But it's fun, isn't it? You're seeing results from this side project. Then it is really that much fun. It's true. Some of you reading this might think, "Oh, if you keep living so intensely, you'll be worn out forever," but I believe that rather than gradually falling behind, it is a good idea to hone your skills for interviews and live in a slightly better environment. But if you get too deeply immersed in it to the point where you can't sleep and it causes you more stress, that would n't be good, but until then, I think it's an option worth trying. The thrill of earning 200,000 or 300,000 won from a side project is a completely different feeling compared to getting an extra 1 million won bonus from the company. As we go through life, there are times when it feels like our lives are all set in stone, and we just want to make a change . But when I want such a change, rather than continuously accumulating small, easy choices like winning the lottery, I think the more difficult attempts and effort I put into them—like side projects or part-time jobs—the greater the possibility that my life will change. So, looking at it in the long run, it seems that is a game where the difficult ones offer much better value for money than the easy ones. So far, that has been Moving Water, your cost-effective channel . If you enjoyed the video, please press the like button. Oh, and lastly, my monthly salary is 3 million won, and to reach 4 million won, it takes 5 years of annual salary growth of 6% to increase by 1 million won. Hey, does your salary just go up by 6% every year? Ah, that would be nice. But that probably won't work out well.