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The more intensely people use their brains during the day, the more they collapse at night. It is not because their willpower is weak. It is because they have depleted all their brain energy during the day while drafting proposals at work, persuading team members, and making important decisions. Research by psychologist Professor Roy Baumeister proves this. Human self-control is a finite resource, so once it is squeezed out during the day, the defensive wall to block temptations completely collapses at night.
The experience of suppression forced upon oneself during the day leads to impulsive spending at night. On top of this, a sense of reward for oneself kicks in. Because I earned money while struggling during the day, I give myself indulgence, thinking it is okay to do some shopping or order delivery food. The willpower or mental fortitude mentioned in cliché financial books is useless. An exhausted brain is destined to spend money. You must set up a system that leaves no room for willpower in the first place.
The surest way to avoid being swayed by emotions is a system that forcibly isolates money as soon as your salary comes in. It is safe only if 20% of your income passes through to another account without ever touching your hands.
Here are the procedures you must set up in the Toss app right now.
For irregular expenses that pop up suddenly, such as car taxes or holiday family event costs, it is good to use KakaoBank's "Safe Box." Since it provides interest at a rate of around 1.60% per annum even if you deposit for just one day, putting about 5 million won in reserve here can block emergency situations without touching your living expense account.
The smooth simple payment systems created by companies are the primary contributors to emptying consumers' pockets. You place a fingerprint, and the payment is finished in 1 second. You don't even have time to feel the pain of money leaving. You must intentionally slow down this speed to create friction.
Turn off biometric authentication for Kakao Pay right now.
By doing this, every time you buy something impulsively at night, you will have to manually press a complex 6-digit password instead of using your fingerprint. The moment this cumbersome process is inserted, your brain's impulse response will subside.
Turn off your screen and ask yourself just one thing. Calculate your hourly wage after tax and think about how many more hours you have to endure at work to buy this item. If you face the fact that you are trading 1.5 hours of your precious labor time to order a 30,000 won meal, the desire to purchase will cool down quickly. The dopamine filled with stress can be sufficiently satisfied by taking a light 30-minute walk around the neighborhood instead of holding onto your smartphone.
No matter how well you build a system, if you do not clean it periodically, unconscious recurring payments and subscription fees will erode your account again. According to data from the Ministry of Science and ICT, just by switching from a major mobile carrier to an unlimited budget phone plan, you can save 20,000 to 30,000 won per person per month without any loss in quality. For a family of four, that means over 1 million won in cash is being thrown away annually.
Install the government-operated "Account Info" app and execute the following 3 steps:
If you repeat this work every 90 days, you can keep the 300,000 won that was leaking out as a fixed cost every month. There is no need to blame yourself while looking at your consumption history. We just need to tighten the broken pipes like emotionless system engineers.
Assume you reduce spending by 300,000 won per month and continue consistent installment investments for 20 years with a target annual compound return of 7.0%.
A = P imes rac{(1 + rac{r}{n})^{nt} - 1}{ rac{r}{n}} imes (1 + rac{r}{n})The principal of 72 million won, simply gathered by squeezing out expenses, returns as a hefty asset of 157,189,620 won, with 85,180,000 won in after-tax profits added by rolling it with the power of time and compound interest. Reducing expenses is not asceticism that eats away at life. It is a financial investment that guarantees the most certain and high rate of return among the assets you have. Do not trust your willpower; trust the system.
