Have you heard of Chalenge that is lifeless? This is a popular concept among bloggers with strong budgets and minimalism who encourage us to save more and organize our lives. The idea is simple: stop spending on non-essentials during the set period and see how much you can save. The more you save (investment), the sooner you will gain financial freedom.
In most cases, I don’t need to try it. I haven’t bought sports equipment that wears out every 6-12 months since I played tennis and kimchi. The last time I bought a pair of jeans was over a decade ago and I don’t even remember the last time I bought a dress shirt.
I’ve saved an average of about 50% since 1999. During my last year of working full time, I pushed it to 80% to prepare for my exports. So while I have always been frugal, I have never done formal institutional challenges.
But if you have time to try one, that is the time now.
Let’s do our best to challenge
Here are some compelling reasons to participate:
- Inflation expectations are risingwhich means goods and services may become increasingly expensive. Make adjustments now to help you adapt.
- The likelihood of a recession or stagnation is about 30% Over the next 12 months, due to ongoing trade tensions and geopolitical uncertainty. As a result, you may be fired and have trouble finding a job again.
- The stock market price is about 22 times.which makes it vulnerable to another corrected attack. Holding more cash can choose from.
- You may have missed buying dipping sauce. Save now gives you a chance to prepare for the next one.
- You are underinvested in your child’s financial future. No date months can help redirect funds to Roth IRA, escrow accounts, or 529 plans.
- Your local housing market is slowingwith over-construction and sustained high mortgage rates. Increase down payment to take advantage of better deals.
- You may be paying for your salary Due to recent lifestyle inflation or large purchases. Spend reset helps rebuild your liquidity.
More reasons why you can try without a challenge
If the actual reasons mentioned above are not enough to help you curb your spending, here are some other reasons to consider.
- Test your financial flexibility Before life forces you to come.
- Strengthen your money discipline. This is the muscle. The more you bend, the stronger it will be.
- Reset your benchmarks for happiness. You may realize that you won’t miss as much as you think.
- Reduce decision fatigue By eliminating what you buy and focusing your energy elsewhere.
- See if you really need to make money like you. When I left work in 2012, my salary dropped by about 80% in the first two years (excluding my severance payment, I invested 100%). However, as I have been saving 70% – 80% of my income over the years, my lifestyle has not been affected. In fact, it improved significantly. I feel more free, stressed, and have time to recover mentally and physically.
Challenge time: at least 3 months
Anyone can do it for a week. But to truly change behavior, the challenge will take at least three months – long enough to form new habits and make meaningful progress.
Here’s what I’ve cut at least three months:
- Cheeseburger, potato chips, French onion dip, candy
- Tennis shoes, so I can finally browse the inventory
- Haircut (I will use the Clippers and do it myself)
- Flying is better than economical
- Budget-breaking vacation rentals
- Electronics (laptop, phone, earbuds, games)
- Main family or rent for family labor (horticulture, cleaning, etc.)
- Buy games such as Pokémon Go coins
Of course, I still spend on essentials: shelter, insurance (health, living, property, umbrella), primary school tuition and basic food. I will also spend some necessary things to get my parents’ ADU unit to live again, such as buying new refrigerators and series.
However, the additional savings will be directly invested in stocks, Treasury bills, Private real estate,,,,, and Venture capital. My goal is to reduce spending by at least $1,500 per month, or $4,500 per month during this challenge.
If you save less than 20% of your income…
You have a huge opportunity.
In order to establish financial freedom faster, Maximize your tax expectations retirement account And save one Extra 20% or more. If you earn less than $100,000 a year, that may be nervous, but give it a try. You may be surprised by how much you actually need.
If you have saved 20%, challenge yourself to hit it 25%–30% during this unpaid period. Save so many means You work and save every year future.
Financial freedom savings rate chart
To motivate you to save more, check out this financial free saving rate chart. Just increase your savings rate by 5% and you can reduce your working life for years. If you can increase your savings rate to 50% or above, you can retire within 20 years of starting your career, maybe even within 10 years.
Trust me, you will quickly adapt to life with less. Don’t be afraid to spend less money now in exchange for freedom later. Achieving financial independence requires tough choices, but once you turn them back, they won’t be that tough after all.
So, will you join me? What are you willing to cut?
Let’s try a challenge and see where it takes us.
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