My First Year of Personal Finance as a New Grad (Savings Accounts vs. ETFs)
Around this time last year, I got my first paycheck and was wondering what to do first with my finances. Now that a year has passed, I’m writing it up. Hope it helps someone.
1. Emergency fund first
- I always keep three months’ worth of living expenses in a high-yield savings account. Without this, you’ll lose your mind when you take losses in stocks.
2. Only use installment savings when you have a goal
- If you open one just for the sake of “investing,” the ~3% interest rate can’t keep up with inflation. Only when you have a specific goal, like a jeonse deposit or wedding funds.
3. Invest in ETFs via dollar-cost averaging
- At first, I tried to time the market and wasted three months. Setting up automatic purchases on a fixed day each month means I don’t have to think about it, and it’s convenient.
4. Conclusion
- Emergency fund → a small amount into a pension savings account → the rest into automatic ETF investments. For someone just starting out, this order seems sufficient. Getting started is half the battle anyway.
6 answers
Emergency fund first, this is facts fr
I don't think it's right to dismiss savings accounts in the 3% range. Where else can you get guaranteed returns? With ETFs, if you go negative, you end up losing your principal.
Even if it’s just a small amount, always contribute to pension savings—the 16.5% tax credit beats a 3–4% annual interest rate by a mile. In the first year, even 1 million won feels significant.
I also tried to time the market and just couldn’t get in last spring lol. I ended up getting in late in May, but after setting up automatic buys and not paying attention, my returns actually turned out better. But don’t just buy any ticker—going with S&P 500 or Nasdaq ETFs is better for your mental health.