My Wealth Management Routine: From 30M to 60M in Annual Salary
Last year, my annual salary finally exceeded 60 million won. Let me summarize how I've managed my money so far.
1. Automatic transfer the day after payday
- 1 million won savings deposit, 300,000 won insurance, 100,000 won subscription savings
- Since it's automatically deducted from my account, I just think of it as money that doesn't exist
2. Treat card payments as fixed expenses
- Food 300,000 won, transportation 100,000 won, communication 80,000 won - I try not to spend more than that
- Baemin is seriously dangerous, so I keep deleting and reinstalling it...
3. Investment allocation
- Keep a 70% ETF, 30% individual stock ratio
- When the market is bad, I adjust by only about 20% and buy more
4. Always keep at least 10 million won in the emergency fund account
- It's a huge relief knowing I can last a month no matter what happens
Of course, I don't think all of this is the right answer. What matters is finding a method that works for you.
9 answers
Agreed, automatic transfer is the answer.
That's right lol Baemin is really dangerous.
But can you save 1 million won a month when your annual salary is 30 million won? That doesn't make sense.
I do something similar—I totally relate to deleting Baemin and then reinstalling it. I don't even have the Baemin app installed; I only order through the web lol. But still, cutting back really boosted my savings rate.
An emergency fund of 10 million is good, but I'd go further and prepare about three months' worth, considering unemployment benefits. I quit my job last year and managed for three months... It gives you a bigger sense of relief than you'd think.
Isn't 70% in ETFs a bit aggressive? I'm going with a 50:50 split.
Well, all of this is only possible because of a high salary. If your annual salary is 30 million won, your take-home pay is around 2.2 million won per month. With 1 million for savings, 300,000 for insurance, and 100,000 for a housing subscription, that's 1.4 million total, leaving you to live on 600,000. Is that realistically possible? In the Seoul metropolitan area, that would be really tight.
I also found automatic salary transfer to be the most effective.
I also started at 32 million won and reached 62 million last year. The biggest thing I felt was 'increasing income' rather than 'cutting fixed costs.' Managing expenses is important, as the post says, but finding ways to earn more in the same amount of time was faster. Once your salary hits 60 million, savings naturally increase too.