Small Investment Strategies Starting with a Monthly Salary of 2 Million Won
As a new member of the workforce, I have about 200,000 to 300,000 won left over each month. With deposit interest rates being low, I'm thinking of gradually putting some into stocks or ETFs. I'm torn between hearing that 'small amounts are meaningless' and the 'magic of compound interest.' Are there any people who started in a similar situation? I'm curious about what strategies you used. I want to minimize risk.
8 answers
I also started with a salary of 1.8 million won. At first, I put 100,000 won into ETFs, but after three years, it really added up. The key is to stay consistent, even with small amounts. To reduce risk, I recommend KOSPI 200 ETFs or dividend stock ETFs.
I got burned when I touched coins back when they were 2 million won... Stock ETFs are much safer. I've been putting money into 'TIGER US S&P500' like a regular savings plan, and it's been steadily rising for two years now.
If you're a small investor, use apps with no fees or services that allow fractional investing. You can buy ETFs starting from 10,000 won, so there's no burden. I started with 'Toss' or 'Kiwoom'.
If you want to minimize risk, consider bond-type funds or money market funds (MMFs). Their returns are lower, but they are safe and can serve as a base fund for increasing your stock allocation later.
Have you set aside an emergency fund? Before investing, it's safe to keep 3–6 months' worth of living expenses in a savings account. That way, you won't have to sell in a hurry if the stock market drops. After that, start with 100,000 won in ETFs.
Compound interest takes time. If you have 200,000 to 300,000 won, cutting back on coffee expenses is one way to invest it. Use a dollar-cost averaging strategy to make regular monthly investments in the same ETF. The key is not to be swayed by short-term fluctuations.
At first, I thought, 'It's such a small amount, it won't make a difference,' and didn't do it, but now I regret it. If you invest 3 million won a year for 5 years, that's 15 million plus returns—not doing it is actually the bigger loss. I guess the answer is to just start.
I'm putting 200,000 won each into dividend stocks. Reinvesting the dividends creates a compounding effect, and even if the stock price drops, the dividends act as a support, which puts my mind at ease. Dividend growth ETFs are also great.