Personal Finance for a Stock Beginner Starting with a 2 Million Won Salary
I'm a newbie in the workforce with a monthly salary of about 2 million won. I want to save 300,000 to 500,000 won each month and start investing. I'm worried because the interest on savings accounts is too low. Could you recommend ETFs or stocks I can invest in with small amounts? I'm willing to take on moderate risk. My goal is to save 10 million won within 3 years!
5 answers
I started with a similar salary too, and at first, I made sure to fill up my savings account first. ETFs are good, but since volatility is high these days, I find it safer for beginners to use dollar-cost averaging and buy a fixed amount each month. Products like 'TIGER US Nasdaq 100' are growth stocks and carry some risk, so try mixing in dividend ETFs as well.
If it's 10 million won over 3 years, you only need to save about 280,000 won per month. With 300,000 to 500,000 won, you've got some wiggle room. I'm putting small amounts into a 'KOSPI200' index fund on a regular savings plan. Since buying individual stocks can be stressful for beginners, I think starting with ETFs or funds is a better approach.
If you save 500,000 won per month, that's 18 million won over three years, so aiming for 10 million won isn't an unreasonable plan. Among ETFs, I'd recommend something like 'KODEX 200' or 'TIGER US S&P500.' Buying in small amounts through installment investing helps diversify risk and is stable in the long run. It'll definitely offer higher returns than savings accounts or fixed deposits.
Have you opened a stock account yet? These days, it's easy to invest small amounts using brokerage apps. For ETFs, 'KODEX 200' is a solid choice, and 'TIGER US S&P500' is also good. However, three years is a short period, so there's a possibility of losing your principal. Keep your emergency fund in a separate savings account and only invest the rest.
If you're willing to take on some risk, dividend stock ETFs are a solid option. For example, with something like 'ARIRANG High Dividend,' buying small amounts on each payday and reinvesting the dividends can create a powerful compounding effect. But with a 3-year goal, the key is to stay steady and keep accumulating without being shaken by short-term volatility. You've got this!