Can You Save 100 Million Won in 5 Years with a Monthly Salary of 3 Million Won?
I'm in my early 30s and take home about 3 million won per month. My fixed expenses are around 1.5 million won, so I can save about 1.5 million won each month. I'm investing in stock ETFs through dollar-cost averaging, and I keep my emergency fund in a CMA account. At this rate, is it possible to save 100 million won in 5 years? Or would a different wealth-building strategy be better?
3 answers
I started under similar conditions and hit 100 million in 4 and a half years. In addition to ETFs, I added small amounts in REITs or dividend stocks, and to cut living costs further, I saved on delivery fees and moved to a cheaper place. The potential is definitely there, so just keep at it steadily!
If you save 1.5 million won per month, that's 90 million won over five years. With an ETF return rate of around 5–7% per year, reaching 100 million won is definitely possible. However, considering market volatility, it's better to keep a more generous emergency fund, and if you receive a lump sum in the meantime, you can achieve it even faster. Your current strategy looks solid.
If you save 1.5 million won per month, the principal alone will be 90 million won in 5 years, so even with just a 2% return rate, it becomes 100 million won. However, considering inflation or unexpected expenses (medical bills, car repairs, etc.), extending the goal to 6-7 years might be more realistic. CMA interest rates are decent these days, so keep your emergency fund as is.