How Young Professionals Can Build KRW 10 Million in Seed Money in 3 Years
3 min read · · Korean original
Hello to all of you who are just starting out in your careers! People often say that before you invest, you first need to build up some seed money. Saving KRW 100 million, a goal many people share, would be great, but to get there you first need to be able to save KRW 10 million on your own.
It's best to start not with risky assets like stocks or crypto, but with savings accounts and fixed deposits. If you follow the method below, you can save KRW 10 million in 3 years.
How to Save KRW 10 Million in 3 Years
Have you decided to save KRW 10 million over 3 years? Then it's time to sign up for a 3% interest product and put in KRW 300,000 every month. Go through the following 3 steps and you can build KRW 10 million in 3 years.
Year 1️⃣: Sign up for a 3% installment savings account and save KRW 300,000 every month
- Find an installment savings account on the market that pays 3% or more and apply for it.
- Pay in KRW 300,000 faithfully every month.
- After 1 year, you can receive ₩3,658,269.
| Month | Amount Paid In | Cumulative Amount |
|---|---|---|
| Month 1 | ₩300,000 | ₩300,000 |
| Month 2 | ₩300,000 | ₩601,500 |
| Month 3 | ₩300,000 | ₩903,754 |
| Month 4 | ₩300,000 | ₩1,206,763 |
| Month 5 | ₩300,000 | ₩1,510,530 |
| Month 6 | ₩300,000 | ₩1,815,056 |
| Month 7 | ₩300,000 | ₩2,120,344 |
| Month 8 | ₩300,000 | ₩2,426,395 |
| Month 9 | ₩300,000 | ₩2,733,211 |
| Month 10 | ₩300,000 | ₩3,040,794 |
| Month 11 | ₩300,000 | ₩3,349,146 |
| Month 12 | ₩300,000 | ₩3,658,269 |
Year 2️⃣: Put the matured amount into a 3% fixed deposit and repeat the KRW 300,000 installment savings.
- Put ₩3,658,269 into a 3% fixed deposit.
- Find an installment savings account that pays 3% or more and apply for it.
- Pay in KRW 300,000 faithfully every month.
- Do this, and between the fixed deposit and the installment savings you can save a total of ₩7,649,075.
| After 1 Year | Fixed Deposit | Installment Savings | Total Received |
|---|---|---|---|
| Amount Received | ₩3,768,017 | ₩3,658,269 | ₩7,649,075 |
Year 3️⃣: Put the matured amount into a 3% fixed deposit and repeat the KRW 300,000 installment savings.
- Put ₩7,649,075 into a 3% fixed deposit.
- Find an installment savings account that pays 3% or more and apply for it.
- Pay in KRW 300,000 faithfully every month.
- Do this, and between the fixed deposit and the installment savings you can save a total of ₩11,307,344.
| After 1 Year | Fixed Deposit | Installment Savings | Total Received |
|---|---|---|---|
| Amount Received | ₩7,878,547 | ₩3,658,269 | ₩11,536,816 |
Final Summary
With the recent interest rate hikes, it's not hard to find products on the market that pay more than 3%. Why not take on the KRW 10 million challenge, starting now?
By putting KRW 300,000 a month into 3% installment savings and fixed deposits, you can save KRW 3.65 million after 1 year, KRW 7.64 million after 2 years, and KRW 11.53 million after 3 years!
If you then take the KRW 10 million you've saved and put it into a fixed deposit once again, you can earn KRW 346,000 a year in interest! That's by no means a small amount, and if you keep growing it with compound interest, your interest will grow even more.
