[Book Sip] The Secret to Financial Freedom Is 'Salary Setting' Within 5 Years of Joining a Company

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The author, who worked for 20 years at banks, insurance companies, and securities firms, emphasizes that 'monthly salary setting' can create financial freedom. The book is largely divided into three parts centered on monthly salary setting: account management, investment management, and asset management. A notable feature is that the author uses easy terms and examples to share practical experiences and know-how gained from countless interactions with various customers at diverse financial institutions. The author presents concrete know-how to establish and execute monthly salary setting standards and stresses not just following instructions but creating 'your own standards' and 'executing' them.

I believe it depends on whether you set your monthly salary properly. When you join a company, you have your batchmates. Suppose there are 10 batchmates in the company you joined. Most of their salaries are similar. But as time goes by, the speed of wealth accumulation differs greatly. Even with similar salaries, some batchmates buy a house within five years, while others don’t have a house even after 20 years. My father's first job had 120 batchmates. Among them, some bought a house within three years of employment, but some still don’t have one. Some friends who worked at small and medium-sized companies with lower salaries bought houses early, but there are friends who were born rich and ran promising businesses yet still rent now. In my father's view, how you set your monthly salary is more important than whether your salary is high or low. Even among batchmates with the same salary, those who manage their monthly salary well will buy a house sooner. - From "Monthly Salary Setting That Creates Rich DNA"

If you contribute 500,000 KRW monthly to a pension savings plan, you can get a refund of 990,000 KRW annually. That’s almost two months’ worth of contributions returned. For those with an annual earned income of 55 million KRW or less, 16.5% of the annual contribution amount is refunded. If you contribute 500,000 KRW monthly, totaling 6 million KRW annually, you can get 16.5% of 6 million KRW, which is 990,000 KRW, refunded from the taxes you have already paid. For those with an annual earned income exceeding 55 million KRW, only 13.2% of the annual contribution amount, 792,000 KRW, is refunded. - From "Top 3 Financial Products Every Office Worker Must Join"

Everyone has the desire to become rich. Money is essential for living. The more you have, the better conditions you can create. But becoming a wealthy person is realistically not easy. Also, being rich does not guarantee happiness. The harder life gets, the more people dream of becoming rich. However, at least probabilistically, it can be a fanciful dream because most people do not become rich. We need to find a more realistic alternative. That is to live as a feasible and happy middle class first. Whether you become rich or not is a matter for later. - From "At the Crossroads of Choice, Setting Asset Management Standards"

Is broad diversification advantageous? Or is concentrated investment better? The three principles of successful investing emphasize diversification. But diversification is not necessarily the only answer, nor is concentrated investment wrong. It depends on the investor’s perspective. If diversification focuses on 'risk minimization,' concentrated investment focuses on 'maximizing returns.' It’s a matter of choice, not right or wrong. You can choose either based on your investment style or market conditions. - From "At the Crossroads of Choice, Setting Asset Management Standards"

I feel the same. If you keep plans only in your head, you end up doing nothing because you get busy with other things. Sometimes I even forget that I made a plan. That’s why you need to write your plans down in numbers. There’s a saying, ‘Survival of the fittest (you must write to survive).’ Writing down your plans in words or numbers creates execution power. Companies have financial statements that show their management status and performance. Similarly, I made two tables: one is a ‘cash flow statement,’ and the other is a ‘balance sheet.’ The cash flow statement shows income and expenses for a month, and the balance sheet shows changes in assets. What I want to emphasize is filling in these tables with numbers once a month. Filling in these tables is essentially writing a monthly ledger. I found it hard to keep a daily household ledger, but writing a monthly ledger once a month was manageable. - From "Just Writing This Once a Month Makes You Rich!"

How Office Workers Can Become Rich Through Monthly Salary Setting | Written by Song Youngwook | Saebit | 308 pages | 19,000 KRW