I'd like to first mention that there are also many sources that have found the incidence of side effects due to finasteride is much higher than the 2%, as well as sources indicating the frequency of side effects to be less than so. In any event in my honest opinion you can expect at least 2% incidence or greater as this is a value from studies actually performed by Merck. This means that 1/50 people experience some sort of side effect, which actually is fairly significant.
With that said, I would also like to say that I previously tried taking 1 mg finasteride daily for four months, but have stopped due to annoying sexual side effects (markedly decreased libido, noticeably reduced volume of ejaculate, etc.). I am currently taking 0.5 mg daily and so far I have not experienced anything so obvious, yet it is still noticeable. Im hoping that they will go away shortly but we will see.
My advice to you however is to try taking 1 mg daily for a couple of months, and if you experience annoying side effects try taking 0.5 mg daily instead. Studies have shown that even a reduced dosage of finasteride is quite effective in inhibiting the formation of DHT. Think of the suggested 1 mg daily as a compromise between the incidence of side effects and the efficacy in improving hair growth... since that is exactly what it is.. meaning 0.5 mg daily may be perfectly fine for you. BTW I can site sources if you or anyone else so desires, though I will have to take time to recover them.