Why the First $100k is Important (Why Should I Dividend Invest)

Welcome to Dividend Compounders with Cheese!

In this video we will be discussing why Charlie Munger has emphasized the first $100,000 by stating its the hardest but also the most important. We will be looking at what exactly is "time in the market" and what it does to money invested in high quality companies in the stock market.

People often say that the first $100,000 invested is the most important due to several key reasons that highlight the power of compounding and early investment:

1. Compounding Growth
Early Start: The earlier you start investing, the more time your money has to grow through compounding. Compounding allows your investment returns to generate additional returns over time.
Snowball Effect: As your investments grow, the absolute dollar amount of returns increases, leading to accelerated growth in your portfolio value.
2. Long-Term Horizon
Time Value of Money: Investments made early have a longer time horizon to recover from market downturns and benefit from overall market growth over time.
Risk Tolerance: Younger investors typically have a higher risk tolerance and can afford to invest more aggressively, potentially earning higher returns over the long term.
3. Financial Habits and Discipline
Establishing Habits: Building the habit of saving and investing early sets a foundation for long-term financial success. It encourages disciplined saving and spending habits.
Financial Literacy: Starting early allows investors to learn about investment strategies, market behaviors, and risk management, which are crucial for making informed financial decisions.
4. Retirement Readiness
Early Retirement Planning: Accumulating $100,000 early in your investment journey can set you on track for achieving larger financial goals, such as retirement or major life milestones.
Retirement Savings: The earlier you start saving and investing, the more you can accumulate for retirement, potentially reducing financial stress later in life.
5. Psychological Impact
Motivation: Achieving the milestone of $100,000 invested can provide psychological motivation to continue investing and growing your portfolio.
Financial Security: Building a solid financial foundation early can provide a sense of security and stability, enhancing overall financial well-being.
Considerations:
Market Conditions: Investment returns can vary based on market conditions and economic cycles. Starting early allows investors to navigate these fluctuations and benefit from long-term market trends.
Risk Management: Diversifying investments and maintaining a balanced portfolio are essential for managing risk and optimizing returns over time.
Conclusion
The concept that the first $100,000 invested is the most important underscores the benefits of early and consistent investing. It emphasizes the advantages of compounding growth, long-term financial planning, and developing strong financial habits. Starting early allows investors to leverage time and market opportunities to build wealth steadily and achieve their financial goals more effectively.

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[UsernameAmos]

Welcome to Dividend Compounders with Cheese!

In this video we will be discussing why Charlie Munger has emphasized the first $100, 000 by stating its the hardest but also the most important. We will be looking at what exactly is "time in the market" and what it does to money invested in high quality companies in the stock market.

[poupeth]

Love the 411 and your sense of humor. I dig it. Haahaa. New subscriber here.

[SCHDSTAN]

Keep it up buddy! Enjoying your videos even the quirky dad jokes 😂

[ReCo.]

Nice video mate like the humour too. Will check more of yiur content out.
P.s we hate you Tottenham, we do, oh Tottenham we hate you.

[bruceburton]

I don't use my blinker. Because people will speed up

[mariex]

Your $100K with dividend with cheese is killing me LOL. Awesome contents, bro. Thanks :)

[mikeyspice]

I live in the UK

While I like these types of videos!!!!

They are are a waste of time for

If most people ie 98% are earning say £36, 000 per annum. Or $42, 000 per this is where the audience should be aimed

Ie been able to pay bills monthly only, & have a little in the UK state pension or the US persons 401 K to get through life without

[maguilla]

Great video, but also people need to be aware of inflation. Because our $100k today maybe be 65k in 10 years from now.

[DE-Burrows]

Great strategy for people with money looking to diversify their investments. I know someone who has done this in the pricy Bay Area. She has great cash flow on a home she bought 20 years ago and is breaking even on a property she bought three years ago having put 1/3 down. Ten years from now she will cash flow better and her equity will be through the roof. She did the same for out-of-state properties.

[o.c.g.m]

Great video bro. I just got a 2nd full time job(both 9-5). I firmly believe if your a childless man you need to be doing 60+ hrs a week(Kevin Samuels). Im 40 with a 401k, Roth Ira & Stocks. Love ya joking keep it up King

[neuroperformance]

I built an ebike to reduce overall cost