Why Your First 100K Is Hard But Your First MILLION Is Easy!

Building wealth is typically a slow process, especially when you're just getting started. This has been confirmed by plenty of people who have made large amounts of money themselves. Charlie Munger is one of them, and he once said, "The first 100k is a b*tch." And, while he said it during a Berkshire Hathaway shareholder meeting in the 1990s, it is still true today and will be for the rest of our lives. In fact, for most people, their first $100,000 is one of the most challenging milestones to reach.

The same applies to your first $1,000,000. Consider having a million dollars to retire early. With careful planning and budgeting, your money could provide a comfortable income for many years to come. Or, finally, after many years of hard work, to build your dream house in the location of your dreams.

However, saving $1,000,000 would require $33,000 every year for 30 years. In other words, not realistic since you want to go on vacation every year, have a mortgage to pay, children to raise, and send to school... It's simply too much, and you can't do it with a regular job.

Most people forget about $1,000,000 because they have no plan to reach it. “It is just for those that start a business or get lucky with rich parents.” So you decide to give up and focus on smaller goals.

In this video, I'll help you re-imagine your $1,000,000 by going over some basic math and explaining why it's so difficult to reach your first $100,000 but why it’s easy to get to your first $1,000,000.

Chapters:
0:00 Intro
1:35 The First Action: Investing!
3:01 The First 100k
5:08 Your First Million
7:16 The Math Works At Every Level

Disclaimer: We are not financial advisors, any information provided in this video is for entertainment purposes only, for any investment advice please speak to a qualified financial advisor. Millionaires Mind and the author of this content excepts no responsibility for any financial loss. Do your own research before investing in anything be it business, stock shares or any financial vehicle.

[AndersonFair-cybb]

Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!

[Christine-wpbw]

I'm curious, for someone with around $50, 000 to invest, how would you recommend we enter the market? I am looking study some traders and copy their strategy rather than investing myself and losing money emotionally. What's your take on this

[SteveDutton-v]

Not just saving, the idea of investing a significant sum of money may be both thrilling and intimidating. There seems to be potential for considerable wealth increase with the correct strategy. How can one take advantage of the present market to grow one's retirement savings over time?

[MickyGlover]

Loved every second of my watch to the very end. You are a great teacher. I’m 56 and own a small business with $480K in savings. But I'd still love to grow my investments ahead of retirement. Do you mentor others? Really need some guidance to financial freedom.

[Susanhartman.]

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.

[DeannaMurray-zv]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.

[WtfReal]

The first 100k indeed has been a b*tch. I’m 26 and at the 70k mark. No useless spending, no vacations, just work, save, and invest. God has blessed me and I know he guides me in the right direction.

[getinthespace]

Yep. Took us 13 years to get to 200k. During that time our household income went from 30k up to 110k. This year it's going to 260k. Lots of hard work pays off. If we can do it you can do it. We are nothing special.
Our lifestyle only costs $40-50k. We are going to save at least $100k a year after tax dollars and 30k before tax dollars in retirement accounts.
Goal is to get the retirement investments and outside retirement investments all to at least 1 million in the next 6-8 years before our term life insurance policies expire.

[averyrinn]

If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.

[pmw]

At 10% growth, it takes 25 years for a lump sum of £100k to become £1M. But it takes just 8 years for £1M to become £2M. The more you have, the more you make. The rich get richer.

[SuperSupersoda]

It took me 5 years to get to 100k. it took me half that time to go from 100k to 250k. You make all your worst mistakes making that first 100k, because you really don't know what you're doing and compound interest isn't really helping. After you hit 100k, you start to figure out what works.

[mohican-jxfx]

Dividends from good investments just balloon if you accumulate more than $100k. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[tylerforeman]

I concur entirely. The first $100, 000 was the hardest to save, but my wife and I were able to do it. We could have spent the money on a variety of things, such as holidays, but we chose not to do so. In fact, interestingly enough, we didn't really begin investing actively until I was 30 years old, in 1998. I'm 53 now, and I have a respectable $1.2M in savings. My only regret now that I know everything is that I didn't start when I was 25. Even while it might not seem like much, the extra five years are crucial.

[RobertBrown..]

As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[MrCocacolarolla]

It took my wife and I over three years to save our first 100K. Just under two years for our second 100K. Now we are on our way to 300K. Every 100 is faster than the last one.

[aureliobjm]

As an investor that wants to build wealth, its best to diversify your investment portfolio. Like spread your investments across different asset classes to manage risk. Then with growth strategy, focus on capital appreciation through high-risk, high-reward assets. With Income-oriented strategies, target regular income from dividend stocks or bonds. Finally, with value strategy, seek undervalued assets for potential long-term gains. Works like magic!

[SunRise-ulko]

The second million is easy. Just sit back, relax & let the first million do the work.

[pulpprof]

Man. 27 with 70k saved already. Keep it up. You are already accomplishing more than 95% of your peers.

[Gomjabbar]

my 401k just hit 100k im ready for it to take off like a rocket

[tonysilke]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks this year. Hope to make millions in 2024.