Why Net Worth Explodes After $100K

Once you reach $100,000 everything starts to change. Here's why.

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Chapters

00:00 Start Here
01:14 The Power of Scale
02:19 The Magic of Compound Interest
04:04 Making Money Starts To Go From Active to Passive
05:25 The Power of Margin
07:07 The Mastery Of Money Skills
08:35 The Ability to Increase Investment Amount
09:48 The Ability to Breathe More

The hardest part of your wealth building journey will be reaching your first $100,000 because it takes patience, discipline, and sacrifice; however, once you reach your first $100,000, you net worth really starts to speed up and wealth building becomes easier. In this video I explain why your net worth explodes after reaching $100,000.

1. The Power of Scale

The #1 principle of money is that "money makes money." The more money you have, the quicker it'll grow. For example, the stock market returns an average of 10% a year, so the more you have invested the bigger your returns will be. Once you reach $100,000, you have scale where your returns are a substantial amount.

2. The Magic of Compound Interest

Wealth does not grow linear, but it grows exponentially due to something called, "Compound Interest," which is “Interest from both principal sum and previous interest gained.” Once you reach $100,000, compound interest really starts to take off and speed up the process where reaching the next $100,000 takes less time.

3. Making Money Starts To Go From Active to Passive

Most people make their money in a very active way through their labor; however, once you reach $100,000 and have a decent amount invested, a substantial amount of money you make each year is now passive. This allows you to build wealth at a much quicker rate since your income isn't determined on your actively making it.

4. The Power of Margin

In addition to money making money. Money also gives you margin, which is a buffer between you and being broke. Margin gives you time, which ultimately gives you options. Once you reach $100,000, you have more options in life and can seek better opportunities in life where you're making more money.

5. The Mastery Of Money Skills

Getting to $100,000 takes a lot of time and is a journey. On that journey, you learn to master many money skills. Once you reach $100,000 you more than likely have a good understanding of many skills that allow you to build your net worth.

6. The Ability to Increase Investment Amount

More than likely, once you reach $100,000, you have a completed emergency fund. Once you have completed your emergency fund, it opens up more room to invest more money where you can build your wealth at a quicker pace.

7. The Ability to Breathe More

When it comes to feeling secure in life, $100,000 is that magic number that allows you to breathe a bit more. You still have problems, but do not view money as scarce anymore. This allows you to focus on continuing to build wealth with a clear mind.

**This video is intended for entertainment purposes only, none of it should be interpreted as financial advice. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **

[BrewerVera]

Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

[angeladeem]

It's a common misconception that when a stock you buy skyrockets, the smart thing to do is sell it (or at least sell some of it) to lock in your profits. But the context matters. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[sommersalt]

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!

[RolandWingo]

Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm unsure about my $130K account strategy, considering the uncertainty of this whole recession mostly.

[Cristian_M_]

I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks and made about $246k, but guess what? I put it all back and traded again and now I am rounding up close to a million....

[JefferyDuns]

One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments. I'm planning to invest about $200k of my savings in stocks this year, and I hope I make profits.

[RaymondKeen.]

At the very least, I now grasp the concept of leverage. Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.

[KristinPMosher]

Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

[mustaphanasir]

I'm favoured, $27K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.

[austinbar]

Nice content! Few years back I was assistant to a wealthy pen artist and within the short period I worked with him I observed that he had quite a chunk of investment everywhere, stocks, crypto, dividend investing to name a few, so he had revenues coming in from all angles. And in a year his worth doubled. With this I learned that the rich stay rich by investing.

[IntoTheWild]

It’s going to take me about 7-8 more years but I’ll finally hit the $100, 000 mark!

[GraceAmber]

The problem we have is because Most people always taught that " you only need a good job to become rich. These billionaires are operating on a whole other playbook that many don't even know exists.

[ElisaLaurent-yutp]

I've already noticed that 25k to almost 45k was easier than the first 25k. I think it's crazy that I've gotten used to numbers like that now. 2 years ago when I started it was a huge amount for me. Just as I think about 200k today, that will probably become normal for me this year.

[brianwhitehawker]

The S&P 500 moved 8.9% higher last Month, achieving one of its best monthly performances in history.. which is an indicator for profits to continue to improve. I just want my money to keep outgrowing the inflation rate. I'm still looking for companies to make additions to my $500K portfolio, to boost performance.

[frankedwardark]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[lukefisherDD]

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?.

[PowerfulMoneyHabits]

I want to hit FI in 5 years- I’m investing 67% of my income. It takes discipline and time!

[PatrickLloyd-]

With my portfolio of $750k. I’m looking for opportunities to profit in a potential downturn, According to rating agency Moody’s, both the UK and the US are set to fall into a recession because of higher interest rates.

[bright]

House paid for, car paid for, no consumer debt, $600, 000 investment portfolio, it's hard to stay employed. My ability to put up with BS at work is at an all-time low.

[rocioocampo]

Took me about ten years to get to $100, 000 saving ten percent into my 401k and less than four years to grow it to $300, 000. Crazy to think that I accumulated $200, 000 in four years