Why Your Net Worth EXPLODES after $100,000

Taking a few steps, our goal is to get to $100,000 in our investment portfolio. Why? Well, According to Charlie Munger, this is where your portfolio will EXPLODE and go to the moon. In this video, let's put the math behind that and look at the years to $100, $200, $300K and more.

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Chapters of Today's Video:
0:00 - Intro
0:31 - The Math Behind $100,000
1:00 - Reaching Your First $100,000
1:15 - The Power of Compound Interest
2:17 - Investment Strategies
2:35 - Compound Interest Explained
3:12 - Managing Lifestyle Inflation
4:08 - Personal Finance Tips
5:20 - Outro

📈 In this video, we dive deep into the wisdom of Charlie Munger, who famously stated that reaching your first $100,000 in investments is a game-changer.

🔍 We'll break down the numbers and explain why this milestone is so crucial. By investing $835 a month, which adds up to $10,000 a year, and considering a modest 7% return, you can see your portfolio grow exponentially. Here’s a sneak peek:

⏳ Your first $100,000 takes approximately 7.84 years.
🚀 The next $100,000 takes only 5.1 years.
⚡ The third $100,000 takes just 3.78 years.
🔥 And it keeps accelerating from there!
📚 We'll also discuss the power of compound interest, likening it to a snowball that grows larger as it rolls down a hill. The more you invest, the faster your returns multiply, leading to rapid growth in your portfolio.

💡 But how do you start? We'll share practical tips on managing lifestyle inflation, making smart investment choices, and cutting unnecessary expenses. You'll hear personal stories, including a real-life example of trading a luxury car for a more economical one to funnel more money into investments.

🌟 Join us on this journey to financial independence. Let's start building that $100,000 snowball together and watch it grow faster and faster.

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[vortex]

He said this in 1990'ies, corrected for inflation this is now 200k. So, the new number is 200k! Not 100k.

[arianbakaj]

Thanks for the vid
We missed your videos

[ronbmor]

Thank you Bob, this was very motivating.

[brianschanne]

I started a 401k in 2018 and only put in 4% on a biweekly paycheck. As I got more saved I increased my savings overtime. Today I put in 16% and get a 8% match and have 85k. It isn’t much but on the right track for the snowball effect to take over

[ddxl]

People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365, 000 in stocks and assets. Wish I could accomplish that.

[steveallen]

New sub and new to etf's. Is there a brokerage app you recommend?

[tylersucher]

This is great, I’ve become a little frugal with my money for sure. Idk what the future will bring and not to be a negative Nancy, however I’ve come to realize, any money put to investing is better than none at all cuz I do invest what I can, but I’ll probably be dead before I can comfortably retire lol. That’s the unfortunate reality with most ppl right now. Even with cutting back a lot these couple years it just doesn’t seem like even hitting that first 100k will even in the first 15 years even. That’s the unfortunate life environment most ppl are dealing with in my generation.

[jwilk]

I am 25 and have a 403b and a 457 which I put 8% into each(I make around 75k) I also do 500 a month into voo do you think this is setting me up for success?

[joenjcp]

When you hit 100k you start the snowball effect that’s the magic number. Regardless if 100k is not that much today because inflation.but that’s the magic number that makes the snow ball effect and you gotta take in consideration that today you got investing platform you got e.t.f .you got stocks that paid good dividends you got more people investing .

[rebeccalewis]

This is great if you can save that but me and my partners income only 30 thousand between us and bills 24 thousand we couldn't possibly do that 😢

[NowOnline]

7%?? Isn't the historical average for the sp500 about 10-12%?

[ikyiAlter]

What this video doesn't tell you is... S&P 500 average returns are higher than 7%. It's actually closer to 10%... However, that doesn't consider inflation. If you use 3% inflation on 10% return, you get like 6.8% inflation adjusted return, which is lower than the 7%.

Let's also not forget that 10% average return = +/- 50% over 20-30 years to get that 10%. Lol...

[lovelife]

$835 a month i wish. I work fulltime take home pay is $1800 a month its taken me 20 years to get to $100, 000

[nateshepardson]

Investment Guru's gonna be tellin' my kids its the first milly that kickstarts the process. Inflation is a beeeotch

[FJX]

Are we talking having 100k in assets(stocks, cash, 401k) or are we talking 100k in stocks?

[avs-forum]

Does this mean 100K into one fund or your entire portfolio? No one seems to spell that out.

[ivalturner]

Does this mean 100K into one fund or your entire portfolio? No one seems to spell that out.