The First $100K is a B*tch

“The first $100K is a b*tch, but you got to do it”. Charlie Munger said this at a Berkshire Hathaway meeting. It truly is hard to get your first $100k. It takes saving, investing, and staying out of debt. Plus it is all about consistency.

How hard is it really to hit $100K?

The question is how much do you want to hit that number. You need to also be able to invest your money. Investments will grow faster than money sitting in a bank. 

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This $100K will easily be able to compound even faster that you would expect.  It is vital to start investing sooner rather than later in life. 

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The Compounding of $100K

Our goal is $100K.

Step 1: First of all, you need an emergency fund in order to cover emergencies that may come up.

You have an emergency fund set aside. It is time to invest the rest of your money.

Step 2:

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Step 3:

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The third step is to stop spending money. Your savings rate is quite important. The average American saves like 7-8 % of their salary, which is crazy low.

Time to Make a Plan and Goals

People have different goals in life. Some will want to work til they are 70 years old. There are others that want to work til 50 and have enough money to stop working.

Getting to that first $100k is going to be difficult and hard to do, but if you take little baby steps every day to hit that goal you will be able to achieve it.

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