The First $100K is a B*tch, but you Gotta do It!

The legendary multibillionaire investor and Vice Chairman of Berkshire Hathaway, also the right hand man of the “Oracle of Omaha” (arguably the world’s greatest investor Warren Buffett), Mr. Charlie Munger is quoted as saying:

“The first $100,000 is a b*tch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.” - Charlie Munger

• Once you cross the $100k threshold your money, with the help of compound interest begins to work extra hard on your behalf. For example, if you save $10k per year at an interest rate of 7% it will take you approximately 7-8 years to save $100k.

• At that same savings rate and doing nothing different you’ll reach your next $100k approximately 3 years sooner (5.1 years).

• Guess what… it takes even less time to reach your next $100k after that, just 3.78 years and so on and so forth.

If you want to accelerate this growth, simply increase the amount you contribute to the principal each year.

Spread the word and as always… invest early and often. Compound interest and time are your friends.

Money Mar

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