Why The First $100k is the Hardest (MIND BLOWING!) Compound Interest & Charlie Munger (right hand man to Warren Buffet and vice chairman of Berkshire Hathaway).

Using compound interest I will show you why the first $100,000 is the hardest. Once a person reaches $100,000, each $100k takes less and less time. Charlie Munger has also said that accumulating the first $100,000 from a standing start, with no seed money, is the most difficult part of building wealth. Making the first million was the next big hurdle.

In this video:
- I run through the numbers on how long it would take to get to $100k contributing $10,000 a year.
- I use an annual rate of return of 7%
- I calculate these amounts compound interest calculations using excel but at the end of the video I also share a way do these same compound interest calculations using an online compound interest calculator.
- I break down how long each $100,000 takes all the way up to one million dollars. I also break these numbers down into percentages to see how long the journey takes.
- The best part is you could apply these amount to saving and investing $100 a year to reach $10000 or saving and investing 10,000 a year to reach 100000.
- I also share a table showing how long it would take saving and investing different amounts in case I haven't mentioned an amount that you are investing.

Welcome to Family Finance where I chat all things personal finance and in particular family finances, how to save money, investing, budgeting and how to stay on track with your financial goals. Our goal is to build our passive income to reach financial independence, also know as FI.

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AFFILIATE LINKS

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BOOKS TO READ
Motivated Money: [ Ссылка ]
The Simple Path to Wealth: [ Ссылка ]
Your Money or Your Life: [ Ссылка ]
I Will Teach You To be Rich: [ Ссылка ]
Mindful Money: [ Ссылка ]
The Barefoot Investor: [ Ссылка ]
Money Made Simple by Noel Whittaker: [ Ссылка ]
Atomic Habits: [ Ссылка ]
The 5am Club: Own Your Morning, Elevate Your Life: [ Ссылка ]

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I use Keynote to make my slides using images and text for from Canva:
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Disclaimer:
The information on this YouTube channel and the links provided are for entertainment and general information only and should not be taken as constituting professional advice. I am not a financial advisor. The information on this channel is personal to my situation and does not take into account your personal circumstances. You should do your own research and if necessary consider seeking independent financial advice that is related to your unique circumstances.

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