Why the First $100,000 is the Hardest and How to Make it Easier

Have you ever felt like it’s taking longer than you’d like to grow your wealth. You’re not alone many successful investors like Charlie Mueller of Berkshire Hathaway believe that the first one hundred thousand dollars is the hardest to accumulate but once you reach that Milestone it becomes easier to build upon it. In fact, many people find that it takes a fraction of the time to reach the second million compared to the first.

In this blog post we’ll explore the reasons why it takes a disproportionate amount of time to reach the one hundred thousand dollars Mark and discuss some strategies you can use to speed up the process and become wealthy years sooner.

Welcome to Make Money Facts, where we make Finance simple and easy to understand. Our goal is to provide you with easy Finance tips to help you improve your financial future whether you’re interested in personal finance investing or just wanted to learn more about money.

Reason #1

Have you been putting off investing because you don’t have enough money or you’re afraid of risk. You’re not alone, many people feel the same way and end up pushing investing to the back burner but the truth is you don’t need a lot of money to start investing. And taking on some risk can actually pay off in the long run.

One reason it’s hard to get started is because it’s hard to see progress when you’re just starting out. For example, if you invest five thousand dollars and earn a ten percent return in one year. That’s only five hundred dollars which may not seem like much but as your portfolio grows the returns in dollar amounts become much larger. For example, if you have a one hundred thousand dollars portfolio and earn a ten percent return that’s ten thousand dollars.

If you have a one million dollars portfolio a ten percent return is one hundred thousand dollars. That’s a significant amount and can be very motivating.

Reason #2

Another reason it gets easier is because as you become wealthier you have more options. For example, you may have the opportunity to take a higher paying job with more room for advancement but the pay is uncertain. If you have a solid savings, you may feel more comfortable taking that risk or maybe you’ve always wanted to start a business but never had the capital.

With one hundred thousand dollars in savings you have a safety net to fall back on reaching the 100,000. It requires discipline and dedication. It’s not easy and it won’t happen overnight.

One of the most important things you can do is to make your own contributions a priority. This means setting aside a portion of your income each month and investing it.

It’s also important to carefully consider your purchases and look for ways to cut costs wherever you can. Every dollar you save can be invested and has the potential to grow over time. In addition to making your own contributions you can also take advantage of compound interest to accelerate your growth

Compound interest is the interest you earn on your principal as well as the interest you earn on the interest. As your portfolio grows the progress is extremely satisfying and can actually motivate you to grow it even faster the returns you earn from compound interest can become significant.

Reason #3

It’s also important to carefully consider your purchases and look for ways to increase your income earn better returns. For example if you have a one hundred thousand dollars portfolio, earning a ten percent return that’s ten thousand dollars in the first year. If you were in the same 10 return in the second year you earn another ten thousand dollars but this time it will be on the 110 000.

Your original one hundred thousand dollars plus the ten thousand dollars. You earned in the first year and in the third year. You’ll earn a return on one hundred and twenty one thousand dollars and so on.

As you can see the growth starts to accelerate as your portfolio gets larger. In addition to taking advantage of compound interest you can also look for ways to increase your income or in better returns this might include negotiating arrays at work.


Starting a side hustle or finding Investments with higher potential returns. It’s important to be mindful of the level of risk you’re comfortable with and to diversify your Investments to minimize risk. Reaching the one hundred thousand dollars is a major Milestone and it’s something to be proud of the progress you make will be extremely satisfying and can actually motivate you to grow your wealth even faster.

Don’t let fear or procrastination hold you back. Take the first step and start investing today. It may be tough at first but as you reach the one hundred thousand dollars mark it will get easier and the rewards will be well worth it.

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