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- Why $100K is the goal
Have you ever wondered why the rich get richer?
People say it all the time, but “the rich get richer” is not just a saying, it’s true! To understand why money makes money, we’re going to take you behind the scenes of cash itself and show you why your own net worth will take off like a rocket once you hit $100,000.
The journey to $100,000: a challenging climb
Starting on the path to having $100,000 in your account might feel more like hiking up a financial Mount Everest. You need to earn, save, invest, earn, save, invest, earn, save, invest. Sort of like a Mr. Miyagi (aging myself here) paint the fence, up…and down….up…and down - but for money instead of karate. It’s tough! And there are plenty of distractions and enemies (i.e. Cobra Kai) along the way.
But once you reach that summit, the view (and the sweet sweet cash) are spectacular. This initial builds requires discipline, patience, and sacrifice. When you achieve this milestone, two major financial boosters kick into high gear: the scale of capital and the magic of compound interest.
The scale of capital: where your money starts working for you
Consider this: if you invest $1,000 and get a 10% return, congratulations, you've made enough for an Uber Eats dinner for two and a bottle of Girls Night Out wine. But when you play the same game with $100,000, that same 10% return suddenly buys a flight to Paris ANDDDD an Uber Eats dinner for two plus a bottle of Girls Night Out wine (love that shit). That's the scale of capital in action, where your money starts to do some serious heavy lifting.
The eighth wonder of the world: compound interest
Compound interest is the magical power we all possess where we can earn interest not only on our initial investment but also earn interest on our interest. Ya, you read that correctly. This is such a good trick you’ll be thinking “yer a wizard [insert your name here]”.
Compound interest makes your money grow exponentially. Once you hit that first $100,000, getting to the next $100,000 doesn't just get easier—it practically feels like your money is on a treadmill, gaining speed while you sleep. This is when you start making money without ever getting out of bed, and honestly, who doesn’t love making money in their sleep? I’m exhausted!
The power of margin: security and opportunities
Reaching $100,000 gives you something called 'financial margin.' This margin acts as a buffer against life and all the crazy stuff it can throw at you. This gives you the freedom to choose opportunities that you really want, even if they’re a bit risky, while still having a financial safety net in case things don’t turn out. This buffer is your financial fairy godmother, giving you the freedom to chase better job opportunities without the panic of going broke hanging over your head.
How to take the elevator instead of the stairs on your journey to $100,000
Start early: They say the best time to plant a tree was 20 years ago and the second best time is now. Starting to invest as early as possible is the key, whatever the amount. Make investing automatic with regular amounts invested from your paycheque and before you know it, you’ll be well on the way to financial freedom.
Increase your investment amount: Focus on increasing how much you invest regularly. Small increases in your cash investment can really reduce the time it takes to reach your next financial milestone. $200 invested each month over the past 10 years would have given you $55,040. But $250 invested each month over the same time would have left you with $68,800!
Set clear financial goals & celebrate milestones: Establish specific, measurable financial goals and track your progress. When you hit a milestone, even a small one, celebrate it! This could mean a modest splurge (intriguing), a simple pause to acknowledge your progress (beautiful), or a few cases of Girls Night Out (delicious). Rewarding yourself not only makes the journey enjoyable but also keeps you motivated to chase the next goal.
Your path to financial freedom starts riiiiiiiiiight HERE!
Getting to $100,000 is a major financial milestone. Think about it like building the Millennium Falcon lego set. It’s tough, but once you get the main hull frame in place (trust me, you’ll know when you get there) every block after that snaps into place more easily than the last. This is the point in your life where you begin to be able to sit back, admire what you’ve accomplished and utilize the discipline & consistency you just put on display into living your own fulfilled life.
Cheers, ciao, and May the 16th be with you.
Bonus!
Me after a paycheque being a responsible, forward-thinking, hero/scholar:
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