I think another part that makes that first $100k the hardest (at least for myself personally) was that it needed to be divided into certain foundation accounts - an emergency fund for instance of $20k. These funds couldn't be invested into riskier places like the stock market as it needed to be stable and quickly accessible if needed. Therefore that first lot of money was slowed down greatly from decent compounding which dragged out the process a bit. However, it needed to be done to ensure I bulletproofed my life.
Great video. One of the big things alot of finance enthusiasts push is the delayed gratification at an early age. Spending a decade in your 20's saving money and putting it away works incredibly well as the two largest contributing factors to compound interest is 1. How much are you starting with? (presumably large if you're spending a decade saving religiously) and 2. How long have you got (again presuming at 30 years old you still have another 30 years before needing the money for retirement).
I’d say the equation you talk about is more towards FAT FIRE. The ASFA talk about using 66% of you income to estimate a more than comfortable retirement. You video has encouraged me to read the book. Thanks.
I made my first 100k this year and it took me almost 2 years. I will also make my second 100k this year. Live frugal.. do not spend nothing you don’t need to spend. Treat yourself sometimes but make is 1% of your income. I’m 22. I hope to see 500k by 24 and 1M+ by 28
the difference between $100,000 USD 1990 and (today $176,000 USD) does matter , $176,000 at 9.77% (aveage S&P return) is $17,100 USD .This is a around a basic state pension income (Australia)...So you can survive on the return each year $100,000 USD, you still have to work or make extra money
Your math is incorrect as you aren’t including inflation and capital gains taxes. After you account for those the amount of money is far higher. I think $100k then is closer to contemporary view of coast FIRE.
We can only use "their" if we change "a person's." The Filipinos had this figured out a long time ago with a neutral pronoun for situations like this one... siya Hats off to the Filipinos!!!
I think making money and turning it into a fortune requires much more than math. As such, these tours of spreadsheets don't tell me much about "why it's so hard" or about "what it takes". Thus far, I think it's safe to say that it takes continuous education, application of great effort in a system outside traditional means, and employing the money made along the way so that it makes money for you. Start a small business. Get good at that business, and funnel the money into moderately risky investments to build that proverbial snowball.
The only thing I don’t understand or maybe what I’m misunderstanding is the saving part. If he is suggesting you shouldn’t invest until you save the first 100k then that doesn’t make sense to me. Why not invest what you can now so compound interest can help you to your first 100k. But again maybe in misunderstanding the quote.
I don’t think you have misunderstood the quote and I think that is what he is saying. The journey to investing $100k is the longest and slowest part of each $100k. This example shows that investing $10k each year and not waiting until the amount reached $100k 👍🏼
@@FamilyFinance I agree and I understood you’re example. It just I’ve heard that quote a lot and I actually seen other RUclipsrs implement that strategy. Anyway nice video.
In Australia, we have been given strict guidelines for finance content creators by our regulator so I’ve made it again to meet those guidelines. My previous video explains those changes 😭😭. I hope I’ve made it even better this time 🙋🏻♀️
I had to watch heaps of my old videos to see that they met the guidelines and I couldn’t believe how much better my videos are now 😳. I had to remove a heap 😭
I'm celebrating a $123,000 dividend stock portfolio today. I started this trading journey with 46k. have invested much time & money, and also with Lanngel Mark, the right investment Adviser who handles my portfolio and executes my trades, now I have time for my family and the life ahead of me 💯✅
Amazing! I got interested in the stock market recently, I’ve got quarter million to invest, I did a quick research on Lanngel Mark out of curiosity and found his website.will surely make consultation.
Don't get discouraged. I spent 7 years in college and didn't hit 100k until I was 29. Now at 36 I have 350k. That is the whole point of the vid. First 100k is hard as *%$*
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Imagine if they taught me this in school when I was in my teen years vs now when I’m seeing it in my 30’s
I remember being taught it in school but I didn't really understand how it worked in real life.
Great video mate👌 iv always wanted to know why the 1st 100 was the hardest
I think another part that makes that first $100k the hardest (at least for myself personally) was that it needed to be divided into certain foundation accounts - an emergency fund for instance of $20k. These funds couldn't be invested into riskier places like the stock market as it needed to be stable and quickly accessible if needed.
Therefore that first lot of money was slowed down greatly from decent compounding which dragged out the process a bit.
However, it needed to be done to ensure I bulletproofed my life.
Oh this is very true, plus we make a few mistakes in those early days while we work things out. Well I did anyway.
I agree. I had to pay off debt and save an emergency fund.
Great video. One of the big things alot of finance enthusiasts push is the delayed gratification at an early age. Spending a decade in your 20's saving money and putting it away works incredibly well as the two largest contributing factors to compound interest is 1. How much are you starting with? (presumably large if you're spending a decade saving religiously) and 2. How long have you got (again presuming at 30 years old you still have another 30 years before needing the money for retirement).
I’d say the equation you talk about is more towards FAT FIRE. The ASFA talk about using 66% of you income to estimate a more than comfortable retirement. You video has encouraged me to read the book. Thanks.
I made my first 100k this year and it took me almost 2 years. I will also make my second 100k this year. Live frugal.. do not spend nothing you don’t need to spend. Treat yourself sometimes but make is 1% of your income. I’m 22. I hope to see 500k by 24 and 1M+ by 28
That's an awesome achievement! Keep it up!
Good video
the difference between $100,000 USD 1990 and (today $176,000 USD) does matter , $176,000 at 9.77% (aveage S&P return) is $17,100 USD .This is a around a basic state pension income (Australia)...So you can survive on the return each year
$100,000 USD, you still have to work or make extra money
Your math is incorrect as you aren’t including inflation and capital gains taxes. After you account for those the amount of money is far higher. I think $100k then is closer to contemporary view of coast FIRE.
We can only use "their" if we change "a person's." The Filipinos had this figured out a long time ago with a neutral pronoun for situations like this one... siya
Hats off to the Filipinos!!!
I think making money and turning it into a fortune requires much more than math. As such, these tours of spreadsheets don't tell me much about "why it's so hard" or about "what it takes". Thus far, I think it's safe to say that it takes continuous education, application of great effort in a system outside traditional means, and employing the money made along the way so that it makes money for you. Start a small business. Get good at that business, and funnel the money into moderately risky investments to build that proverbial snowball.
It's not, I'm not there yet but doing $2500/month, it will take at most 2.5 yrs to get there
The only thing I don’t understand or maybe what I’m misunderstanding is the saving part. If he is suggesting you shouldn’t invest until you save the first 100k then that doesn’t make sense to me. Why not invest what you can now so compound interest can help you to your first 100k. But again maybe in misunderstanding the quote.
I don’t think you have misunderstood the quote and I think that is what he is saying. The journey to investing $100k is the longest and slowest part of each $100k. This example shows that investing $10k each year and not waiting until the amount reached $100k 👍🏼
@@FamilyFinance I agree and I understood you’re example. It just I’ve heard that quote a lot and I actually seen other RUclipsrs implement that strategy. Anyway nice video.
Thanks 🤗
Is this channel officially abandoned?
❤❤❤
So crazy that you only have 20 videos on your channel now :(
I know! I still can't believe in (insert crying face)
Why the reupload?
In Australia, we have been given strict guidelines for finance content creators by our regulator so I’ve made it again to meet those guidelines. My previous video explains those changes 😭😭. I hope I’ve made it even better this time 🙋🏻♀️
@@FamilyFinance Oh ok that sucks but yeah this video was better :).
I had to watch heaps of my old videos to see that they met the guidelines and I couldn’t believe how much better my videos are now 😳. I had to remove a heap 😭
I'm celebrating a $123,000 dividend stock portfolio today. I started this trading journey with 46k. have invested much time & money, and also with Lanngel Mark, the right investment Adviser who handles my portfolio and executes my trades, now I have time for my family and the life ahead of me 💯✅
Amazing! I got interested in the stock market recently, I’ve got quarter million to invest, I did a quick research on Lanngel Mark out of curiosity and found his website.will surely make consultation.
He was also talking about $USD.
I been saving for almost 16 years and still haven't reach 100k. : (
Saving is saving!
Because you aren't investing
Don't get discouraged. I spent 7 years in college and didn't hit 100k until I was 29. Now at 36 I have 350k. That is the whole point of the vid. First 100k is hard as *%$*
Rule # 1: NEVER HAVE CHILDREN!
Except given current inflation trends in 30 years that 1 million will be worth exactly 100k so you're just back to square one and going in circles
Not really because the investment return percentage is less than the inflation percentage
30 years of 10%+ inflation.....nah