How to Save Your First $100K in 5 Years

“Getting together $100,000 is a long struggle for most people.”

The significance of accumulating your first $100,000 cannot be underestimated when it comes to building long-term wealth. Saving your first $100k is an important personal milestone.

The late Charlie Munger, renowned investor and long-time partner of Warren Buffett, said this during a 1998 annual shareholder meeting of Berkshire Hathaway:

“The hard part of the process for most people is the first $100,000. If you have a standing start at zero, getting together $100,000 is a long struggle for most people. And I would argue that people who get there relatively quickly are helped if they’re passionate about being rational, very eager and opportunistic, and steadily underspend their income grossly.”

This is so true.

Once you reach 100k, you can start making some serious moves. I’m a big fan of the stock market. But I also like real estate. Think about purchasing your first home (if you haven’t already). Reaching 100k expands your options.

While 100k in today’s money has much less purchasing power than in 1998, the significance of six figures is still the same.