Why the First $100K Is the Hardest And How to Get There Faster

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The Millionaire’s Best Piece of Advice

When I was younger, I worried about never having enough money to afford my dreams. A millionaire I looked up to gave me a simple yet powerful piece of advice:

“Don’t worry about earning millions. Instead, focus on the first $100,000. After that, your net worth will go crazy.”

At the time, I didn’t fully understand it but I followed his advice, and it worked.

So, why is the first $100K the hardest? And why does wealth accelerate after hitting that milestone?

Why the First $100K Feels Impossible

1. Your Earning Power Is Still Low

Think of your earning power like your level in a video game. When you’re young, you haven’t had enough time to build high-income skills or climb the career ladder.

This problem is even worse for younger generations today. Studies show that Gen Z has 86% less buying power than Baby Boomers did at the same age. Why?

Older workers stay in jobs longer, blocking higher-paying positions.

Inflation and rising living costs make saving harder.

But there’s good news: The internet gives young people an advantage. Most older generations don’t understand Instagram, let alone online side hustles. If you leverage tech, you can outearn them faster than ever.

2. Compound Interest Doesn’t Work Yet

Imagine your money as a snowball rolling downhill. The bigger it gets, the more snow (compound interest) it collects.

But if your snowball is too small (under $100K), it barely picks up any snow.

Example:

Invest $10,000 in an S&P 500 index fund (average 7% return).

After 5 years, you’ll have $14,175 just $4,175 in gains.

That’s why the first $100K is so hard: You’re relying on contributions, not compounding.

Why Net Worth Explodes After $100K

Once you hit $100K, compound interest starts working for you not against you.

The Power of Compounding Accelerates

$0 → $100K: Takes 7.84 years (investing $10K/year at 7% return).

$100K → $200K: Takes 5.1 years (35% faster than the first $100K).

$200K → $300K: Takes 3.78 years.

$300K → $400K: Takes 3 years.

$400K → $500K: Takes 2.5 years.

The longer you wait, the faster your money grows.

What If You Stop Investing After $100K?

If you invest $100K in an S&P 500 fund and never contribute again, you’d still become a millionaire in 33 years just from compounding.

That’s why getting to $100K ASAP is the key to wealth.

How to Make Your First $100K Faster (The GROWTH Method)

To speed up your journey, follow this GROWTH framework:

G – Gain Control of Your Finances

Budgeting isn’t about restriction—it’s about making smarter choices.

Separate needs (rent, food) from wants (designer clothes, vacations).

R – Root Your Investments

Invest in low-cost index funds (S&P 500).

Example: Investing $250/month at 7% return = $656K in 40 years (only $120K from you, the rest is compounding).

O – Optimize Your Tax Strategy

Tax avoidance (legal) ≠ Tax evasion (illegal).

Entrepreneurs can write off business expenses (e.g., tech gear for a YouTube channel).

W – Weed Out Debts

The average American has $221,800 in debt.

Attack high-interest debt first (credit cards, personal loans).

T – Tap Into Side Hustles

50% of Americans earning $100K+ still have side hustles.

More income = faster snowball growth.

H – Heighten Self-Discipline

Discipline = the currency of success.

Avoid lifestyle inflation—keep investing even as you earn more.

Final Thought: Start Now

The first $100K is the hardest—but once you get there, wealth becomes inevitable.

Your move:

1. Control spending.

2. Invest early and consistently.

3. Kill debt.

4. Add side income.

The sooner you start, the sooner compounding works in your favor.

Now go make that first $100K your future self will thank you.