Why The First 100k is the Toughest: Charlie Munger Investing

I talk about why Charlie Munger says that the first 100k saved is the toughest. Using compound interest I run through some examples looking at how hard it is to save and invest your first $100,000 and eventually become a millionaire. Charlie Munger is the right hand man to Warren Buffett as well as the Vice Chairman of Berkshire Hathaway.

In this video:
- I run through the numbers on how long it would take to save and invest $100k contributing $10,000 a year.
- I use the assumption that the money is invested into the stock market as bank interest rates are so long at the moment. We choose to invest in ETFs (exchange traded funds) and LICs (Listed Investment Companies).
- I use an annual rate of return of 7% but remember past stock market performance is not a reliable indicator of future performance.
- I calculate these compound interest calculations using excel but at the end of the video I also share a way do these same compound interest calculations using an online compound interest calculator.
- I break down how long each $100,000 takes all the way up to one million dollars. I also break these numbers down into percentages to see how long the journey takes.
- The best part is you could apply these amount to saving and investing $100 a year to reach $10000 or saving and investing 10,000 a year to reach 100000.
- I also run the numbers to see how long each $100k will take us with saving and investing $30000 a year.
- I also share a table showing how long it would take saving and investing different amounts in case I haven't mentioned an amount that you are investing.
- I also share our journey to one hundred thousand dollars and how quickly the 2nd hundred thousand dollars is taking.

Welcome to Family Finance where I chat all things personal finance and in particular family finances, how to save money, investing, budgeting and how to stay on track with your financial goals. Our goal is to build our passive income to reach financial independence, also know as FI.
Other videos you might enjoy ...
USING SUPERANNUATION IN EARLY RETIREMENT: https://youtu.be/k_kt9KXYaVc
OUR JOURNEY TO $100k: https://youtu.be/EDVOp0JCCtg
OUR STOCK PORTFOLIO: https://youtu.be/20SoCPnaD-Q
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Disclaimer:
The information on this YouTube channel and the links provided are for entertainment and general information only and should not be taken as constituting professional advice. I am not a financial advisor. The information on this channel is personal to my situation and does not take into account your personal circumstances. You should do your own research and if necessary consider seeking independent financial advice that is related to your unique circumstances.

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Видео Why The First 100k is the Toughest: Charlie Munger Investing канала Family Finance