Charlie Munger: Why your first $100k is the MAGICAL number for generating REAL WEALTH

Charlie Munger, billionaire investor and Warren Buffett’s right-hand man, has said that investing your first $100,000 is the most difficult part of creating wealth. Whether that be your first $100k, first £100k or first €100k, the message still rings true.

At an old Berkshire Hathaway Shareholder Meeting in the 1990’s, Charlie Munger was asked for his best advice on investing and building wealth.

This is when Charlie Munger expressed a quote that has become a famous soundbite within the finance industry. He explained why saving your first $100,000 is the hardest, and the secrets behind why saving your next $100,000 is much easier, due to the effects of compound interest and the snowball effect.

A lot of people have shared this insight over the years, and agree that making your first $100,000 is such an important investing milestone to achieve. In this video, we delve deep into the reasons behind why the first 100k is the hardest.

Video intro 0:00
The maths behind the first $100k 1:06
So why does this happen? 3:23
Linear vs Exponential growth 3:49
Portfolio size 5:33
Intangible Benefits 6:27
Outro 14:14

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This channel aims to document my personal finance journey as I strive to become financially independent and build wealth through investing.

I am a fully qualified CIMA accountant and work as a Finance Manager for a company with annual revenues of £60m.

I don't claim to be an expert, but feel that I have picked up some good finance habits and knowledge through my CIMA studies and career, which I want to share through this channel to hopefully improve your own economic situation and investing journey.

I invest in stocks and ETF's through a dividend growth strategy. My personal goal is to create a dividend portfolio that provides me with a passive income. I believe that dividend growth investing provides the ability to create cash flow, and then we should use this income to reinvest back into the portfolio to create a powerful compounding effect.

I also own real estate, and have 3 UK properties, two of which I rent out as a buy-to-let landlord.

I aim to give a 100% honest and transparent account of my journey towards financial freedom.

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Thanks for stopping by.
Thomas Goldstep Finance.

🔷 I’m very active on Instagram too and post my real-time buys/sells and dividends received. Also feel free to drop me a DM with any questions you have! https://www.instagram.com/thomasgoldstepfinance/

🚫 The ideas presented in this video are for entertainment purposes only. It is important to do your own analysis before making any investment based on your own personal circumstances.