Nov 30, 2023
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Charlie Munger, the billionaire investor, Berkshire Hathaway's vice chairman and Warren Buffett's right-hand man, died at age 99 on Nov. 28, 2023, leaving behind a personal fortune that was estimated at well over $2 billion.
Over many decades of success in business, law, philanthropy and, above all, investing, Munger made many memorable public statements and offered countless pearls of wisdom.
One of his most famous and colorful pieces of investing advice, offered more than two decades ago to an audience member at an annual meeting of Berkshire Hathaway shareholders, was that amassing your first $100,000 is a critical early milestone on the path to long-term wealth.
“It’s a b—-, but you gotta do it,” Munger said. “I don’t care what you have to do — if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000.”
But why is that $100k figure so important — especially when you consider that for many investors and savers, the goal is often much higher?
Well, your first $100,000 can grow exponentially over time, even if left alone. Invested at a modest 5% return, you wouldn’t have needed to add a single penny over 21 years to see that stash grow to $278,596.
Here are four money moves that can help you reach that magical milestone as soon as possible.
Clear out your debt
Having debt hanging over your head isn’t the most motivating place to start when you’re trying to make it to six figures. While you can’t make your debt disappear overnight, creating a plan to streamline your payments will help you to clear your outstanding debts faster.
One option is to consolidate your debt with a personal loan through Credible’s, an online marketplace of vetted lenders that offers personalized loan options based on your financial situation.
By rolling all your debts into one monthly payment at a lower interest rate, you’ll be able to pay down your debt faster and save money on interest.
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Having a diversified portfolio can be a huge help when you’re working towards your first $100K.
And these days there are ways to diversify your investments without spending hours poring over earnings reports and stock market analysis.
With First National Realty Partners, accredited investors can break into the commercial real estate market, invest in shares of grocery-anchored commercial properties and enjoy quarterly income.
Their team of experts manage every step of the investment process, so you won’t need to worry about whether you’re making the right moves.
Avoid spending more than you need to
It’s always frustrating to learn that you’ve overpaid for something — especially when it’s a recurring expense.
Monthly bills like your auto insurance might be automated, but that doesn’t mean you can’t shop around and see if you could be getting a better deal somewhere else.
BestMoney helps you make sure you’re paying the lowest price possible for car insurance. Just answer some quick questions about yourself, and they will generate a list of insurance rates available to you so you can choose the best option.
It only takes a few minutes, and it could potentially save you hundreds of dollars a year — money that you could be putting towards that first $100K.
Invest it and forget it
Set up your Acorns account in under 3 minutes, and you can start investing on autopilot — whether it's for retirement or for a future home purchase.
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You’re not going to get to your first $100K without actually putting some cash away.
One of the easiest way to do this is to start investing your spare change with Acorns.
Once you’ve installed the app and linked your bank account, Acorns will round up every purchase you make to the nearest dollar and invest the spare change in a diversified portfolio tailored to your financial goals.
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Optimizing your savings with a high-interest savings account is another great way to take yourself one step closer to reaching your financial goals.
The key is to find an account with a rate that will help your money grow over time — and that account might not necessarily be with your current bank.
A high-yield savings account could deliver returns of over 4%, in comparison to the U.S. Bank's standard savings APY of 0.01%.
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