Comments on: The Math Behind Saving Your First $100k

By: Dash

Dash — Mon, 01 Jan 2018 16:53:29 +0000

Super

By: Zach @ Four Pillar Freedom

Zach @ Four Pillar Freedom — Fri, 17 Nov 2017 13:42:41 +0000

In reply to Mike @ Balanced Dividends. It really is all about what you can control, and letting go of what is out of your control. This doesn't come naturally to most people, but it's an important lesson to learn. Thanks for the feedback, Mike :)

By: Zach @ Four Pillar Freedom

Zach @ Four Pillar Freedom — Fri, 17 Nov 2017 13:41:30 +0000

In reply to Steveark.

That is a good point. $100k back then was worth much more than it is today. But the idea still holds true: saving matters more than investment returns when you’re just starting out.

I bet that was an incredible feeling when you realized you had enough money saved up to pay off your house, thanks for sharing 🙂

By: Zach @ Four Pillar Freedom

Zach @ Four Pillar Freedom — Fri, 17 Nov 2017 13:40:14 +0000

In reply to Financial Panther. That's what most people tell me, which is why I'm particularly excited to reach that milestone. It's nice to know the math is backed up by real-life scenarios. Thanks for sharing :)

By: Zach @ Four Pillar Freedom

Zach @ Four Pillar Freedom — Fri, 17 Nov 2017 13:38:07 +0000

In reply to Andy.

You nailed it. Investment returns matter so little when you’re just starting out.

I made the same mistake when I first started investing in college – I obsessed over individual stocks and trying to maximize returns when I should have been focusing on increasing my income instead.

Recognizing that you should put all your energy towards what you can control is a game-changer and it makes all the difference.

By: Mike @ Balanced Dividends

Mike @ Balanced Dividends — Fri, 17 Nov 2017 01:15:54 +0000

Great, brief post but with great, long-term points.

The first $100k can seem overwhelming and agreed – it’s about how much you save and what you can control (among others): reducing costs/fees, consistency, and managing your own expectations.

Thanks for sharing, Zach.
– Mike

Balanced Dividends Recently Posted:
https://www.balanceddividends.com/how-we-got-to-averaging-1000-a-month-in-passive-income/

By: Steveark

Steveark — Thu, 16 Nov 2017 23:05:06 +0000

Hey, you got to remember Charlie Munger is no spring chicken, he even makes me feel young! So when he hit his first $100,000 it was probably worth close to a million now. But great post, as someone well on the other side of having reached FI I remember my first milestone was the day I looked in my savings and saw I could write a check and pay off my house any time I wanted to, that was less than $100k but it still made me sit back and think my wife and I had really accomplished something.

By: Financial Panther

Financial Panther — Thu, 16 Nov 2017 17:17:10 +0000

That snowball really starts rolling once you get to your first 100k. Took me 3 years to get to 100k and I expect the next 100k to move much faster.

By: Andy

Andy — Thu, 16 Nov 2017 14:28:54 +0000

“If you save more than $1,000 per month, your investment returns hardly make a difference on how long it takes you to save $100k”

Such a good lesson and applies really for any number you’re trying to hit. Something I always see in people that are first getting started with investing is they’re focused almost entirely on the rate of return they can get, and as an extension, which things to invest in. I try to emphasize how little control we have over the returns, so you’re better off diversifying and keeping costs low and then focusing on what you do have control over: the percentage of your income that you can plow into investments every month.