Charlie Munger said, “Find a way to get your hands on $100,000,” even if it means walking everywhere – the magic number if you want to be rich
Charlie Munger, the man who served as legendary investor Warren Buffett’s right-hand man for decades, died in December, just before his 100th birthday. Buffett considers him the “architect” of Berkshire Hathaway Inc. and describes him as “part older brother, part loving father.” Munger is renowned for his insightful and often blunt advice.
One piece of wisdom that resonates with investors is his view on wealth creation. In the late 1990s, at a shareholder meeting, Munger said, “The first $100,000 is ab****, but you have to do it.” »
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This statement emphasizes the initial hurdle many face in accumulating savings. Munger’s frankness highlights the challenge of reaching that critical first $100,000.
“I don’t care what you have to do,” he said. “If that means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000.”
The reason Munger focused on this initial amount? The power of composition. Once you have this foundation, the path to greater wealth becomes easier. With compounding returns, $100,000 can grow significantly over time, providing a solid foundation for long-term financial goals.
“After that, you can take your foot off the gas a little bit,” he said.
Munger made this statement in the mid-1990s, and when adjusted for inflation, $100,000 back then translates to about $200,000 today. However, the fundamental principle of his advice remains timeless. Many financial advisors today echo Munger’s sentiment: accumulating the first $100,000 is the hardest and most important.
Trending: How to turn a $100,000 investment into $1 million – and retire as a millionaire.
Munger’s words are a wake-up call. Achieving financial security often requires short-term sacrifice and discipline, but the long-term rewards can be life-changing. By consistently working toward that initial $100,000, people can prepare themselves for a brighter financial future.
The specific strategy for accumulating this sum will differ depending on individual circumstances. Some may need to take on extra work or explore side hustles, while others may need to cut back on spending. However, Munger’s message is clear: wealth creation begins with this crucial first step.
For those willing to put in the effort, Munger’s advice offers a path to financial freedom. By embracing frugality and finding creative ways to save, people can position themselves for long-term success. Once this initial hurdle is cleared, they can, as Munger suggests, “take their foot off the gas” and enjoy the benefits of their hard work.
A financial advisor can be a valuable resource at any stage of your financial journey. They can help you develop a personalized plan to achieve your savings goals, make informed investment decisions, and navigate the complexities of financial planning. With the right strategies and support, the path to that first $100,000 becomes more achievable.
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This article Charlie Munger Said, “Find a Way to Get Your Hands on $100,000,” Even If It Means Walking Everywhere – The Magic Number If You Want to Be Rich was originally published on Benzinga.com
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