How to Make Your First $100,000 Through Savin
Do you feel like you’re constantly struggling to make ends meet?
Does $100,000 feel totally unattainable?
You’re not alone.
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- Most people’s first $100k comes from savings, not investments. Be frugal and save aggressively.
- Develop rare skills to increase your income. Find something clients eagerly pay for.
- Cut unnecessary costs like lattes and Ubers to boost savings. Little frugalities snowball.
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How to Make Your First $100,000 Through Saving
Over half of Americans have less than $5,000 in savings.
But with the right strategy, you can reach $100k faster than you think.
In this post, I’ll share a step-by-step plan to make your first $100k through saving, cutting costs, and investing.
With focus and discipline, you can hit this game-changing milestone.
The Power of Compounding: How Saving Snowballs into $100k
Warren Buffett’s business partner, Charlie Munger, says it best:
“The first $100,000 is a bitch, but you gotta do it. 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. After that, you can ease off the gas a little bit.”
Notice Munger emphasizes sheer discipline and frugality over risky investing. Why?
Here’s a powerful example:
You save $15,000 annually and earn a modest 4.5% return.
In just six years, you’ll have over $100k, with 85% coming from savings and just 15% from investment gains.
This shows the incredible power of compound interest.
But it takes time to work its magic. You need a solid base of savings first.
Once you hit $100k, compounding accelerates building wealth.
For example, keeping your $100k invested and adding $1,000 a month at 8% returns, you’ll earn your next $100k in just four years – two years faster!
That’s the power of compounding.
The initial $100k is about focus and discipline. But afterward, your money starts snowballing.
Below, I’ll share a step-by-step plan to make your first $100k through saving, cutting costs, and investing.
With diligence and perseverance, you can hit this wealth-building milestone.
2 Proven Ways to Make Your First $100,000
- Boost Your Income with Rare, Valuable Skills
The more you can save, the faster you’ll hit $100k.
What’s the best way to increase your income?
Develop rare and valuable skills.
Basketball superstar Steph Curry earns $215 million because his talent is one-of-a-kind.
Find your one-of-a-kind abilities.
Inventory your natural strengths, interests, and experience.
Get really good at something clients are eager to pay for, like financial planning, graphic design, writing, coding, marketing, music instruction, and more.
You don’t need to be the absolute best – just better than most people.
Charge premium rates for your specialized expertise.
Even an extra $10 or $20 per hour goes a long way.
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Starting a side business around your skills can earn big money.
But you can also ask for raises or pursue higher-paying jobs leveraging your unique value.
Either way, differentiate yourself by becoming remarkable at a lucrative skill. This boosts both your earnings potential and ability to save.
- Aggressively Cut Expenses to Free Up More Cash
To accelerate your savings, strip unnecessary costs from your lifestyle—little frugality snowball.
Here are some easy ways to cut expenses:
- Make coffee at home instead of buying lattes
- Meal prep to avoid restaurant spending
- Swap subscriptions for free alternatives
- Walk, bike, or take public transit rather than Uber
- Buy generic brands over name brands
Track your spending to identify waste.
Downsize your apartment, car, or phone plan. There’s nearly always room to trim fat.
Cutting costs achieves the same goal as earning more – it frees up extra cash to save and invest.
Saving aggressively is vital to reaching $100k quickly.
Focus and Perseverance Pay Off
Reaching your first $100,000 takes diligence, discipline, and perseverance.
But with the right focus, you can get there faster than you imagine.
Remember, the initial $100k is about sheer savings. Cut unnecessary costs. Develop rare skills to earn more. And invest as early and aggressively as possible.
With diligence and patience, your money will snowball through compounding.
$100k is just the beginning.
Once you hit this milestone, your savings and investments really start to accelerate.
What strategies do you use to grow your money aggressively?
What costs do you cut from your life?
Please share in the comments below!
