The first $100,000 is the hardest, Anyone else agree?

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by MedicalLabScientist

  1. I started my first 401k back around age 26 making $9.50 an hour. I contributed about 3-5% to get the match.
  2. Got a job as a Phlebotomist and made around $12-$14 an hour from say age 28-33 and continued to contribute around 5%
  3. After about 7 years of this at age 33 my balance was maybe around $20,000 or so (kind of disappointing)
  4. Age 34 graduated college and got first real job as a medical technologist making $24.50 an hour and bumped 403b up to 10%
  5. Age 37 making about $27 an hour as Medical Technologist and bumped it up to 15% contribution limit.
  6. Age 39 making $29 an hour and 15% contribution I finally hit the $100,000 mark in my 403b account. It took me a good 12-13 years of saving.
  7. I am now age 41 and first year I moved to San Diego and am going to earn low six figures this year. I have bumped 403b up to max $19,000 per year.
  8. Age 41.5; My liquid assets are now at $267,000. (around $50,000 of that from selling real estate)

I am shocked at how fast the ball gets rolling once you hit that first $100,000 balance in your 401k/403b. I took forever to reach that milestone but once i got there I probably made most of the second 100K in about 2 years compounding interest. I think it sets something off inside of you where you see that your money can make you more in one great stock market day then you earn at your 9-5 job in a 2 week pay period. That is when you really see the value of saving and investing and you normally try to max your contributions at this point no matter the discomfort in doing so. I could only imagine how fast wealth starts to snowball once you reach $1,000,000 and a good 2019 stock market year could add $250,000 to your portfolio. (more then most middle class workers earn in 5 years of work)

My 2 questions for this post are did anyone else notice that once you hit $100K liquid assets it seems like its kind of the sweet spot where your wealth snowball really starts rolling.

Secondly, why do so many people who focus so hard on earning money at their job, totally ignore saving and investing where undeniably once you reach a certain point your money will begin to go to work everyday, earning as much as a Physician, and start earning you a second six figure income passively.

Its almost as if the number one secret to financial life is to get to 100K then 1,000,000 as quick as humanly possible and then coast the rest of your life one easy mode.

Its true the rich get richer….But it takes a ton of discomfort and sacrifice to reach that point….The first 100K is the hardest.




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