Eric Siu explains why wealth accelerates after you hit $100K. Saving $10,000 a year at 7% returns takes 7.84 years to reach $100K, but only 1.35 years to earn the next $100K once you're at $900K. The first hundred thousand is the hardest part.
Why does net worth explode after $100K? So that was the video that just came out today. And the principle is like, takes a long time to build up to $100,000, right? Let's say you save $10,000 a year and you're getting a 7% return in the market. It takes you 7.84 years of saving $10,000 a year, getting 7% return in the market to get to $100,000. But after that $100K, now your $100K is making you that 7% as well every single year. So it's compounding. It's like a snowball rolling down the hill. It's getting easier and easier. And by the time you're at the $900K level, it only takes you 1.35 years to get your next $100K. So it's like 481% faster from $900K to $1 million than it is from $0 to $100K. So what does that tell you? All the friction is at the very beginning of wealth building, right? Mm-hmm. So that's why all these people online are saying, don't buy coffee, don't buy avocado toast. They're trying to get you to your first $100K. And that first $100K, every single dollar on your way to that first $100K is so important because it's going to speed up that entire compounding process.
