The First $100K Problem

Charlie Munger said the first $100,000 is the hardest. He wasn't being dramatic. Getting from $0 to $100K is brutal — it's almost entirely your own contributions doing the work. But from $100K to $200K? Your money finally starts pulling its own weight.

At 8% returns, $100K generates $8,000 a year on its own — like getting an extra $667/month in free contributions. By $500K, your money adds $40,000 a year without you lifting a finger. The snowball starts carrying itself.