I’ve been feeling a little nostalgic as of late and have been rummaging through old files on my computer. That’s when I happened upon this gem of me back in my glory days….
Look at those thunderous calves. Those luscious locks. Those chubby cheeks.
It’s no wonder Girl Ninja desperately wanted to bear my children.
After laughing at my baby pictures for a good 20 minutes, I started clicking through my old Excel spreadsheets.
These old spreadsheets taught me a very valuable lesson. A lesson that will be relevant for any of you who are in the early stages of getting your financial crap together. The lesson is this…
The first $100,000 is the hardest.
I mean check out my net worth progression over the last seven years.
NW end of 2008: $18,617
NW end of 2009: $28,793
NW end of 2010: $63,714
NW end of 2011: $114,622 (first full year of dual income)
NW end of 2012: $168,878
NW end of 2013: $234,881
NW end of 2014: $288,180
As you can see it took me about four years to build up a net worth of $100,000. But then it only took two years to increase it another $100,000. And if my 2015 projections are close, these last two years will yield another $100,000 increase (which isn’t bad considering we gave up our dual income status).
The power of compounding is no joke.
I mean think about it. If you have $10,000 invested for retirement and the market goes up 10% on the year, you’ve increased your net worth by $1,000.
But if you have $100,000 invested, you see a $10,000 jump.
Or better yet, once you have a cool million invested, a 10% jump just means you earned yourself $100,000 without doing a darn thing.
The rich really do get richer… Because they let their money make money. And then they let the money, their money made, make money.
How confusing and awesome and wonderful and rad and bodacious is that!!!!
At 29 years old, I’m pumped I’ve gotten a taste of just how sweet building a nest egg can be.
Hopefully my story can motivate a few of you to keep on chugging, even if things seem like they are moving slower than you prefer, don’t give up. Your future you will thank you for it.
Cheers to your first (or next) $100,000!