But the following $100k is much easier
You may have a financial freedom figure in mind: $1 million invested in order to retire early.
However, if you’re just starting off this can seem quite daunting: $1m seems a long way away.
Good news: it doesn’t have to be. Rather than focusing on a $1m, focus on your first $100k.
· Up to $100k, compounding sucks; you don’t really see the effects until after you hit $100k.
· Until then, you’ll want to reach this amount as quickly as possible using extra contributions.
· Once you reach $100k, it’ll take less time to reach $200k, and even less to reach $300k, etc.
· Once you make $100k, you can decide whether you want to continue contributing or not.
In this article, I go through why your first $100k is so important, and also the hardest to reach.
I talk about the math behind reaching your first $100k, up until reaching your first $1 million.
Finally, you can add your own amount and returns using the MYB Early Retirement Calculator.
