I was reading a blog post - Here's Why The First $100K Savings Is Really Important - by SGYI two days ago. It really resonated with me. I remember reading the same quote (quoted in the article as well) by Charlie Munger.
"The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit" - Charlie Munger
I remembered the experience saving up the first $100k. It seemed forever and was extremely difficult initially.
But did I ease off the gas a little bit after that?
From my recollection, the $200K mark was equally difficult.
Many years down the road, as my investment and salary grew, I believe I did ease off a little bit and started spending more.
Reading SGYI's article got me interested to know (again) how long would I take to achieve my next $100K. I wrote an article - DID I MANAGE TO SAVE S$100K BEFORE 28? - two years back. I did not have any records of my net worth prior to my 30th birthday. I started tracking my net worth only after that.
I probably took 6-7 years to reach the $100K mark.
30 years old onward...
I took another four years plus to reach the next $100K mark. And from my last record, it took me three years plus to reach the next $100K mark.
Things got a little easier when my investment and salary grew. I pretty much maintained my lifestyle as much as possible to save more.
Charlie Munger was right. It gets easier, provided we do not chase a higher lifestyle.
I am tracking my next $100K mark. I hope it could be achieved in two years.
For those chasing their first $100K...
All I can say... It is worthwhile.