Charlie Munger, billionaire investor and Warren Buffett’s right-hand man, has said that investing your first $100,000 is the most difficult part of creating wealth. Whether that be your first $100k, first £100k or first €100k, the message still rings true.

At an old Berkshire Hathaway Shareholder Meeting in the 1990’s, Charlie Munger was asked for his best advice on investing and building wealth.

This is when Charlie Munger expressed a quote that has become a famous soundbite within the finance industry. He explained why saving your first $100,000 is the hardest, and the secrets behind why saving your next $100,000 is much easier, due to the effects of compound interest and the snowball effect.

A lot of people have shared this insight over the years, and agree that making your first $100,000 is such an important investing milestone to achieve. In this video, we delve deep into the reasons behind why the first 100k is the hardest.

Video intro 0:00
The maths behind the first $100k 1:06
So why does this happen? 3:23
Linear vs Exponential growth 3:49
Portfolio size 5:33
Intangible Benefits 6:27
Outro 14:14

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