The First $100k
Regardless of the currency listed above, it seems to be the 6-figure total that takes you from average to great in any country, but it’s the hardest to reach.
Put $100k into your account tomorrow and the moves you could make would be astounding.
There’s a paycheck trap.
We all get paid just the right amount to keep us right where we are. Not too little where we can’t do anything and revolt. Not too much where we can change our lives within one year.
Let me explain;
If you think $2,000 per month and $24,000 given to you all at once as a yearly budget is the same then you’re in the trap.
$2,000 per month is enough to pay your bills, continue your little life and buy some nice things to satisfy your dopamine. $24,000 could do that with $22,000 left over to invest, start a business or build a product.
The reason these two figures aren’t the same is because you can do so much more when a large chunk of money is available to you at one given point.
$2,000 per month will keep you trapped in a 30-day cycle that many pretend is a fulfilling life. Truth is you’re doing a lot of the same thing’s day in and day out with very mediocre financial progression.
What’s the solution?
Well considering no one, and I mean no one unless you’re a hot woman is going to come and give you £24,000, you have one choice left.
Frugality, sacrifices and minimalistic living
This is the end all and be all of every success story. Someone is willing to give up parties, pointless stuff, luxuries, their social life, sex, a girlfriend, and then downgrade the things they already have in order to save more.
It may take 5 years of living like shit, but at the end of this, you’ll have the golden $100k, or you would’ve invested $100k over the period of 5 years and the results are already beginning to appear.
However you do this, 2 jobs, 3 jobs, selling everything you own, working overtime, it doesn’t matter. Just find a way to get that first $100k.
Most people will go through the first 20 “earning years” with nothing more than a string of cars, partners, a mortgage and a baby to show for it. The monthly pay check keeps them in a constant loop and they never actually save a meaningful amount of money to make a serious difference.
Were they to avoid all of the above, from 18 to 30 they’d comfortably save the $100k needed to do something significant.
Money makes money and you have to spend money to make money, we’ve all heard this before yet few live this way. They’d rather enjoy a few beers at the pub 6 nights per week, be seen in a new car and the latest seasons outfits.
The person who can overlook all of this and appreciate the impact of the compound effect, will always come out on top. Whether they save a significant amount of money and use it in bulk, or over the period of 5 years invest $20k per year it doesn’t matter, the impact will be the same.
Some examples may include;
• Putting £100k into an early cryptocurrency and 5 years later cashing in on millions
• Putting £20k per year for 5 years in a start-up and having that business pay you back for the next 50 years 10 times that amount
• Investing that £100k into a property, renting that property and using the equity to get a 2nd home with intent to rent. £1400 extra per month added to your wages of $2000 per month now makes it very easy to buy a new property by the end of the year, which speeds up the next purchase and the next and the next and so on until you have a portfolio paying you hundreds of thousands per month
• Purchasing 4 range rovers and starting a car rental service, or leasing 2 Ferrari’s with that money and paying off the loan via rental profits until you own the vehicle
The possibilities are literally endless. The idea is somewhat irrelevant, the important thing is having the $100k to invest in “big boy ideas”. I’m serious. Anyone can start a cupcake business with £500, but certain businesses/ideas/products simply cost too much and raise the barrier to entry.
Now remember what we said earlier; money makes money. The “big boy ideas” simply have higher returns.
Renting out 2 Aston Martins for your new supercar rental company will return £4000 profit per week.
You’d have to sell around 10,000 cupcakes to reach the same numbers, that’s 1429 cupcakes per day or 1 per minute, good luck!
Having money enables you to make more, quicker and in larger chunks, there’s not a lot more to it than that. By living like a normal human being, you’ll simply never save enough, or have the chance to periodically invest enough to see the compound effect being implemented.
It’s pretty easy, live like shit for 5 plus years, re-invest every plausible penny and wait for the tables to turn.
While you’re waiting, here’s a newsletter that might help you make that money through actual crypto insights and innovation updates - The Crypto Pragmatist