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How to Amass the First $100,000

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How to Amass the First $100,000
Pile of Money

Pile of Money

Sharon Dominick Getty Images
No statement has better summed up the emotional and practical struggles confronting average people attempting to build a better life for themselves and their families than a saying that has been attributed to a very, very successful investor, now one of the wealthiest men in the world with a fortune estimated at more than $2 billion: “The first $100,000 is a bitch.” Pardon the language, but speaking from my own personal experience, I unequivocally agree and can attest to that fact. Part of this is the result of the tax code. Part of it is the very nature of compounding – simple math tells you that a 10% return on $1,000,000 is $100,000; with that kind of money, such a return is near effortless versus a teacher who would struggle to scrap together $10,000 or $20,000. The third part is experience. Imagine the time, effort, and heartache you could save yourself if you could go back and speak to yourself at fifteen or sixteen years old, passing on knowledge about not just money, but life in general.

In this step-by-step, part of the The Complete Beginner's Guide to Saving Money, I’m going to give you some general outlines that will help you get started on the road to putting aside your first $100,000 in investment capital, free and clear. Of course, laws and customs vary by state, region, and country, so none of this constitutes investment, tax, or legal advice and you need to consult your appropriate professional to ensure that a particular strategy, structure or course of action is right for you. In the end, my hope is that it will make saving and investing just a little bit easier.

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