Charlie Munger Never Intended To Get Rich, He Wanted Independence And 'Just Overshot' – But Says You'll Need $100,000 And 'A H*ll Of A Lot Of Luck'

The late Charlie Munger, legendary investor and Warren Buffett's right-hand man, had a way of keeping things simple, even when it came to building wealth. One of his most quoted pieces of advice? "The first $100,000 is a b*tch, but you gotta do it." This one-liner was from a shareholder meeting in the late 1990s, but it's certainly gained traction in personal finance circles over the years.

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For Munger, who lived to see a net worth in the billions, that initial $100,000 is the toughest part of the journey. Why? Because it's not just about the money – it's about forming habits, building discipline and laying a foundation that can lead to more growth. As he said, once you've got $100,000, things start to look slightly different and you can "ease off the gas." Investments finally begin to compound meaningfully and that flywheel of financial freedom starts spinning.

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At this point, even without additional contributions, your investments have the potential to grow significantly through the magic of compounding, where returns begin generating their returns.

For example, investing $100,000 with an average annual return of 10% could grow to almost $675,000 over 20 years, even without adding another dime. The idea is that the interest earned is added back to the principal each year, creating a snowball effect that can accelerate growth over time.

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But Munger acknowledged it would take more than just $100,000 if you want to get rich. In a 2017 talk at the University of Michigan, Munger acknowledged that luck plays a big part in the wealth-building game beyond hard work and discipline. "I didn't intend to get rich. I wanted to get independent; I just overshot!" he joked in one of his candid moments. Munger knew that while grit gets you far, sometimes success comes down to timing and circumstances.

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And he wasn't shy about recognizing how luck shaped not just his life but those of many successful people. "The people who get the extraordinary outcomes are those with discipline, intelligence, good virtue, plus a hell of a lot of luck," he once said. For Munger, the road to wealth was a mix of sticking to basics and being in the right place at the right time.

Reaching that first $100,000, Munger argued, isn't just a number – it's about gaining options. It's a sum that gives you breathing room, whether to switch careers, start a business or simply have peace of mind. And while Munger's advice may seem blunt, it's also a reminder that the first big step is hard, but it's worth it for the freedom it brings.

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