Charlie Munger Warned, 'It's A B*tch, But You Gotta Do It': Your $100,000 Is The Hardest – But The Most Important If You Want To Be Rich

Charlie Munger didn't sugarcoat it. The late vice chairman of Berkshire Hathaway, known for his no-nonsense advice on life and wealth, famously declared that building your first $100,000 is "a b****." But he said it's a milestone you must reach if you're serious about building wealth.

Crossing that six-figure mark isn't just a financial achievement; it's a psychological game-changer and a powerful launchpad for everything that comes after.

Don't Miss:

• Are you rich? Here’s what Americans think you need to be considered wealthy.
• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• $100K Sitting In A CD Account, Should I Move Money Into The Stock Market?

Back in the late 1990s, during a Berkshire Hathaway annual shareholder meeting, Munger reportedly stated: "The first $100,000 is a b****, but you’ve 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.”

The $100,000 Milestone: Why It's So Tough to Reach

Why does Munger call it a "b****"? Because that first $100,000 is truly the hardest to save. Most people start with modest incomes and many financial obligations from student loans to rent and other everyday expenses. Saving anything, let alone $100,000, can feel like a slow, almost impossible climb.

Trending: Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.

The Magic of Compounding Kicks In

One of the most exciting things about hitting $100,000 is that it's the point where compounding starts to work its magic. Sure, you could technically see compounding effects at any amount, but with $100,000, the results become far more noticeable.

Take the S&P 500, which has historically delivered an average annual return of about 10.5%. If you invested your hard-earned $100,000 at that rate and let it grow, here's what it could turn into:

• 10 years: around $271,581
• 20 years: approximately $737,549
• 30 years: a whopping $2 million

The stock market has its ups and downs and no guarantees exist. But even at a more conservative 6.6% inflation-adjusted rate, that $100,000 could still turn into over $680,000 after 30 years. This is why getting that first $100,000 is so pivotal – it opens the door for your money to start working for you, allowing you to "ease off the gas" and rely more on the power of time and compounding.

See Also: Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on how on what’s behind this formula.

The Psychological Boost of $100,000

Beyond the numbers, reaching $100,000 can feel like a huge personal win. It proves you can stick to a financial goal, even if it took years of hard work and discipline. This milestone can shift your mindset from "I'm trying to save" to "I'm actually building wealth." And once you see that you can save and invest this amount, the next financial goals – be it $200,000, $500,000 or even $1 million – don't feel so far-fetched.

Munger saw this as a powerful motivator. For many, goals like retirement or financial independence seem too distant and overwhelming. But by focusing on something concrete, like reaching $100,000, you give yourself a clear, achievable target. When you hit it, it's proof that you can achieve bigger goals, too.

But … Is $100,000 Still the Right Number Today?

Here's where Munger's advice meets modern reality. The cost of living has greatly increased since Munger first gave this advice. According to inflation calculators, $100,000 in 1998 equals about $195,000 today. But some experts still stand by $100,000 as the magic number. Whatever the target, it's about reaching that first substantial savings goal.

See Also: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.

The Hard Truth of Building Wealth

Munger's advice isn't flashy or easy. It's about grit, patience and discipline. In a time when get-rich-quick schemes are everywhere and people are always looking for shortcuts, his wisdom reminds us that true wealth is built slowly, often with some short-term sacrifices. 

For many, the path to that first $100,000 will involve frugal living, side hustles or sacrificing some comforts. But for those who stick with it, the reward isn't just a six-figure bank account – it's the foundation of a financially secure life and proof of what's possible. 

Whether you're pushing for that first $100k or already closing in on millionaire status, having a financial advisor in your corner can make a real difference.

Read Next:

• Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.
• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.