This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Never be broke again
If you haven’t read the article, “Saving Your First 100k Is Like Hitting The Lottery,” it will show you how you can achieve this extraordinary milestone. For some people, 100k isn’t a lot of money, and that’s fair. But for the average person, being able to save 100k is a large victory since many never w this amount of cash.
More people don’t have more than $500 of cash in their bank account, live paycheck to paycheck, can’t afford emergency expenses, and are way behind on their retirement savings.
Since this is the case for most people, 100k seems like a long-distance pipe dream, but once you’re determined to reach this point, you won’t have a desire to stop. You’re only 9 steps away from becoming a millionaire from this point.
10 Reasons You Need To Save 100k
Security: Let’s say you lose your job or primary source of income. When you have 100k stocked away in a bank somewhere, you’re immune to a job loss. In fact, it doesn’t really matter – provided you live below your means and don’t carry a sh*t ton of debt. If you lose your job, it’s not a loss, it’s more like a time to breathe, relax, refocus, and restrategize to hit your next goal.
Financial Freedom: The only way to experience financial freedom is by eliminating your financial dependency on other people, companies, and entities (e.g., the government). Once you save 100k, you’re setting yourself up for the initial phases of compound interest. Compound interest can only passionately work to your advantage as you save more. The more money you save in the nest egg, the harder your money will work (learn about the factory analogy).
Compound Interest: As I said in #2, the more money you accumulate, the harder it works for you. The more workers (dollars) you have working on your behalf, the more money you will produce. Once you save your first 100k, you are now setting yourself up to earn interest. If your average rate of return for the year is 15%, you will earn $15,000 in extra income. As you save more money, your money will earn more money for you.
Become A Millionaire: After you save 100k, you can make it happen again 9 more times. Except, you won’t have to save 900,000 grand because compound interest will make each subsequent 100k that much easier.
Eradicate Broke Circumstances: When you have a 100k in the bank, your debts are paid, you’re living below your means, and you’re consistently educating yourself, you can’t ever be broke. The only thing you can be from here is wealthy (defined by your terms).
Saving 100k is stepping stone number one. What’s next? The other nine hundred grand. It’s critical to save your first hundred grand because it symbolizes financial freedom, wealth, and a sign of financial elevation.
Getting out of debt is great and living below your means is great. Pair these two things with saving your first 100 grand, and you’re well on your way to separating yourself financially from the average person and experiencing a financially free lifestyle.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.