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# Every $100,000 Gets Easier

# You have probably heard me say that every $100,000 you invest gets progressively easier. Well, here is the proof:

**What does this chart tell us?**

Well on the left side we can see every $100,000 milestone, all the way up to $2,000,000. The top row tell us the annual interest rate, also known as the rate of return, from 3% up to 9% per year. *The assumption is investing $10k annually, or $833 per month.*

The middle is what I want to focus on. This tell us **how many years it takes you to get to each $100,000 milestone.**

So for example, let’s say you will assume an 8% annual return, to get to your first $100,000 milestone, it will take you ~7.64 years. In terms of time, that is the longest time it will take.

Because if you stick with it, to go from $100,000 to $200,000, assuming an 8% annual return, it will take you ~4.78 years. That is 38% FASTER than your first $100,000 invested.

To go from $200,000 to $300,000, it will take you ~3.49 years, or more than **one year faster** than your last $100,000 invested.

This is the power of compounding, this is why I also say to think long term.

Using the inputs above, it took you ~7.64 years to get your first $100,000 invested, but it only took you 8.27 *more years *to get to $300,000 invested.

And if you keep at it, the faster your $100,000 milestones become. To go from $700,000 to $800,000 invested, assuming an 8% annual return, it only takes you ~1.49 years.

**What else does this tell us? **Your first $100,000 will come more from your savings rate than return. So if you are on your first $100,000, keep going. Keep stacking. Once you get to that $100,000 mark, compounding starts to kick in a little bit more!

**Caveat: **Of course this assumes an 8% return every year. That is just the average, some years will be more, some years will be less. However, over the long term, historically, the market as a whole has done that. This is by no means a guarantee of time, however just a reminder the power of compounding 🙂

Real quick, my podcast called The Decade Investor Podcast releases new episodes every week. This week I dropped three new episodes:

Principal Is More Important Than Percent Return

Investing $1 Is Really Like Investing $88.35

Can You Beat The S&P 500?

You can listen to them on any podcast playing app here: https://thedecadeinvestorpodcast.buzzsprout.com/share

**I want to help you too. I will be able to help you… soon. Stay tuned, I have something coming VERY SOON that will revolutionize the game for Decade Investors.**

**(x)Tweet of the Week:**

Over 223 people shared their thoughts regarding Social Security being theft:

“Social Security is theft”

Agree or disagree?

— Decade Investor💸 (@DecadeInvestor)

1:27 AM • Jan 19, 2024

Thank you so much for reading & I will see you next week! Until then, keep buying assets.🙂

- Decade Investor

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