To be clear, Munger wasn't talking about letting it sit in a checking account. He meant invested — put to work, compounding over time. Once you cross that threshold, he argued, wealth starts to build on itself. You don't need to hustle harder—you just need to be consistent, stay invested, and let the math do the heavy lifting.
And he wasn't wrong.
For someone earning an average income and managing to invest $10,000 per year, it could take close to eight years to hit that six-figure target if they're earning around 7% annually—roughly in line with long-term stock market returns. But after that, something shifts. With $100,000 invested and compounding, earning just 7% per year could turn into $200,000 in just over 10 years. Stay the course, and it could snowball to more than $1.4 million in 40 years.
That's the power Munger was talking about. Not magic. Just compound interest—amplified by time, discipline, and not losing your nerve.
It's also psychological. Many financial experts agree the $100K mark is not just the hardest financially, but mentally. It's the point where habits are formed, consistency gets tested, and lifestyle choices often have to be reconsidered. Hitting that first benchmark means cutting back, avoiding shortcuts, and often working harder for longer than feels fair. And that's exactly why Munger emphasized it.
The challenge is even steeper today. Adjusted for inflation, $100,000 in the late '90s would be closer to $190,000 today. But the principle still holds. Getting to your first six figures is a financial boot camp—one that trains you for everything that follows.
Munger didn't just toss out this advice casually. He lived it. Alongside Warren Buffett, he built one of the most successful investing empires in American history—by focusing on fundamentals, patience, and math over hype and shortcuts.
So is Munger right? Absolutely. Whether it takes five years or fifteen, getting that first $100,000 invested is still the hardest — and most important — step to building real wealth. The rest may not be easy, but it's a lot smoother once the compounding kicks in.
And as Munger said, no matter how hard it is: "You gotta do it."
For those still trying to hit that milestone, there are a few consistent patterns seen among people who make it happen. While everyone's situation is different, some tend to build toward that first $100,000 through a mix of high savings rates, side income, or long-term investing in low-fee index funds that have historically mirrored the S&P 500's average return of around 7% annually. Others explore interest-bearing accounts like CDs, which at times have offered yields between 4% and 5%, though they lack the compounding growth potential of equities over longer time horizons.
Munger himself famously said the Munger family only held about three stocks—emphasizing concentration, not chasing dozens of investments. His philosophy was less about outsmarting the market and more about sticking to what you understand and holding firm.
In the end, whether it's slow, boring, or brutally hard, the $100,000 goal isn't just about the number—it's about proving you can do hard things consistently. And once that's done, as Munger promised, it gets better.
