Are you ready to transform your finances and achieve financial freedom? Let’s do this!
If the statistics are true, we don’t want to be in the position where close to half (47%) of Singaporeans don’t have enough emergency funds to last for 6 months in a crisis, while 45% say they do not have enough funds to meet family needs for the next year. Moreover, 2 in 5 Singaporeans face difficulty in paying their mortgages, up 9 percentage points from 2021.
But there’s hope! Having $100k can be life-changing, and with the right mindset and actions, you can achieve this goal.
According to Charlie Munger, Warren Buffett’s right-hand man with a net worth of over $2.3 billion, “Thefirst $100,000 is a bitch, but you 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 a hundred thousand dollars.”
This means that in order to reach $100k as quickly as possible, we need to save and be frugal. It’s not about investing in gold or GameStop stock. Contrary to popular belief, the first $100k is not usually derived from investment returns, but from savings.
For example, if you save $15,000 a year for six years and attain a modest 4.5% return on your savings, you would have $105,000 after six years, but 85% of that would be from savings and only 15% from interest. Even if you save less, like $10k a year, but on average a 10% return, it would still take you seven years, and 67% of your total $104,000 would come from savings.
Getting your first $100k is all about saving, being smart with your money, and earning more money, all in tandem. Once you reach $100k, the next $100k is much easier and faster to make because of the compounding effect.
If you want to make $100k in a year, break down the number into a more digestible manner: $100k in a year is $273.97 a day. If you only count business days (260 in a typical year), that comes out to $384 a day. Your target should be to make between $380 to $400 every single working day, which translates to an hourly wage of $48 for a 40-hour week or $32 for a 60-hour week.
Is this possible? Statistically, no, but that shouldn’t stop you from trying because other people are doing it. To achieve this goal, you need to have the mindset of “Why can’t it be me?”
To make $380 a day, start by reading business and economy news to stay informed. The more irreplaceable you are, the more money you’ll make. So, find your niche, hone your skills, and become the best at what you do. Network with people in your industry and find opportunities to earn more.
It won’t be easy, but with hard work, determination, and a strong savings plan, you can reach $100k and achieve financial freedom. Good luck!
