THE FIRST $100,000 IS A B*TCH, BUT YOU GOTTA DO IT - CHARLIE MUNGER

    

        Charlie Munger was brutally honest when it comes to money. Berkshire Hathaway’s legendary vice chairman famously said back in the 1990s at a shareholder meeting, "The first $100,000 is a b*tch, but you got to 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".

Munger is trying to illustrate how difficult having your first $100,000 is, which is a crucial milestone for wealth-building. Reaching this point comes with sacrifices, predominantly living below your means. At this level, the individual begins to take advantage of the compounding effect and everything becomes easier. He encapsulates the idea that the hardest part is getting started, but once you’ve accumulated a solid Foundation, wealth-building becomes easier, and you can start taking on less risk while seeing greater returns. It’s a stark reminder that financial success requires commitment, persistence, and sometimes, personal sacrifice—but once you push through the early hurdles, the rewards start flowing in.

If i convert $100,000 to INR today, it will be around 85,55,870 . 

For simplification i am using 1cr instead of  $100,000.  Take a look at these numbers. Let us assume that a person starts investing at the age of 20. Every year she invest 150000 and the rate of interest is 8% .

AGE	Rate of Interest	investment per year	Corpus
20	8%	150000	162000
21	8%	150000	336960
22	8%	150000	525917
23	8%	150000	729990
24	8%	150000	950389
25	8%	150000	1188421
26	8%	150000	1445494
27	8%	150000	1723134
28	8%	150000	2022984
29	8%	150000	2346823
30	8%	150000	2696569
31	8%	150000	3074294
32	8%	150000	3482238
33	8%	150000	3922817
34	8%	150000	4398642
35	8%	150000	4912534
36	8%	150000	5467537
37	8%	150000	6066939
38	8%	150000	6714295
39	8%	150000	7413438
40	8%	150000	8168513
41	8%	150000	8983994
42	8%	150000	9864714
43	8%	150000	10815891
44	8%	150000	11843162
45	8%	150000	12952615
46	8%	150000	14150824
47	8%	150000	15444890
48	8%	150000	16842482
49	8%	150000	18351880
50	8%	150000	19982031
51	8%	150000	21742593
52	8%	150000	23644001
53	8%	150000	25697521
54	8%	150000	27915322
55	8%	150000	30310548
56	8%	150000	32897392
57	8%	150000	35691183
58	8%	150000	38708478
59	8%	150000	41967156

     It took 22 years for the first 1 cr, the second 1 cr comes in 8 years, the third 1cr comes in 5 years and fourth 1cr comes in 4 years. this is the reason why 1 cr is the difficult to achieve when we start from zero. 

Conclusion: 

Thanks to the power of compound interest.   The path to that first milestone requires discipline, sacrifice, and time. It’s a reminder that the hardest part is starting, but once you build a solid foundation, everything becomes easier. So, stick to the plan, stay patient, and let time and compounding work its magic. The rewards will follow, and your financial future will be much brighter.