Why Getting to $1 Million is Easier Than $100,000 (Patreon)

What Ive been saying for years, the chart illustrates the time it takes to save $1 million by saving $10,000 per year at a 7% return. Rem my hurdle rate is 14% due to debasement.

Anyhooo, the chart highlights the power of compound interest and why accumulating wealth becomes easier as you save more.

Why First 100K is slow: 

It takes 7.84 years to save the first $100,000. This period represents 25.5% of the total time needed to reach $1 million. During this phase, your savings grow primarily from your contributions rather than interest.

Acceleration Due to Compounding:

As your savings increase, the interest earned on the accumulated amount grows significantly. This is the essence of compound interest, where you earn interest on both your initial savings and the interest already accrued.

After the first $100,000, reaching each subsequent $100,000 milestone takes progressively less time, demonstrating the accelerating effect of compound interest.

Later Growth is Faster:

The time to grow from $600,000 to $1 million is only 6.37 years.

Why $1 Million is Easier Than $100,000

Oh and by the way - similar for $1M to $10M.