is the first 100k the hardest

Is The First $100K The Hardest? Here’s What You Need to Know

My, my. Feels good to write this article!

Munger has said that accumulating the first $100,000 from a standing start, with no seed money, is the most difficult part of building wealth. Making the first million was the next big hurdle. To do that a person must consistently underspend his income. Getting wealthy, he explains, is like rolling a snowball. It helps to start on top of a long hill—start early and try to roll that snowball for a very long time. It helps to live a long life.

– From the book, Damn Right: Behind The Scenes With Berkshire Hathaway Billionaire Charlie Munger

As if Munger needed any confirmation from me, but I’m here to tell you that the first $100,000 is definitely the most difficult aspect of building wealth.

The First $100K

I hit my first $100K in portfolio market value in March 2013. It took me approximately three years to get to that point, starting with $5,000 that I deposited into my brand new Scottrade account in January 2010.

What did it take to get from $5,000 to $100,000 in three years? 

Well, a lot of hard work, persistence, and consistency.

I lived below my means day in and day out for years on end. I moved to a cheaper apartment that was located on the bus line. I sold my car and started taking the bus to work – quite an ironic sight for someone working at a car dealership. I ate ramen noodles and PB&J sandwiches over and over again.

Meanwhile, I also put myself in a position to become promoted at work and generate additional income. And I would come home after working for 10 hours at the car dealership to run Dividend Mantra, communicate with and inspire fellow freedom fighters, study stocks, and try to create additional income above and beyond what my day job provided.

I thought about escaping the miserable rat race every single day.

And, perhaps most importantly, I religiously invested all the excess capital generated by living below my means into high-quality dividend growth stocks that rewarded me as a part-owner with growing dividends that allowed me to continue rolling my snowball at an ever-greater velocity.

Sticking To The Plan

What have I been up to since hitting that first $100K? 

What else would I be up to other than sticking to the long-term plan?

I still live without a car, even though I could afford a new Toyota Corolla about 11 times over. One for every day of the week and then some! Shall I drive my Monday Corolla or Tuesday Corolla up to the McStore to buy something I don’t need? Wait, what day is it? I should probably consult my calendar finished in gold leaf.

I still live in the modest two-bedroom apartment that we moved into back in late 2011. No granite countertops, stainless steel appliances, or crown molding. But, shockingly, it still provides shelter and safety while also cooling us in the summer and warming us in the winter.

And although I’m not eating ramen noodles anymore (my body told me when enough was enough), I’m also not eating steak and lobster daily.

The Second $100K

What has all this modest living, saving, and intelligent investing done for me? 

Well, my Freedom Fund closed over $200,000 in total market value for the first time ever on June 18, 2015.

Portfolio closed above $200k today for the first time ever. I feel like I’ve won the lottery: http://t.co/nIfjBSrURI

— Jason Fieber (@jasonfieber) June 18, 2015

That means I went from $100K to $200K in two years and three months.

Now, it’s important to keep perspective here. The broader market has been on a tear over the entirety of this period – the S&P 500 has basically doubled since January 2010. And a rising tide lifts all boats, meaning my wealth – and these numbers – have been positively impacted by that.

However, my actual dividend income and dividend income growth have been negatively impacted by that move up. Higher stock prices mean lower yields, which means I can buy less dividend income with the same dollar.

RELATED READS: Setting Yourself Up With Dividend Income

My purchasing power thus is lower in terms of how much freedom I’m buying with every stock purchase. So I’m further away from my long-term goal of financial independence by living solely off of growing dividend income than I otherwise would be if the S&P 500 were still at, say, 1,500 points. But you take the good with the bad. Such is life. First world problems are certainly the best kinds of problems to have.

And I’ve certainly also picked my fair share of duds along the way which has needlessly delayed my progress. But hindsight is 20/20, unfortunately.

Nonetheless, this is a real-time and real-life journey. No backtesting. No hypotheticals. No what-ifs, couldas, shouldas, or wouldas. Real-life progress, for better or worse.

And I think that’s what I really love about showing how financial independence unfolds in real-time with all the victories and setbacks that occur. It shows that it’s possible without nailing the perfect investment. Mistakes can be made. We can fall down. But as long as we get back up and keep climbing, we can reach the top of that mountain.

And I’ve been climbing, guys. For five straight years, I’ve been climbing. I know the view at the summit will be incredible. And because of that climbing, the portfolio is now hovering at $200,000. It’s incredible! I truly feel like I’ve won the lottery.

Conclusion

The portfolio has hit $200K even though I grew up in a ghetto of east Detroit. I lost my birth parents years ago. Dropped out of college. Wasted an inheritance. Knew nothing about personal finance or investing until I was almost 28 years old. And worked in an industry that couldn’t be further away from Wall Street if I tried.

But I believed in myself. I saw the mountain in front of me and decided to start climbing. What makes me any less able than anyone else? Why can’t I reach financial independence if I’m absolutely willing to do what’s necessary to achieve it?

Why can’t I?

Why can’t you?

Why can’t all of us?

The first $100K is out there waiting for you. And so is the next $100K. And then every $100K thereafter will become easier and easier as the income that the underlying base of assets generates grows through dividend increases and dividend reinvestment, as well as from outside excess capital you inject by living below your means. The snowball will roll faster and faster until you can’t keep up with it anymore. Success begets success. Cash flow begets more cash flow. And wealth certainly begets more wealth – a 10% return on $200,000 is $20,000; a 10% return on $100,000 is half that.

However, the psychological aspect of building wealth is just as important. While the money and growth can be quantified, your emotional state can’t. But I can tell you that it definitely gets easier over time. The more you save, the more you want to save. The more you invest and buy stocks, the more you want to invest and buy stocks. Once you see the needle start to move, you believe in it more and more. You believe in yourself more and more. And you believe in the plan more and more. This is like a secret weapon. And the positivity compounds just like money. The good habits compound themselves as well, putting the snowball rolling on autopilot.

But, as Munger said, it helps to start early and roll for a long time. I didn’t start particularly early. I was almost 28 years old before I even opened a brokerage account. But here I am at 33 years old, controlling a portfolio worth $200,000 that’s chock-full of high-quality businesses across the spectrum of industries. I’m a real estate tycoon. An oil baron. A retail giant. A railroad mogul. An industrial magnate. A bank king.

And these businesses will funnel ever-growing cash flow into my portfolio, which begets more cash flow in the future. That passive dividend income should exceed $7,000 this year. And I haven’t even been rolling the snowball all that long.

Imagine what’s possible in five or ten years? Imagine what’s possible for you in five years? Imagine what’s possible when you believe in yourself, ignore the noise, live simply, chase your dreams, and climb that mountain?

What has your experience been? Was the first $100K the hardest? Are you rolling your own snowball? Are you climbing the mountain? 

Thanks for reading.

Similar Posts

249 Comments

  1. Sin duda es un logro muy importante, pero relativo. Lo mejor llegará cuando consigas vivir completamente de tus dividendos y decidas si quieres seguir trabajando o que es lo que quieres hacer con tu tiempo, con la libertad total de poder decidir, sin ninguna presión.

    ¡¡Felicidades!! y gracias por inspirarnos todos los días.

  2. If you have a high income job and a good savings rate, the first $100k isn’t that hard to reach. What is more important is the mindset on how to compound that wealth, and that will take you much further given enough time.

    You figured this out Jason at 28 and that is very early in my book. And you’ve inspired so many in just 5 short years. That my friend, is amazing.

    Best regards,

    Mike

  3. It is incredibly inspiring to see how quickly you put together your very sizeable portfolio. You’re absolutely right that it is the psychological aspect of building wealth in this way which is the most powerful and important. If you have managed to persistently work hard and underspend to the extent of building a $100,000+ portfolio you should be able to continue afterwards. This along with the organic growth of the assets accumulated really seems to supercharge things! Very impressive.

    At the moment my portfolio is a little over £26,000 (about $40,000). I am pretty chuffed to have put that together in about a year and a half. I can already feel the snowball getting its own momentum! I am going to have to sadly slow a bit soon, I think, but the assets I have already accumulated should hopefully keep me chugging along nicely!

    Great post. Great story. Keep up the hard work, Jason!

  4. DM

    What a great post. I’ve started my journy to pay alimony with dividend income last year, so far even with few setbacks like jobs lost, i kept my dividend income the same and even greater income. So i do my best to get my first 100k but it will take more time then i tought.

  5. Very inspiring Jason. The first $100k is definitely hardest to do, similarly, the first million is the hardest to do. Once you get over that first milestone, the rest becomes easier and easier. Congrats on the awesome progress so far, here’s to the third $100k. 😀

  6. Jason,
    Congratulations again on the 200k milestone. If the compounding math is correct, you should see the next 100k in a shorter timeframe (assuming you continue to invest, reinvest etc).
    D4s

  7. Great motivational speech! You are a big example of believing in yourself and just keeping on doing your thing. I felt the same way, when i had my first 10.000 euro invested and I can’t wait to see the balance grow.

    With your dividends coming in you will be able to buy many more stocks for a discount in the next market crash. That should be a real boost for your cash flow!

  8. Congrats on the first $100k and now the second $100k. The foundation has been set, so things should get infinitely easier moving forward.

    Thanks for the inspiration; your hard work has paid off and now you are reaping the rewards. Financial freedom is a certainty.

    It can be done and you’ve provided a roadmap for anyone just getting started to follow.

    All the best!

  9. Congratulations. Well done sir!

    Same goes for the first million by the way. With my current parameters it would take 23 years to get to $1m (growth 7%, dividend income avg 3%). Second million just 7 years after that.

    This could all be a lot faster if I could increase my savings rate.. as that’s a major accelerator!

    Best wishes, DfS

  10. Jason, your story is really important, it needs to get out to a much wider audience. Instead of going into a black hole after you spent your inheritance, you decided to make changes to your life and do things differently. The changes are paying off dramatically. I have friends who can somehow just not be consistent in living below their means, cannot seem to save a dime, and are not persistent in working a job so as to get ahead. I really admire that you made a plan, a plan that included much sacrifice initially, stuck to it, and are now getting WAY ahead. You are seeing the future and moving forward, not the past and getting stuck. Well done!

  11. Hi Jason,

    Really enjoyed this post, very well written! I’m slowly pushing my own snowball and I should soon have 25k € invested and closing on 1k in dividend income before taxes. It’s great to know I’m 1/4 away from the first 100k and I can really do this! The dividend income makes it easier to push the snowball slowly but surely. Thanks for sharing and looking forward to the income/expenses report!

  12. Hello Jason,
    Thank you for this positive message. I really needed to read it – and you were right in every line – because I have too many fears and doubts when investing, especially when it is a good time to dump losers from my portfolio. The fear of losing my hard-earned money is too big!

  13. Amazing post Jason!

    That feeling of looking back after you reach a milestone must be amazing. I think one of the problems that people can have is that they forget to look back at their accomplishments and realize that things get easier over time. Just like the snowball. It has doubled it’s size in just over 2 years compared to the 3 it took before.

    One thing that I am not sure of is how to figure out how long at my current rate it will take my snowball to double. Could you tell me the formula for that or is there a way you find it? I am trying to set my goals realistically but missing that calculation is messing up my other calculations. I know because this is the the stock market that there is no way to be sure but I am just trying to estimate.

    Thanks again for a great inspiring post!

    Brantley

  14. DM,

    I’m really happy you wrote a post about a specific milestone, I’ve been thinking a lot lately about how long it’ll take to achieve my first 100K. I’m only a little over 10% of the way there but I can feel the momentum building with my dividends growing by leaps and bounds (mostly due to starting at such a small amount). It’s a great feeling getting paid to do next to nothing.

    This post strongly resonated with me as I am in my baby phase relative to many dividend bloggers out here.

    Keep up the great work!

    Regards,
    Dividend Odyssey

  15. Congratulations my friend! I haven’t notice you had finally reached it. It’s great.

    I should reach 50k pretty soon and that’s going to be a achievement for me. In fact I also probably have around 90k in equity in my house too because I pay it super fast but I don’t want to count that as it doesn’t bring any income home.

    When I first started in 11-2013, I only had a couple thousands to invest and I was looking at the elephant (be worth half a million) and was a little desperate I have to say. But the only way to eat an elephant is one bite at the time I guess!

    I chewed a lot of elephant meat over the last year and a half and I’m pretty proud of what I’ve accomplished so far. It hasn’t been that difficult and it’s true that the more you ssve the more you want to save and that the more you buy dividend growth stocks the more you want to buy dividend growth stocks. This thing is addictive!

    After 50k, 100k will be my next milestone. I hope to reach it by the end of 2017… I still have a long road in front of me but the most important is to keep walking.

    Cheers,

  16. Well written Jason, as always an inspirational discussion about your stock in life and changing yourself for the better. It’s interesting to see how the first 100k is the hardest, I wonder if you can do that in the future with your first $1000 a month in dividend income into the $2000 a month. Granted this article is probably a few years out, but it’s an interesting perspective for the future.

  17. Hey,
    At 33 you have your entire life ahead of you to continue to inspire and snowball. Can’t wait to see your first 1 million post – I’m starting at 27 and hope in 5 years to be close to my first 100k (maybe even 200k, you really never know).

    “I’m a real estate tycoon. An oil baron. A retail giant. A railroad mogul. An industrial magnate. A bank king.” What kind of degree did you earn to be all those things 😉 – sign me up!
    -Rich

  18. I’ll finally be back over $10,000 around September 1st, 2015. Then another year (at the current rate) before I hit $20,000. The $200,000 mark is looking distant right now. Stupid house! is my initial thought, but it’s also an asset that I could rent out if desired. 3-4 more years and I can double my capital allocation rate 🙂

    Thanks for getting a lot of us started down the road to early retirement and financial freedom. Stop by CO and visit MMM, Mr. 1500, and I.

    Thanks,
    WE

  19. Great post Jason! This is a really appropriate post for me, as I’m just starting to get the FI snowball rolling. I’ve only been on this journey for about a year now, but I can tell you I’m loving every minute of it. I’ve learned that you just have to ride out any bumps along the way and keep your eye on the prize. Take care.

  20. Hi Jason,

    Thanks for the inspirational article and all you do. I am learning a great deal.

    Also just picked up some TROW today!

    Cheers,
    Stockman22

  21. Hey Jason,

    I really like this post man. I’m about 30% there and can’t wait. It’s nice to know the more you save and invest the faster your income machine grows. Persistence and dedication is key. You deserve all the good things that happen to you.

    Best regards
    DB

  22. Inspirational as usual. Thanks so much, Jason. I myself started only a few months ago. I had saved a quantity, and decided to use part of it to start my portfolio. From this moment on, it will take me 2 and a half years to reach the 100.000 euro (invested). But I think the subsequent part is going to be hardest, I do not know why, maybe because I am able to save 20.000 euro per year only, and I am a bit afraid of how is it going to be. But reading you makes me feel like it is so possible.

  23. Very impressive progress, Jason. You continue to inspire by sharing a real world real-time journey. Congrats on hitting the $200K mark this year. Heres to many more $100Ks coming your way!

    R2R

  24. Awesome Article, Jason. Very inspiring. I can’t say my experience was the same–my first $100,000 seemed to come very easily. I was in the Army and I spent nothing, so new capital allowed me to raise that amount rather quickly.

    To be honest, I’d say my current $100k (the jump from $300k to $400k) has been the most grueling. One-to-two and Two-to-three came during bull markets and high incomes. After $300k came a lot of financial mistakes, going to one income, and a more stagnant market. However, I’m still pushing!

    Thanks for all you do!

    Eric

  25. Your story is inspiring. Amazing. I’m (a good touch) older than you and will add that the current technology of today really makes this possible for anyone and everyone to dream and climb. Ha! I remember seeing the first Ipod, I think it was somewhere around 2001, and couldn’t figure out how to buy the stock without calling my current broker holding my retirement account. Internet was still new to us and we had to pay for it by time usage—no flat fee for unlimited back then. It was a different world, really, with not a lot of accessible knowledge free flowing in regard to finance, discount brokerages, and places like Trade King. Now, click-click-click…owner! Not sure when I hit the first $100,000. Probably some time between statement snail-mailings—way back when. I missed it!

    Congratulations to you on the ability to live it in real time! Thank you for letting us be part of it.

  26. It was definitely hard to have the $100K, even with high income but buried in student loan, house payment, overcome the feeling of entitlement, resistant to lifestyle inflation for many years before I could have my first $100k in the bank. After the learning curve, things did get a little easier. It took 2 years for me to go from $100k to $200k.

    It would be easier if I enrolled myself in forced saving earlier like maxed out 401k, Roth IRA and such. But my younger self’s mentality didn’t make the same decision as my older self :).

  27. Good Day Jason
    Congrats Jason on the 200K mile stone, your story is a real inspiration to all. I am ready to read your journey on heading to 300K. no doubt this will be a great journey. You are showing that one can obtain wealth without having a high paying job.Your enthusiasm is a real encouragement to all. Cheers

  28. Miguel,

    Definitely. It’s all about the freedom you can buy with your income. The ability to do whatever you want with your time is such a fantastic position to be in. It’s the ultimate life hack. 🙂

    Thanks for dropping by. Appreciate the support. Hope all is well!

    Take care.

  29. Congratulations Jason. I’ve been rading your blog for a while, you should be an inspiration to all young investors who are searching for financial freedom. My 16 year old son is now reading your blog, thanks for sharing with us.

  30. Mike,

    Thanks for the kind words. Wish I would have figured it out, oh, about five or ten years earlier… but such is life. I’m fortunate I didn’t wait until just now. 🙂

    An above-average income definitely helps, though I think the right mindset is far more important. If there’s anything I’ve tried to prove, it’s that a massive income isn’t necessary. It really wasn’t until somewhat recent (the last year or so) that my income became fairly high/impressive. The first few years of slogging at this, I was making $40k or $50k per year. That’s not that much higher than the median personal income in the US. But, certainly, earning $70,000+ annually helps move things along that much faster, if you’re able to live below your means and do what’s necessary. All too often, however, we read these stories of doctors, lawyers, and other high earners living paycheck to paycheck. A real shame for sure.

    Thanks for dropping by!

    Best regards.

  31. TDD,

    Definitely. If you lack the mindset for this, you’ll never get there. Doesn’t matter if you make $40,000 or $400,000 per year. If you don’t see that mountain in front of you, you’ll never start climbing.

    Congrats on your success thus far as well. A $40,000 portfolio is nothing to scoff at. That’s a lot of money. And you can do the math on a compound interest calculator and see that that will turn into a lot of money over two or three decades, even if you stop actively investing. That’s what’s great about starting that snowball. It’ll just keep on rolling! 🙂

    Thanks for the kind words. Hope to continue inspiring and writing for a long time to come.

    Cheers!

  32. Sharon,

    Glad you enjoyed it. Hope you found some inspiration in it. 🙂

    Alimony certainly sets you back a bit. There are a lot of personal circumstances that can set us back. Children, job loss, family problems. health issues, etc. I’ve certainly had a good measure of my own. But the key is to have the psychological resolve to keep climbing. If you have a little extra weight pulling you down, it just means you have to exert that much more effort to get ahead. But you’re still saving and investing anyhow, which is a testament to your will and resolve. Keep it up!

    Best wishes.

  33. Tawcan,

    Yeah, the hardest part is really just to start climbing… to start rolling the snowball. Once you start, everything becomes easier. The more you save, the more you want to save. The more you invest, the more you want to invest. It feeds into itself, into this great self-fulfilling prophecy where you have this awesome feedback loop cheering you on. 🙂

    Here’s to the next $100k for the both of us!

    Best regards.

  34. D4S,

    Thanks so much. It’s been a wonderful journey thus far. I’m just as enthusiastic and aggressive about it as when I first started, which helps. No slowing down now. 🙂

    The next $100k will largely depend on market performance. The larger your portfolio becomes, the more it becomes affected by the market. When we first start out, we’re like a cork in the ocean. Easy to maneuver, and not as affected. But we grow into ships over time, and sway quite a bit. Can even topple over if we’re not careful. But assuming a flat market from here, I think I should be able to hit that next $100k in a similar time frame to the last one. It’ll also depend a lot on my personal income. But the mindset and the snowball are both on my side. Should be fun!

    Thanks for the support. Hope your journey is proving to be just as fruitful as mine.

    Cheers.

  35. BM,

    Thank you. I really believe in this stuff. I always have, but seeing the progress, success, and possibilities with my own two eyes certainly helps to reinforce the belief system. 🙂

    Cash flow is great in that it regenerates itself. So I’m definitely looking forward to more volatility. Cheaper stocks means higher yields, which means more future cash flow to compound. It all works in our favor.

    Thanks for dropping by!

    Take care.

  36. FI Fighter,

    Thanks, bud. It’s been an incredible journey. I still remember riding the bus to work, eating ramen noodles for lunch, and dealing with people screaming at me about their cars breaking down. Needless to say, life is a lot easier and a lot better now. 🙂

    It’s really just a system here. The system works. It’s there for anyone to fit into and change their lives for the better. I’m just showing how the framework looks like, and what results are possible in real-time.

    Appreciate all the support. We’re achieving our dreams day by day!

    Best wishes.

  37. DFS,

    Absolutely. You can insert any number instead of $100k. $1 million. $10 million. $100 million. $1 billion. Etc.

    The key is that it’s repeatable once you have the system in place. Doesn’t matter how big of a snowball you want to eventually amass, it definitely gets easier and easier over time. Once you have compounding in your favor, the snowball starts to roll on its own. And that’s when the compound interest calculators can get really interesting. 🙂

    The savings rate is definitely key, though. I’ve mentioned that before, that your savings rate trumps your investment returns, especially if you’re only actively accumulating assets for a decade or so. Once you’re able to live below your means and intelligently invest that capital, it’s all just a matter of time.

    Cheers!

  38. Hey Jason,

    Very inspiring post. I totally understand how hard to get the first $100 000. Same as you, it took almost three years to hit the milestone. I am not making 6 figures salary, I just make around $50 000 from my day job. Still, I manage to hit 6 figure net worth.

    Everything is possible if you have a right mind set.

    Now, I am slowly but steadily moving toward the $200K. I hope the second one will be much easier than the first one.

    Cheers,

  39. Mike,

    Thank you very much. Appreciate it.

    Yeah, life could be a lot different for me. I could have given up after my mom committed suicide. Or after I dropped out of college. Or after I blew $60,000. Or after I didn’t have a steady job. But I never did. I always knew that if I kept my head up and believed in myself, good things would happen. And they have. But I’m fortunate that I got my act in gear as soon as I did. I can wish I wouldn’t have made any number of mistakes. But those mistakes make us who we are and allow us to appreciate the success on the other side. 🙂

    Doing my best to get the message out and inspire. I’m so glad that the blog has reached a fairly wide audience, and certainly a wider audience than I ever expected. There are a lot of us changing our lives for the better. And I think that’s just wonderful.

    Thanks again!

    Best wishes.

  40. Sampo,

    Thanks so much. Glad you enjoyed it! 🙂

    Congrats on getting 25% of the way there. It gets easier and easier over time. And you already have the proper mindset, which is arguably more important than anything else. That dividend income will only grow from here, meaning you need to exert less and less force over time. Keep it up!

    Cheers.

  41. Selena,

    I’m glad it hit home for you. Investing is 90% psychological, but if you can stick to the plan/strategy/framework, you’ll likely do very well over time. 🙂

    Take care!

  42. Brantley,

    Thank you!

    I think it’s definitely important to look back on your accomplishments and give yourself a pat on the back every once in a while. The road ahead may still be long, but looking back on how far you’ve already come makes the journey ahead seem a lot easier. And that allows you to keep pushing forward. 🙂

    As far as the calculations go, it’ll vary depending on your own situation. A simple compound interest calculator that factors in ongoing investments should give you a rough idea of where you might be. Here’s one:

    http://www.moneychimp.com/calculator/compound_interest_calculator.htm

    There’s the Rule of 72, which allows you to figure out how long something will take to double by dividing your compound return into 72 to figure out how long it’ll take to double (a 7% compound annual return takes about a decade to double an investment). But that’s not factoring in ongoing additions/investments, so it’s only good for those that are done accumulating assets and are looking at what kind of wealth they might have out at some future date.

    For me, I find a piece of paper and a pencil the most effective. I can easily extrapolate out what I think I might be able to invest, factor in 7% dividend growth, a 3.5% yield, and then figure out where I might be year by year. What’s happened for me, though, is I’ve been able to make more money than I originally anticipated, which is why I’m slightly ahead of pace now.

    Hope that helps!

    Cheers.

  43. DO,

    Hey, we were all “babies” at one point or another. We all start from the bottom of that mountain. I’m still a baby relative to those out there with millions of dollars in assets. But I don’t really worry too much because their situation/lifestyle doesn’t have any impact on me. What they eat doesn’t make me anything. 🙂

    But I’m glad you’re already feeling the momentum behind you. That will surely accelerate over time. You’ll see. And it’s a lot of fun!!

    Thanks for the support.

    Best regards.

  44. Allan,

    Absolutely. You eat an elephant one bite at a time. Just like with anything else. And you climb a mountain one inch at a time. But what’s possible in increments is really incredible. 🙂

    You’ve got the right mindset over there, which is key. Once you believe in yourself and you’re willing to do what’s necessary, nobody can stop you!

    Congrats on the upcoming $50k milestone. To your next $50k, my friend.

    Cheers!

  45. DD,

    Absolutely. Like I was mentioning in another comment, the same can be said for any dollar figure or any other way to think about it. Because of the compound effects of both money (quantifiable) and your mindset (not quantifiable, but still very powerful), it just gets easier and easier over time. That can be said for both total wealth and dividend income. And that’s what’s wonderful about all of this. The hardest part is just starting. Once you do that, the rest becomes easier and easier. You’ve already made it over the hump!

    Take care.

  46. Rich,

    You’re starting so young, which is an incredible advantage. There are many out there in their 40s and 50s with very little wealth to speak of. By the time you’re that age, you’ll be controlling vast sums. Keep it up!!

    Best regards.

  47. Jason,
    Wow! Are you pinching yourself to see if it is real? HA! The snow ball is rolling right along and getting bigger.
    I may have over looked you answer or thoughts on preferred stocks. What do you think of preferred stocks? As one ages this seems to be a way to reduce the risk of losing your total investment and you can still get a pretty good rate of return on your investment! This would be attractive to keep the monthly budget in good shape, not to many ups and downs?

  48. WE,

    Hope to make it up to Colorado at some point in time. Great topography and weather. Not much to dislike! 🙂

    If I ever do stop in, I’ll be sure to drop a line. In the meanwhile, keep plugging away over there.

    Cheers!

  49. FF,

    Thanks so much!

    You definitely have to keep your eye on the prize. The bumps along the way can seem so big and crazy in real-time, but looking back they’re really nothing. 🙂

    Stick with it, bud. You’ll be amazed and surprised at what’s possible.

    Take care!

  50. Jeremy,

    Thanks for dropping by. Hope all is well with the little one and Winnie! 🙂

    It’ll be a while before I see that other zero, but it’s an eventuality at this point. Feels great to know that there’s a future millionaire Jason out there walking around in the future. Same with you guys. Net worth increasing even with traveling the world. Money sure works hard.

    Keep enjoying the good life!

    Best wishes.

  51. Ok I was using that same calculator but wasn’t sure if that was quite the exact way to go. Thanks again!

  52. Stockman22,

    Happy to share if it means I’m inspiring others to take action. 🙂

    Great move there on TROW. Fundamentally about as sound as it can possibly get.

    Cheers!

  53. Great article about how fast success can grow and multiply. I remember when we were just starting to pay off debt and $27,000 seemed like so much money. Now, we are debt free other than our house and almost have our 6 month emergency fund done. Next will be growing our investments! Can’t wait to see the wealth truly explode once we get to investing! Thanks for your encouragement, motivation, and great insight!

  54. DB,

    Glad you liked it. It’s been a couple years in the making! 🙂

    You’re absolutely right. Persistence and dedication is so important. If you believe in it and are willing to do what’s necessary, you’ll achieve it. It’s a self-fulfilling prophecy once you get started.

    30% will turn into 50% will turn into 100%. You’ll see!

    Cheers.

  55. Great article Jason. I’m from Finland and started reading your blog for about a month ago. I’m 23 years old and studying accounting & finance in university. I’m also working at the same time as a part-timer for Elisa Oyj telecom company (you should check that, listed in Helsinki stock exchange) as a salesman. I had about 10k€ portfolio before starting my job. Now after one year working and investing as much as I could I’ve managed to grow my portfolio to 50k€ and still keeps going well. So here’s my story that keeps me going to grow a portfolio like yours.

    Cheers from Finland !

  56. IW,

    It definitely gets easier over time, not harder. Now, that’s assuming that you don’t lose your job or undergo some other negative major life change that would affect your ability to save/invest, but the going gets easier once you get some capital behind you. Money can work harder than we ever could, I can tell you that. 🙂

    Keep it up. You’ll honestly be amazed at what’s possible if you stick with it. It was only a few short years ago that I was below broke. Now I’m a guaranteed millionaire. Happens fast if you put in maximum effort. But, like with everything else, you get out what you put in.

    Take care!

  57. R2R,

    Thanks so much. Appreciate the support!

    I suspect we’ll both be hitting our next $100k before we know it. 🙂

    Best regards.

  58. Retire29,

    I can imagine that earning a decent salary and spending nothing makes that first $100k a breeze. Nice!

    Yeah, personal circumstances and the overall market’s moves will have a lot to do with how fast you accumulate wealth/income from one point to another. Although, with $300k at a 3.5% yield, I’d be earning $10,500 per year in dividend income toward that next $100k, which certainly cushions some blows and allows that snowball to roll that much faster. 🙂

    Thanks for dropping by. Enjoy that invisible worker over there!

    Best wishes.

  59. Super inspiring article bro!

    No doubt the first 100k is the hardest to accrue, not only because the snowball isn’t rolling as quickly as it later does, but also because one has to develop and nurture the discipline to save and invest as much as possible on a consistent basis. After having done it for a while it becomes second-nature, but it can be difficult at first to get into that habit.

    I’m 6 months into my DGI journey and just about the cross the $20k mark, so I’m 1/5th of the way to the the first 100 grand. Let’s see if I can make it happen in 3 years like you did!

    Best regards my friend.

  60. divy,

    Thanks so much. Glad to share with everyone out there. I’m so fortunate to be on this journey and in a position to share like this. 🙂

    Couldn’t agree more with you on technology. Not only does it make it possible for me to do what I’m doing, but it makes it far easier to buy stocks and become financially independent. I actually wrote a post about that some time ago, about how we’re now in the “Golden Age” of financial independence, where technology and community coalesce and make it far easier than ever before to become inspired, save, invest, and climb. It’s truly never been easier than now, which is why it’s all the more disappointing that still so few people actually escape the rat race. Doing my best to change that, however.

    We’re so incredibly fortunate these days. We have to take advantage of that!

    Thanks for sharing that. Life is good. 🙂

    Best regards.

  61. Vivianne,

    Two years from $100k to $200k is cruising. Nice! 🙂

    There’s always that coulda, shoulda, woulda. We could always do better or start earlier. But just getting started and putting yourself in a position to become financially independent at all is really incredible, relative to the rest of the population. I certainly wish I would have started way earlier, but I might not appreciate the result as much. Tough to say.

    Keep up the great work over there. I imagine the next $100k and beyond will be even easier.

    Cheers.

  62. michael,

    Thank you. Really appreciate that! 🙂

    I’m incredibly enthusiastic about all of this. It’s hard not to be enthusiastic about financial independence and becoming truly free, though.

    One definitely doesn’t need a big income to be where they want/need to be. My income wasn’t even as much as it is right now until very recently. For a good portion of my journey, I was making very average money. But just like I always mention, earning $200,000/year and spending $190,000/year means you’ll never be financially independent. It’s really a function of your savings rate, which is in turn a function of your mindset. Get your mindset right and the rest falls into place.

    Let’s keep fighting and climbing!!

    Take care.

  63. Thanks! You were in part the reason I switched over from one investment strategy to DGI. Started off at retireby40.0rg and found you through them and haven’t left since 2013! Keep up the fantastic work!

  64. Larry,

    Thanks for the support and readership. The blog wouldn’t exist without readers like you and your son. 🙂

    Glad your 16-year-old son is reading. If he can start now, just imagine where he’ll be by the time he’s 30. The possibilities boggle the mind.

    Stay in touch!

    Cheers.

  65. even 50k seems far away right now. a 100k??? in my defense, i just started feb of this year and sitting at 25k. great read. i am insired. im pushing that snowball. push push push. i hope to report in 3 years when i see 100k. keep it up.

  66. FJ,

    Absolutely. If you have the proper mindset, anything is possible. But you have to believe in yourself.

    I’ve had people email me and tell me how impossible it is for them to do what I’ve done. And you know what? I agree with them. When you tell me something is impossible, it is. When you tell me something is possible, it is.

    Keep it up over there. I imagine the second $100k will be a lot easier due to compounding effects of money and good habits.

    Take care!

  67. That must have been a fun article to write and think about.

    Take a moment and sit back in your chair and think of much security and freedom that provides!

    I’m looking forward to the $100K (although, even prior to that I’m looking forward to not having a negative net worth 🙂 ).

    I think the psychological impact of just having the security of a significant portfolio is overlooked sometimes as well. My portfolio is small, but my overall cash position has had a positive impact on my well-being.

    Congrat’s Jason! I wonder how long it will take until $300K!

    Do you have a target portfolio size in mind as a long-term goal. I know you want to cover your expenses with dividends, but also you might want some extra cushion due to volatility and life events.

  68. Nut501,

    It’s a dream come true, my friend. I dreamed a dream, and it’s actually coming true in real-time. I’m very fortunate. 🙂

    I’ve discussed preferred stock in comments quite a few times, but I haven’t written a post about it. Maybe I should. I think preferred stock makes sense for some people in the sense that almost any investment probably makes sense for the right person. I personally prefer common stock because I get to participate in the growth of the company and the total returns (comparing one class to another in aggregate) are much better over the long haul. In addition, preferred stock tends to limit you to certain industries (like banking), especially if we’re talking about the high-yield stuff.

    “As one ages this seems to be a way to reduce the risk of losing your total investment…”

    That’s assuming that a declining stock price is losing money, which is false. You don’t actually lose money unless you sell after a price decline, which is true for any paper asset. If one doesn’t have the stomach for fluctuating prices, they probably shouldn’t be in stocks in the first place.

    Thanks for stopping by!

    Cheers.

  69. Steve,

    You guys are right on the cusp of an exciting journey. Just like debt can compound against you, investing can compound for you. 🙂

    Best of luck as you move on to the next phase. The best is yet ahead!

    Cheers.

  70. Finnish student,

    Thanks for stopping by from Finland! Grateful to have readers from all over the world. 🙂

    That’s great stuff over there. Not only have you grown your portfolio by fivefold, but you’re only 23. Just imagine where you’ll be by the time you’re my age, in 10 years. Could be another fivefold. 🙂

    Keep it up!

    Take care.

  71. I completely agree, Jason. The first $100k is the hardest. After that, with a win under your belt, you realize you can simply do it all over again to get to $200k. Thanks to the work the first six figures are doing, you get there quicker.

    Lather, rinse, repeat.

  72. ZTZ,

    Absolutely. Money and good habits both compound over time for you. And while more and more money works harder and harder for you, the good habits that you developed to get there in the first place become easier and easier. This situation coalesces into something pretty magical. 🙂

    You’re making great progress over there, my friend. I imagine you’ll be hitting those numbers just as fast or even faster than I did. And you’re starting out a lot younger than I did, which puts you at a great advantage. Keep it up!

    Best wishes.

  73. DD,

    Glad to hear that. Means a lot to me. 🙂

    I think the future you will be thanking the you of today for the moves you’re now making. And more money will work harder and harder for you. The best is yet ahead!

    Cheers.

  74. grezmonkey,

    Hey, you’re off to a great start over there. I certainly didn’t hit $25k after just five months. That’s pretty incredible. Back then, I was grateful if I scraped up even $1,000 in any single month. 🙂

    You’ll be hitting $100k before you know it. And then on to the next one…

    Take care!

  75. RTR,

    Absolutely. The freedom and security it provides is intangible, but hugely beneficial and valuable. There are a number of people that have criticized my decision to forgo tax-advantaged accounts, but I’m not so sure I would have felt so comfortable leaving my full-time job last year like I did if my liquid assets/income were much lower. Knowing I had complete access to all that money and income immediately, however, made it a lot easier. That’s the spectrum of freedom I talk about. And now I’m writing full-time and happier than ever. 🙂

    I don’t really have any goals for the portfolio value, though. It fluctuates heavily based on the market, and I don’t have any expectations. Besides, I’m actually hoping for a lower portfolio value over the near term (next five years). While I’m accumulating assets, I want them to be as cheap as possible. And that’ll obviously mean a hit to the portfolio value. So if the portfolio is only worth, say, $180k next month, I’ll be perfectly fine with that as long as it stays there for a bit and gives me the opportunity to unload my BB gun.

    And my psychological well-being won’t really change much going from $200k to $180k anyway. We’re talking about life-changing money, either way. So I wouldn’t feel any less safe or secure if that were to happen. But I would feel a lot better about putting capital to work.

    Cheers!

  76. DB40,

    Absolutely. Lather, rinse, repeat. That’s it! 🙂

    Once you win the first time, you know you can win again. You’ve defeated your own psyche, and then it’s just a matter of time…

    Thanks for stopping in.

    Take care!

  77. Hi Jason,

    Great post. Thanks for sharing!

    I see investing as the absolute opposite of weight training. When you hit the gym for the first few weeks and months, you just have to look at weights and you get bigger and stronger. As you develop strength and size over months and years, you have to find new and challenging ways to break your muscle fibres down to develop strength. The steps become smaller and smaller, and you have to work so much harder to get the smallest of ‘gains’.

    I love how wealth/investing works in the opposite way. You have to graft and graft for months and years to get a little income in return. Through hard work and perseverance the steps become easier and the gains grow larger, with seemingly less effort.

    I’m personally someone that seeks delayed gratification as much as possible, and I am looking forward to being in a position like yourself where you watch vast sums of money roll into your account every month, passively!

    I’ve been inspired by your Blog for some time now, and you continue to help me push myself to see a fraction of the results you’ve received. I am now starting to enjoy the bigger returns, and I haven’t had to work ‘as hard’ to get them. It gets ever more exciting. Like you said, if we’re lucky to be around, what’s it going to be like 10-20 years!

    Keep up the great work Jason!

    Huw

  78. Let me tell you! I started my journey on November 2013 with exactly $1300. This first $100K is proving to be one hell of a task to tackle. I’m currently sitting at $46,500. This is soooo hard I’m not gonna lie

  79. Huw,

    As a former competitive bodybuilder, I know what you mean. I think weight training and saving/investing share some common traits. Persistence, patience, perseverance, and consistency are necessary for both. In addition, they’re both “individual” sports. What you do isn’t going to affect me and vice versa. And they’re both simple, but not easy. Simple in the fact that ingesting less calories than you burn and exercising will likely lead to solid results, and spending less than you earn and investing intelligently will lead to great wealth. But neither is easy because it requires that discipline for years on end.

    That said, I also agree with you on your point. That was something I actually pointed out recently when another blogger, Zero to Zeros, pointed out how similar the two are. The difference I see is that muscles atrophy pretty quickly if you’re not in the gym. But money, on the other hand, keeps on working for you, even when left attended. The point about money snowballing where muscle gains don’t is even more apt. 🙂

    You’re making great gains over there, though, all around. Keep it up. Your continued savings rate and investing can’t not lead to great results. It’s an eventuality at this point. There’s a future you out there that’s already financially independent. You just haven’t met him yet.

    Thanks for sharing!

    Cheers.

  80. Jason,

    It gets easier the further up you climb and the more you save/invest. It’s like you build these extra muscles you never knew you had the higher you climb. Money starts to work for you, and elevates you faster and higher than ever before. I started noticing that critical mass somewhat recently, where the dividends are adding up to stock purchases all by themselves (especially in the last month of every quarter). When you can fit in an extra six or seven stock purchases a year before you even add capital, you’re really on your way.

    Keep at it, my friend!

    Take care.

  81. I am working on my 6th 100 some days feels fast other days slow.. perhaps I check too often.. Question – does this portfolio represent both you and your wife’s savings or are you keeping your money separate? would think your snowball would roll faster if you worked as a team.

  82. Hi Jason!
    It’s very nice to read your blog, thanks for you from that. I have very much the same thoughts that you have, and I agree that the first 100k is the hardest to achieve.

    I really hope that you will keep on going on this your project and also this blog, but please remember to enjoy your life and your wealth which you have achieved.

    BR
    Tero

  83. joe,

    Can’t wait for the day I hit #6. I’ll be financially independent and then some by then. Life is good now, but will probably be just that much better then. 🙂

    This is just my money. We keep separate budgets and money:

    https://www.dividendmantra.com/2014/12/marrying-budgets-when-you-marry/

    She’ll be close to earning SS income by the time I’m living off of dividend income, so there won’t be any issues there. She spends even less than I do, so I suspect there will be more than enough money to go around. We don’t need much.

    Take care!

  84. Tero,

    Appreciate the readership very much. Hope you continue to enjoy it and stay in touch. 🙂

    Agreed on enjoying life. No sense in having money/passive income if you can’t enjoy life. That said, I’m happier than ever. Being free of the full-time job and now writing for a living means I’m living much as I would if I were financially independent. I’m incredibly fortunate. And I’ve learned over time that it just doesn’t take much money to be happy.

    Thanks for the support. Let’s keep climbing!

    Best regards.

  85. You know the old Chinese proverb, “A journey of a thousand miles begins with a single step,” or in this case a journey to $100K it begins with a single dollar 🙂

    The first hundred thousand took way longer than it should have for me, especially since I have made above average income since graduating school. But I had student loans to pay off. I decided to buy a new car. I blew threw money without much thought to savings.

    It took almost 5 years after graduating college to reach our first $100K milestone. It only took 15 months to reach $200K. And at the pace we are going we should reach $300K in about 6 months.

    And based on our road map we should enter the double comma club in the next 4 years.

    Hindsight is always 20/20, but man I wish I started paying more attention to this 5 years sooner. We could probably be 7 figures deep by now.

    But as they say “Onward & Upward.”

  86. Dominic,

    Definitely. Can’t have $100,000 if you don’t start with $1. Can’t be done. And $100,000 is really just a large collection of dollar bills. But they stack up fast when you’re living below your means and investing intelligently. Before you know it, they’re stacking themselves. 🙂

    You guys are making great progress over there, and having a big income certainly helps to move things along. Hitting seven figures would be really amazing. It’ll be a long while before I’m seeing that extra comma. Hitting it in only four years would be nuts!

    I hear you on hindsight. If I would have started at 21, I’d be financially independent by now. I know that for sure. But such is life. Mistakes make us who we are and allow us to appreciate the victories that much more.

    Thanks for dropping by. Keep it up!

    Best regards.

  87. Dividend Mantra,

    The first $100000 is definitely the hardest. During the initial stages of building a portfolio people make bad decisions such as chasing yield and end up getting burned. Also, the passive income generated starting off is small and not has motivating.

    As the dividends get bigger and you get more experience, you are more motivated and more careful in your decisions. It is always easier when the mistakes are made in the beginning as more time to recover.

    As the months go by, I am more motivated to keep investing.

  88. Actually, in my case, the 2nd first 100k was the hardest. I had a little shy of 100k in apple in 2007 which I completely liquidated to pay for expenses related to divorce and moving into NYC, etc. I also had a lot in Google which as far as I was concerned at the time was the 2nd coming. Needless to say those would have been nice to hold onto. Sold all my holdings to live and pay 2 lawyers (one for me and one for her). So basically started over and this time it is a lot harder. I also used to spend way too much on homes and cars and nice restaurants but have become more frugal now. If I can get back on track in the next 10 years I will be happy.

  89. Mantra,

    First 100K was definitely the hardest. I invested at age 20 in February of 2009, not much, but I hit $100K around June of 2014. However, it is July of 2015 and this year I hit over $153/$154K a few times and could hit, similar to you, $200K within 2 years with everything remaining constant – though it looks like Mr. market is trending downward.

    I’m excited on how fast $200 is to go to $300 for you and, well, for me when I get there for that matter. Just the machine of a dividend cash cow we build continues to fuel itself is amazing. I love it. Good post Mantra, this is great.

    -Lany

  90. IP,

    Definitely agree. Experience is intangible but no less valuable. I’ve certainly learned a lot over my years. While I’m sure I’ll continue to make lots of mistakes, I think they’ll occur less and be less impactful. At least, that’s the plan. 🙂

    Glad that you’re more and more motivated as time goes on. The future you is already benefiting from this. You’re actively changing your future.

    Keep it up!

    Cheers.

  91. dzogen,

    Ouch. Sorry to hear that. That’s unfortunate. I know how it feels to see a decent chunk of change basically evaporate over a short period of time. Tough to swallow.

    But the good news is that you did it once, so you can do it again. Just knowing it’s possible and believing in it is a lot more than a lot of other people have. You’ll get there. Live below your means and invest the excess capital intelligently and you basically can’t miss. 🙂

    Cheers!

  92. Lanny,

    Man, you’re in a great spot to have started so early. I WISH I could go back and invest at age 20. I’m confident I’d be sitting on enough dividend income to live off of by now. But I appreciate every red cent I have now, that’s for sure. 🙂

    You’re rounding the corner and coming up on that second $100k now. It’ll surely be a lot faster than the first mark based on where you’re at and how long you’ve been at it. Keep it up, brother!

    Best wishes.

  93. Mantra,

    Call me a lurker. I check your blog three or four times a week but seldom comment. However, I thought this particular post was exceptionally good and certainly deserving of a comment.

    I am two-faced when it comes to investing. I am one of those who didn’t save enough during my accumulation years. I have an excellent work ethic, some ability and I assumed that with that combination I would always have a job. However, I got downsized early in the Great Recession and, being somewhat advanced in years, at least according to society, my downsizing became permanent. Too young to retire, too old to hire. Too bad, life isn’t always fair. But I shall survive.

    But there is another part to the story. Back in 1998 I opened accounts for my two sons in Duke Energy’s Dividend Reinvestment Plan when they were 15 and 13 respectively. Since then my investment focus has been to build an alternative income stream for them. That is where I drew great encouragement from this particular post. They are not as yet ‘all in’ on the program but I provide them with a quarterly portfolio report (the one stock has grown to several within their portfolios) and they are finally showing more interest because they are seeing ever-increasing results, even with meager additions.

    In your posts and comments you often mention persistence. It is posts like this one that encourage me to be ‘pleasantly persistent’ with them so that by the time they hit 50 or so, they will have options if they need them. Thus I encourage you to keep fighting the good fight. You are having an effect on people’s lives for the better. After all is said and done, that may very well be more important, even, than attaining complete financial independence.

    All the best,

    DC

  94. Wonderful inspirational story Jason. I’m glad I stumbled upon your blog a while back. I continue to forward your posts by email frequently to friends and family. Hopefully your addressable audience continues to grow so you can inspire, teach and motivate.

    I don’t tell my story often (only 1 other person knows my exact situation) because of obvious reasons. I was very fortunate to get a good paying blue collar job at 21 and to be able to live well beneath my means. I hit the first $100k (cash) at 24 years old. My first dealings with the market was a measly 5% contribution to my 401k which I started at 22 years old. I opened a brokerage account and bought my first stock at 25 years old. I’m 30 today with a taxable account of roughly a ½ million, and have my tax advantaged (pre-tax) retirement accounts around $230k. Persistence, patience, and hard work pay off. I also bought an outsized position in apple in 2011 which has treated me well.

    This blog is turning into a community of like minded people. Have you ever thought of creating forums on here? I’m with you on hoping the market stays depressed for many years, but i can’t stop thinking about that 1 mil dollar milestone which seems to be coming fast for me 😀 Thanks again Jason. Keep it up.

  95. DC,

    Appreciate you taking the time to stop by and drop a comment this time around. Glad you enjoyed the post that much. 🙂

    That’s a tough situation to be in. That’s something I’ve written about a few times, as you probably know. Reaching for and eventually achieving financial independence isn’t necessarily about hating your job or even not working. It’s that “ace in the hole”… flexibility, freedom, and autonomy. You might love your job, but your job might not love you. Just one of those things. So the more you can diversify your income and the less reliant you are on your job income, the better. I don’t mean that to come across as preachy, but rather motivational. And I’d never say it’s too late to start!

    Good for you for opening accounts for your sons. I’m extremely confident they’ll thank you over and over again for that. You hear about these stories where someone invested just $1,000 in this stock or that stock and reinvested dividends for decades, and ended up with a ton of income/wealth. Just imagine if you repeat that decision even just a few times over. The possibilities are amazing.

    Thanks for sharing. Wishing you and your sons nothing but the best moving forward. 🙂

    Cheers!

  96. Congrats DM! $200K in just 5 years is great and $7K in dividends. I’m running my 3000 days race to earn $3000 per month. Its early in the game to see how the race will work out but definitely kicked it in full gear with many buys over last month.

  97. Awesome post Jason! The first 100K was difficult but I imagine the next 100K will be much harder for us. The market is getting a bit stretched so I doubt we will see the kind of easy returns we have seen the past 6 or so years. Either way, I hope the market levels off or sells off a bit so we can pick up cheaper stocks and get more dividends!

    Keep up the great work!

  98. WE, I am the same way. Portfolio
    Is about 25% there. Owning a home has put a debt in everything, they truly are money sucks. Luckily my wife and I had almost 30% down, have cut the mortgage down as quickly as possibly and done all renos and upgrades with cash. So in just over 10 years we will have a nice, well finished paid off home! Not bad for being 29 as I type this, but can’t help thinking things I could have done differently to build my snowball more!!

  99. Jason,
    Seriously nice to hit the second 100K. But I hear you on getting less (dividend) bang for your buck.

    I did an interesting analysis today where I multiplied all of the dividends Mrs. X and I are currently receiving by the rate at which each company raised the dividends in the past year and also the 5 year average. The result: our dividend income will double if the growth rate stays at current levels. The numbers were slightly higher using the 5 year average. This DGI stuff just might work.

    Best wishes,
    Keith

  100. Cj,

    Thanks for spreading the message. Really appreciate that. The more eyeballs the better. I’m blessed to be able to reach people, and hopefully inspire most of them. 🙂

    That’s a great story. You’re in an incredible position. I can only WISH I would have started so early like that. As you know, time is such an important factor in regards to compounding. Time can make up for low capital contributions, subpar returns, and even a poor choice or two. Time is an incredible resource. You’ve certainly put time on your side, and that strategic AAPL investment doesn’t hurt! You’re already a millionaire at this point, even if you stop investing fresh capital for the rest of your life. That’s an amazing feeling, right?

    I’d love to create a forum, but it’s easier said than done. As it stands, the blog is very time consuming for me. So I’m not sure I could viably run a forum as well. Maybe if I took on some help or hired a writer or something, I could do a little more. We’ll see. It’s certainly a great idea.

    Appreciate the support. Keep it up over there. You’re already in an amazing position, and that money will just continue to duplicate itself over and over again. Your snowball is going to turn into an avalanche pretty soon. 🙂

    Best regards!

  101. R2R,

    Thanks so much. It’s been a very successful journey thus far. I’m proud, grateful, and excited. 🙂

    $3,000 per month in 3,000 days is really aggressive. I’m guessing you earn a very high income (and spend little of it) to be able to invest enough to reach that goal. Wish you nothing but the best. Even if you fall a little short, you’ll be far better off than about 95% of society.

    Best wishes!

  102. ADD,

    Absolutely. We’ll see how my next $100k goes, but I wouldn’t mind at all if it takes longer than what the last $100k took. I’m very confident it’ll be “easier”, but not necessarily “faster”. The good habits are in place and money is working for me. It’s cruise control now, which is why I’m also hoping for some better deals. Today was a nice start. Let’s hope for a lot more!

    Thanks for stopping by.

    Best regards.

  103. Keith,

    Yeah, I think this DGI stuff might indeed work. 🙂

    I’m tracking the dividend growth publicly now, so it’ll be nice to see what that looks like in real life. So far, this year is going pretty well. If I can receive 6% or so organic dividend growth through raises alone, I’m pretty happy with that. That’s certainly far in excess of inflation right now!

    Keep it up over there. Enjoy the fruits of your labor.

    Cheers!

  104. What a great article and perspective! You’ve definitely opened up my eyes since I’ve been reading your blog over this past year. I hope to reach $100k in 2.5 years, so only 1.5 years to go!

    On another note I’m considering MSFT since its taken a slight hit this week and adding to my portfolio.

  105. Michele,

    Thank you so much. Glad you enjoyed it. I write from the heart! 🙂

    $100k in 2.5 years would be astounding. That’s great pace. And that sets you for a great run for the next $100k. Each milestone gets easier and easier.

    Best of luck!!

    Cheers.

  106. Jason, the other day I complimented you on the fact, that there is so little mention here of the market value of your Freedom Fund.

    I fully understood what you wrote then, that when you mention it, it is for inspirational reasons. And inspiring it is as it was/is a fantastic ride!

    Well, um, may just underline for new readers here, that market value is a kind of virtual reality compared to the very, very real cash from dividends? I haven´t got the foggiest idea what my portfolio´s current market value is, why should I, am I about to sell – no! But I do know very, very well how much cash I will receive in July, in August … .

    So let´s say, the first 3.500$ dividends p.a. are the hardest?!

    Best wishes for the next ADDITIONAL 7.000$ dividends p.a.!

    Thorsten

  107. That persistence and belief of yours is the most important ingredient by a mile. I’m not quite at the $100k level yet, partly because I’ve liquidated our portfolio a couple of times now leading up to buying our dream family home. But I still find myself trying to rationalise why it’s OK to stop accumulating stocks and just live my life now, even though I have some serious dreams I’m working towards which will all be possible with a much larger portfolio and the resulting financial freedom. If I can muster even half of your persistence and consistency I’ll be in tremendous shape! Thanks for the continued inspiration, and wishing you all the best on your journey past many more $100k marks!

    Cheers,

    Jason

  108. Congrats Jason, so much hard work went into building your portfolio. Your commitment and passion are true gifts and pure inspiration to us readers. I’ll be following you to the next milestone and I can’t wait to see you succeed beyond your wildest expectations. Way to go my friend 🙂

  109. Thorsten,

    Definitely. You could substitute the $100k with any other large number or certainly dividend income. The first $3,500 in dividend income is also the hardest for all the same reasons. 🙂

    I think wealth and the value of one’s portfolio value resonates with people and serves as a proxy of sorts, so I feel okay using it while also reminding people that the value oscillates heavily and it’s really the dividend income that will free me (and you).

    I agree with you in that I won’t know my portfolio’s value in a week or a month, but I’ll surely have a real good idea of what kind of dividend income I’ll receive. And it’s that tangible and reliable nature that makes this strategy so robust in the first place.

    Thanks for dropping by!

    Best regards.

  110. Jason,

    Persistence is so incredibly important. If you have the right mix of patience, persistence, perseverance, consistency, and belief, you really can’t miss. You can’t fail. You can’t avoid succeeding and doing incredibly well. I’m fortunate in that I was born with a bull-headed nature, which often serves me well (but sometimes doesn’t).

    As long as you guys are living the life you want and you’re happy, then the accumulation of stocks is somewhat less important. I could just as easily take a slower path now that I’m doing what I want to do, but I’m also the type of person that craves flexibility and freedom. And I honestly couldn’t say for certain that I’ll love writing so much 10 years from now. So I’m buying options. And the journey to financial independence, like life, is dynamic. You’ll naturally accelerate, slow down, and maneuver as life dictates. 🙂

    Thanks for all the support. Hoping to continue inspiring for a long time to come!

    Cheers.

  111. Ryan,

    Thanks so much, bud. It’s been a wild and incredible journey. I’ve worked really, really hard to get here. And I cherish the progress and results. Can’t wait to see what’s yet ahead.

    You’re doing fantastic over there as well. You’ll surely cruise past $100k and then $200k before you even know it – your money and experience is compounding constantly. And you’re having a ton of fun along the way. Life is so good and so wonderful, it’s almost not fair. 🙂

    Keep it up!!

    Best wishes.

  112. Congrats Jason with your 2nd 100K$ 🙂 And you will reach the 3rd even faster 🙂
    Also a big thank you for your support and continued motivational work.
    Keep that ball rolling! 😉

  113. Congrats on your milestone!

    We are at $35K right now with our dividend income portfolio. Still a ways to go but really appreciate you posting inspiring content like this.

  114. First of all, congratulations Jason..

    I was randomly searching for some articles to achieve financial freedom. I just came across your website “dividend mantra”. It is really inspiring and invigorating.

    I am happy to see that this idea of living frugally to achieve the first $1,00,000 has succeeded, since I am also living by that means. Now this article gives me more confidence on my conviction.

    Since I am from India, where the banks pay a compound interest of 8-9%, I am planning to mix my portolio to debt and equity.

    I am now going to follow regularly your updates.

    Thanks a lot for this wonderful article.

  115. Oh Jason, I was one of those doctors who was living paycheck to paycheck. For 3 years after my residency, while making almost triple your income at your old job, I had a negative net worth. Saw the light 2 years ago and have since paid off all my debt and now starting to invest aggressively. I’m 40 and my total investments is still shy of $100,000 so what you have achieved in just 5 years is beyond amazing at your income. DO NOT let anybody tell you it’s easy b/c it’s not. Like you said, the mindset is more important than making high incomes. Many of my colleagues, unfortunately, are still living paycheck to paycheck and I’ve gotten more passionate about personal finances and I try to educate some of them. Blogs like yours, J$, Whitecoat investor, forums like Bogleheads and >100 personal finance/investing books have kept me motivated.
    So keep up the good work and you are really inspiring the world one day at a time…

  116. I am not sure if the first $100K is the hardest or not, because I am still trying to get that. 🙂 My portfolio is hovering over $95K for the last couple of months. I am trying to hit the $100K mark sometime soon.

  117. Good job Jason. I’ll be hitting that $200k NW milestone in the next 2-3 months (as long you count $15k of equity in my house 🙂 ). I stand at $180K right now at the age of 24, and exactly one year ago today it was only $106k. Even though I’m a Vanguard indexer since I’m too busy to put in the time to built a custom stock portfolio, I like to read a few dividend blogs like yours just to get different, interesting perspectives on investing. Some day we’ll be reading a post where you have seven digits in that number 😉

  118. Very interesting article once again.
    Thanks for sharing your experience.
    On my side the amount of mistakes done in the past haven’t gave me the opportunity to enjoy the first 100K portfolio yet 🙁

    Meanwhile I have raised my net value to 170K which is ok so far.

  119. I agree. The first 100K was the most difficult and most momentous milestone in our journey. I still remember the feeling of accomplishment when we reached it. At that point we felt like we were making real progress forward. The other “century” milestones after that were not as significant because we were focusing more on the income level number.

    Congrats on reaching 200K! I hope your next century milestone is not too far in the future.

  120. Wow, I feel smarter now. I’ve always said that first $100k is the hardest, so I’m thinking like Charlie Munger!

    It’s definitely true, but shouldn’t be thought of as an insurmountable goal. Put $1000 away when you can, then another $1000. By the time you get the third or fourth $1000 put away, you’ll probably have some growth on your first bit of savings. Keep doing that routinely and eventually you’ll get to $10k then $50k then $100k. Some of the distance will be covered by contributions, some by investment gains. And once you get $100k, it really does snowball. You might get $6000-7000/yr in growth from very average index funds. That’s more than some folks put in each year!

  121. Just wanted to say congratulations and thanks for being so inspiring! I am a few years older than you but only have a net worth half of yours – you are doing awesome! Here in Canada where the housing market is crazy, all my friends are throwing tens of thousands of dollars down on home deposits. This scares the hell out of me as the money seems so unproductive, especially when the housing market is at record highs with record low interest rates. Plus my rent now is so low, I’d prefer to use my savings to buy great dividend stocks. What do you think about that?

  122. Hi Steve,
    It’s difficult to realize that we are building capital in an illiquid asset. It’s not the same feeling as seeing a solid dollar value on a liquid stock account. I can’t directly use my house for retirement and that’s what makes me feel weird!

    Thanks,
    WE

  123. @All

    For the purpose of inspiration it might be worth to consider, that during “bearish times”, which will occur!!!!, each and every fund (whatever the name) will decline in value, but only the strict DGI orientated ones will have the willpower to ignore the decline and carry on and acknowledge buying opportunities!

  124. As much as I give you credit for making the original snowball & getting it rolling downhill, I think a bit of credit should go to the lady sitting on the couch, probably watching you answer these comments. Even though you were a saver & did invest regularly, your personal life was all over the place a year ago, and I believe she had a lot to do with you settling down, and realizing your future was with her, and her son in Florida. Starting with leaving Florida, quitting your job to move back to live with family, then on to Ann Arbor then Grand Rapids, you were all dressed up with no where to go…lol. Even after realizing what you really wanted was what you already had, and put a ring on her finger, not many brides would consent to spend their honeymoon listening to an 80 yr old billionaire talk. You seem more settled, more focused & certainly more relaxed, and why not, it’s always easier to reach a goal when you have someone in your corner. Cheers to you, but raise a glass of milk to her too. She is as the great Bob Seger, from your hometown of Detroit sings, ” Like a rock”

  125. Awesome post Jason very inspiring. It really doesn’t matter where you start as long as you have the perseverance to get to the goal. And getting there is the fun part.

  126. Congrats on reaching the $200k milestone Jason! 🙂

    I think you will find that those milestones will occur faster and become easier. M guess is that you will hit the $1MM milestone before 2020. Your snowball will keep rolling in ways you never expected.

    “Luck is what happens when preparation meets opportunity.” – Seneca

  127. Jos,

    Appreciate it so much. I’m grateful and fortunate to have such a great readership. 🙂

    I’ll keep writing if you keep reading. Lots more to come!

    Best regards.

  128. John,

    $35k begets $100k, as you can see. And it happens quicker than you might think if you give it 100%. There’s certainly a lot more to life than money, portfolio value, and dividend income, but the passive income buys a lot of life and a lot of opportunities. It buys time. And that’s what I think we’re all really after.

    Keep it up!

    Cheers.

  129. VENKAT,

    Thanks for stopping by! Glad you found my humble little spot on the internet. 🙂

    There’s a lot of possibilities and opportunities out there. That’s for sure. And those of us living in first world countries have even more of it. I imagine you’re at a disadvantage over there somewhat, which is why I admire your conviction even more. You have the power to change your own future. It’s like a time machine. You can imagine the future you want, and then work hard to attain it. I wish you nothing but the best of luck!

    Take care.

  130. Ndy,

    Thanks for sharing that. I need to copy and paste your whole comment and put it up at the top of the site. So many people believe it’s all dependent on your income, when it’s not at all. Sure, a high income is better than a low income once you’re rolling along, but only if you already have the right mindset. It’s very easy to get caught up with lifestyle inflation and keeping up with the Joneses, and that scales up with income. Our wants are insatiable. But our needs are really quite easy to satisfy. Once you start to realize the difference between wants and needs and what really makes you happy, it becomes a lot easier to save that money. Investing the excess capital intelligently is the next step, but that’s not that hard if you apply yourself.

    Glad you’re turning things around over there. It’s difficult to get out off that hamster wheel and see the light. But once you see it, it’s beautiful. And you can’t ever go back. 🙂

    Best wishes!

  131. DGJ,

    Yeah, I hear that. I’ve dropped back down below the $200k mark with all the volatility. But I’m very happy for it. More opportunities for our fresh cash. 🙂

    I think you’ll find it gets easier over time. Your money and good habits both compound over time and work heavily in your favor.

    Cheers!

  132. Alex,

    Congrats! That’s a huge number there for someone your age. I can only WISH I would have started back in my early 20s. I’d be like Pete over at MMM, retired at 30. But I do appreciate what I have so much more now, because I know how hard I’ve had to work to come back and right past wrongs.

    Keep it up over there. I imagine you’ll be hitting that seventh digit at a younger age than me!

    Cheers.

  133. LD,

    Happy to share! 🙂

    I know what you mean about past mistakes. I’ve made plenty. But the good news is that time marches on and every day is a new day. We have opportunities every single day to propel ourselves further away from past mistakes and closer to the victories we’re working so hard to attain. You’ll get there before you know it.

    Thanks for dropping by!

    Take care.

  134. Spoonman,

    Agreed. The first $100k just reinforced that I was on the right track. Every $100k after that is just an eventuality at that point. And I definitely focus far more on the income. I have no idea what the portfolio value will be in six months or a year from now, but I do have a fairly good idea as to what my dividend income will be. 🙂

    Thanks for all the support. Hope all is well!

    Best regards.

  135. Justin,

    Absolutely. It starts to snowball before you know it. The hardest part is really just starting. But once you start, it gets easier. Like I said, the more you save, the more you want to save; the more you invest, the more you want to invest. Seeing the passive income roll in means you want to see even more of it. It’s this giant positive feedback loop that develops into a self-fulfilling prophecy of success. 🙂

    I guess you’re smarter than you thunk! 🙂

    Cheers.

  136. Iain,

    Thanks so much. Doing my best to inspire and share all the victories and setbacks along the way. 🙂

    I can’t really comment too much on the Canadian housing market. Seems to be in bubble territory to me, though. But your market is pretty resilient and the banking/lending standards up there are quite different than our own. That said, I prefer to buy stocks and rent shelter. The former returns around 7% or so after inflation over the long haul, while the latter is somewhere near 0%. That’s for the US market. A house is an expense in the end. The cheaper you can attain it, the better. If that means owning, then go for it. But I think a lot of people buy homes for qualitative reasons. Not saying that’s good or bad, but I prefer to take a more pragmatic/quantitative approach to it. Just me.

    Best of luck up there!

    Take care.

  137. Well done Jason.

    The first 100k and then the first 1mio are the most difficult ones.

    Cheers,

    RA50

  138. Brian,

    Absolutely. Claudia has been really supportive of everything I’ve done along the way. Though she contributed $0 to the portfolio and wrote zero articles on the blog, the support is still immensely valuable. I don’t necessarily believe this journey is successful only if you have a partner on the same page or even a partner at all, but I think it helps a lot. Claudia doesn’t necessarily share my vision as I’ve discussed before… but she roots me on all the way because she knows it makes me happy. And I root her lifestyle on as well for the same reasons.

    I don’t think I’d really be in much different of a financial situation had I stayed up in Michigan, but it surely wouldn’t be as enjoyable.

    Thanks for adding that. Claudia reads most comments, so she’ll surely enjoy that one. 🙂

    Cheers!

  139. Syed,

    Absolutely. If you believe in yourself and you’re willing to do what’s necessary, nothing can stand in your way. 🙂

    Thanks for the support!

    Best regards.

  140. Bryan,

    Great quote there by Seneca. One of my favorites. I also believe in something similar – that success is where hard work meets luck.

    We’ll see about that seven-figure mark. I think it’ll take a lot longer than that, but you never know. Maybe I make a lot more than I anticipate. Certainly wouldn’t mind that! 🙂

    Appreciate the support. Let’s keep fighting the good fight and living the good life.

    Best wishes!

  141. RA50,

    Thanks!!

    It’s a long road, but it’s also a lot of fun. And taking a quick minute to celebrate those little milestones is worth it. But then it’s right back to the hard work. 🙂

    Cheers.

  142. Hi DM,

    I don’t think the 1st 100 000 is the hardest part, I think getting started is the hardest part. I recently had a disscussion with a girlfriend about the perks of saving a lot of money early in live. She just couldn’t grasp the concept of compounding and then she was jealous at me since I managed to buy a penthouse at age 23 and pay less ( a lot) in mortgage then she pays in monthly rent…

    Some people just don’t get it.

    I will probably break the 300 000 EUR ( in stocks) mark this year at age 26. I always knew I would become rich eventually but I never knew it would go so fast. Up to financial independence!

    Cheers,
    Geblin

  143. Geblin,

    Starting is definitely tough, especially for those that haven’t really seen the light. If you just “don’t get it”, it’s tough to make that mental leap and actually get rolling. That’s why I was mentioning that the psychological effects compound a lot like money, making wealth/income easier and easier as time goes on. That good habits become second nature just as your money works harder and harder for you, rolling that snowball at an ever-greater rate.

    Congrats on your success over there. I certainly never knew I would become rich. I always thought I was destined to be poor. But then I realized that fate is what we make and I had the chance to change my own future and life story. It’s what you make it. 🙂

    Keep up the great work. You’ll be a millionaire in your 30s at that rate. What a life!

    Best regards.

  144. Hi Jason,

    Been following you for a while and as many have said, very inspirational and congratulations on the milestone. Also great to see a good few contributors quoting their portfolios in pounds and euros – seems you have a bit of a global following – I am investing in mainly US stocks from here in Sweden.

    Quick question – Whilst the 200k mark is a great achievement I guess your real goal is a sustainable income level to allow you to …well ….do whatever you want. This year you are targeting income of USD 7k …have you run the numbers based on a combination of targeted new cash invested and reinvested dividends to see how far off you are from full FI?

    Realise it’s not an exact science but just curious to know.

    All the best
    Neil

  145. Neil,

    Yeah, it’s wonderful to have a global readership. Appreciate you stopping by from Sweden! 🙂

    I think the concept of financial independence and freedom is one that translates well across borders. It resonates with most everyone. Doesn’t matter if you live in Italy or Finland or the US. I think we all see the attractive nature of owning your own time. It’s something that has no borders.

    As far as my own calculations go, my original calculation (going back to early 2010) had me financially independent in 2022 with between $18,000 and $19,000 in annual dividend income. That same prediction saw me earning $6k in dividends this calendar year (2015). So I’m ahead right now. I also didn’t factor in any active income at all, which I find unlikely. We’ll see how it goes, though. Life is dynamic, much like this journey. Income could go up, or it might go down. And maybe a few investments don’t pan out. And that’s why I like showing it in real-time like this. But based on the new calculations, I’m at least a year ahead, which puts me FI at 39. We’ll see!

    Hope all is well with your own journey over there. 🙂

    Best regards.

  146. Much like you I had accumulated $187k by the age of 34. Unlike you, I started saving the requisite 10% from that first official job at about age 23. Living below your means, taking on little debt, investing in low cost index funds at the time, and lsowly increasing the savings rate. At 34, thought it was time I set up a spreadsheet and made the commitment to hit the $1M mark by 50. Proud to say that goal was accomplished as well. Now, after converting the index funds to dividend paying stocks, trying to achieve FI with dividends only. Only a few years left – like you, to achieve the goal, conquer the mountain, and early retire. It won’t be as early as you but everyone has varying income requirements/needs. Happy Investing, and keep setting goals, it is very motivational and increases your satisfaction as they get knocked down 🙂

  147. Abacus,

    Congrats on drawing up a plan and sticking with it for year on end. I can imagine you feel immense satisfaction because of that! 🙂

    We definitely all have different income requirements and lifestyles, so what I need will naturally vary from everyone else. As such, there’s really little value to be had in comparing yourself to anyone else. But as long as you’re on pace for your own goals, living your life with the purpose that brings you the most happiness, and you’re free of the burdens that bring you down, then that’s all that really matters.

    Stay in touch. And keep it up over there. I’m sure you’re enjoying the rewards that come with all that hard work!

    Cheers.

  148. Thanks Jason! Coincidentally it just so happens that I moved to the Detroit area to start working the well-paying software industry job that has me growing my NW so fast. Small world 🙂

  149. So far I’ve been able to save away $40,000 as I approach 3 years of actually putting money away for that purpose towards the end of this year. So it’s been slow going so far, but it’s not like it’s been without progress. I think I’ve done pretty well with having to pay off student loan debt at the same time. I’m thinking that is what is making my first $100,000 the hardest. I should be debt free by that time – so hopefully the next $100,000 is a little faster/easier!

  150. i took a little different rout, by occupation i am a carpenter. I bought a house, fixed it up and sold it for a nice profit and kept reinvesting my profits into other homes. That was a little over 6 years ago. Since then i have three homes that i own free and clear with no mortgage i rent out that give me about 48,000.00 of free cash flow a year and i use that money now to invest in dividend paying stocks. I am able to invest about 3,000.00 a month in dividend paying stocks that will continue to grow, but my cash flow of 48,000.00 is my safety net and i don’t have to worry about some guy in France, Russia or the Fed. I continue to work as a carpenter because it is not work to me, i love my job.

    I make 48,000.00 from 3 homes and about 8,000.00 in dividends form stocks a year. At 36 years old i consider myself financial independent. Just took a little different route. Do what you love and don’t listen to the naysayers.

  151. Great post! I’m on the verge of my first 100, so i can definitely relate. I think that’s a great first major goal to strive for so I can only hope that the next 100 and so forth come a tad easier. Luckily, I’m hoping I hit that first major milestone by the end of the year. Thanks for an outstanding read.

  152. DH,

    Congrats, my friend. $40k is still a really great position to be in. Like I’ve mentioned before, we sometimes become a little numb to these numbers because we spend so much time thinking, reading, and (sometimes) writing about this stuff. But the vast majority of the population has a really hard time with money and many can barely afford a surprise expense. But you’re well on your way.

    Debt can compound against us like investments can compound for us, so you can look forward to a big tailwind once that student debt is slayed.

    Keep it up!

    Cheers.

  153. daniel,

    That’s a fantastic position to be in. $48k/year in cash flow that doesn’t require a full-time job is pretty amazing. And that’s a great call rolling a good chunk of it into the dividend growth stocks. That way you simultaneously diversify your income while also increasing the passivity of it.

    I wish I had the skills or interest that would allow me to do well in real estate, but it’s just not there for me. Couldn’t imagine wanting to do anything less than own/fix properties and be a landlord. But I was gifted with the interest in stocks. Better that than nothing. 🙂

    Keep it up!

    Best regards.

  154. SAD,

    That’s an exciting position to be in over there!

    I definitely think you’ll find it only gets easier over time. Money can work harder than we ever could. Works 24/7, 365. And never gets sick. It’s like a machine, like a Terminator. Except its mission is to multiply. 🙂

    Keep it rolling. You’ll be there (and beyond) before you know it.

    Take care!

  155. Great milestone indeed! The mental part of this equation is so important. A few months ago people were complaining that valuations were too high, now they’re complaining that their investments have fallen up a bit. Let’s be opportunistic and make the best we can while shares are on sale!

  156. Hello DM, I have a question, do you get charges in your brokerage account for “ADR management fee” when receiving dividends? I wonder why this charge is only for certain stocks. Perhaps I should avoid these stocks! Thanks for any insight.
    Thanks for your blog.

  157. Hey Jason,

    I love your blog, great job! You have inspired me to get involved in dividend growth investing. Quick question, please forgive my ignorance I am completely new to investing. When initiating a position how long do you have to be a shareholder before you see your first dividend? For instance if the company pays a quarterly dividend in April and you initiated the position in March, would you get a dividend?

  158. YoungInvestor,

    Let’s be opportunistic, indeed. I’m very, very much looking forward to cheaper stocks. And I’ve been averaging down pretty aggressively on a number of names over the last couple months or so. Hoping to continue that. 🙂

    Thanks for stopping by. Hope all is well!

    Cheers.

  159. TDH,

    Thanks so much. Glad you found some inspiration in the post. That’s why I write. 🙂

    You’re probably a lot closer than you think. And every day is a new opportunity to get that much closer. Keep it up!

    Take care.

  160. Jan,

    ADRs generally come with fees from the custodian bank. So many, if not all, will sport some kind of fee that comes off the dividend. These fees are generally somewhere around a penny per share that’s lopped off of the dividend. I find that a pretty small fee to pay if we’re talking about a great company, but that’s an individual call. Some brokerages absorb this fee, some don’t.

    Cheers!

  161. DD,

    Thanks so much. Glad you found the blog and you’re enjoying it thus far! 🙂

    As far as your question goes, the ex-dividend date determines whether or not you’ll receive the next scheduled dividend. It’s basically the “cutoff date”. You have to purchase (or already own) a stock at least one business day before the ex-dividend date. So if you buy a stock on July 10th and the ex-dividend date is July 10th, you won’t receive that scheduled dividend. You’ll have to wait until the following dividend. But if you buy that same stock on July 9th, you’ll receive the next dividend. You can always find a stock’s ex-dividend date on its investor relations page. Morningstar also is generally very accurate when it comes to looking up the ex-dividend date.

    I write for Daily Trade Alert and every Friday we highlight dividend growth stocks going ex-dividend the following week. Gives you a heads-up, if you will:

    http://dailytradealert.com/category/dividend-growth-investing/ex-dividend/

    Hope that helps!

    Cheers.

  162. Hi Jason,

    funny, my first 100.000 € were the easiest and it took more than five years. Thats much longer than you needed. But I didn´t really save and I didn´t have any target. It just happened. So I didn´t think about this money or what I could do with it. By the way: I lost it after I lost may second company and was forced to start new. The second 100k € took about four years and was much harder to do, because I had to pay back a lot of money. But I thought, it would be useful to save as well some money to have more flexibility. But you are right: the first 100k is the hardest, because you are not used to save regularly, if you haven´t done this before. You have to change things, spend not that much money and look to opportunuties for earning money beside your normal job. This is quite difficult and you have to find your personal way to do that. A lot of people miss this or they just want to live with all the luxury they like to have around them.

    But if you find yourself a successfull way to save regularly money and live convenient, than there is no doubt that you will succeed. The first 100k is the most important milestone, because you have established your first real money and you will see, that the money is really starting to work for you. OK, with 10000 € it is doing that as well, but nobody is seriously thinking about 300 € income/year divided probably in 30 dividends with 10 $ / each. A 10% growth of the portfolio will do 1.000 € (nice in the starting phase), but with 100k you will have 10.000 €, thats the whole small portfolio. I think, the main reason to grow that faster is the amount of the existing stock. And you get not much help in the beginning from your portfolio and invest about 90/100% with new money you earn. That is the hardest part and I understand, that people say: Its too hard for me. But always thinking about this 100k is not that positive. The best is not to think and save money regularly and invest it in stocks. If you reach lets say 40k, you will see: Hey, this can work. Normally you should get around 100 € / month on this stage, and this is money where I really think: Hm, 100 €: this is a nice day in the mountains and some additional stuff I can buy on top.

    You are now near the 200k and you really see, that your shares are helping you more and more. May be you invest at the moment is around 70 – 80% to get forward, but your shares are helping now much more. And you know, in the future there comes the day that it is not important, if you save anything from work. Your fund will do this for you. You are often writing for the day, when you get FI. But after this, your portfolio gets automatically beyond this even if you live from it and don´t do much more than to reinvest the money you don´t need for your living. But saving the first 100k doesn´t offer you the luxury, thats why its so hard to get there. Not many people have the persistance to achieve this.

  163. Thank you for sharing Dividend Cannoneer. Your comment below really resonated with me:

    “I have an excellent work ethic, some ability and I assumed that with that combination I would always have a job. However, I got downsized early in the Great Recession……”

    I have a friend who made the exact same assumptions, except he was downsized several years before the Great Recession even began. I hope your comments serve to warn those who think they’ll never lose good paying employment until they’re 65. Many people lose good paying employment in their 50s and should prepare accordingly.

  164. Hey Jason,

    I’ve been following your blog for a couple of years now and I love these inspiring posts! You’ve done a great job accumulating all this wealth! I started investing end of 2012 and I’ve been saving roughly 60% of my total income since. I’ve reached just over $83k with a current YOC of 4.37% from dividends only (not including the share price growth).

    Thanks for writing, very inspirational!

  165. olli,

    Thanks for sharing that!

    I couldn’t agree more with what you’re saying there. It’s really a coalescence of good habits and money compounding – it’s where both of them start to work in your favor that you see compounding really take off. It can change your life and wealth in ways you might not expect or predict. And I think that starts to happen at right about that $100k or so level, depending on your means, needs, and time horizon.

    Your confidence builds over time with more money working for you. And that makes you want to work harder and harder for more money, while the money you’ve already saved and invested is simultaneously starting to work harder. It’s a great thing to see it all come together like that. 🙂

    Keep up the great work over there. I wish us both more wealth, health, and happiness every day!

    Cheers.

  166. PP,

    Thanks so much for following along. Really appreciate the readership and support. Hope you continue to find value and inspiration here. 🙂

    Congrats on your success thus far. That’s a very, very healthy chunk of change. You’ll see that the mountain is slightly easier to climb over time. And before you know it, you’ll be making great strides ahead where it was once difficult just to take one step forward.

    Keep it up!

    Take care.

  167. I agree–the first $100K was hardest for us too. There’s something about starting at zero that makes it seem like such an impossibly daunting number. But then once we got there, everything since then has felt like smooth sailing. I think it’s because we’ve gotten into such a routine with frugality and investing that it’s just a lifestyle–not a struggle. I totally agree with you that “The more you save, the more you want to save.” Experiencing success is extremely motivating. Congrats to you!

  168. Hi Jason,
    After following you for a week.Open an #Acc on 06/01/2015.(10k)my first month dividend $5.20. is going take long long time for me to get there. And i can only add 1K every month.I’m 56yrs old maybe is to late for me anyway i will see how long is take me to get the first $100K. Sorry for the English.

  169. Mrs. FW,

    Thanks for sharing your experience!

    I agree with you. It can seem so daunting at first. It’s tough to look at that long road ahead and get marching. But once you’re a ways into the journey, it doesn’t seem so unconquerable any longer. And you move faster and faster as you go, due the compounding of good habits, experience, and money.

    The more you have, the more you want. And before you know it, you’re further along than you ever thought you’d be.

    Thanks for dropping by. Have a great weekend!

    Cheers.

  170. alex,

    That’s fantastic. I wish you nothing but the best of luck with that. Just make sure you can stomach the volatility of the stock market. It’s surely not for everyone. But those able to use short-term volatility to their long-term advantage will do well with stocks over the long haul.

    No problems with the English. 🙂

    Best wishes!

  171. Way to go Jason!

    I also remember the difficulty of reaching that first $100k. And like you, I was also lucky with my timing. I started my investing in the late 90’s and have continued plugging more away every year. Market up or down I kept my regular investments going in.

    The one thing that has become interesting is as the size of my portfolio has grown, the swings in the market value become something that can give you pause. Over the last two-months the value of my holdings has dropped by over $250K. And in my mind when the market is down, that is the time to put even more money into my own Freedom Fund because I know that Mr. Market will eventually bring it all back.

    And by picking high quality dividend payers, my dividend checks haven’t dropped a bit and are actually going up!

    So keep the long view and keep plugging along.

  172. Congratulation! The first $100k is definitely the hardest. Once you get it rolling, it should take less and less time to achieve the next 100k. We just passed 300k earlier this year and I didn’t really noticed it. I was more focused on the income. 🙂

  173. Mike,

    “Market up or down I kept my regular investments going in.”

    That’s the way to do it. Ignore the noise and keep plowing the capital in. High-quality businesses will do the rest. 🙂

    I once read that the market is like watching a guy with a yo-yo walking up a flight of stairs. Most people tend to pay attention to the yo-yo. Successful long-term investors pay attention to the fact that the guy is more or less moving upward over time.

    Keep up the great work. Love the recent volatility, though today wasn’t one of those advantageous we look forward to. Barely saw any red at all across the entire portfolio, unfortunately.

    Take care!

  174. Joe,

    Thanks for dropping by. Glad to see the dividend portfolio is rocking for you over there!

    $300k is fantastic. What’s even more fantastic is the income that thing is pumping out for you guys. And you can be pretty confident that it’ll only increase over time – both organically through dividend raises and reinvestment as well as through the addition of fresh capital. Keep it rolling. 🙂

    Best regards.

  175. Congrats Jason! You’ve been an inspiration to me and so many others! And while you may see it as “another $100k”, it is more importantly a 100% increase in portfolio value. So the next 100% means a $400k valuation, as the snowball rolls.

    I also really like that you invest in the best bargains the market gives you, month after month. Patient investors can do very well with this approach. Mr. Buffett has talked recently about how the many different companies inside Berkshire’s conglomerate allow him to allocate capital much more effectively than most CEO’s that are locked into the economics of their industry. You’re in the same boat as him, and doing very well indeed… continue growing that impressive mini-conglomerate!

  176. Soggy,

    Thanks so much!

    I definitely think of the portfolio as a “miniature BRK”. I certainly don’t have the benefit of a float (or Buffett’s business/investment acumen), but I do have some insurance companies in there and I’m not bad at allocating capital. Besides, I don’t need billions to get to where I want to be. 🙂

    It’s a great way to think about one’s portfolio. It’s exciting to think of yourself as this capital allocator at the top of the hill, collecting all of those dividend dollars to redistribute as you feel appropriate. Jut a lot of fun.

    Appreciate all the support. Let’s hope we have plenty of deals ahead so that we can allocate our capital a bit more advantageously!

    Best wishes.

  177. AAPL took a nose dive this week for no sane reason, so I snagged some more! I learned here that while the overall market might be getting steamy, it doesn’t mean there aren’t values hidden away!

  178. Stephen,

    It is indeed a market of stocks out there, rather than just a stock market. Lots of merchandise in the store! 🙂

    Glad to be a fellow shareholder there. One day, the market loves a stock. The next, not so much. Gotta be opportunistic.

    Cheers.

  179. Hi Jason,
    The first 100k is the hardest indeed. But in my opinion, the toughest part is ‘seeing’ money in a different way. For most of my friends, money is something they can spend. And of course, they have limitless wishes to indulge on…
    For me, money is something else: every euro I save, adds up to my capital. And capital works for me, ands helps me to replace labour. So, in the end, I don’t need to work myself.

    This is why I like reading your blog so much, since we’re on the same page.

    Personally I can tell every next 100k is easier, I’m now working on my sixth one. Lifestyle inflation is however a major factor. I’m now almost at a coverage of 50% of my expenses.

    I wish everyone good luck and persevearance with their journey to FI!

    Cheers from Holland

  180. I definitely agree regarding the first 100k. My question for you is did you also contribute to the Freedom Fund over the past two years or is it total growth? Keep plugging away. You will be part of the two comma club in no time.

  181. Still working towards my 100k. Would have been there 8 years ago had I not cashed out my 401k. Bad choices do hurt but they shouldn’t stop you from achieving your goals.

  182. DG,

    Thanks for dropping by and sharing that.

    I agree with you. It really takes the right mindset to go from that consumerist perspective to that of a saver/investor. But I think once you have that mindset and make that mental leap, it’s a very, very compelling way to live and think about money. 🙂

    Congrats to you on your progress and success. You’re in an enviable position. One that very few people ever get to. Keep up the fantastic work!

    Cheers.

  183. Jason,

    Thanks for the support!

    As far as your question goes, I contribute fresh capital to the portfolio every month. I share my savings and stock purchases with the world, so you can always see exactly how much I’m saving and what stocks I’m buying with the savings.

    Hope your journey is going just as well. 🙂

    Take care!

  184. DFG,

    Choices and consequences. I know how that feels. If I could go back and change a few things, I’d be sitting pretty now. But those mistakes make us who we are. They allow us to learn, grow, and transform over time. And I’m sure that getting back there will taste that much sweeter!

    Keep plugging away, my friend. Money will work harder and harder for you over time. 🙂

    Best regards.

  185. Congratulations. Another Munger quote I really like:

    “If you buy something because it’s undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That’s hard. But if you buy a few great companies, then you can sit on your ass. That’s a good thing.”

    He was not talking about dividend investing, but it applies very well

    http://totalreturninvestor.blogspot.com/2015/01/three-wise-men-on-quality-income.html

  186. I think the hardest is to begin and stick to plan! Then, things go his own way.
    One has 10k the other 50k, but all have a little of FI!

    I like to think a bit like this: “Nice, these stocks pays for my phone bill, those for my electricity bill” and so on…

    Great job on yout savings rate and dividend income” You are inspiring!

  187. I think it could very well be the hardest. Like you said, once you do get to 100k in invested stocks, the dividends alone start being able to add a very nice amount of cash to purchase more shares, requiring less cash to keep up with new purchases. Im edging closer to the 30k mark, and already I am finding its getting easier to just add a little cash into my brokerage to make a purchase compared to when i was starting out. Just playing the waiting game now till 100k 🙂

    Thanks for posting DM.

  188. Nice work on building up your portfolio! Have you compared your portfolio’s total return vs an index ETF? I’m sure you’re aware that most stock pickers don’t beat the index, which makes me wonder why you pick your own stocks.

  189. gunnar,

    Absolutely. That quote reminds me of some of my favorite Buffett quotes:

    “Inactivity strikes us as intelligent behavior.”

    And…

    “Lethargy bordering on sloth remains the cornerstone of our investment style.”

    Successful investing doesn’t require a lot of constant activity. I quite like a little sloth here and there. 🙂

    Thanks for dropping by!

    Cheers.

  190. Nuno,

    Absolutely. It’s hard just to get that snowball rolling in the first place. But once you do, the rolling gets easier and easier over time as that thing starts to take on a life of its own. And that’s where things really start to become fun. 🙂

    Thanks for the support. Lots more inspiration to come!

    Best regards.

  191. DW,

    Keep it up over there. You can see what’s possible here, even with an income that isn’t all that impressive. I remember hitting $30k like it was yesterday. That become $50k, which became $100k. So on and so forth. The income grows and grows and before you know it you’re getting a major helping hand from this invisible worker. Success begets success.

    Thanks for stopping by!

    Best wishes.

  192. Jason,

    I prefer individual high-quality dividend growth stocks for a number of reasons. I’ve touched on that a few times, but a good list of reasons can be found here:

    https://www.dividendmantra.com/2013/04/why-i-vastly-prefer-dividend-growth/

    But I don’t actively compare my portfolio’s total return to any benchmark:

    https://www.dividendmantra.com/2013/12/why-i-dont-compare-my-portfolios/

    I do, however, keep track of the total return via an XIRR spreadsheet with an occasional update of cash inflows. Out of the sake of curiosity, I took a quick look at the portfolio’s numbers against the S&P 500 at the end of last December (about five years in). I was beating the market by a large margin, but I found absolutely zero value in that information (much like I figured I would) and will probably never do that comparison again.

    Take care!

  193. I can also attest the first $100k is tough. Then $200k happens faster, then $300k.

    As you know we hope to have $1M in the bank to retire on in another 10-12 years. That’s the goal, we’ll see!!

    “Well, my Freedom Fund closed over $200,000 in total market value for the first time ever on June 18, 2015.”

    At your savings rate you will be there in another 10 years – fully “retired” living off mostly blog income and dividends and never touching any capital. That will be the good life Jason.

    Cheers,
    Mark

  194. It’s an inspiring message and story. I’m in the position of starting from basically zero with an initial goal of $100,000 for a fund for my young son who was diagnosed with autism just before he turned three years old at the end of last summer. It really hit home over the few months after that when I read that the lifetime cost of autism is around $3 million. Luckily, my wife and I are teachers with stable jobs and steady income – and good insurance.

    But it hit me that while we can provide for him this year, next year, etc – what happens when he is 21, 35, 50, 75…basically I became afraid of all the short term (will he ever speak) and long term (who will care for him and where will he live, what will his life be like when we’re gone) and it lead me to open another account at Scottrade earmarked just for him. In the meantime, I’ve continued to read everything I can – which I’d been doing as a newbie investor for my retirement account anyway. I came across your blog, and it inspired me to start my own blog to chart my own journey with the Autism Fund and use your successful fund as a model for my own as it starts out. So really, know that your story has touched a lot of us out there. Wishing you continued success!

  195. Hey Jason,

    As soon as I saw the title of this post I knew it was going to be a great one. And it was even b etter than I thought. My snowball is moving very very slow right now and 100k is so far away for me but I know i’ll get there with more time thats all it takes. Thank you for the inspirational post.

    Tyler

  196. Yes very true. For me the problem was little different – lack of capital
    In our culture buying a house and car early is important as someone ( I mean men) who does that is considered “successful” . Everything else is secondary.
    Initial 5 years I saved most of my salary to buy those 2 things.Hence I had very little capital to invest. I finally bought my house and car in 2013 (27 years old then)
    Now since major expenses are out of the way , 90% of my savings go into equity.Rest is parked in some ultra liquid funds.
    Whatever meagre amount of stocks I had bought initially have multiplied 4-6x.So sometimes I wonder whether buying that car was a right thing to do.

  197. Well its almost 1 year for me as well and my portfolio is comparably microscopic to yours 🙂 Its only 3,7 th. USD. Im not that very much into that frugal living stile that you do. In that rate of saving I will reach my first 100K in just 20-25 years 🙁 Will see how this will go in the future 🙂

  198. When I read the title I told myself, “The first 100K was hard but I believe the first million is the true test!” lol…Then of course I read further and I should have known you were going to talk about the first million. Right now, I’m not thinking of the first million but rather I have a goal to get to the 2 dollar commission fee at the brokerage house. I thought of moving my funds to another brokerage like IB but really like the brokerage I’m dealing with on a regular basis.

  199. Mark,

    Absolutely. An object in motion tends to stay in motion, right? And momentum is a powerful force. 🙂

    Best of luck as you guys continue down that goal of $1 million. I don’t have any goals relating to net worth or portfolio value since I plan to live solely off of the dividend income, but I’m definitely on pace for retirement/financial independence by 40. Feels good.

    Keep it up!

    Cheers.

  200. Brian,

    My wife’s son is in the spectrum, so I know how that goes. It’s great that you guys have the foresight to plan ahead, though. That gives you options, which is really what’s so great about wealth/passive income. It’s far better to have to many options than too few.

    I’m glad my story and progress is inspiring you guys to take up a cause/mission that’s close to home. Wish you guys nothing but success as you build out your own fund. I’m confident that you’ll see just how powerful persistence, will, and perseverance can really be when you’re passionate about something and you really want it.

    Best regards!

  201. Tyler,

    Thanks so much. Appreciate that. Glad you found inspiration in what I’m discussing here. Staying 100% aggressive and completely transparent about it for years on end isn’t easy, but it’s really my aim to inspire as many people as possible to change their lives for the better (if they so wish to).

    It might seem like things are rolling along slowly now, and maybe they are. But life (and wealth) isn’t linear. It’s dynamic. And compounding really starts to do some heavy lifting once you push it along a bit. You’ll see. 🙂

    Stay in touch!

    Cheers.

  202. harsh,

    Our culture is much the same, unfortunately. It’s really about who has the biggest house, nicest car, flashiest clothes. We call it “Keeping up with the Jonses”. But all that stuff does is keep you chained to the desk, running a rat race that nobody wins.

    But once you see the light, you realize how beautiful it is. And then you see how silly it is to try to keep up with anyone but yourself.

    Best wishes!

  203. furidolt,

    We all have to start somewhere, bud. The key to financial independence is really your savings rate. If you’re able to figure out how to decrease your expenses dramatically while at least keeping your income the same (all the better if you can simultaneously increase your income), you’re on your way. Every day is a new opportunity to do just that! 🙂

    Cheers.

  204. Raymond,

    Ha! You can definitely replace ‘$100K’ with any other number – be it wealth or income – and the result is much the same. The good news is that it’s scalable. Compounding is magical in that it becomes more powerful the further along you are. Gives me a lot of motivation to keep going and keep pushing that snowball with everything I’ve got. 🙂

    Thanks for dropping by!

    Cheers.

  205. Hi Jason,
    Love to read all of your posts! I like that you are ahead of me (both in capital and life). I hope you will continue posting once in a while about buys and other posts when you are FI. It would really help me because i have a longer way to go. I have passed 1k forwarded dividend income and im 20 years old.
    hope to reach the 100k milestone before 25! As i just read comments about people starting in early twenties makes me excited about my future!

    Time will tell…

    Meanwhile, keep up the good stuff!

  206. FS,

    Congrats on starting so early. That’s such an incredible advantage compared to so many other people that either start late or don’t start at all.

    I certainly hope to still be writing in some capacity years down the road. My goal is to show the journey leading up to financial independence, then show what it looks like to actually attain it, and then continue on past that point. But we’ll see. That’s a lot of ambition! 🙂

    Keep it up over there and I’m sure you’ll blow away your expectations.

    Cheers!

  207. Hi Jason! You mentioned somewhere that you are “a guaranteed millionaire” can you explain how you came up with that figure with a 200k portfolio at age 33? What did you base your calculations on and are you counting on putting in new money into your portfolio on a monthly basis for a certain number of years?

    Thanks and keep up the awesome work!! 😉

  208. LPI,

    No problem!

    I wrote that post a while back:

    https://www.dividendmantra.com/2013/08/a-guaranteed-millionaire/

    Using the same calculations (7% rate of return until 61 years old with no more investments), I’d now end up with more than $1.4 million. So I’m ahead of pace. It’s likely that I’ll eventually end up with many millions before I’m dead, which opens the door to plenty of philanthropy down the road. 🙂

    Thanks for the support. We both love our passive income. 🙂

    Best regards.

  209. You are very right, Jason 🙂 My saving rate is only 12% this year. But we have a lot of spending for new apartment we just moved in. I have calculated that it is enough to save 50% of you income for 10 years and then your expenses are fully covered from dividend income. This it the basic idea. It will be very hard for me to reach that 50% but as you said it not only about expenses cutting it can go both ways. You can double your income and stay with same expenses and then you will have that same 50% saving rate. I will have my first milestone 10K EUR since I live in Europe. By the way im not that very far actualy I did have invested some funds in other saving instruments, so not I actually have around 8K EUR in my portfolio 🙂 Should reach that 10K line this year 🙂

  210. Hello Jason,

    Many thanks for your response.

    It is very difficult for me to achieve this corpus of $1,00,000 in India where the annual salary is around $12K-$14K.

    Yes, I am looking at other means to achieve this corpus since the rupee value is lesser when compared to US dollar.

    We do have plenty of opportunity back here.

    I am waiting for your new updates.

  211. Congratulations on hitting the $200k mark – well done, what a fantastic achievement in such a short space of time!

    I’m hoping to get to £50k by the end of the year – it’s taken me a long time to get this far but I only discovered your blog (and other PF/FI blogs) in 2014 so I was a very slow starter!

    Next, it will be onwards and upwards towards that incredibly tough £100k mark!

    Hey, maybe I should work things out in US $, I’ll get to the 100k quicker, hehe!

    Thanks for continuing to inspire me!

  212. weenie,

    Thanks for the support. It’s been such an incredible ride. I’m just so glad the me of 2010 decided to get into gear. 🙂

    Congrats to you as well for your success. That’s a fantastic start and I’m confident you’ll see the progress start to come about faster and faster. The more you save, the more you’ll want to save. And, fortunately, the more you have, the harder it works.

    Keep it up over there!

    Best regards.

  213. Muy bien dicho Miguel. Y lo bueno es que esto es algo que cualquiera puede lograr en este maravilloso pais. Solo hay que dedicarse a aprender, trabajar duro y con la mente!

  214. What I like about building your own wealth is that your investment wisdom grows as well. The man that built a portfolio of $100k is not the same man that now got it up to $200k. You’re building it from the ground up. It’ll be hard to lose that wealth as you build it up, as oppose to someone winning the lottery, or an athlete suddenly getting a millionaire contract, or a college graduate getting a 6 digits salary. If they have no experience on how to handle that kind of money, they might end up broke in a short period of time or living pay to check for the rest of their lives.

  215. Mr. E,

    Absolutely. Couldn’t agree more. Your mindset changes as the wealth/income grows. You learn a lot as you go, which provides the type of experience that money can’t buy. Mistakes can be costly, but they’re also valuable.

    As far as athletes and lottery winners, I know how that feels. I remember inheriting money when I was 21 and I didn’t really feel like it was “mine”. It was just a check with numbers on it. I wasted it pretty quickly, which I sorely regret. But you look at money you worked hard for very differently, especially when you’re building something slowly from the ground up. I actually wrote on that phenomenon a few months ago when comparing my wealth to “lottery money”. I won’t be wasting it away this time, though. 🙂

    Thanks for dropping by!

    Cheers.

  216. It took me 31 years to achieve that. Well if I count from graduation then 4.5 years. Not bad but I could have been better. I only started being more conscious about my money 1-2 years ago and really made a big change before and after. I believe people can achieve it with continuous efforts to build assets slowly. It gets bigger and faster everyday. Thanks for the great article as always.

    BeSmartRich

  217. BSR,

    You’ve got it figured out over there. It really just initially takes that epiphany, where you’re more conscious of your money, spending, and overall financial position. And then it’s a lot of hard work from there. But you have to really be willing to admit that you need to improve, and then be willing to do what’s necessary to do so. I think that’s where a lot of people get hung up. Nobody likes to admit mistakes and admit they need to do a lot better. Ignorance is bliss, right? 🙂

    Keep up the great work over there. Your future you is benefiting more and more every single day.

    Best regards.

  218. Such an inspiring piece! When I read posts like yours, I can’t be more convinced about what we’re planning next year with the RV. I know this experience will be life changing and a great timing to start living below our means and stick to it. It will surely help getting financially independent faster. Thank you for sharing your stories.

    Cheers,

    Mike

  219. Mike,

    I’m more than happy to share, especially if it means I’m able to inspire others. 🙂

    Living below your means is really the crux of it all. If you can live well below your means, then you’ve basically just added a huge margin of safety to your entire life. That means you can drive right over those speed bumps when they occur with no problems. If a stock blows up on you or something, then that’s okay, too. It basically creates this aura around you, almost an aura of invincibility. And then most of life’s problems pretty much go away. You speed your way to financial independence and then you own your own time. From there, your decisions become less about money and more about what makes you happy. But it all stems from living below your means. If you’re able to master that, you’re about 90% there.

    Thanks for stopping by. I’m sure you guys will have a lot of fun with the new adventure.

    Cheers.

  220. I’m always looking for people around the world which already are on the level i want to be in the future. I started investing three months ago with an initial capital of 6000€, and keep up building my portfolio month by month with every single Euro i can afford (i do have a seperate amount of money for unexpected payings, of course)

    I am 35 years old now, i came a long way out of depts in the past and all the bad things that come with them. But now i am confident that i’m on the right way. I paid all my depts, and during that time i also learned how to save money, with is a very important step in my opinion. I love the see my portfolio growing, and i although my recent incoming dividends are not so big, i’m always happy about every single one – helping me to get further and further.

    You say the first 100k are the hardest – and i agree. Honestly at the moment i cant even imaging how it would feel to own that amount of money. I guess i will celebrate it hard, but work comes first. Fortunately the journey is the reward, and i’m looking forward to experience it.

    Keep up your good work here, and I wish you all the best for your goal. I also made my own investment plan, to achieve my own goal, i will need a portfolio worth of 900k Euro. I expect to arrive there in 25 years (but honestly i want to be there in 20 :-), i want to enjoy my financial freedom as long as i can.

    Best regards from Germany!

    Bastian

  221. Bastian,

    Thanks for stopping by from Germany. It’s great to have readers from Europe!

    Sounds like you’re on the right path over there. Don’t let past mistakes get you down. Today is a new day and you’re a new you. The future hasn’t been written yet. Every day is a new opportunity to benefit the you of tomorrow and the you of 20 or 25 years from now.

    I couldn’t imagine having this kind of wealth a few years ago either. Seemed like a total dream. But I can tell you that dreams do come true if you work hard, remain persistent, stay patient, and get a little lucky along the way. Although, luck tends to find its way to those who work for it. 🙂

    Keep it up over there. Wish you the best of luck as you carve out a new life for yourself.

    Cheers!

  222. Honestly, I’m not that impressed by 200k in a vacuum. What I am very impressed by is that after being poor, your mom committed suicide and after you went through that inheritance, you didn’t throw in the proverbial towel. Instead of feeling sorry for yourself and giving up, you got into investing and persevered. Not only did you persevere, you achieved. THAT impresses me. Keep up the good work.

  223. WMX,

    Thanks!

    Yeah, I agree it’s really the individual story that matters more than the absolute number. For some, $200k is no big deal. For others (like me), it’s a ton of money – more than I ever thought I’d have. But how big of a deal that kind of wealth/income is really relates back to the story and personal circumstances. It’s not all that impressive that someone born into great wealth would be sitting on $200k at 33 years old; it’s almost expected. Someone who was born and raised in a ghetto of Detroit and dealt with all that I’ve dealt with (a lot of which I haven’t even shared publicly) is in a very different situation. It’s all context.

    But in a lot of ways I’m glad that I came from those humble beginnings. It gives me an opportunity to prove that it’s not necessarily where you come from that determines where you end up. And that also means I get the chance to inspire a lot of people along the way! 🙂

    Thanks again.

    Best wishes.

  224. What an inspirational story and I agree that 200k may not be lots to one person but plenty to another. It all depends on where you’ve come from and where you plan on going. Your drive and motivation is apparent through every paragraph. It’s all in our hands because at the end of the day no one will give a rats but the person staring in the mirror. Well done mate. One of the best posts I’ve read in a LONG time and my Top pick of the week. I’ll be sticking around. Mr.CBB

  225. Mr. CBB,

    Thanks so much. Glad you enjoyed the post! 🙂

    Indeed. No one cares more about your money and your freedom than you do. The good news is that you, also, are the one with the most control over that. You have the power to change your own future. You have a time machine that works – just requires making good decisions and developing good habits in the now so that your future is as bright as it can possibly be.

    Best wishes!

  226. Hi Jason!

    Your journey is really impressive! I’ve been following your blog for a couple of years now and it’s been a pleasure to see your portfolio grow, your dividend income increase and that your online income now produces so much cash flow that you can live of it! You are truly inspiring and I’m very happy for you! Keep it up!

  227. Life Designer,

    Thank you very much. I couldn’t do it without the support of the readers, so I owe much of my success to you guys! 🙂

    I’m in a great spot right now, being able to roll cash flow from the writing into high-quality stocks that produce ever-growing cash flow themselves. Took a lot of hard work to get here, but I really enjoy writing, inspiring, and sharing. It’s a great community we’ve built up here over the last few years.

    Hope your journey is proving to be just as (if not more) fruitful as mine.

    Cheers.

  228. Hi Jason,

    How are you doing? I’d hoped to find your blog some years back – better late than never!

    Firstly, thank you so much for sharing your life journey in pursuing financial freedom; from first 100K to next & on.. Impressive! Personally, I’ll like to touch the first 100K but a pity, still in college at 23, gosh. If you do have any inspirational down times or stories, please get in touch with me or share with readers here.

    Looking forward to liaising with you more frequently, not as a freeloader but as someone who yearns/desires to learn from those who undergone the school of (really) hard knocks.

    Cheers,
    M.K.

  229. Wow, That is crazy, 100k sounds like so much money….it IS! I hope over the next 5 years I can mimic what Jason did. I just started my journey about 1 year ago and deployed $12,000 so far, really excited about the future. I hope we can all follow and help each other Check out my journey here http://www.thedividendkid.com/

Leave a Reply