3 Net Worth Milestones To Aim For
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Andrew Lisa
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Levi Leidy
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Former investment banker turned financial influencer Nischa wants investors to envision the day when, “Suddenly, you wake up and your money is making more money than some people earn at their actual jobs.”
She recently told her 2 million YouTube subscribers that such a day is in reach for many investors.
While recognizing that the early years can be frustrating because your contributions, not your returns, do most of the heavy lifting, she offers three key net worth milestones — all nice, round numbers — that indicate you’re moving in the right direction.
$10,000: If You’ve Made It This Far, Quitting Isn’t an Option
Reaching $10,000 is a big step, not because investment gains are substantial — they’re not — but because it’s the point where they will be in the future if left undisturbed.
Nischa gave the example of an investor who invested $50 per month with 8% average annual returns, reaching roughly $10,415 after 11 hard-fought years, only to see their contributions still account for most of the growth.
She explained that this apparent lack of results might drive many to quit and just put their money in savings, but $10,000 is the point of no return because that kind of money will eventually make its own money.
“Selling your investments is the worst thing you could do,” Nischa said.
Even without a single new contribution, the $10,415 could grow to roughly $48,539.21 in 20 years, with more than $38,000 from pure investment gains.
$100,000: The Millionaire-Making Milestone
Your consistent contributions — and therefore your discipline and dedication — get you to the first $10,000, but adding another zero tips the balance from contributions to returns as the primary growth driver.
“If $10,000 is a milestone that proves you can build wealth, the next milestone is the one that proves your money can build wealth for you,” Nischa said. “At the $100,000 mark, it’s a completely different ballgame. In fact, if you were to invest $100,000 by age 35 and never invest another dollar, that money would grow to just over $1 million by the age of 65, assuming the same 8% annual return. Give it another 10 years, and you’ll have more than $2 million at 75.”
$1 Million: Wealth Generation on Autopilot
Seven figures is the final milestone because, after that, your money will make you richer and richer indefinitely all on its own.
“Once you’ve got $1 million invested, your portfolio should be able to sustain itself and keep growing whether you continue contributing or not,” Nischa said.
To illustrate her point, Nischa showed how $1 million grows each year, assuming the same 8% average annual return:
- Year 1: $80,000 in returns, $1.08 million balance
- Year 2: $86,400 in returns, $1.17 million balance
- Year 3: $93,312 in returns, $1.26 million balance
- Year 10: $159,920.23 in returns, $2.16 million balance
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