5 Reasons Hitting the $100K Mark Will Boost Your Savings
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Saving money little by little can seem like a long slog toward wealth somewhere in the distant future. However, if you’re diligent about it, it can add up surprisingly fast.
When those numbers start to climb in zeroes and you see $100,000 in your sights, things begin to get really interesting. The $100,000 mark allows your wealth to grow exponentially.
Financial experts explained why hitting that $100,000 mark can boost your savings and your motivation to keep saving.
It Will Motivate You To Save More
Reaching $100,000 is a major financial milestone that can boost your confidence and motivate you to save even more, according to Christopher Stroup, CFP and owner of Silicon Beach Financial. “It creates a sense of achievement and encourages further discipline in growing your money. The psychological effect of seeing a six-figure balance may inspire a more aggressive savings plan or investment strategy, which can lead to even greater financial security.”
Mason Jones, a self-made millionaire and managing director with over 20 high-earning affiliate websites at NDR, recalled when he first hit $100,000 in savings.
“Hitting $100,000 in savings or investments was huge for me. I still remember the moment I saw that number in my account and it wasn’t just about the money, it was about realizing I was finally building something meaningful which was so rewarding.”
For Jones, $100,000 felt like significant progress. “It’s the point where compounding starts working in your favor, and that’s when things get exciting.”
Your Yields Get Higher
With a larger savings balance, you’re in a better position to take advantage of higher-yield investment opportunities, Stroup explained. “You can diversify your portfolio across stocks, bonds, real estate, and commodities, which can generate greater returns versus low-interest savings accounts.”
Compounding Is on Your Side
Once you’ve saved $100,000, you can earn interest more quickly due to the compounding effect, Stroup said. “For example, a higher balance in savings accounts or investments means your interest or dividends are calculated on a larger sum, accelerating the growth of your savings over time.” This compounding can have a snowball effect that helps your wealth growth exponentially.
The power of compounding at $100,000 “is where things really take off,” Jones said. “I remember my first year’s return after hitting $100,000 was about 10%, and that $10,000 felt huge. It was more than I used to save in a year when I was just starting out.”
Something clicked for him then: “The bigger your base, the faster your growth. It’s like hitting a financial sweet spot where your money starts doing the heavy lifting.”
You Gain Premium Access
A $100,000 savings balance may give you access to premium financial products and services, such as high-yield savings accounts, preferred credit cards or better loan terms, Stroup said. Banks and financial institutions often offer special rates, lower fees and better conditions for customers with higher balances. “This can result in reduced costs and enhanced savings potential in the long-term,” he said.
Jones verified this experience, saying, “I noticed my options opened up in ways I hadn’t expected. Before that, my portfolio was pretty basic, mostly index funds and a couple of safe stocks. But hitting six figures gave me the confidence to branch out.”
Jones started investing in dividend-paying stocks, which added some steady income, and he ventured into real estate through real estate investment trusts (REITs). “Having $100,000 meant I could experiment a bit more while still knowing my foundation was solid. That’s when I realized that money doesn’t just sit there, it works for you.”
It Shifts Your Mindset
Perhaps most profound of all, hitting $100,000 also can provide “a huge mindset shift,” as Jones described it. “Suddenly, bigger goals like $200,000 or even $1 million didn’t feel impossible anymore. It gave me the confidence to take calculated risks, like putting a portion of my portfolio into higher-growth stocks, and mainly put more money into my primary focus of affiliates. I wasn’t reckless, but knowing I had a solid foundation made me less anxious about trying new things.”
While getting to $100,000 may seem like a long way off, diligently saving month by month will pay off and could open up a whole new level of wealth building.
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