so the best advice I've ever received from a millionaire was this stop focusing on making a million dollar instead focus on your first 10,000 and at the time I didn't fully understand what that meant but I'm really glad I listened in this video I'm sharing six reasons why everything changes after saving your first $10,000 first reaching $10,000 shatters the first mental barrier of wealth building like all of a sudden the thought of saving $155,000 or even $20,000 doesn't seem so crazy anymore a 1997 study by Bendera found that breaking mental barriers is something that many people Overlook but it is by far the most important aspect of personal finance because you need self-efficacy to improve and it's been years since you've taken the SAT self-efficacy is basically when you believe in your own capabilities to accomplish something like if you start playing a brand new video game and you're a level one Warrior there is literally no way in heck that you think you can beat a level 99 Mage it's literally impossible Bandera found that people who were given specific smaller goals were way more successful than those who were given larger vague goals and this is something that I've experienced firsthand like I didn't grow out of money so when I first took my personal finances seriously I could even wrap my head around like a five fig number like even when I was doing side hustles like reselling candy at school or designing clothes and selling them I was still only thinking in hundreds maybe a thousands but tens of thousands never crossed my mind but when I first saw my bank balance go to 10,000 it completely transformed how I perceived money and I know I know it's just numbers on the screen but for someone who didn't really grow up with much just seeing that for the first time it just makes everything feel possible you know and for some reason $10,000 is always the first mental barrier for many people well a 2010 study found that people respond much more to goals or objectives framed in round numbers like if you Sav $9,999 it's essentially the same as $10,000 but for some reason it just doesn't hit the same as when we see those nines turn into zeros and we literally see five figures in the bank account or if your Apple watch tells you that you've walked 9,892 steps a day there's a good chance that you would go out of your way to walk another 108 steps to round it all out next your first $10,000 is only the beginning because $10,000 builds a nice momentum for your next financial goal your first 10K is like the first snowball that you roll down a hill as a snowball rolls along it's going to start picking up Snow and it gets larger and larger and the momentum carries it down the hill at first it's not going to seem like much right it's just snow going downhill but eventually over time the momentum will keep on piling on and it's going to become overwhelming let's say you start at $0 and you save and invest $1,000 a year with an average 10% return on your investment in the stock market getting to your first $10,000 in this scenario would take you about 8 years but a mistake that most people make now is that they think think it'll take them 8 years time 10 or 80 years in total to get to $100,000 but that's wrong thanks to the momentum we just talked about it'll take significantly less time for you to get to 100K like after you have your first 10K getting your next 10K to $20,000 would only take you 4. 7 years because your initial 10,000 is generating you interest and you're still keeping at it with the $1,000 contributions every year now 20K to 30k is going to take about . 5 years 30k to 40K is going to take about 3.
3 years and then from 40K to 50K it's going to be about 2. 2 years it's fascinating to see that once you reach $10,000 you can reach each additional $110,000 faster than the previous one and remember this is assuming that you don't get any raises and you're only able to save $1,000 a year if you can increase your income over time and you can save 2,000 or 3,000 a year just imagine how much faster it would be to reach 100 ,000 next if you ever planned anything big like a surprise birthday party a trip event or a vacation then you've experienced Murphy's Law which states that anything that can go wrong will go wrong because suddenly your car is going to break down you're going to lose your job or you're going to break your foot and now you owe a ton of money in medical bills the good news is there's a really solid chance that $10,000 is going to dig you out of most common emergency expenses essentially having $10,000 puts a sizable buffer between you and your financial emergencies and this is really important because it's going to give you peace of mind just by having this buffer kept to one side and available for you to tap into whenever you need it it's going to help you free up your mental energy to focus on more important things like your health and I don't think this is said enough but it's great to build your wealth but it's equally if not more important to invest in your body like I struggled with going to the gym for a long time because I always had an excuse when life got busy but what I think is helpful is just having someone there to to hold you accountable to make sure you prioritize your health and body that's why I'm excited to talk about today's sponsor train well train Well's mission is to help you get stronger healthier and more confident staying consistent at the gym can be tough but thankfully train well designs customized workout programs that are tailored to your goals and schedule when I signed up I just answered some questions about my goals and preferences and train well paired me with my trainer bro I try to do dumbbell as much as possible what schedule are you looking for here cardio activities like that uh at least like once or twice is there any injury any pain anywhere that I should know of this is 30 lb let me know how the workout was easy just right or difficult he put together my custom workout plan that best fits my lifestyle and for the past few months I've been consistently working out four times a week now Rod is in constant contact with me through the app and he holds me accountable to my workouts if I'm traveling and I don't have access to a gym he'll design a body weight program for me so I can still do my workouts without having to think about it it's easy to sign up and liveing a wealthier and healthier life check out the link below go. TRW well.
