One hundred thousand dollars is not a lot of money when you think about it. It seems like a big number to some people but it is really small when you break it down on a daily basis. While a million dollar net worth is the goal for most people, one hundred thousand dollars is an easier goal that every person can attain. Besides you have to go through the $100,000 barrier before ever making it to millionaire status. So, today I want to take a look at a few ways to grow your finances up to the $100,000 level.
Use Small Increments To Reach Your $100,000 Goal
Small amounts of money saved on a monthly basis can get you to $100,000 in liquid cash in a few years. Saving $68.50 per day will get you over $100,000 in cash in just four years. If you want to give yourself an extra year to reach $100,000 then just save $54.80 a day.
These are not huge numbers when you break them down daily. It is easily possible to achieve these numbers with either a little side income or an aggressive savings strategy. This method assumes not earning any return whatsoever on your money.
Use Guaranteed Investments To Reach Your $100,000 Goal
An extremely conservative investor can reach the same goal by saving a total of $18,000 per year. This is based on investing in only guaranteed conservative investments like United States Treasuries and savings bonds. Assuming that you earn only a 2.5% interest rate each year then you should be able to save up $100,000 in cash with a $1,500/month savings rate. That boils down to $50 a day or $6.25 out of an 8 hour day. You will just need to perform one extra activity or task during the day that results in $50. After five years, you will have $100,000 with the interest added on.
Use Riskier Investments To Reach Your $100,000 Goal
If you are a lot more aggressive with your investment strategy then it will take less money contributed monthly to reach your goal. If you can generate a 15% annual return over a 5 year time period then the amount that you need to contribute monthly can be cut down to $1,100. You would just need to come up with an extra $36.25 per day to hit your goal of $100,000 in year five.
As you can tell it is not that difficult to get to $100,000 in cash depending upon which method you chose to get there. $100,000 is an important number because you are realistically in the range of millionaire status. (Read how to become a millionare)