Best advice for investing and Building Wealth. Reel story. creating wealth? How making more money?

At an old Berkshire Hathaway shareholder

meeting Charlie Munger was asked what

his best advice for investing and

Building Wealth is his response was the

first 100 000 is a bit but you gotta do

it I don't care what you have to do find

a way to get your hands on 100 000 and

after that you can ease off the gas a

little bit that first 100 000 is for

most people the most difficult part of

creating wealth and so in this article. I

want to share with you my formula how I

accelerated saving and investing my

first 100 000 and hopefully this will

give you some ideas in how you can do it

too if you're new here I'm Nisha I'm a

qualified accountant and on this channel

we talk about all things money and

self-development let's get into it the

very first thing I did before anything

else was creating wealth cap you can

only save as much as you earn if you

earn three thousand dollars a month the

maximum that you could ever save if you

literally did not spend a thing is three

thousand dollars that's your savings cap

the only way to increase that savings

cap is by making more money and so that

is where my primary focus was when I was

going for this Milestone there are so

many ways you can do this buy and sell

something on the side start a side

hustle take on extra freelancing work

but honestly the quickest and easiest

way to do this is by just getting a pay

rise through your day job and so that is

what I did a job should either be there

to learn or be there to earn ideally

both but for me at different points in

my career I focused on one or the other

and if I haven't got either I've

switched jobs the biggest pay risers I

saw was when I moved between

organizations between 30 to 40 percent

pay jump which for me was Far higher

than what I got in the years that I

stayed in the same organization so I

have a full article which breaks down

exactly what I made and what my base

salary was every year for the last nine

years I'll link that over here and that

shows you what I did at what point in my

career to ultimately increase the

savings cap something that you'll notice

from that article is that even though the

ghost salary might look high what my

take home is after tax is another thing

altogether saving your first 100 000 is

hard and if you're relying on just one

source of income to be able to do that

it's going to be a very very long game

especially after taking into account all

the other fixed costs that you have rent

or a mortgage bills groceries it will

take most people years and years which

leads me to the second way of increasing

your earnings potential and that is

through exploring other options and

better yet ones where you can keep more

of what you make there are a million

different ways to get to the same

destination and so once my salary was at

a certain level to get to the next level

I used my salary as leverage to buy my

first investment property I say

investment property but I knew that I

was going to in fact live there three

four five years later and my tenant also

knew about this so I'll explain my

thought process behind this in the next

part of the article but ultimately this

decision meant I was able to get another

source of income through rental income

and again increasing my savings cap so

you want to think about how you can buy

assets or what assets you could buy to

generate additional cash flow at the

same time I was also exploring with

different side hustles and developing

skills that would help me increase my

income outside of my day job and I can

tell you I failed so so many times at

this maybe I'll make a whole article on

all the businesses that failed because

at many times it felt like I was going

backwards I'd be putting money into

these businesses but no money was coming

back out so I'd keep going back to the

drawing board and starting over and over

again try loads of things and when you

fail fail fast and fail forward every

time I failed I took those learnings

with me to the next thing I tried and

then if that failed to the next thing I

tried and I kept going until it all

added up and led me to something that

did work which leads me to the second

thing I did which is a absolute must if

you're trying to get to the 100 000 and

that is to creatively live below your

means I use the word creatively because

I see so much personal finance advice

centered around depriving yourself and I

don't want to Advocate that lifestyle

because even though being Frugal and

saving resonates with more people there

are so many other ways to live below

your means without having to live like a

bro student for your entire life and

money should be used as a tool to create

the life that you want not take away

from it and a lot of this is about just

being smart about how you're using your

money so I mentioned earlier about

buying an investment property that later

became a place that I lived I probably

would not have been able to buy that

property if I didn't a have the massive

advantage of having a reasonably well

paid job and secondly being able to live

at home with my parents for the first

few years of my working life and even

after that I bought the property I lived

at home for a bit longer because the

opportunity cost of living in that place

versus renting it out was around 2 500

pounds a month now I get it there are so

many reasons why people can't do this

you don't get along with your parents

you want to move out and be independent

they don't live near where you want to

stay whatever it is for me being able to

firstly spend more time with them at

that point in my life and secondly

through it being able to save more

really helped me accelerate getting to

that Milestone and going back to Charlie

munger's quote find a way to get your

hands on the first 100K do whatever it

takes this was my way it definitely

isn't the only way one of my friends

bought a two-bedroom flat at the same

time but she wanted to move out so her

way to get her hands on the first 100

000 and live below her means was to rent

out the spare bedroom living below your

means doesn't just mean not being able

to do something it also means being

creative about how you can afford to do

that thing and one of the best ways to

do this is by analyzing where the

biggest costs in your life are and think

about how you could get the same thing

but for Less I have a free save your

first 100 000 tracker that is in the

description box below and the whole

premise behind this is to see how and

where you're spending across an entire

year when you can visibly see exactly

where each pound or each dollar is going

you become a lot more mindful of where

the biggest costs are and then your

brain really starts to unlock ways and

ideas in how you can live below your

means so take some time to look at this

and figure out how you can increase the

gap between your earnings and your

expenses as much as possible and then

with the difference you can do the next

stage which is letting it multiply the

first 100 000 is the hardest but the

reason why there's such a focus on it is

because once you save and invest that

amount the next 100 000 and the 100 000

after becomes a lot easier than the

first because of the power of

compounding think about it someone with

1000 and someone with a hundred thousand

can be investing in the exact same thing

returning eight percent per year the

first person will make eighty dollars

after year one and the second person

would make eight thousand and then that

money gets reinvested and the difference

just keeps getting greater and compounds

which is why other than what you need to

keep aside for your emergency fund any

additional savings should be invested to

benefit from that compounding early on

you don't need a hundred thousand to

start investing you can start investing

for as little as one pound or one Euro

through apps like trading 212 who are

very kindly sponsoring this article

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what I also like about trading 212 is

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have also recently added a new feature

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you're investing in a us-based fund

where a large portion of the stock

market is you'd have to convert your

money and incur FX fees every time you

do this if you're depositing from Europe

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nischa so thank you training212 for

sponsoring this article ultimately saving

your first 100 000 may seem Out Of Reach

but if you really put it at the

Forefront and focus everything you do

around it even if it means sacrificing

some things here and there you can

really accelerate your journey to

Building Wealth I'd love to know where

you stand in your financial building

stage and what you're doing to get to

that six figure savings Mark if you want

some ideas on what you can cut back to

save more and invest more without

cutting back on your quality of life I

have a article that's completely dedicated

to that I'll link that over here thank

you for reading don't forget to

subscribe if you haven't already and

I'll see you in one of my other articles