While joining the millionaire club may feel out of reach for many young Americans, the power of compounding can make it possible.
It's simple: You invest a small sum of money each month into a low-cost index fund. When you earn dividends, you automatically reinvest those proceeds to buy more shares and your returns grow over time.
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But there's a catch, says self-made millionaire Mark Tilbury: The magic only really happens after you've invested your first $100,000.
"Don't worry about earning millions," Tilbury said on his YouTube channel (1). "Instead, focus on the first $100,000 because, after that, your net worth will go crazy."
That's the advice he heard from a millionaire he admired as a kid. Clearly, Tilbury isn't the first to note the significance of this milestone.
In fact, the late billionaire investor Charlie Munger has often been credited with popularizing the importance of the first $100,000, once describing it as "a b—, but you gotta do it" because "after that, you can ease off the gas a little bit" (2).
But hitting that $100,000 milestone is tough for young Americans today — especially when you consider the increased cost of living and sky-high home prices. About 74% of Americans believe the cost of living is on the wrong track, according to a survey conducted by Ipsos in May (3).
Reaching $100,000 can also be challenging because "a massive portion of that comes from just boring old saving and investing," said financial advisor Brian Preston on a recent episode of The Money Guy Show — not from "finding some diamond-in-the-rough investment" that will "absolutely rocket" you to wealth (4).
Once you cross six figures, however, compounding begins contributing a much larger share of your portfolio's growth, said Preston — making the next $100,000 arrive much faster.
So, while it might take you longer to reach that first milestone than it did previous generations, it's still worth pursuing.
Here's why the first $100,000 is so important and how to reach it quickly.
After you hit $100,000, "compound interest stops being lame," Tilbury said on YouTube. "Getting that chunk of money as fast as possible is the key. Once you get to this point, it's almost inevitable that you'll be wealthy if you just invest in a low-cost index fund."
To get there, Tilbury suggests people follow what he calls the GROWTH method:
Gaining control of your finances is crucial for achieving long-term financial stability and reaching your goals. And according to Tilbury, there's only one way to get control — budgeting. Once you've assessed your budget, there may even be ways you can shave off extra dollars and avoid unnecessary spending.
For instance, the average American adult spends more than $1,300 a year on subscriptions alone — with more than $250 wasted on unused ones, according to CNET's 2026 subscription survey (5). Just by canceling a subscription you no longer use, you could save hundreds each year — money that could instead be invested toward your $100,000 goal.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money's intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
When it comes to building your investment portfolio, Tilbury advocates for the "rooting your investment" model, which prioritizes investing a set amount of money each month, whether that's $50 or $500.
One way to root your investments is through an automated portfolio like the one offered by Acorns.
After all, spending money is inevitable, no matter how careful you are with your budget. But with tools like Acorns — an automated savings and investing app – you can root your investments as you spend.
Acorns helps you build your investment portfolio by rounding up each purchase on your credit or debit card to the nearest dollar. From there, Acorns automatically invests the spare change into a diversified portfolio of ETFs. This way, even your everyday spending becomes part of your consistent investment strategy, helping you root your investments and grow your wealth over time.
Another way to root your finances is by diversifying outside of the stock market. Precious metals can be a solid option, especially when it comes to saving for retirement.
Gold — often touted as a safe-haven asset during trying economic times — went on a tear last year, soaring 65% (6). And though concerns about inflation and possible early interest rate hikes by the Federal Reserve have triggered a price drop, many analysts expect the yellow metal to recover and even hit all-time highs by the end of 2026 (7).
"Gold is now an institutional asset and seen as a hedge for 'everything,'" Tim Seymour said during an interview with CNBC (8).
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold — making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
Once you get your money working for you, it's time to optimize your tax management by doing things like claiming all available tax credits and deductions, maximizing your tax-advantaged retirement accounts and tax-deferred savings accounts, or even starting a business and making the most of write-offs.
A qualified financial advisor can help you with all this and more. WithAdvisor.com, you can find the best advisor for your needs — both in terms of what they can offer your finances and what they'll charge to work for you.
Advisor.com is a free service that helps you find a financial advisor who can co-create a plan to reach your financial goals. By matching you with a curated list of the best options for you from their database of thousands, you get a prescreened financial advisor you can trust.
To build a solid financial foundation and move closer to achieving a high net worth, eliminating debt should be a top priority. For example, the current average annual percentage rate (APR) for a new credit card is a staggering 23.79%, according to LendingTree (9).
Carrying high-interest debt can severely hinder your ability to grow your wealth and secure your financial future.
But by consolidating your debt with a personal loan through Credible, you can pay down your debts faster and at a better rate.
Credible is an online marketplace of vetted lenders that can provide you with debt consolidation loans to speed up your repayment and get you closer to that first $100,000.
To get started, just provide some basic information and Credible will present you with a list of loan options to help pay down your debt more efficiently and without juggling multiple bills.
Tilbury suggests diversifying and growing your income by starting a side hustle.
If you'd like to opt for a low-effort side hustle with the potential for high returns, real estate might be your answer.
The personal finance guru once posted on X about how he used the earnings from one of his business deals. He wrote, "From that one deal I earned enough to buy a rental unit, which then went on to generate me lots of passive income (10)."
If you want to generate investment income from the real estate market, there are plenty of opportunities to invest without having to find and purchase a property outright.
For instance, platforms like Arrived allow you to enter the real estate market for as little as $100.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allow accredited and non-accredited investors to take advantage of this inflation-hedging asset class — without any extra work on your part.
With heightened self-discipline, reaching $100,000 can set your net worth on an upward trajectory. Tilbury stresses that you need to "find your inner discipline" to put all these steps into practice.
"Discipline is the currency of success," Tilbury said on YouTube. "The more you mint, the wealthier your future will become."
The first step is saving — and saving your money requires discipline.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.
That's more than 10 times the national deposit savings rate, according to the FDIC's July report (11).
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/monthly minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.