Charlie Munger didn’t believe in shortcuts — but he did believe in thresholds. And if you ever asked how to get rich, he had a number ready: $100,000. Hit that, he said, and you’ll have the momentum to keep going. Fail to hit it, and you’ll spin your wheels forever.
Munger, who died in 2023 just weeks shy of his 100th birthday, was best known as Warren Buffett’s blunt, brilliant right hand — but he built a billion-dollar fortune of his own by focusing on what worked and ignoring what didn’t.
One piece of wisdom that resonates with investors is his take on building wealth. In the late 1990s, during a shareholder meeting, Munger said, “The first $100,000 is a b****, but you gotta do it.”
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This statement emphasizes the initial hurdle many face in accumulating savings. Munger’s bluntness highlights the challenge of reaching that critical first $100,000.
“I don’t care what you have to do,” he said. “If it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000.”
The reason behind Munger’s focus on this initial amount? The power of compounding. Once you have that base, the path to greater wealth becomes smoother. With compounding returns, $100,000 can grow significantly over time, providing a strong foundation for long-term financial goals.
“After that, you can ease off the gas a little bit,” he said.
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Munger made this statement in the mid-1990s, and when adjusted for inflation, $100,000 at the time is roughly equivalent to about $200,000 in 2025 dollars, based on U.S. consumer price index data. The number itself has shifted with time, but the idea behind it has not. The first meaningful pool of capital is still the hardest to assemble, and everything that follows depends on clearing that initial hurdle.
That belief stayed with Munger until the end of his life. In 2023, during one of his final long-form interviews discussed on the “Acquired” podcast, he summed up the payoff of that early grind in a single line: “You only have to get rich once.” The remark reflected a theme he returned to repeatedly over decades — build a durable financial base one time, and the rest of your decisions become less constrained.
That perspective also helps explain why Munger’s career did not begin with stocks. Before becoming Buffett’s longtime partner at Berkshire Hathaway, Munger was a real estate attorney. He understood early on how property, cash flow, and patience could work together over long periods. Real estate was not a side note in his thinking. It was foundational.
For people trying to apply that lesson today, real estate remains one of the most common ways to build toward that first six-figure milestone. Rental income, equity growth, and long holding periods can create momentum that wages alone often struggle to provide. While not everyone can buy an entire property outright, access to real estate no longer requires that level of capital.
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Platforms like Arrived offer one example. Arrived allows investors to buy fractional shares of rental homes, giving them exposure to rental income and property appreciation without owning or managing a full property themselves. The best part? All you need is $100 to get started.
For people working toward their first $100,000, or its inflation-adjusted equivalent, steady real estate income can complement traditional saving and investing strategies.
Munger never argued that the process was easy. He argued that it was worth it. The discipline required to build that first base — whether through work, saving, investing, or real estate — is the same discipline that keeps wealth intact later on. Once that base exists, compounding has room to operate, and the pressure to constantly scramble begins to fade.
A financial adviser can help translate those principles into a plan that fits real life, weighing income, risk tolerance, time horizon, and how assets like stocks and real estate should work together. The goal is not to replicate Munger’s fortune. It is to apply his logic: reach a solid foundation once, and let time do the rest.
Some elements of this story were previously reported by Benzinga and it has been updated.
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This article Charlie Munger Said, ‘Find A Way To Get Your Hands On $100,000’ Even If It Means Walking Everywhere — The Magic Number If You Want To Be Rich originally appeared on Benzinga.com
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