When we start working and investing, most of us share the same dream: financial freedom. But first we have to achieve many smaller milestones, like hitting our first S$100,000, which can feel painfully slow in the beginning. Once built though, compounding kicks in and starts working like a horse for us. This article explores how we can tackle the “first 100k sprint” before blowing out the candles on our 30th birthday.

Why the First S$100k Matters So Much

The first milestone is usually the hardest to cross. Unlike mature investment portfolios, our portfolio relies heavily on our savings and active contributions. However, once our portfolio hits six figures, everything changes. The portfolio’s growth begins to accelerate, doing the heavy lifting so we don’t have to.

Step 1: Focus on Increasing Your Savings Rate

But before our portfolio and the market grind for us, we need to provide the basics. This means focusing on our savings rate,...