How the snowball starts rolling at some point

The fact that the factor time and perseverance on the stock market contributes a not insignificant part to the success of wealth creation, we have already touched on several times in this blog. Be it the DAX return triangle, the explanation of the compound interest effect, the devastating effects of fees in the opposite direction or our most read article so far, why 100,000 euros with 30 years is a magical goal. We now want to revisit the latter and show that perseverance and continuity can accomplish a lot.

“The first 100,000 US dollars is a real bitch”. This is how Charles Munger, probably the most important confidant of the major US investor Warren Buffett and stock market billionaire, once aptly described it. However, those who achieve this goal as quickly as possible will be able to reap great rewards later on.

The first 100,000 euros are the hardest

Let’s assume that we will invest the full 450 euros of our part-time job monthly in our broadly diversified ETF depot and that we will make an average return of 5% per year there, which is calculated quite conservatively and therefore not unrealistic. It will take us 13 years and two months to accumulate the 100,000 euros with our deposits and capital gains. By then, we will have paid in around 72,000 euros and earned almost 29,000 euros in exchange rate gains.

If we continue to save 450 euros a month, it will only take us seven years and eleven months to save the next 100,000 euros, which is roughly half as long. It will then only take five years and nine months to reach the 300,000 euros, and we will have reached the magic one million euros after another 20 years and five months.

Becoming a millionaire with this strategy is possible until retirement age – especially if you assume that you can continuously increase your monthly savings rates through salary increases.

Starting capitalMonthly depositsAverage returnFinal capital Duration of savings period
0,-450,-5 % p.a.100.000,-13 years, 2 Months
100.000,-450,-5 % p.a.200.000,-7 years, 11 Months
200.000,-450,-5 % p.a.300.000,-5 years, 9 Months
300.000,-450,-5 % p.a.400.000,-4 years, 6 Months
400.000,-450,-5 % p.a.500.000,-3 years, 8 Months
500.000,-450,-5 % p.a.600.000,-3 years, 1 Month
600.000,-450,-5 % p.a.700.000,-2 years, 8 Months
700.000,-450,-5 % p.a.800.000,-2 years, 5 Months
800.000,-450,-5 % p.a.900.000,-2 years, 2 Months
900.000,-450,-5 % p.a.1.000.000,-1 year, 11 Months

Once again, it becomes clear that if you start investing money as early as possible, you can become very wealthy. Once the system is in place, the assets start to grow automatically and ever faster, like a snowball rolling down a slope. This is an advantage that every private investor should take advantage of!


  • without starting capital, the first 100,000 euros take the longest to accumulate
  • due to the growing capital stock there is more and more yield
  • the next 100.000 Euro will fall much sooner
  • those who start early profit the most

Andreas Stegmüller

Andreas is the founder and operator of this blog. During his more than ten-year editorial career, he has written for several major media outlets on a wide variety of topics. The stock market has been his passion since 2016.

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