Okay, I know what you're thinking. Yet another article selling a dream with a clickbait title or a paid course, an unattainable dream for easy money.
You're right to be wary, because many people who try to reach €100,000 almost always give up because they start with the wrong expectations.
I'm not promising you'll become rich tomorrow, especially since I'm not a magician or even a financial guru.
The plan is precise, boring, concrete, and repetitive, but it allows you to reach €100,000 in 5-10 years starting from scratch, with a regular job.
Here are the 4 incredibly boring rules for making it.
1. Arithmetic (deal with reality, not dreams)
Let's immediately get rid of the rumor that it's impossible to reach this figure, or that winning the lottery is enough. Let's start with simple arithmetic.
If you invest with an average annual return of 7-8% (we'll talk more about this shortly), which is the historical return of the major stock markets, here are the bare numbers you need to stick to:
- To get there in 10 years, you need at least €550-600 per month.
- To get there in 5 years, you need €1,350-1,400 per month (not a small amount, in short).
The first rule, therefore, is: don't think about "Where can I find €100,000" because it makes you incredibly anxious, but "I need to save/invest €600 this month." The end.
2. Income and Painful Cuts
This is where people get stuck. Thinking that to invest €600 per month, they have to stop living, give up coffee, and eat plain pasta for 10 years.
Wrong. Smart cuts aren't made on the €2 (or maybe even on those, but it's subjective) but on the large fixed expenses:
- The rule of cuts: Eliminate phantom subscriptions, renegotiate electricity, internet, and gas contracts, and don't buy a car on installments that will drain your salary by 30% or more.
- Side hustle: There's a limit to how much you can cut. The only real way to scale from €100 to €600 or even €1,000 a month is to increase your income. Use your evenings and weekends. Do you know bookkeeping? Can you edit videos? Are you skilled in something? Find three or four clients a month and offer your skills, for example. Or take on extra online work (various microtasks like Clickworker, online jobs like Outlier AI or on Fiverr, or something else based on your skills).
3. Investment
People waste years looking for the perfect time or the brilliant investment. The smart move is to copy what's been working for decades.
- All you need is a single global equity ETF like the FTSE All World or a US S&P 500 ETF, no complications. Buy a single share and own a small piece of the 500 to 3,000 strongest companies on the planet.
- Automation (DCA, Dollar Cost Averaging): Set up a DCA, often called Savings Plans on investment apps like Trade Republic and others. On the day you receive your salary, you automatically move the infamous €550 to €660 directly to the Savings Plan you chose to buy the ETF. Don't do anything else; the money has to disappear before your mind finds an excuse to spend it.
4. The hardest part
Now comes the part no one tells you about. You start your DCA, depositing your €550 to €600 monthly for a whole year. You open the app and see that you've deposited €7,000 and your investments are worth €7,200.
Your mind will say, "Is that all?"
In the first 3-4 years, compound interest seems invisible, and that's when 80% of people get bored or lose hope. Maybe they start selling everything, buying a motorcycle, or throwing their money into that memecoin hoping to turn things around overnight, only to end up with nothing.
The real risk isn't the market crash, but your boredom.
If you hold on, from the fifth or sixth year onward, the curve will steepen. Your accumulated capital will start earning so much interest that, in the final stretch toward €100,000, the market will put much more money into your pocket than you'll ever get out of your salary.
Disclaimer required.
This content is purely for educational purposes and does not constitute financial advice. The ETFs mentioned are for illustrative purposes only, as they are among the most widely used on the market. Always remember that historical returns are no guarantee of future returns, and markets involve risk. Always do your own research (DYOR) before investing your money.
Thanx for reading, don't forget to like, follow and comment :)
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