---
title: $100k Isn’t Much Anymore Going By Present Day Financial Dynamics
description: We don’t mean $100,000 is a small amount of money. But we hear people talk about it when they are thinking about buying a new car.
---

[Blog | MO50 ](https://www.mo50.com.au/blog)

# [$100k Isn’t Much Anymore Going By Present Day Financial Dynamics](https://www.mo50.com.au/blog/100k-isnt-much-anymore-1)

 Written by [Dallas Davison, Michael Hogue and Ali Hogue.](https://www.mo50.com.au/blog/author/dallas-davison-michael-hogue-and-ali-hogue) | Jun 7, 2022 2:00:00 AM

No, we don’t mean $100,000 is a small amount of money. Far from it! But more and more, we hear people talk about it as an insignificant amount when they are thinking about buying a new car or doing some lavish renovations. They’ll brush it off and say, “it’s only $100k! We can afford it.”

 But this seems to be a relatively new thing. Five years ago, we never heard this. So how did such a large amount of money become nothing?

 We thought we would show exactly how much value that $100k can actually have. It’s not about what the money is worth now – $100k is $100k – it’s about the opportunity cost. So it’s all about spending now versus how it could be spent in the future.

 Let’s pretend you are ten years from retiring – what’s that sum worth to you now, and what could it be worth in the future?

 For this exercise, imagine that $100k is in a totally separate super fund. If you were to leave it there over the last ten years of your working life without adding to it and assuming an 8% rate of return, it would grow by an extra $215,892. Thank you, compound interest.

 In any case, whether you are taking out a loan or using your hard-earned savings for those renovations or that new car, you are still borrowing money from your future self. Listen to our podcast [Every Time You Borrow Money, You Take it From Your Future Self](https://podcasts.apple.com/au/podcast/187-every-time-you-borrow-money-you-take-it-from-your/id1451561647?i=1000530317494).

 On top of the growth on that original $100k, the sum will continue to compound once you retire. Assuming the 8% ROR, this would be $17,271 in the first year of retirement alone. If you imagine your super balance as the arc of a football being kicked, the highest point of the arc would be your first year of retirement.

 From that additional amount, you could take out $20,000 each year to travel. Between the ages of 65 and 90, you could take out that amount each year – tax free – to a total of $517,000. So it’s not *just *$100k. And it goes to show that one decision at the age of 55 (the decision to spend or invest the $100k) can significantly impact your future.

[View full post](https://www.mo50.com.au/blog/100k-isnt-much-anymore-1)

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