Should You Invest Before Saving $100K?

Inside this conversation

Kim Butler, Prosperity Thinkers founder, is a financial educator with more than 30 years of experience in banking, investing, and insurance, and we spoke about why strong earners often build wealth in the wrong order. Her starting question is direct: “You’re awesome at making money. How much of it are you keeping?” Rather than beginning with investment products, she helps entrepreneurial thinkers establish principles for making their own financial decisions.

After a decade in the financial industry, Kim wrote her seven Principles of Prosperity in 1999. The first three—think, see, and measure—translate into a practical sequence: define and fully fund separate personal and business emergency reserves, continue accumulating an opportunity fund, and measure every decision by its opportunity cost. Using her example, a $100,000 emergency reserve could grow into $350,000, leaving $250,000 available for investments, acquisitions, or business opportunities without sacrificing peace of mind. As she puts it, “If you’re in a position of cash, opportunities will seek you out.”

Kim also challenges people to compare mortgage prepayments, taxable interest, and other uses of cash against their highest realistic earning opportunity. The goal is not simply a better return—it is helping families sleep well, helping entrepreneurs act when opportunities appear, and ensuring more of every earned dollar remains productive.

Listeners will leave with a clear order for building liquidity, evaluating financial trade-offs, and investing without weakening their safety net.

Key takeaways

• Fully fund personal and business emergency reserves before discussing investments.
• Build a separate opportunity fund for large, time-sensitive investments.
• Choose reserve targets with your spouse or business partners.
• Measure mortgage prepayments against your highest realistic investment return.
• Prioritize liquidity and tax efficiency over small interest-rate differences.
• Match financial education to how you learn and take action best.

Episode description from the official 21CE podcast feed. This text is the show notes, not a full transcript.