Studying easy methods to make 6 figures ($100,000) a yr is a standard aim for a lot of — and why wouldn’t it’s?
The six determine quantity is a milestone that will put your earnings nicely past the median family revenue in america, and doubtlessly afford you with a extra comfy way of life.
However how do you get there – particularly for those who’re making nowhere close to this quantity now?
Methods to earn 6 figures a yr:
There are various methods you will get to incomes six figures a yr. The 2 most typical methods are:
Getting a job that makes six figures a yearStarting a aspect hustle and scaling it so that you’re ultimately making six figures a yearA mixture of the 2 above methods
None of those choices are straightforward, and they’re going to seemingly contain sacrifices and sweat fairness. However leveling up your full time job and scaling a aspect hustle are precisely what we focus on at IWT. The next programs have labored for hundreds of our college students efficiently, and with effort and time, you could possibly be in your approach to incomes 100k in a yr.
What Does a Six-Determine Earnings Truly Look Like?
You must make a minimum of $100,000 a yr if you’d like a six-figure revenue. Meaning making a minimum of:
$8,333.33 a month, or$2,083.33 per week, or$416.66 every workday, or$52 an hour.
Breaking down your bigger aim into smaller increments will assist you to perceive what it can take to get the place you wish to go. Are you able to land a full-time job that pays $52 an hour? Or are you able to freelance for that quantity?
It’s necessary to determine the place you are actually in comparison with these benchmarks if you wish to attain your aim of 100k/yr.
The best way to make $100,000 a yr in 5 steps:
Let’s get began.
Step 1: Arrange your monetary basis for six figures
When you may have a aim as bold as “I wish to earn a six-figure revenue,” it’s straightforward to lose sight of the actually necessary issues in your life.
I’m speaking concerning the fundamentals: meals, water, shelter, and so on.
That is the “Tripod of Stability” — all the foundational, massive elements of your life that you simply hold ultra-stable so you possibly can take dangers in different areas.
“I’m a proponent of a part of the Tripod of Stability,” says Naveen Dittakavi, founding father of NextVacay.com. “When you have a day job, it is advisable to be sure that it’s secure. You need to carve a capability to work in your aspect hustle whereas doing nice work at your day job.”
He continues, “I lived at house for six years. My dad and mom have been actually cool and helped me get by whereas I constructed out my enterprise.”
Naveen not too long ago scaled his hustle in order that he’ll be taking away roughly $1 million this yr (so he is aware of his stuff).
By caring for your massive issues — your property, automobile, relationships, meals — you’ll be capable to take dangers in areas like your aspect enterprise. As Ramit says, when you may have your bases lined, you’re not likely taking dangers in any respect.
Your Tripod of Stability doesn’t essentially imply that you simply’re freed from sacrifices although. If you wish to dedicate your self to creating six figures a yr, you’re going to have to alter a few of your habits and beliefs.
“I sacrificed rather a lot to construct my enterprise,” Naveen remembers. “In any case, residing at house along with your dad and mom for six years means you’re going to be single for six years — BUT it gave me what I wished out of my life.”
Motion step: Establish your Tripod of Stability
Write down the three important “legs” of your Tripod of Stability. These are the issues that, if they continue to be fixed, would assist you to climate dramatic modifications in different areas in your life. It might be issues like:
Your homeYour carYour jobYour partner or partnerYour financial savings account
As soon as what makes up your Tripod of Stability, you possibly can ensure you have these areas safe so you can begin taking dangers in areas like beginning a aspect hustle.
Step 2: Earn extra money in your profession
Should you’re seeking to construct a six-figure revenue on freelancing along with your aspect hustle alone, you possibly can skip this step.
If having a job is likely one of the legs to your Tripod of Stability, although, you’re going to wish to maximize your wage as a lot as potential.
Why? The extra you earn, the nearer you’ll get to your first six-figure yr. There’s no higher method to try this than to barter your wage.
Take a look at this chart that reveals how a lot a $5,000 improve in wage can add up over time:
Not solely is it a BIG win, however it additionally units you squarely on the highway to incomes extra after only one dialog along with your boss.
And step one to do that is definitely simple — however many individuals nonetheless neglect it: Do good work.
“Firstly, it’s a must to ship nice outcomes,” says IWT reader and six-figure earner Enoch Ko. “With out outcomes, no quantity of networking or relationship constructing can get you [to six figures]. That stated, it’s a must to construct good relationships at work together with delivering nice outcomes.”
“Outcomes and relationships go hand-in-hand,” he continues. “As soon as I had confirmed myself to be a Prime Performer, increased wage was only a matter of time — having common wage discussions with my managers and skip-level managers, understanding timing with the company planning cycles, and so on.”
When you show your self to be a useful asset to your organization, start to construct two of crucial instruments at your disposal: your community and your observations. Enoch made such an impression he ultimately moved on to a different function that he was referred to by … his present supervisor.
“It was by means of constructing good, trusting relationships by means of delivering nice outcomes that helped,” he says.
One factor that may have a HUGE impression on wage negotiations is exhibiting you possibly can add much more worth sooner or later.
An effective way to do that is just by asking questions of your supervisor:
What’s one thing that you simply wish to enhance inside the firm — and the way can I assist?What traits do you worth essentially the most in a brand new rent?How can I assist along with your most necessary aim this quarter?
Not solely will this present that you’ve got initiative however it additionally offers you perception into precisely the sort of speaking factors that may grand slam your wage negotiation.
One of many largest fears of job seekers will not be figuring out what to say in an interview. Discover Your Dream Job consists of word-for-word scripts and breakdowns with actual hiring managers so that you could nail your subsequent negotiation. Click on right here to be taught extra.
Motion step: Put together to your wage negotiation
Take a look at our assets all about easy methods to put together to your wage negotiations. A number of nice locations to begin:
Step 3: Discover a aspect hustle concept
That is the primary barrier holding individuals again from creating their aspect hustle.
In any case, you’re searching for one thing that’s worthwhile and that you simply’re enthusiastic about.
And the Venn diagram between these two issues typically looks like two separate circles.
Fortunately, you have already got worthwhile expertise already. That’s what Christina Nicholson of Media Maven realized when she left her job after years of expertise as a tv information reporter and began working for a PR company.
“Like many individuals, I didn’t have a fantastic boss,” Christina remembers, “and extra consideration was paid to the hours I used to be sitting in entrance of my desk within the workplace as an alternative of the standard of labor I used to be executing.”
That each one modified when in the future a consumer got here in to pay his retainer and Christina found that it was greater than what she made in a single month.
“That’s once I realized I might do all of the work AND hold all the cash,” she says. “I didn’t must work for somebody who precipitated me pointless stress. I didn’t must get trip authorized or be on the receiving finish of an angle once I wanted to go away the workplace early as a result of I had a sick baby.”
She continues, “I might additionally do different issues, like host native and nationwide TV segments on a contract foundation.”
So she started to construct out Media Maven, her hustle to assist different companies get a deal with on their PR. “After beginning my enterprise,” she remembers, “I noticed what was potential and it motivated me, much more, to be taught extra about entrepreneurship and take issues to the following degree.”
That’s not the one method you’ll find a worthwhile freelancing concept both. If you’re at a loss for the place to begin, take a look at the 30 confirmed enterprise concepts within the PDF under. As you scan the record, take into consideration the way you would possibly apply these concepts to your present expertise and hobbies.
Click on right here to obtain your very personal PDF of the 30 confirmed enterprise concepts.
For now, simply select one enterprise concept. It’s okay, you possibly can at all times change it later. For now, we’re going to simply attempt one out and attempt to discover a consumer with it.
Step 4: Get your first consumer
So as to begin incomes cash, it is advisable to discover the individuals who gives you cash to your concepts.
However the query is … how? The place do you discover these individuals?
Naveen’s tactic? Providing mouthwatering worth.
“I used to be actually concerned in a variety of entrepreneurial aspirational teams,” he explains. “So entrepreneurs would cling on the market and I’d discover methods I might add worth. I wasn’t attempting to pitch or shut offers. I’d simply say that I had a pc science diploma and, ‘I can assist you make clear your imaginative and prescient and perceive what it takes to construct it out.’”
“I’ve at all times been useful,” Naveen continues. “I began to search out that being useful to different individuals builds belief and can end in gross sales. I used to be ready the place there was restricted expertise to execute tech tasks and there wasn’t lots of people to assist aspiring entrepreneurs.”
By doing this, Naveen did two crucial issues in relation to discovering shoppers:
He went to the place the shoppers lived. By going to precisely the place his goal market frolicked, he was in a position to construct a community of potential shoppers and folks he might assist.He provided wonderful worth. Naveen acknowledged a possibility to indicate his potential shoppers that he was the person to assist them. This value-add helped him achieve his first few shoppers.
You are able to do the identical factor.
Ask your self:
Who’s my consumer?The place do they go once they wish to search for an answer to their issues?The place are they ALREADY searching for options to their issues?How are you going to join them to your service?
At this level, you’re additionally going to wish to area of interest down your goal market so as to actually tailor your companies and attract prospects. So take into consideration who’s an instance of a consumer who would possibly wish to purchase your product.
A number of inquiries to jump-start your analysis:
How previous are they?The place do they dwell?What are their pursuits?How a lot do they make?What books do they learn?
Utilizing this data, discover out what your shoppers want by going to the locations they go.
For instance:
On the lookout for bodily or therapeutic massage therapists inside 50 miles of your home? Yelp ought to get you began simply.If you wish to do massive canine grooming and sitting, nicely there’s most likely an area pet retailer or canine park close to you the place homeowners are all congregating simply ready so that you can provide them an answer.
Listed below are a number of recommendations of another nice websites freelancers can use to search out enterprise on-line:
When you discover a potential consumer, you’re going to wish to attain out to them and pitch your companies.
Constructing a enterprise, together with a contract enterprise, might be difficult. In Earnable, we’ve damaged down the complete course of. It’s been confirmed over 15+ years, 50+ industries, and 42,000+ paying prospects. It’s an entire system — you get all the precise methods, frameworks, hands-on ways, real-world examples, mindsets, done-for-you templates, word-for-word scripts, and hard-won breakthroughs to begin and develop your personal enterprise. Click on right here to be taught extra.
Motion step: Discover a consumer and electronic mail them (with scripts)
Discover your consumer utilizing the data I’ve outlined above. Let’s say you’re a video editor seeking to decide up some aspect work. Right here’s a useful script you could possibly use (simply substitute the “video editor”–particular stuff along with your talent):
CLIENT’S NAME,
I noticed your put up on X and visited your web site. I observed that you simply’ve not too long ago began utilizing movies too.
I’ve been doing video enhancing for 3 years and I’d like to supply that can assist you edit your movies and get them optimized for the online.
That may make them look extra skilled and cargo sooner, which is necessary to your readers. And also you’d liberate time that you could possibly use to create new content material.
We will talk about the small print, in fact, however first I wished to see if that is one thing you is perhaps fascinated by.
If that’s the case, wouldn’t it be okay if I despatched you a number of concepts on easy methods to assist?
Greatest,
Joe Instance
A number of takeaways:
There’s zero fats within the pitch. Each phrase counts and is required to assist actually promote the advantages of working with you.Don’t point out cost. There’s nothing that may kill a possible consumer’s curiosity in you greater than pushing costs on them earlier than they’re prepared.Stress the advantages. This electronic mail reveals the consumer why it will be of their greatest curiosity to purchase from you within the third paragraph.
When you get a consumer utilizing this electronic mail, congrats! You simply secured your first consumer — however it doesn’t finish there. You must really do the work for them, and meaning frequently including worth.
“Being tremendous conscious of how one can assist individuals and the way they understand you and recognizing that cash will come for those who’re valued by your viewers helps most,” Naveen explains.
Step 5: Put money into your funds AND your self
Investments can take all shapes and types. Let’s stroll by means of three areas the place you can begin to take a position in relation to constructing out your six-figure life.
Funding #1: Private finance
That is IWT’s bread and butter. We’ve got intensive assets in relation to private finance. It’s additionally an important leg anybody ought to have on their Tripod of Stability.
The best approach to get began making certain your private funds are so as is by automating your funds.
That is our system of sending your paycheck the place it must go every month (utilities, lease, cellular phone invoice, and so on.) so that you don’t have to fret about it.
“Being financially conservative, I’ve additionally automated my money move in order that I robotically have financial savings and investments,” Enoch says. “I get pleasure from not having to consider financial savings and investments. I get pleasure from with the ability to spend cash with out worrying whether or not I’d have sufficient money to pay for the extremely cyclical quarterly gasoline invoice or bimonthly electrical energy invoice once they come.”
“Automation is extremely necessary,” Naveen says. “On the time I used to be drawing a wage from my day job, it was useful to place my belief in a system that made sense and would work out in the long run. On the time, I used to be placing money away in my ING Direct account and my sub-savings accounts. I used to be in a position to see that quantity improve and I noticed it labored very well.”
Automating your funds solely takes one to 2 hours on the most, however when you set it up, you don’t have to fret about it once more. It’s positively a key a part of easy methods to make $100,000 a yr.
AND it’ll prevent hundreds of {dollars} over your lifetime.
Funding #2: Your aspect hustle
If you wish to know easy methods to make $100,000 a yr, you’re going to must hustle arduous. Meaning you’re going to succeed in some extent in your aspect hustle the place you’re going to must put again some cash into it if you wish to develop.
That would take the type of hiring workers, shopping for an internet site area, or getting a mentor / coach as was Christina’s case.
“It sounds cliche, however working smarter as an alternative of working more durable is how I reached six figures,” Christina explains. “How do you’re employed smarter? You encompass your self with people who find themselves smarter than you and have already achieved what you’re working for.”
So she employed a enterprise coach and located somebody to assist her construct out her enterprise.
“I actually did my homework,” she says. “I employed somebody with a crew of individuals, all of which have been profitable entrepreneurs incomes a minimum of a number of six figures, a lot of their shoppers have been incomes a minimum of a number of six figures, and the teaching crew had a really excessive retention price, which informed me they have to do one thing proper!”
That’s only one instance although. Yow will discover some ways to place a refund into your enterprise to assist it develop.
One nice approach to make investments is to hunt out mentorship or buy a product or a e-book — which brings us to …
Funding #3: Your self
Presumably the most effective funding that you would be able to make that may put you on a path to make 100k a yr is placing cash in creating your self each career-wise and on a private degree.
“My largest funding is self-care,” Bonnie says. “The very first thing on the calendar every month is Pilates, pole health, massages, day spa visits, {couples} remedy, fast getaways to Desert Scorching Springs, and so forth. If I’m not my greatest self, I’ve obtained nothing to carry my shoppers. It’s simply silly necessary, as investments go.”
LOVE IT.
Who cares if this looks like a luxurious? Who cares if individuals would possibly scoff on the concept of getting a therapeutic massage? What issues is that YOU need it and that YOU are keen to work for it.
One of the simplest ways to get began is to start investing in your self. That is one thing individuals not often take into consideration once they begin studying easy methods to make $100,000 a yr.
And one factor that you’ll discover quite common with individuals who haven’t taken the time to put money into themselves and learn the way these items works, is they’ll create what’s known as ranges of abstraction.
Moderately than simply going on to what they need, they’ll create all these totally different ranges of abstraction — like making a Fb web page or a weblog — that make them really feel good, however that really don’t require them to do the arduous work.
So, they’ll spend six, 9, twelve months doing one thing irritating after which quit as a result of they by no means hung out shopping for a pair good books or shopping for a course.
Regularly Requested Questions About How To Make 6 Figures
Is it arduous to make 6 figures?
Constructing as much as or incomes 6 figures will not be straightforward. It’s going to take arduous work to have the ability to earn that a lot or purchase that a lot wealth. One of the simplest ways to get to $100,000 is by continually rising your internet value and expertise.
What jobs make 7 figures a yr?
Right here’s a listing of jobs that make 7 figures:
Enterprise OwnersDoctors and Different Medical ProfessionalsCEOs and Different C-Suite ExecutivesSalesmenInvestorsBankersCorporate LawyersActors and ActressesProfessional AthletesYoutubers and Influencers
At what age ought to I be making 6 figures?
Often, individuals don’t earn 6 figures till they’re of their 30s. Nonetheless, there is no such thing as a particular timeline for this and everyone seems to be totally different. Employees in America are often anticipated to be making 6 figures or extra by the point they’re 30 due to their expertise. There are in fact outliers and exceptions to this rule.