Studying learn how to make 6 figures ($100,000) a 12 months is a typical purpose for a lot of — and why wouldn’t or not it’s?
The six determine quantity is a milestone that might put your earnings nicely past the median family revenue in the US, and doubtlessly afford you with a extra comfy way of life.
However how do you get there – particularly should you’re making nowhere close to this quantity now?
Methods to earn 6 figures a 12 months:
There are various methods you may get to incomes six figures a 12 months. The 2 commonest methods are:
- Getting a job that makes six figures a 12 months
- Beginning a facet hustle and scaling it so that you’re ultimately making six figures a 12 months
- A mixture of the 2 above methods
None of those choices are straightforward, and they’re going to doubtless contain sacrifices and sweat fairness. However leveling up your full time job and scaling a facet hustle are precisely what we concentrate on at IWT. The next techniques have labored for 1000’s of our college students efficiently, and with effort and time, you may be in your technique to incomes 100k in a 12 months.
What Does a Six-Determine Revenue Truly Look Like?
That you must make at the very least $100,000 a 12 months if you would like a six-figure revenue. Which means making at the very least:
- $8,333.33 a month, or
- $2,083.33 every week, or
- $416.66 every workday, or
- $52 an hour.
Breaking down your bigger purpose into smaller increments will show you how 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 essential to determine the place you at the moment are in comparison with these benchmarks if you wish to attain your purpose of 100k/12 months.
Learn how to make $100,000 a 12 months in 5 steps:
Let’s get began.
Step 1: Arrange your monetary basis for six figures
When you’ve gotten a purpose as bold as “I wish to earn a six-figure revenue,” it’s straightforward to lose sight of the actually essential issues in your life.
I’m speaking in regards to the fundamentals: meals, water, shelter, and so forth.
That is the “Tripod of Stability” — all the foundational, huge features of your life that you just preserve 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’ve got a day job, that you must make sure that it’s secure. It’s important to carve a capability to work in your facet hustle whereas doing nice work at your day job.”
He continues, “I lived at dwelling for six years. My mother and father had 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 12 months (so you understand he is aware of his stuff).
By caring for your huge issues — your own home, automotive, relationships, meals — you’ll have the ability to take dangers in areas like your facet enterprise. As Ramit says, when you’ve gotten your bases lined, you’re not likely taking dangers in any respect.
Your Tripod of Stability doesn’t essentially imply that you just’re freed from sacrifices although. If you wish to commit your self to creating six figures a 12 months, you’re going to have to vary a few of your habits and beliefs.
“I sacrificed rather a lot to construct my enterprise,” Naveen recollects. “In spite of everything, residing at dwelling along with your mother and father for six years means you’re going to be single for six years — BUT it gave me what I needed out of my life.”
Motion step: Determine your Tripod of Stability
Write down the three most important “legs” of your Tripod of Stability. These are the issues that, if they continue to be fixed, would let you climate dramatic adjustments in different areas in your life. It might be issues like:
- Your own home
- Your automotive
- Your job
- Your partner or associate
- Your financial savings account
As soon as you understand what makes up your Tripod of Stability, you possibly can be sure to have these areas safe so you can begin taking dangers in areas like beginning a facet hustle.
Step 2: Earn more cash in your profession
For those who’re seeking to construct a six-figure revenue on freelancing along with your facet hustle alone, you possibly can skip this step.
If having a job is likely one of the legs on 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 12 months. There’s no higher method to do this than to barter your wage.
Take a look at this chart that reveals how a lot a $5,000 enhance in wage can add up through the years:
Not solely is it a BIG win, but it surely 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 overlook it: Do good work.
“At first, you must 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, you must 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 High Performer, greater 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 forth.”
When you show your self to be a useful asset to your organization, start to construct two of an important 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 way of constructing good, trusting relationships by way 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 even extra worth sooner or later.
A good way to do that is just by asking questions of your supervisor:
- What’s one thing that you just wish to enhance inside the firm — and the way can I assist?
- What traits do you worth probably the most in a brand new rent?
- How can I assist along with your most essential purpose this quarter?
Not solely will this present that you’ve initiative but it surely additionally provides you perception into precisely the form of speaking factors that may grand slam your wage negotiation.
One of many largest fears of job seekers will not be realizing what to say in an interview. Discover Your Dream Job contains word-for-word scripts and breakdowns with actual hiring managers as a way to nail your subsequent negotiation. Click on right here to be taught extra.
Motion step: Put together on your wage negotiation
Take a look at our sources all about learn how to put together on your wage negotiations. A number of nice locations to start out:
Step 3: Discover a facet hustle concept
That is the primary barrier holding folks again from creating their facet hustle.
In spite of everything, you’re on the lookout for one thing that’s worthwhile and that you just’re keen about.
And the Venn diagram between these two issues usually looks as if two separate circles.
Fortunately, you have already got worthwhile abilities 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 an important boss,” Christina recollects, “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 every one modified when someday 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 preserve all the cash,” she says. “I didn’t must work for somebody who triggered me pointless stress. I didn’t must get trip accredited or be on the receiving finish of an perspective 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 recollects, “I noticed what was potential and it motivated me, much more, to be taught extra about entrepreneurship and take issues to the subsequent stage.”
That’s not the one method yow will discover a worthwhile freelancing concept both. If you’re at a loss for the place to start out, try 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 abilities 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 only strive one out and attempt to discover a consumer with it.
Step 4: Get your first consumer
To be able to begin incomes cash, that you must discover the individuals who provides you with cash on your concepts.
However the query is … how? The place do you discover these folks?
Naveen’s tactic? Providing mouthwatering worth.
“I used to be actually concerned in a number of entrepreneurial aspirational teams,” he explains. “So entrepreneurs would grasp 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 folks builds belief and can lead to gross sales. I used to be ready the place there was restricted expertise to execute tech initiatives and there wasn’t lots of people to assist aspiring entrepreneurs.”
By doing this, Naveen did two crucial issues in the case of discovering shoppers:
- He went to the place the shoppers lived. By going to precisely the place his goal market frolicked, he was capable of construct a community of potential shoppers and other people he might assist.
- He supplied superb 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 after they wish to search for an answer to their issues?
- The place are they ALREADY on the lookout for options to their issues?
- How will you join them to your service?
At this level, you’re additionally going to wish to area of interest down your goal market with a view to actually tailor your providers 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:
- In search of bodily or therapeutic massage therapists inside 50 miles of your own home? Yelp ought to get you began simply.
- If you wish to do giant canine grooming and sitting, nicely there’s in all probability a neighborhood pet retailer or canine park close to you the place homeowners are all congregating simply ready so that you can supply them an answer.
Listed here are just a few 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 providers.
Constructing a enterprise, together with a contract enterprise, will be sophisticated. In Earnable, we’ve damaged down the whole course of. It’s been confirmed over 15+ years, 50+ industries, and 42,000+ paying prospects. It’s a whole 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 start out and develop your personal enterprise. Click on right here to be taught extra.
Motion step: Discover a consumer and e-mail them (with scripts)
Discover your consumer utilizing the data I’ve outlined above. Let’s say you’re a video editor seeking to choose up some facet work. Right here’s a useful script you may use (simply exchange 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 seen that you just’ve not too long ago began utilizing movies too.
I’ve been doing video modifying for 3 years and I’d like to supply that can assist you edit your movies and get them optimized for the net.
That might make them look extra skilled and cargo sooner, which is essential on your readers. And also you’d unencumber time that you may use to create new content material.
We are able to focus on the main points, after all, however first I needed to see if that is one thing you may be all in favour of.
If that’s the case, would it not be okay if I despatched you just a few concepts on learn how 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 e-mail reveals the consumer why it might be of their finest curiosity to purchase from you within the third paragraph.
When you get a consumer utilizing this e-mail, congrats! You simply secured your first consumer — but it surely doesn’t finish there. That you must really do the work for them, and meaning frequently including worth.
“Being tremendous conscious of how one can assist folks and the way they understand you and recognizing that cash will come should you’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 varieties. Let’s stroll by way of three areas the place you can begin to take a position in the case of constructing out your six-figure life.
Funding #1: Private finance
That is IWT’s bread and butter. We’ve in depth sources in the case of private finance. It’s additionally an important leg anybody ought to have on their Tripod of Stability.
The simplest technique to get began guaranteeing 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, hire, mobile phone invoice, and so forth.) so that you don’t have to fret about it.
“Being financially conservative, I’ve additionally automated my money circulate in order that I routinely have financial savings and investments,” Enoch says. “I get pleasure from not having to consider financial savings and investments. I get pleasure from having the ability to spend cash with out worrying whether or not I’d have sufficient money to pay for the extremely cyclical quarterly fuel invoice or bimonthly electrical energy invoice after they come.”
“Automation is extremely essential,” 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 capable of see that quantity enhance and I noticed it labored rather 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 undoubtedly a key a part of learn how to make $100,000 a 12 months.
AND it’ll prevent 1000’s of {dollars} over your lifetime.
Funding #2: Your facet hustle
If you wish to know learn how to make $100,000 a 12 months, you’re going to must hustle exhausting. Which means you’re going to achieve a degree in your facet 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 a web site area, or getting a mentor / coach as was Christina’s case.
“It sounds cliche, however working smarter as an alternative of working tougher 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 staff of individuals, all of which had been profitable entrepreneurs incomes at the very least a number of six figures, lots of their shoppers had been incomes at the very least a number of six figures, and the teaching staff had a really excessive retention price, which informed me they have to do one thing proper!”
That’s only one instance although. You’ll find some ways to place a refund into your small business to assist it develop.
One nice technique to make investments is to search out mentorship or buy a product or a e book — which brings us to …
Funding #3: Your self
Presumably the very best funding that you may make that may put you on a path to make 100k a 12 months is placing cash in growing your self each career-wise and on a private stage.
“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 finest self, I’ve received nothing to deliver my shoppers. It’s simply silly essential, as investments go.”
LOVE IT.
Who cares if this looks as if a luxurious? Who cares if folks 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 best ways to get began is to start investing in your self. That is one thing folks hardly ever take into consideration after they begin studying learn how to make $100,000 a 12 months.
And one factor that you will see quite common with individuals who haven’t taken the time to put money into themselves and find out how these things works, is they’ll create what’s referred to as ranges of abstraction.
Fairly than simply going on to what they need, they’ll create all these completely different ranges of abstraction — like making a Fb web page or a weblog — that make them really feel good, however that truly don’t require them to do the exhausting 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.
Continuously Requested Questions About How To Make 6 Figures
Is it exhausting to make 6 figures?
Constructing as much as or incomes 6 figures will not be straightforward. It’ll take exhausting work to have the ability to earn that a lot or purchase that a lot wealth. One of the best ways to get to $100,000 is by consistently rising your internet price and abilities.
What jobs make 7 figures a 12 months?
Right here’s an inventory of jobs that make 7 figures:
- Enterprise House owners
- Medical doctors and Different Medical Professionals
- CEOs and Different C-Suite Executives
- Salesmen
- Buyers
- Bankers
- Company Legal professionals
- Actors and Actresses
- Skilled Athletes
- Youtubers and Influencers
At what age ought to I be making 6 figures?
Often, folks don’t earn 6 figures till they’re of their 30s. Nevertheless, there is no such thing as a particular timeline for this and everyone seems to be completely different. Staff in America are often anticipated to be making 6 figures or extra by the point they’re 30 due to their expertise. There are after all outliers and exceptions to this rule.