This post may contain affiliate links which may compensate us based on your interaction at no cost to you. Please read the disclosures for more information
Six figures in today’s economy is a shiny financial goal that the majority desire. You might scoff at the idea, or think it's impossible for someone like you, but tons of people have found success with tens of thousands of dollars in their bank accounts. Some even beat the odds and strike it rich with hundreds of thousands.
However, like everything, it is not as simple as it sounds. Six-figure earners are known to put in a great deal of work and sacrifice to obtain such a level of success.
So what does it mean to be called a six-figure earner and how does one achieve this?
What Makes Someone a Six Figure Earner?
For one to qualify for the title of a six-figure earner, their income should contain six figures, or six digits, in the number. So a salary between $100,000 and $999,999. It ranges from the low to the high six figures.
There are a lot of factors to consider in order to make these zeros in your bank account. However, according to Liz Gendreau, the founder of Chief Mom Officer, a blog that helps women be the executive of their own money by encouraging them to seek financial independence and hit the six-figure mark, there isn’t one size fits all when it comes to making six figures.
She highlighted on The Money Exchange Podcast that from entrepreneurship and side hustles, to various careers, one can make it with the right steps.
1. Obtain Higher Training or Education
Many high-paying jobs require at least a bachelor’s degree. and without this higher education or training, it is impossible for one to compete for higher paying opportunities. It is therefore imperative that one seeks formal university education and researches their desired career path in order to make a great bargain for a six-figure salary.
Being involved in a professional network in your industry is crucial as no one can make advancement alone. A great network enables you to be in the know of new opportunities in your career or acquire new skills improving your chances to make more money.
As an entrepreneur, networking can help you reach your ideal customers. Considering the fact that you set your own rates, you may be in the right network to find clients who will purchase your high ticket offers.
3. Strive for Excellence
Ensure to stand out in your career or entrepreneurship path by delivering excellent results consistently. Excellency begets great rewards and this will have an impact on how much income you make.
4. Negotiate for a Raise or Increase Your Prices
If you are following the 9 to 5 career path, asking for a raise during appropriate times will help you get closer to your desired salary.
If you are an entrepreneur, then raising your prices while showcasing the considerable value to your clients can help you bank in more than you used to.
5. Start A Side Hustle
Side hustles allow you to earn more than you actually make and exploring which option works for you can supplement your income.
You can consider venturing into freelance work, starting a dropshipping business, starting a blog, or affiliate marketing amongst others as a second source of income. Check out some items that can help you with working from home here on my Amazon page!
6. Consider Upskilling
Advancing your career by pursuing additional credentials can set you on the path to making more money. For instance, this can be a specialized training in your career path or obtaining certification from a particular course which will enable you to increase your service offerings to your clients.
LinkedIn Learning also provides great opportunities to learn more skills to boast your profile and appeal more to potential employers. You can check them out here.
Financial Tips for Six Figure Earners
Once you have chosen the venture you want to work on to make six figures, it is important that you stay financially on track with your income.
Even if you earn six figures, you shouldn't stop using a budget. A budget is an effective tool for monitoring your expenditures and preventing overspending. If you spend every single penny and have nothing to show for it, having a big income won't matter.
I have a lot of awesome resources to help you manage your budget and your debt. There are all completely free so you can save your money!
If you’re looking for something a little more detailed to help you with your budgeting and bills, check out a great resource like Rocket Money. They can help you take control of your finances and possibly save hundreds.
2. Automate Your Savings
Saving money is important for building wealth and creating a safety net. However, it can be hard to remember to transfer money to savings every month. The solution for that is to automate as much of the process as possible and treat your savings as a fixed expense just as you would your mortgage. In other words, pay yourself first once you receive a cheque.
3. Plan Out Your Taxes
It's crucial for individuals who make six figures each year to develop a strategy to reduce their tax liability. Since the United States has a progressive tax structure, earning more income means you are more likely to pay more taxes.
However, with a correct plan in place, you can minimize your tax burden with the help of a certified personal accountant who will assist you in figuring out how to keep more of your hard-earned income in this situation. The appropriate tax deductions can make a difference of thousands of dollars.
4. Develop A Long Term Financial Plan
Having a long-term plan can help serve as your financial blueprint for maximizing your income and setting aside enough for your retirement or family’s livelihood.
Thinking about the future as a six-figure earner is especially important as most times individuals cashing in big tend to have a sense of financial complacency due to how much they earn.
The Gist of It All
Six-figure incomes do not necessarily translate into riches. You need a strategy to make sure you aren't wasting your financial blessings on depreciating items like pricey automobiles or luxury clothing.
The difference between having money and spending every last penny can be made by making the appropriate financial planning decisions.
Having a high income and a low net worth is feasible. Set up your accounts so that you can keep as much of your hard-earned money for yourself as possible.
Applying the above planning tips will make sure that you allocate your money towards wealth accumulation. You may design a strategy that will maximize your income and increase your net worth with the correct financial tools and expert guidance.
Interested in scaling to six figures? Listen to Liz Gendreau share how it is possible in Episode 109 of The Money Exchange Podcast.
Write something about yourself. No need to be fancy, just an overview.