Studying learn how to make $100,000 is a typical objective for a lot of entrepreneurs — and why wouldn’t it’s?
Right here’s an inventory of issues you will get with $100,000:
- An precise jetpack
- Nation legend Willie Nelson to carry out at your party
- A non-public island off the coast of Ontario, Canada
There are various methods you will get to incomes six figures a yr. The 2 most typical methods are:
- Getting a job that pays six figures a yr
- Beginning a facet hustle and scaling it so that you’re finally making six figures a yr
Nevertheless, it’s not going to be straightforward. Constructing out a facet gig in order that it helps you earn six figures a yr goes to take time, just a few sacrifices, and sweat fairness. So does up-leveling your full-time job. However what’s beneath is a system that has been adopted by 1000’s of our college students efficiently.
BUT WAIT! Earlier than you begin constructing six figures …
Repeat it with me: The most important barrier in the best way of a Wealthy Life is debt.
The most important barrier in the best way of a Wealthy Life is debt.
The most important barrier in the best way of a Wealthy Life is debt.
The most important — you get the image.
Earlier than you even take into consideration methods and techniques to scale your earnings to 6 figures, you should get out of debt.
When you do, and you start to earn extra, you’ll discover that paying off any common money owed you may need is definitely empowering as a substitute of debilitating.
“I’m shocked at how my relationship with debt has modified,” says Bonnie Gillespie, creator of Self-Administration for Actors. “I see scholar loans and bank card payments as investments others made in me and my skill to be good for the cash they fronted me. Once I write checks to pay these payments, in my thoughts they’re thank-you notes to these early buyers. I do know not everybody has the identical relationship with debt that I do.”
You can begin to truly body your debt as an funding relatively than simply one thing you owe.
“What has shocked me about being persistently in six figures is how a lot FREEDOM I really feel in with the ability to take a machete to my debt,” Bonnie says. “Writing checks for 5 figures to MasterCard each month to simply hobble that debt feels massively empowering in methods I wasn’t conscious would free me.”
In case you’re in debt now and also you need to take steps to get out of it, make sure you try Ramit’s video on the subject beneath.
How one can earn six figures a yr
Some time again, we spoke with two millionaires about how they made their riches.
Longtime IWT readers shouldn’t be too shocked to study that they didn’t earn their hundreds of thousands via bizarre MLM schemes or shopping for lottery tickets, however via the highly effective mixture of saving / investing and beginning a enterprise on the facet.
We recurrently obtain THOUSANDS of emails from individuals who have made six or seven-plus figures and if you happen to requested me to interrupt down how they did it in pie chart type, it would look one thing like this.
For this text, we talked to quite a few individuals who scaled their revenue to 6 figures and extra. We discovered that their technique was no completely different — albeit with just a few idiosyncrasies.
Let’s get began.
Step 1: Arrange your Tripod of Stability
When you’ve gotten a objective as formidable as “I need to earn a six-figure revenue,” it’s straightforward to lose sight of the actually vital issues in your life.
I’m speaking concerning the fundamentals: meals, water, shelter, and so forth.
That is the “Tripod of Stability” — the entire foundational, massive features of your life that you simply hold ultra-stable so you’ll be able to 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. “If in case you have a day job, you should be certain that it’s steady. 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 residence for six years. My mother and father had been actually cool and helped me get by whereas I constructed out my enterprise.”
Naveen lately scaled his hustle in order that he’ll be taking away roughly $1 million this yr (so you realize he is aware of his stuff).
By caring for your massive issues — your house, automobile, 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 coated, you’re probably not 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 commit your self to creating six figures a yr, you’re going to have to vary a few of your habits and beliefs.
“I sacrificed quite a bit to construct my enterprise,” Naveen recollects. “In any case, dwelling at residence 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 important “legs” of your Tripod of Stability. These are the issues that, if they continue to be fixed, would can help you climate dramatic adjustments in different areas in your life. It may very well be issues like:
- Your property
- Your automobile
- Your job
- Your spouse/husband
- Your financial savings account
As soon as you realize what makes up your Tripod of Stability, you’ll be able to 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 at your day job
In case you’re seeking to construct a six-figure revenue on freelancing along with your facet hustle alone, you’ll be able to skip this step.
If having a job is likely one of the legs to your Tripod of Stability, although, you’re going to need to maximize your wage as a lot as doable.
Why? The extra you earn, the nearer you’ll get to your first six-figure yr. There’s no higher means 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, however it additionally units you squarely on the street to incomes extra after only one dialog along with your boss.
And step one to do that is definitely easy — however many individuals nonetheless neglect it: Do good work.
“Firstly, 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 mentioned, 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, 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 forth.”
When you show your self to be a useful asset to your organization, start to construct two of a very powerful instruments at your disposal: your community and your observations. Enoch made such an influence he finally moved on to a different function that he was referred to by … his present supervisor.
“It was via constructing good, trusting relationships via delivering nice outcomes that helped,” he says.
One factor that may have a HUGE influence on wage negotiations is exhibiting you’ll be able to 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 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 vital objective this quarter?
Not solely will this present that you’ve initiative however it additionally provides you perception into precisely the sort of speaking factors that can grand slam your wage negotiation.
Motion step: Put together to your wage negotiation
Take a look at our assets all about learn how to put together to your wage negotiations. A number of nice locations to start out:
You also needs to put together one among IWT’s favourite interviewing techniques: The Briefcase Approach.
That is good for interviews, wage negotiations, shopper proposals, no matter! The perfect half: 90% of the work is already executed earlier than you even stroll into negotiations.
Right here’s the way it works:
First, you’re going to leverage the data you’ve gleaned from observing the corporate and write up a 1-5 web page doc describing the areas of the corporate the place you’ll be able to add worth.
Then, you’re going to deliver the proposal with you whenever you negotiate your wage. When the query of compensation inevitably arises, you’re going to drag out this doc and description precisely the way you’re going to resolve the challenges of the corporate.
Hiring supervisor: So what’s your value vary?
You: Really, earlier than we focus on compensation, I’d love to indicate you one thing I put collectively.
And you then actually pull out your proposal doc detailing the ache factors of the corporate and EXACTLY how one can assist them.
This reveals the corporate the way you’re the one that’s going so as to add worth in these areas, making you an extremely useful worker they’ll need to pay extra to maintain round.
Ramit discusses The Briefcase Approach in depth on this two-minute video. Test it out beneath.
BONUS: If you would like extra data on learn how to earn your Dream Job, try our assets beneath that can assist you out.
Step three: Discover a facet hustle thought
That is the primary barrier holding individuals again from creating their facet 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 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 a substitute of the standard of labor I used to be executing.”
That every one modified when someday a shopper 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 have to work for somebody who brought on me pointless stress. I didn’t have to get trip accepted 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 little one.”
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 doable and it motivated me, much more, to study extra about entrepreneurship and take issues to the following degree.”
That’s not the one means you will discover a worthwhile freelancing thought both. There are literally 4 questions you’ll be able to ask your self proper now to search out an thought you’ll be able to leverage to your hustle:
- What do you already pay for? We already pay individuals to do quite a lot of various things. Are you able to flip a kind of issues into your individual on-line enterprise? Examples: Clear your house, stroll your pet, cook dinner you meals, and so forth.
- What abilities do you’ve gotten? Now, what have you learnt — and know properly? These are the talents you’ve gotten that you simply’re nice at — and other people need to pay you to show them. Examples: Fluency in a international language, programming information, cooking abilities, and so forth.
- What do your folks say you’re nice at? Not solely can this query be a pleasant little ego increase — however it will also be extremely revealing. Examples: Exercise routines, relationship recommendation, nice trend sense, and so forth.
- What do you do on a Saturday morning? What do you do on a Saturday morning earlier than everybody else is awake? This may be extremely revealing to what you’re enthusiastic about and what you wish to spend your time on. Examples: Looking trend web sites, working in your automobile, studying health subreddits, and so forth.
Discover a solution to these questions and I promise you you’ll discover an important freelancing thought.
Motion step: Discover a worthwhile thought
Spend about 10-20 minutes now writing down 5 solutions for every of the 4 questions above. When you’re executed, congratulations — you now have 20 potential enterprise concepts you can develop right into a flourishing facet hustle.
For now, simply select one enterprise thought. It’s okay, you’ll be able to all the time change it later. For now, we’re going to simply attempt one out and attempt to discover a shopper with it.
Step four: Get your first shopper
As a way to begin incomes cash, you should discover the individuals who will provide you with 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 quite a lot 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 making an attempt to pitch or shut offers. I’d simply say that I had a pc science diploma and, ‘I may also help you make clear your imaginative and prescient and perceive what it takes to construct it out.’”
“I’ve all the time been useful,” Naveen continues. “I began to search out that being useful to different individuals builds belief and can lead to 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 on the subject of discovering purchasers:
- He went to the place the purchasers lived. By going to precisely the place his goal market frolicked, he was capable of construct a community of potential purchasers and other people he might assist.
- He supplied superb worth. Naveen acknowledged a possibility to indicate his potential purchasers that he was the person to assist them. This value-add helped him acquire his first few purchasers.
You are able to do the identical factor.
Ask your self:
- Who’s my shopper?
- The place do they go after they need 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 need to area of interest down your market with the intention to actually tailor your companies and attract clients. So take into consideration who’s an instance of a shopper who may need to purchase your product.
A number of inquiries to jump-start your analysis:
- How outdated 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 purchasers want by going to the locations they go.
- Need to pitch to mothers that weblog about kids? Go to The Mother Blogs and begin with those underneath “Widespread Blogs.”
- In search of bodily or therapeutic massage therapists inside 50 miles of your home? Yelp ought to get you began simply.
- If you wish to do giant canine grooming and sitting, properly there’s most likely an area pet retailer or canine park close to you the place house owners are all congregating simply ready so that you can provide them an answer.
Listed below are just a few ideas of another nice websites freelancers can use to search out enterprise on-line:
When you discover a potential shopper, you’re going to need to attain out to them and pitch your companies.
Motion step: Discover a shopper and electronic mail them (with scripts)
Discover your shopper 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 substitute the “video editor”–particular stuff along with your talent):
I noticed your submit on X and visited your web site. I seen that you simply’ve lately 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 will make them look extra skilled and cargo quicker, which is vital to 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 is perhaps occupied with.
In that case, wouldn’t it be okay if I despatched you just a few concepts on learn how to assist?
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 can kill a possible shopper’s curiosity in you greater than pushing costs on them earlier than they’re prepared.
- Stress the advantages. This electronic mail reveals the shopper why it will be of their greatest curiosity to purchase from you within the third paragraph.
When you get a shopper utilizing this electronic mail, congrats! You simply secured your first shopper — however it doesn’t finish there. You should truly 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 if you happen to’re valued by your viewers helps most,” Naveen explains.
Step 5: Discover out the true price of incomes six figures a yr
You should make a minimum of $100,000 a yr if you’d like a six-figure revenue. Meaning making a minimum of:
- $eight,333.33 a month, or
- $2,083.33 every week, or
- $416.66 every workday, or
- $52 an hour.
That’s easy back-of-the-napkin math. What isn’t apparent although are the hidden prices — the bills you don’t take note of whenever you’re deciding how a lot you need to make.
“Once I began out, I simply took $100,000 and divided it up into an hourly wage so it got here to about $52 an hour,” recollects Naveen. “That was dumb although. I didn’t even take into consideration medical health insurance, retirement, trip, or the rest.”
While you’re getting down to make six figures a yr, you want to remember what that really means. When you do this, you’ll be able to set a correct objective for a way a lot you need to make a yr.
So earlier than you soar into any system to make six figures, take note of any and all bills you may need in a yr, together with:
- Utility payments (web, water, electrical energy, and so forth.)
- Automobile/residence funds
Any dwelling expense ought to be accounted for. Additionally be sure to account to your wage when you have a day job.
When you do that, you’ll have the ability to get a way of what incomes six figures really means, and you may start to cost your purchasers what you need.
Motion step: Cost what you’re price
Now it’s time to do some back-of-the-napkin math to determine precisely how a lot you need to cost to make six figures.
Don’t fear, it’s fairly easy. Take your bills that you simply calculated above and add it to $100,000. Subtract your yearly wage and voila! You will have roughly how a lot try to be incomes per yr via your facet hustle.
You don’t need to go loopy with this. A ballpark quantity is simply positive whenever you’re beginning out.
In case you actually need to get into the weeds, you’ll be able to even take note of state and federal taxes as properly.
And whereas there are not any set guidelines for charges, there are literally just a few strategies you should utilize to search out one which works for you.
- Drop Three Zeros Methodology Merely take your preferrred (learn: real looking) wage, drop three zeros from it, and voila, you’ve gotten your hourly charge!
For instance, say you’d actually wish to earn a minimum of $40,000. Simply take the three zeros from the tip and also you now have your charge: $40/hour.
- Double your “resentment quantity” I like this one as a result of it’s each actually fascinating and efficient. Ask your self: What’s the bottom charge you’ll work for that’ll go away you resentful of your work?
Say you’ll work for $15/hour on the VERY LEAST. Simply double that quantity, so now you’ll earn $30/hour.
- Do what the following man does This methodology is extremely easy: Go to Google and seek for the typical hourly charge for no matter service you’re offering. You’ll get a very good sense of the place to start out whenever you’re charging your purchasers.
The perfect half is after you begin charging your purchasers, you can begin to tackle kind of work till you earn the quantity you need.
For instance, after you earn your first $1,000, it’s extremely straightforward to start out dialing your costs up and cost much more cash out of your purchasers.
Begin “tuning” your charges after your first few purchasers. Have been you making $30/hour? Begin charging $40 and even $50. There’s no laborious and set rule for a way a lot you must cost. Simply begin tuning till you discover a charge you’re proud of.
Step 6: Spend money on your funds AND your self
Investments can take all shapes and types. Let’s stroll via three areas the place you can begin to take a position on the subject of constructing out your six-figure life.
Funding #1: Private finance
That is IWT’s bread and butter and an space the place we now have intensive assets.
It’s additionally an important leg anybody ought to have on their Tripod of Stability.
The best solution to get began guaranteeing your private funds are so as is by automating your funds.
That is Ramit’s system of sending your paycheck the place it must go every month (utilities, lease, 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 circulation 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 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 after they come.”
“Automation is extremely vital,” 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 ultimately. 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 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.
AND it’ll prevent 1000’s of over your lifetime.
Here’s a 12-minute video of Ramit explaining the precise course of beneath.
Funding #2: Your facet hustle
You’re going to achieve a degree in your facet hustle the place you’re going to need to 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 a substitute 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 group of individuals, all of which had been profitable entrepreneurs incomes a minimum of a number of six figures, a lot of their purchasers had been incomes a minimum of a number of six figures, and the teaching group had a really excessive retention charge, which instructed me they have to do one thing proper!”
That’s only one instance although. You could find some ways to place a refund into your corporation to assist it develop.
BONUS: In case you’re able to take the following step, make certain to enroll in the 6-Determine Consulting wait record. That is our premier course on discovering high-value purchasers, scaling our enterprise, and constructing a mannequin that generates 10x extra income.
One nice solution to make investments is to hunt out mentorship or buy a product or a guide — which brings us to …
Funding #three: Your self
Probably one of the best funding you can make 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, remedy, fast getaways to Desert Scorching Springs, and so forth. If I’m not my greatest self, I’ve obtained nothing to deliver my purchasers. It’s simply silly vital, as investments go.”
That is precisely according to Ramit’s abundance mentality. Who cares if this looks as if a luxurious? Who cares if individuals may scoff on the thought of getting a therapeutic massage? What issues is that YOU need it and that YOU are prepared to work for it.
One of the simplest ways to get began is to start investing in your self.
Now, one factor that you’ll find quite common with individuals who haven’t taken the time to spend money on themselves and find out how these things works, is they’ll create what’s known as ranges of abstraction.
Quite 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 really don’t require them to do the laborious work.
So, they’ll spend six, 9, twelve months doing one thing irritating after which hand over as a result of they by no means frolicked shopping for a pair good books or shopping for a course.
That’s why we need to give you a confirmed system that’s helped 1000’s of scholars earn tens of 1000’s of a month — for FREE:
The official handbook to 6-figure freelancing with zero expertise
- The three fears you MUST overcome if you wish to make it as a 6-figure freelancer
- How one can turn out to be a extremely sought-after knowledgeable (Trace: It has nothing to do with credentials or levels)
- How to determine if an thought is worthwhile earlier than investing effort and time
- The six components to an electronic mail pitch that purchasers can’t refuse
- The Briefcase Approach that’ll make potential purchasers select you over anybody else
- And far more!
Enter your title and electronic mail beneath to get the free handbook.