If you want to make six figures, know that you can if you want to. Nothing in this world is stopping you with the right money mindset to get rich.
I believe $250,000 is the ideal six figure income for an individual for maximum happiness. $350,000 is the ideal household income for a couple. At these income levels, you’re earning a healthy six figures to buy a lot of what you want. But you’re not earning a super-high six figure income that takes a lot of work and gets taxed like crazy.
I’ve been making six figures since my second year in investment banking in 2000. Earning a six figure income helped me achieve financial independence at age 34 in 2012. Today, my passive investment income generates roughly $300,000 a year to take care of my wife and two children.
If you want to learn how to earn a six figure income at almost any age, you’ve come to the right place! I earned six-figures at work and now earn six-figures online.
Skills You Need To Get A Six-Figure Salary
If you have a high IQ, that’s great! But, intelligence alone does not guarantee success in life. If you want to make a six-figure income, there are a set of core skillsets you must acquire first.
Let’s Start With Some Basic Necessities
If you want to make six figures, you must desire to make a lot of money. Mr. Miyagi said it best to Daniel-san, “You Karate do “yes” or Karate do “no,” you Karate do “guess so” get squished like grape.”
Unfortunately for the lazy, you’re actually going to have to try hard at first. Maybe you’ll wake up earlier than everyone else. Or you’ll start to network like a mad person. Hopefully, you’ll stop making excuses. No effort, no results.
The more you educate yourself, the easier things will be. Lucky for you, you’re reading this post and likely other great financial publications as well. I spent the past 13 years working in finance. Then I got my MBA from Berkeley. I’ve written over 2,000 personal finance articles since 2009. You’re in good hands here on FS!
Positive people succeed more in life. Optimism is what will drive you to keep going when things turn sour. Optimism will make you do great things because you believe things will improve. If you have optimism, you will always find the right direction.
At the very minimum, it’s important to be nice. At the maximum, your charisma will make believers out of others. People will be drawn to you and naturally want to start helping you and doing business with you. Be nice, but also be respectful. There will be haters everywhere. Embrace them.
Get A Six-Figure Income At Any Age
Now that we have the basics out of the way, let’s explore the many possibilities of making over $100,000 at any age. I truly believe anybody who wants to make more can make more. This post isn’t meant to be controversial at all. But, as always, feel free to share your thoughts below.
High School & College Years
It’s important not to be a donkey and get mediocre grades. If you’re just coasting with a “B” or worse, you’re going to end up going to a “B” college or worse. At your “B” college, if you are mediocre again, well then you are going to be stuck with mediocre opportunities.
Do you really think you’re going to be able to compete with the student who gets straight A’s in high school who then gets straight A’s at Columbia for the same jobs and opportunities post graduation? No. A rational employer will choose the straight-A student over the B-student 9 times out of 10 all else being equal.
Top 5 Industries With Six-Figure Jobs
Now that you are a terrific student, all you’ve got to do is identify industries that often pay six figures within 3 years out of school. Here are some examples:
- Venture capital
- Investment banking
- Management/strategic consulting
- High tech
Therefore, go apply to the top five companies in each field. For example, the companies listed below are offer opportunities to get a six-figure salary.
Venture Capital: Sequoia, Benchmark, Accel, Draper Fisher Jurvetson, and Kleiner Perkins.
Investment Banking: Goldman Sachs, Morgan Stanley, JP Morgan, Barclays, Bank of America Merrill Lynch
Strategic Consulting: Bain, BCG, McKinsey, Monitor, Arthur D. Little, Booz Allen Hamilton, LEK, Oliver Wyman, A.T. Kearney.
Tech/Software: Apple, Oracle, Salesforce, Microsoft, HP.
Internet: Google, Facebook, eBay, Paypal, AirbnB, Dropbox, Quora, Uber, Slack, Pinterest, Netflix.
Even More Six-Figure Industries
IT Consulting/Accounting: KPMG, Deloitte, Ernst & Young, PricewaterhouseCoopers (takes longer to break $100,000, but a high certainty before 30 if you start out of undergrad)
Oil, Mining, Commodities Trading: Vitol Group, BHP Billington, Glencore International, Cargill Group, Koch Industries, Trafigura, Archer Daniels Midland Co, Gunvor International, Noble Group, Bunge, Phibro
Computer & Movie Animation: Pixar Studios (Toy Story), Weta (Lord Of The Rings), Blizzard (World of War Craft)
Engineering: Mechanical engineering, Electrical engineering, Software engineering, Structural engineering. Engineers have the starting highest paid salaries around. They can find jobs at many tech, internet, software, research, and construction companies.
Health Care: Doctors, Hospital Administrators, Specialists, Nurse Practitioners, Physician Assistants, etc.
Classical Music: The San Francisco Symphony’s median salary is $160,000. We know this because they went on strike on March 13, 2013. They felt underpaid by 5% compared to their LA and Chicago peers! 5% and they go on strike!
Police Officers and Firefighters: Cops and firefighters with a couple decades worth of experience regularly earn over six figures a year. Add on their well deserved lifelong pensions and you’ve got a recipe for financial success! Retired SF Chief of Police Heather Fong makes $200,000+ a year from her pension for example.
Big Government: Reach any top tier position in the Federal or State government and you will make six figures a year a long with a nice pension. In fact, there are more than 450,000 Federal employees making over $100,000 a year. Prison guards make $150,000-$200,000+ with overtime. San Francisco janitors and elevator technicians make over $270,000 a year.
Government Contractors: The average total compensation for a Navy, Army, and Air Force contractor is $180,000 according according to a 2016 report by the Defense Business Board.
Education: Principals, Head Coaches, professors
Real estate: There are plenty of real estate agents who make six figures a year. With commission staying stubbornly high at 5%, all you’ve got to do is sell $4 million worth of real estate a year to earn six figures (part of your commissions goes to the brokerage firm).
Make Six Figures Through Passive Income
Another goal you should have is to make six figures through your passive investment income. Meaningful passive investment income takes forever to generate, which is why you need to get in the mindset ASAP.
My current favorite passive income investment is through real estate crowdfunding. I love owning a physical asset that I don’t have to manage. The best real estate platforms today are Fundrise, for all investors and CrowdStreet for accredited investors. Both are free to sign up an explore.
I’ve invested $810,000 in real estate crowdfunding projects mainly in the heartland of America. Valuations are cheaper and net rental yields are higher there. I believe there will be increased migration to lower cost areas of the country. This should drive property and rental prices higher.
It’s taken me over 21 years to amass enough capital to generate $300,000 a year in passive income. My ultimate goal is to get to $350,000 since I’ve now got two kids and neither my wife or I work.
Make Six-Figures A Year In Your 20s
So there we have it. Great grades, great schools, and working in particular industries will make you $100,000 a year in your 20s. This post names roughly 30 firms which employ tens of thousands. There are many more firms out there which pay just as well.
The great thing is that if you stick it out at any of these firms for 10+ years, there’s a great chance you will be a millionaire in your 30s and a multi-millionaire in your 40s.
What If Your Grades Were Terrible?
Let’s say you’ve got some work experience under your belt. However, you just aren’t satisfied with your career or your profession.
You didn’t do particularly well in school and read this post a little too late.
You could always go for an elevator technician job in SF and make close to $300K. There are so many regular jobs paying six figures if you swallow your pride. However, I understand not everybody wants to sweep floors and clean toilets to make a high income. The good news is there are many other options.
Go To Business School To Make Six Figures
How else might you figure out how to make six figures a year? You’ve got a second chance at a six-figure salary by simply going to business school. Again, you can’t just go to any business school. You’ve got to go to one of the top 20 business schools given the competition, supply, and cost.
Lucky for you, the top business schools let in thousands of students a year, so no worries!
Top 15 Business Schools: Harvard, Stanford, Wharton, MIT, Penn, Columbia, Dartmouth, Berkeley, Chicago, Northwestern, Michigan, Virginia, Yale, Duke, and Cornell.
Get in any of the above schools. Then enter any of the five industries I mentioned. If you do, you’ll likely make a median total pay package of over $100,000 your very first year.
Five years out, you’ll probably make double. You can attend business school at age 25 or 55. So long as you go to one of the best schools, most will make well over six figures upon graduation.
Even if you don’t go into one of the aforementioned fields, you will still probably make six figures a year in the fast moving consumer goods (FMCG like Procter & Gamble and Coca-Cola), retail, and hospitality industries.
Many Other Money Making Options Abound
There are plenty of different avenues you can take to breach that magical six-figure mark. Doctors and lawyers routinely make multiple six figures. Longshoremen (dockworker) average $120,000 a year as we discovered during the Oakland longshoremen strike in 2001 and 2015.
After 20 years on the police force and fire department, the majority of our brave men and women make $100,000+. Not only that, their capitalized pensions are worth millions!
Marrying for money sometimes works, but you’ll have to often sleep with a less than desirable looking spouse.
You can start your own business or work two jobs. Making an online income seems particularly trendy nowadays.
I started Financial Samurai back in 2009. Three years later, I was able to leave my investment banking job to work on this site full time. You never know what you might be able to do. At the very least, register your name online and build your brand.
Visualize The Money And It Will Come
Finally, to help you visualize your path to $100,000 or more a year, simply break down the annual income by month and then by day. Doesn’t $8,333 a month sound a little less daunting? How about making $274 a day? That’s surely possible isn’t it? Of course it is!
If you are happy with making $99,999 a year, more power to you. Just remember that your happiness, as measured by income will continue to grow until about $250,000. Then your happiness fades because of government persecution and the bitter populace who want to keep you down.
And if you’re really smart, you’ll learn how to negotiate a severance from a job you hate before moving onto your next great opportunity. In 2012, I was able to negotiate a severance worth over $600,000 to take my time building this site stress-free. Always be thinking ahead before making any drastic career moves.
Make Six Figures Through Real Estate
Real estate is my favorite way to achieve financial freedom. It is a tangible asset that is less volatile, provides utility, and generates income. Stocks are fine, but stock yields are low and stocks are much more volatile.
In an inflationary environment, you want to own real estate with a fixed-rate mortgage. Over time, inflation whittles down the cost of your mortgage and helps boost the value of your real estate. This one-two combination helps the average person get wealthy over time.
Take a look at my two favorite real estate crowdfunding platforms. Thy are both free to sign up and explore:
Fundrise: A way for accredited and non-accredited investors to diversify into real estate through private eREITs. Fundrise has been around since 2012 and has consistently generated steady returns, no matter what the stock market is doing. For most people, investing in a diversified eREIT is probably best for risk management.
CrowdStreet: A way for accredited investors to invest in individual real estate opportunities mostly in 18-hour cities. 18-hour cities are secondary cities with lower valuations and higher rental yields. There is potentially higher growth due to positive demographic trends. If you have a lot of capital, you can build your own diversified best-of-the-best real estate portfolio.
I’ve personally invested $810,000 in real estate crowdfunding across 18 projects. My goal is to take advantage of lower valuations in the heartland of America. The investments now generate six figures in passive income.
Wealth Management Recommendation
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I’ve been using Personal Capital since 2012. As a result, I have seen my net worth skyrocket during this time thanks to better money management.
If You Want To Quit Your Job
Never quit, get laid off and negotiate a severance. If you negotiate a severance like I did back in 2012, you not only get a severance check, but potentially subsidized healthcare, deferred compensation, and worker training.
Since you got laid off, you’re also eligible for up to 26 weeks of unemployment benefits. Having a financial runway is huge during your transition period.
Conversely, if you quit your job you get nothing. Check out, How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye, on how to negotiate a severance. I first published the book in 2012. I have since expanded it to over 200 pages thanks to tremendous reader feedback and successful case studies.
It was recently updated with new case studies, resources, and more. Start reading the latest edition today.