6 Things You Should Do If You Want To Earn $100,000 in 2023
Bringing home six figures a year is the ultimate career goal of many. If you haven’t reached this milestone yet, don’t worry. You’re not alone.
According to the U.S. Census Bureau, the real median household income was $70,784 in 2021 — and only around one-third of the households made more than $100,000 that year. Plus, household income is the total gross income for everyone 15 or older in the home. In other words, the percentage of individuals making six figures is much lower than the figure above.
Not many people earn over $100,000, but that doesn’t mean you can’t do it. Here are the six things you must do if you’re determined to realize your dream of becoming a six-figure earner in 2023.
Also see why some six-figure earners still struggle.
Take on a Side Hustle
One of the most straightforward ways to double or triple your income is to take on a side hustle. If you have time outside your full-time job, consider making extra cash by offering tutoring services, driving for Uber, becoming a part-time dog walker, etc. The options are endless.
Live Richer Podcast: Overcome Your Fear of Asking for the Raise You Deserve
Before taking the plunge and starting a side hustle, create a clear plan that outlines your SMART goals (specific, measurable, achievable, realistic and timely) and how exactly you plan to reach them. For example, how much do you want to make a month? How much time will you dedicate to this side hustle? Where do you plan to find clients?
Ask for a Raise
If you don’t have the time and energy to take on a side hustle, another way to boost your income is by asking for a raise. However, make sure that you’ve been at your current job for at least six months before asking for pay increases so you have enough to establish a track record in your position and demonstrate your skills.
Prior to setting up a meeting with your boss to negotiate a pay raise, create a solid case for why you deserve a raise: Research salary data for your job title to find out what range is typical for someone with your qualifications and list your specific achievements from the past six months. If your employer rejects your pay raise request, consider negotiating for other benefits — such as vacation time or flexible hours.
Upskill Yourself and Switch Jobs
If you’re working at a job paying $40,000 a year, it may be challenging to request a pay raise that bumps your salary to over $100,000. However, by advancing your skills and learning new knowledge, you could qualify for high-paying positions that could give you the six-figure income you desire.
To upskill yourself, identify your end goal, then figure out your knowledge gaps by browsing job descriptions for your desired position. Finally, formulate a plan on how you’ll fill those knowledge gaps.
For example, if you want to become a full-stack engineer at Google, head to the company’s website to find out the role’s qualifications and job description. Then, research how you could acquire the necessary skills to qualify for the position — perhaps by joining a coding boot camp or by taking advantage of free online programming resources such as Harvard University’s CS50 course.
Find a Mentor or Coach
A good mentor can challenge you, push you out of your comfort zone and motivate you to make the best decisions for your career. With the right guidance, you can break through any internal barriers that may be stopping you from achieving success, allowing you to skyrocket toward career growth and higher earnings.
To find a mentor, consider the people you have relationships with in your existing network. These include your past employers, past colleagues or experts in your field that you respect and interact with regularly.
Remember, don’t just immediately ask them to become your mentor, as it could put pressure on them. Take the time to nurture the relationship, ask thought-provoking questions and be genuine so they can also benefit from the mentor-mentee relationship.
Shift Your Mindset
As the saying goes, “You reap what you sow.” The financial situation you’re in today is a reflection of the decisions you made in the past. If you want to skyrocket your income, it’s time to drop the old “scarcity mentality” and start welcoming more possibilities into your wallet.
Having an abundance mindset allows you to see more in your life — more choices, more options and more resources. With this shift in attitude, you’ll become more motivated to invest in yourself, develop skills that attract high-paying gigs, attend networking sessions to forge meaningful connections and actively seek out side hustles to boost your income.
Attend Networking Events
According to Cornell University’s research that studied 165 lawyers at a North American law firm, each lawyer’s success depended on their ability to network effectively; those who avoided networking tended to have fewer billable hours than their peers.
So, to increase your earning potential in 2023, put yourself out there and attend networking events. It can be intimidating at first, but the possibilities that come with being around professionals in various industries and making solid connections will pay off in the long run.
Don’t Forget To Budget Your Six-Figure Income Wisely
Reaching the six-figure mark is undoubtedly an achievement worth celebrating, but don’t let the party go on for too long. With the extra cash in your pocket, it’s easy to fall prey to lifestyle creep — splurging on fancy meals, designer clothes and extravagant vacations.
However, if you want to maintain your wealth and build a cushy nest egg, watch your spending and create an investment strategy. Consider speaking to a financial advisor if you’re unsure how best to manage your extra income.
More From GOBankingRates
- 5 Expensive Renovations Homeowners Always Regret
- Financial Insight in Your Inbox: Sign Up for GBR's Daily Newsletter
- 3 Ways to Recession Proof Your Retirement
- 7 Things You Must Do To Create a Plan for Your Money