How to make 6 figures, and how I made over $200,000 in two years

how to make 6 figures

For most of us, earning 6 figures can seem almost impossible. Accumulating that much in the bank is even harder, and it won't surprise you to find out the average person will have to work for nearly 3 years to earn $100,000.

When you make money this slowly, the cost of living eats it all up before you even get a chance to enjoy it. The only option is to make money faster, and in this post you'll find out how to make 6 figures every year, so you can live a better life.

I'll share multiple ways that I'm able to generate this much money on autopilot, and another fun way that I recently used to make $223,000 over the space of two years.

It takes more than just knowing what makes 6 figures though, so this post will also contain a full guide to exactly what you'll need to do, how to live, and how to start.

How to make 6 figures

Step 1: The millionaire mindset 

It's been shown that only 8% of people are able to achieve their goals, giving them 100 times more success than the people around them. This 8% of people unknowingly have what's known as the millionaire mindset.

Although many successful people are naturally gifted with this ability, you can actually adopt this mindset to help you achieve the success you desire.

If you don't think you have time to read this whole article, and you're ready to click away from this post, you're part of the 92% of people who need to change your way of thinking immediately.

So what do you need to do to change? Simply learn to think like a millionaire!

Most self-made millionaires operate exactly the same, by following these 6 tips you can also be part of the 8% or less.

1. Have a clear goal

We all have goals and dreams, but the problem that most people have is taking action. How many times have you thought of something you'd love to do, but you've never took any steps toward making it happen?

Most people do this on a daily basis, but without action you'll never ever make 6 figures!

Every financially successful person starts out with a goal. They think of a way to achieve the goal, and they take action immediately. They think of the end result, and they know that the sooner they start, the sooner they'll get to where they want to be.

2. Stay focused

The most successful people on the planet are able to remain incredibly focused on their goals at all times. They focus on the present moment, and the current task, and they refuse to let anything distract them.

Unsuccessful people are easily distracted by things like TV and social media. They'll regularly find themselves scrolling their news feed and watching trash videos, rather than focusing on the thing they sat down to do.

3. Prioritize

If you want to make 6 figures then you'll need to prioritize, and put your money goals before everything. This means forgetting about your favourite show on TV, and ditching the weekend partying.

Recognize any pointless things that take you away from your goal, and ask yourself if they are really worth it. You'll soon realize that making 6 figures is more important than blowing away your savings and wasting your life drinking beer in a club.

4. Proper use of time

Successful people don't waste time, they put every spare minute they have into achieving their goals. I hear so many people say they don't have to time work on their goals, but that is straight bs!

You're probably wasting a heck of a lot of time without even realizing it. Pointlessly lying in bed in the mornings, or sitting down after a meal to "let it go down" is wasted time, so recognize all of the wasted time, and use it to work on your goals.

5. Patience

One big reason that unsuccessful people never get to where they want to be is impatience. Many people will set out to achieve a goal, but when they see no immediate results they give up. If only they kept pushing forward, they would have achieved their goal and experienced success!

You need to work hard while knowing that goals take time to achieve. Some people have spent years working hard on things that others see as a wasted effort, but patience and focus eventually creates success.

6. Be determined

All successful people have periods when things don't go to plan. There will be tough obstacles, and they even experience failures, but they remain determined.

Determination will give you the push that you need to keep persevering toward a difficult goal. By mixing determination with focus, prioritization, and patience, you've got a recipe for success!

How to live if you want to see 6 figures in your bank

Step 2: Stop being so broke!

how to make $100,000

Why the heck are people so broke? Let's look at a few statistics to help explain why.

The average U.S. savings account contains $16,420. But the median balance across American households is just $4,830. When you have a median that's this much lower than the average, it means that most people have a lot less than the average.

Living in New York, living expenses for a four person family will be $48,540. When you consider that the average salary for a receptionist is $34,635, or a teacher $50,516, you can see why people are so broke.

Maybe the picture above is a little deceiving, as you don't need to be a complete scrooge to see 6 figures in your bank account, but some changes will definitely need to happen.

So what's the formula to not be so broke? It's simple:

  1. Save more
  2. Earn more
  3. Invest more

Save more

You'll never see 6 figures in you bank if you can't save money. So stop living rich, until you are rich.

I see so many broke people driving flash cars that they've saved thousands of dollars for, but now they have less than $500 in the bank, and they're struggling to pay their utility bills.

These are the same people who go on vacation twice a year, and buy the most expensive clothes and sneakers just to look rich. If this sounds like you then you need to stop now.

Whatever your motivation to hit 6 figures, there's also lots of other reasons to save money:

Maybe you want to buy a house?

Or maybe you have a house, but what if something unforeseen happens, like water damage for example?

What if you're suddenly hit with a medical bill?

What if you loose your job?

These are all possibilities that people just aren't planning for, so keep plenty of cash in the bank, and don't spend it unless it's absolutely necessary.

If your living expenses are nearly as high as your salary then saving will be difficult, but it's just something you'll have to do until you're earning more.

Earn more

Earning more money will be difficult if you're already working a full time job, but it can be done by everyone. This is the only way you'll make 6 figures, so you really have no choice but to make it happen.

There are hundreds of ways you can make more money, and with the power of the internet you can even start today. More on making money later.

Invest more

Consider any investment opportunity that you can, as this is free money. This could be anything from putting money into high interest accounts, to buying something that you'll be able to sell for a higher price.

Be careful before making any investment, as you never ever want to loose money. Take your time, and thoroughly investigate any investment opportunity before putting any money down.

Step 3: Live healthier

This may sound odd to start with, but if you live healthier you are far more likely to succeed. So where do you start?

Sleep

Most people don't get enough sleep, and many have poor sleeping patterns. When you're tired and lacking energy, your focus and concentration will suffer, thus affecting progress towards your goals.

If you're being woke up by an alarm clock, it's highly likely that you aren't getting enough sleep. So start going to bed earlier each night, until you get to a point where you can wake up naturally, without relying on the alarm.

When you reach this point, go to bed at the same time every nigh, and don't break the pattern. When you have a regular sleep pattern you will be much more productive.

Diet

You want your body and mind to be working optimally, and your diet will play a big part in this. Certain minerals are required for healthy brain function, so if you're living on junk food you'll likely be hurting your progress.

Stay away from things that hinder brain performance like sodas, simple sugars, high saturated fat meals, and processed foods. Replace these things with fruits, vegetables, nuts, beans, seeds, whole grains, and plenty of water.

Step 4: Ditch social media

guide to make 6 figures

Social media can be handy for some things, and we mention using it to make money in multiple posts on this website. But social media destroys productivity, and will almost certainly get in the way of your goals.

Although deactivating your accounts would be the best option, it's not completely necessary. But you do need to realize how much time you can waste by scrolling a news feed, and interacting with people who play little, if any part in your real life.

If you choose not to deactivate, you'll need to lay out a few rules, and stick to them. So when you get to work on your goals, be sure that your WiFi and data are switched off. If you're working online, make sure you sign out of every account on your desktop computer, and disable offline notifications.

Step 5: Clear your debt

Debt is a massive obstacle that will get in the way of accumulating any amount of money.

Did you know, the average American has $6,354 in credit card debt and more than $24,700 in non-mortgage debt such as car loans. CAR LOANS!! Facepalm! Cars are a terrible investment, so stop borrowing money to buy them.

Here's a few quick tips to help you clear any debt you may have.

  1. Make more than the minimum payment: paying a credit card with the minimum payment can drag your debt out for years.
  2. Get a good side hustle: anything that creates extra money will help. This could be anything from selling your services on Fiverr, to cutting the neighbours lawn, get started right away.
  3. Sell things you no longer need: you're bound to have things that are no longer used, so get rid of them and make some money.
  4. Stop doing unnecessary things: going out for food, drinking alcohol, smoking, buying fast food. These things cost a bomb, and will eat up all of your wages fast.
  5. Don't give in to temptation: stay at home more! When you go to clothes shops, food shops, or any other shop, clever marketing will get you every time. Stay at home and save some money.

Ideas that will make 6 figures

Before I tell you how to make 6 figures, realize that these ideas will take time and a lot of effort.

You can't get money for nothing, and as we've already discussed, you will need to adopt the millionaire mindset to get anywhere with these ideas. So choose one, and stick to that goal until it's achieved.

I'm assuming that most people reading this are currently working full time, so all of these ideas can be started as a side hustle, and then scaled to a full time income, and eventually a 6 figure income.

Idea number 1: Invest in stocks

I'm putting this one first on the list because investing your money is probably the easiest way to make 6 figures over the long-term.

I've been investing in various passive index funds for many years, and this is a great way to watch your money grow with very little effort.

Many people are mistaken into thinking that to make money in the stock market, that they'll need to be glued to a computer screen, constantly checking on the Dow Jones or S&P 500.

While this is a necessary tactic for day traders, this will eat up all of your time, and isn't realistic for somebody who is currently working full time.

A great way to get started making money in the stock market as a side hustle, is to use an investment company. Platforms like Ally Invest, Betterment, Vanguard, and Schwab, let investors pay into stock investment accounts, while choosing exactly where you want your money to be invested.

So where do you start if you want to grow your money to 6 figures?

If you're totally new to investing, a good place to put your money is in an S&P 500 index fund. These funds offer investors a good mix of stocks from top companies like Apple, Microsoft, Amazon, and Facebook, so it’s about as safe as an investment in the stock market can be.

How do you make money with an index fund?

When you use an investment platform you will be able to choose how much to invest. Let's say you choose to invest into an index fund, and each stock costs you $50.

You decide to invest $10,000, which gets you 200 shares at $50 each. There are two ways that you will be able to make money from this.

  1. The price of the shares go up (they can also go down, which means you'll loose money)
  2. From dividends that are paid quarterly or yearly. Smart investors will reinvest their dividends, and buy more shares with them.

invest to make 6 figures

1. Shares go up

So let's assume that at the end of the year the stock prices have gone up from $50 to $55. This is a $5 increase on your 200 shares, so you have made $5 x 200, which equals a profit of $1000.

This means that your 200 shares are now worth $11,000.

2. You're paid dividends

Let's assume that the index fund you bought into pays 2.2% dividends per year. This means that you earn 2.2% on your original $10,000 investment, so you get $220 at the end of the year.

If you choose to reinvest your dividends, which I suggest you do, you will then be able to buy 4 more shares at $55 each with your $220. This means you now have 204 worth $11,220.

This was just a basic example. To increase your profits, you can add more money into the index fund to buy even more shares throughout the year. This will give increase the dividends you'll earn, and give you a higher return on the shares if the stock prices increase.

The secret to this is to keep adding to the fund, and to keep reinvesting the dividends. This is called compounding interest, and over time, can turn a small amount of money into hundreds of thousands of dollars, thus you make 6 figures from investing!

"The real money in investing will have to be made – as most of it has been in the past – not out of buying and selling, but out of owning and holding securities, receiving interest and dividends, and benefiting from their long-term increase in value." Benjamin Graham

Idea number 2: Real estate

Although investing in index funds carries a fairly low risk if you're willing to leave your money invested for the long run, many people still can't bare knowing there's an element risk involved.

Real estate can be a great alternative for those who are not able to withstand the risks and volatility involved in the stock market.

You can make 6 figures very fast with real estate, but many people are held back by the initial investment that is sometimes required. But there are many ways to make money in real estate, and a big chunk of cash isn't always required.

Property developing

make 6 figures with real estate

The first way to make 6 figures in property is by property developing. Property developing can refer to building new properties, or renovating existing properties, and we're going to concentrate renovations.

Renovations can vary from simply modernizing a property by fitting a new kitchen, bathroom, and painting walls etc, right through to replacing roofs, floors, windows, and central heating systems.

How do you make money by renovating a property?

A property that is in need of renovation will tend to be priced much lower than it would be in tip top condition. A house that would fetch $200,000 in good condition, may sell for just $120,000. This means that there is a potential $80,000 profit to be made by renovating it, and then selling it.

So how do you get into renovating properties?

The average person is normally held back the need for a big up payment. Unless you have 6 figures already in the bank it can seem impossible, but there are multiple ways around this.

  1. Get a mortgage: Most people will get a mortgage eventually, so what better way to get into renovating than to buy your first house in undesirable condition? This is what I did, and I was able to make a big profit, which we'll talk about later.
  2. Get a bridging loan: If you already have a mortgage, you may be better off with a bridging loan. This will be a high interest loan, that you will borrow for up to a year. You'll quickly renovate the property, sell it, pay off the loan, and keep the profit.

Buy to let

Buying a house with the intention of renting it out will take a bigger investment, and is usually what people get into after making enough money through property developing.

If you already have a large sum of money in the bank, depending on where you live, you may be able to pay a deposit on a buy to let mortgage.

Or, if you already own a house, you can use the equity you have in your home against buying another house. Again, the rules will be different depending on what country you live in. For example, in the UK the minimum age to qualify for equity release is 55.

If you can obtain a portfolio of houses, each paying you $1000 per month from rent, you'll soon make 6 figures, and a heck of a lot more.

Crowdfunded real estate

If you don't fancy buying a house, crowdfunded real estate offers a great alternative for people who are interested in investing in property, and building a portfolio.

When you invest in crowdfunded real estate, you will basically team-up with other investors in order to accumulate money. This money will then be lent, or invested with experienced rental real estate property owners.

Dividends will typically consist of rental income from the properties. You'll usually own a proportional share of a property, and earn income on rental profits, or when a property is sold.

The amount you invest will determine how much you earn. The average real estate crowdfunding return on open investments is around 14.7%. So you can make 6 figures with crowdfunded real estate, but it will take many years of investment to get there.

Idea number 3: Make 6 figures online

Here's a money making idea that can be started for free, providing you have a computer and a strong internet connection. This is by far my favourite way to make money, and I've seen great success with niche websites, eBooks, YouTube, and by running ads.

I've looked at making money online in multiple posts on this website, so if you want to take this direction then go HERE for 10 good startup ideas, and HERE for my passive income guide.

You can make 6 figures with almost any online business, but it is rarely a quick way to accumulate money, so be very patient.

So how easy is it to make 6 figures online?

Start by asking yourself this question: could you sell a product online? This could be an eBook, a digital course, a physical product, anything? If so you could do much better than 6 figures, you could make a million dollars very fast.

  • Do you think you could sell a $4 product to 250,000 people? If so you'll have 1 million dollars!
  • Could you sell a $10 product to 100,000 people? Yep, 1 million dollars in your bank!
  • Or how about a $1000 product? Sell it to 1000 people and you have a million bucks! Sounds pretty easy to make 7 figures now right?

I don't want to annoy my regular readers by covering this in anymore detail, so start by checking out the links above to help you make 6 figures online starting today.

How I made 6 figures with ease

I'm adding this little story because many of the strategies I used will be useful to anybody that wants to make 6 figures in property. This was all done alongside a full time business, and multiple side hustles and online businesses. So if I had the time to do it, anybody can.

Back in 2016 I was given the chance to buy my fathers house. He'd passed away in 2014, and it was agreed that my mother would get 50% of the value, and the 3 of us grown children would get the other 50% split evenly between us.

Everyone wanted to sell the house, except for me as I was running an engineering business from a workshop I had in the garden.

The house was valued by two different companies. The first valuation was $190,000 and the second $227,000.

Luckily for me, the house needed a lot of work and I knew that there could be a big profit in it for me, even if I paid the highest price of $227,000.

So what did I do? Well, me being me, and with the idea of maximizing my profit, I decided to try to get the house for even less than the lowest valuation. And it worked! I haggled everyone down to $152,000, and as I already had a $25,000 chunk, the final price that I had to pay was $127,000.

I'd immediately made money, as the house was valued at $38,000 more than I paid. And as I was buying from family, I made an agreement to pay them all a little chunk at a time to avoid a mortgage. This was another big win!

When the house was valued (by the company that gave the lowest valuation), the guy told me that if I fitted new windows and a gas central heating system, the value would be $310,000. So this was the first thing I did, in all 14 windows and 2 doors, plus a the central heating system cost $14,300, and this had added $120,000 to the value!

This is what I love about property developing, small improvements can add a lot of value. So I didn't stop there, while running a bunch of other businesses I got to work, and anything that I could learn how to do myself, I did in order to keep the costs down.

Here's the main jobs I did:

  • New windows and doors
  • Gas central heating
  • Two new roofs, fascia, and guttering
  • Patched up some render, and painted the house
  • Added a downstairs toilet
  • Added an office
  • Added a utility room
  • Wood flooring all round
  • New bathroom
  • New kitchen
  • Block paved driveway
  • Lots of painting

As you can see, there wasn't really that much to do, and this work could easily be completed in 6 months by somebody that had more time on their hands. or by a full time property developer.

It took me two years, but only because it was my side project, and I was spending a lot of time on other businesses.

After completion, the house was valued again at $384,000, meaning I made $257,000 minus the $34,000 I had spent renovating the house. This left me with a profit of $223,000!

Now bare in mind that I was also earning money from my full time business, my websites, eBooks, YouTube, Ads etc. So I actually made a lot more than this, but this gives you a good idea of what is possible with just one single idea.

Start making 6 figures today!

I hope you've found this post helpful, and I hope I've given you some good ideas to go away with. There really is no time like the present, so get started on this today. Adopt that millionaire mindset, and don't waste any time getting to work on your chosen money making idea.

One last tip: if you get to 6 figures, which I'm sure you will — don't stop there! $100,000 isn't as much as it sounds, and it won't last you very long. So keep hustling, keep the right mindset, and say "screw the 6 figures, I'm going to make 7 figures, and then 8!"

Until you reach 6 figures, avoid spending any significant money on anything that isn't an investment. If it isn't going to make money, don't spend money on it. And don't sit on a large amount of money, invest it into an index fund or real estate, so that it grows.

Good luck!