I have a feeling that you’re fed up with constantly feeling broke. Life’s much better when there’s money in your bank account.
The best part about saving up to reach six figures is that when you’re ready to treat yourself, you can. You don’t feel guilty about having fun. You can also make some real moves at this stage. This amount changes everything. You’re now able to repeat the process as well.
There are two ways to get to six figures in your bank account. Let’s look at these strategies to see which one’s right for you.
I’ve gotten to six figures in the bank a few times. I earned my first six figure check when I was 25.
I’ll never forget how relieved I felt on that evening in 2013 when I got my check for selling first property (amount revealed later in here). I walked into the bank like I owned the place. I then told my brother Adrian that we could go for dinner anywhere that he wanted. We still had burritos, but that’s beside the point. I now had money to treat myself to a trip while I figured out my next moves. I ended up purchasing two properties over the next few years while I worked on my own projects.
I’ve helped readers and friends get to over $100k in savings also.
Don’t worry, I won’t turn this into a collection of motivational quotes or a lecture about working hard. I’m all about sharing practical tips learned through real experiences.
I’ve found two realistic ways to get to six figures in your savings account. You can read up on my six steps to six figures if you want the exact steps that I followed.
I’m going to assume a few things before we move forward:
- You’re willing to test things out. You already know that stepping out of your comfort zone can benefit you. I want you to take some risks and try out new ideas that you normally wouldn’t.
- You’re not going to whine about everything. You have to stop blaming the economy, your parents, your high school teacher, and everyone around you for your problems. It sucks that you didn’t learn about money sooner. We can’t go back in time though. It’s important to be accountable for your actions so that you can move forward without looking for someone or something to blame.
- You’re ready to see results. There’s nothing more annoying than working with people who have accepted being average and boring. There’s too much going on in the world to settle in life.
- You don’t mind working. I’m not the hardest worker, but I had to put in some extra shifts as I saved up over the years. It won’t always be easy.
Let’s get started…
Strategy #1 For Six Figures: Extreme Patience.
You can save up slowly over time and work on your frugality/savings method until your bank account reaches that $100,000 mark.
This is the longest way and often the simplest path for most. The time’s going to pass you by anyway, so you might as well be saving and beefing up that bank account. You’re going to have to be fairly frugal or at least cut back on the expenses to speed up the process as you work towards bringing in more money.
My friend Mike did this the hard way. He worked two jobs, saved up, and put money away until he had enough in his savings account to buy two properties. I don’t want to file his taxes publicly, but he’s very happy with his bank account after selling one of the rental properties.
How does this look?
- You put money aside every week or whenever you get paid.
- You cut out most expenses out of your life. You try to be frugal whenever possible.
- You focus on saving up. You put all of your extra money into your savings account.
- You try to make more money. This could happen through creating a side hustle or becoming better at your current job.
- You continue saving up for 2-5 years until your bank account is at six figures. The time period varies on how much you’re putting away and how aggressive you get.
This isn’t the sexiest strategy. You don’t get to sell courses on passive income nor do you wake up one day with a loaded bank account. You get there slowly but surely.
The reason that this works is because it’s a linear process. You work, increase your income, put more effort into your savings, and cut back over time until you have six figures in the bank.
Strategy #2 For Six Figures: The Big Moment.
You build up for your Superbowl/Wrestlemania/World Cup (whatever sport you celebrate) moment. You wait for that great moment where you cash in and land six figures. You cash out and earn a huge pay-day.
How do you create a big moment that pays you out six figures?
- Huge launch for your business (I still haven’t figured this out). This could be that big book launch, the new business that you start and sell, the launch of your coaching services, or anything alone those lines.
- Sell a property. Selling an investment property that has increased in value is a great way to earn that moment.
- Have an investment go up in value (by a lot!). This could range from choosing a hot stock pick to you investing in a small business. You could also sell your small business that you grew.
These are just a few examples of how one moment can lead to a huge payout after years of effort.
This is how I first made it to six figures. I sold my first rental property. The value had gone up tremendously and I was worried that a market crash was coming to Canada (this was in 2013 for the record). I got a check for $123k.
Last year, I was able to make some decent money from a lucky stock pick. I purchased the WWE stock and then sold it went it hit its peak.
How does this happen?
You have to work on a big project or investment that will pay off huge.
I don’t mean to be vague but it’s difficult to know which direction you’re going to want to go in. There’s a gentleman at my gym who retired early because he spent a few years growing a side hustle that was eventually purchased for big money. Many blogs over the years have been purchased by bigger media companies too. I came close to selling this blog, but it never worked out in the end.
What’s the problem with this strategy?
The inherent risk is here is that big moment may never come. I try to be as practical as possible on here. However, I can’t ignore the idea of chasing dreams. If you can create a business that brings in money or buy a property that has the potential to go up in value, you might be able to earn a hefty payout.
You’re kind of taking a shot at the unknown here though. Your property may not go up in value, you could pick the wrong stock or your business could fail.
Which strategy should you use to get to six figures?
Which can you realistically follow? Are you in a hurry? Can you start saving up today?
Both require a level of patience that many simply can’t pull off.
Here are some factors to consider…
- Your personality. Can you handle risk? Do you like taking chances? Can you work on a project with no short-term income potential?
- Your age. How old are you? Do you have the time and energy?
- Your qualifications. It’s difficult to make money if you have don’t have the skills required to increase your income. No tips in the world can help you if you don’t find a way to increase your income.
I would start off by getting into the habit of saving money. You can’t chase passive income if you don’t have active income. Once you get a handle of your finances, you can start to look for ways to create that big moment. I want you to have a handle of your finances first because it’s never a good idea to count money that isn’t in your bank account yet. You also don’t want to blow all of your money when it finally does come in because you never picked up any money management skills.
How do you get started towards six figures?
Frugality can be really boring but saving money today gives you more options tomorrow.
Step #1: Start putting money aside right now. Putting away a little bit of money beats not putting anything away.
Step #2: Look at how you can make more money. I want you to explore every popular income source until you find something that works. I’ll write about this in every single post because nothing is as important as increasing your income. There’s only so much money that you can save.
Step #3: Repeat. Keep on putting money away and finding ways to make more money. This is the time to go after results. Don’t worry about sharing motivational quotes. Focus on money in your bank account.
You can join my $10K Club if you want to work with me.
This is your chance to work with to create a plan to hit six figures. I help you build momentum and put the systems in place to hit your first 10k. Once you hit 10k, you can easily work towards six figures. I built this course to help you skip all of the boring and painful steps that I had to learn through my own failures. You’ll also get me as your executive coach throughout the entire process.
Check out the video below for my six steps to six figures…
What’s your plan for getting to six figures in your savings account?
I would love to hear about where you’re at with this journey.