How To Make £100k A Year – The Easiest Strategies
There are a few numbers that stand out once you enter the working world. One of those is the infamous, £100k mark. At first, you may think earning or logging into your online banking and seeing £100k is impossible. But the truth is, this is a task that you can definitely do in your 20s and one which you should 100% be able to do in your 30s too. In this blog, I am going to share with you 5 strategies on how to guarantee you make in excess of £100k a year and are able to see £100,000 on your online banking before your 30th birthday.
These are the simplest routes to join the six-figure club:
- Contracting
- Contracting + Real Estate Investing
- Online Course Selling
- SMMA
- Investing
Let’s look at these one by one:
Contracting
Contracting in the UK is one of the easiest paths to earn £100,000 per annum. With contracting in the UK market, you earn a day rate and companies pay you significantly more due to assignments being short and you working as a contingent worker and not a full-time permanent employee. The day rates have to factor in no paid time off, no sick leave, holiday entitlement, compassionate and bereavement leave and companies don’t have to think about employer pension contributions and all the additional extras that comes with you being a full time employee.
Due to the nature of the day rates being typically around the range of £400 – 700/per day for IT contractors and the average day rate being £450/day across the UK according to Caroola if you calculate this per month that amounts to £9000/month. Now the truth is, contracts usually last for 6 months and if you’re good you will get extended for 3 months or more. So if you stay around for a year or move from contract to contract you can easily see how this can compound into a 100k-a-year salary.
Contracting + Real Estate
Everyone talks about making multiple streams of income, and I agree with the principle but let’s also talk about the right approach here. If you have an established career, then yes you should absolutely be diversifying and building another stream of income. But what you should not do is try to start 5 things at once because a Youtuber said it makes sense to start Amazon FBA, Dropshipping, Etsy, Real Estate, and Freelance. The truth is, there are just not enough hours in a day to attempt to build 5 projects at once even if you are Kim Kardashian with a payroll of employees…
Here’s what you can do if you are a Contractor and you move from assignment to assignment. Invest your disposable income into real estate to create an additional cash flow. There are many different routes you can take in the real estate investing game. You could invest in Rent to Rents, do a BRRR (Buy, refurbish, refinance and rent), Buy and Rent to Single Family and the list goes on. Learn more about property strategies and real estate investing on our blog here.
Online Course Selling
If you have experience in a particular subject and you are frequently recognized as a subject matter expert, you should consider creating and selling a course. Online course selling is big business and the education industry is worth well over USD 198 billion in 2022 and is projected to be around USD602 billion in 2030! It’s safe to say, based on those figures there are many customers waiting to make a purchase and upskill themselves.
Course selling has become an essential aspect of the education industry, with many individuals and businesses creating and selling courses to generate revenue. There are numerous platforms where you can sell your course, from Udemy, Teachable, Gumroad and the list goes on. If you have knowledge in something and people often ask you to help them or advise them on a certain topic, share your expertise with a wider audience. Courses range from £50 – 1000s and you can easily make a few chapters and get student testimonials and monetise your skills and create a passive income stream while doing what you enjoy.
In addition to generating revenue, course selling also helps to establish sellers as an authority and expert. This can lead to you being known and can lead to new income streams, like speaking appointments at seminars and conferences.
SMMA
Setting up a social media marketing agency is a lucrative business idea. I started my agency, the Ambitious Marketing Agency in 2019 and since then have managed to help over 55 businesses with their digital marketing. All SMMA Agencies provide different types of services, from social media management on platforms like Facebook, Instagram, and Twitter. To email marketing, paid ads setup and management, SEO, video editing and the list goes on. The point, however, for all SMMA’s the number one goal is to help business owners get more eyeballs and turn clicks into cash with your agency’s efforts.
An SMMA may offer a range of services such as social media account management, social media advertising, content creation, and influencer marketing. You may provide services to a particular niche such as healthcare, finance, e-commerce and retail or decide to only focus on one niche.
Small to medium-sized companies have a marketing budget, so asking brands to spend £2 – 5k/month on marketing can easily compound quick to £10k/month in revenue for your business if you decide to open up a social media or digital marketing agency. There are large agencies out there like Vayner Media that make multi-millions because theywork with large household names brands like Coca-Cola and Unilever.
Investing
Learning how to invest should be a priority for everyone once they start earning an income. Investing in stocks and shares can be profitable and can be treated as a long-term vehicle to secure your financial independence in the future. Like most things, investing involves risk and requires careful planning. Here are some steps you can take to build a £100k+ portfolio.
- Educate Yourself: Before you start investing, take the time to educate yourself about both the stock market and the cryptocurrency market. Understand the basics of how they work, the different types of assets available, and the factors that can influence their prices.
- Set Clear Goals: Define your investment goals. Are you looking for short-term gains or long-term growth? Your goals will influence your investment strategy.
- Diversify Your Portfolio: Don’t put all your eggs in one basket. Diversification helps spread risk. Consider investing in a mix of different stocks and cryptocurrencies to reduce the impact of any single asset’s poor performance.
- Research and Analysis: Research the companies or cryptocurrencies you’re interested in. Understand their fundamentals, financials, and potential for growth. For cryptocurrencies, also consider factors like technology, adoption, and market trends.
- Risk Management: Be prepared to lose the money you invest. Investments can be volatile, so only invest what you can afford to lose without impacting your financial stability.
- Invest Regularly: Consider a strategy called dollar-cost averaging. This involves investing a fixed amount at regular intervals, regardless of market fluctuations. This can help reduce the impact of market volatility.
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Conclusion
As you embark on your quest to achieve this £100k financial milestone, keep in mind that success is not solely defined by the amount in your bank account. The journey itself, the skills you acquire, the connections you make, and the personal growth you experience are equally invaluable outcomes. So, with determination as your compass and these strategies as your toolkit, you’re well-equipped to navigate the path towards your £100,000 goal and beyond. None of these methods listed above are foolproof and you will notice some even require you to be an expert or at least have a greater in-depth understanding of a particular topic than the average Joe Blogs. But the truth is, once you have invested your 10,000 hours into one of these ideas listed above, the compound effect of your skills and experience will equate to you hitting six figures over and over.
