Earners,

There are few things in the personal finance world that are as beautiful as your first $100,000. It’s almost as if this is a rite of passage that signifies your arrival as a true earner. A bread WINNER. Someone who is well on there way to a 7-figure net worth.

I want that pristine figure to be in your bank account rather soon, so I’ve got a little formula below to help you get there.

The 3 Steps To 100 Racks:

Number 1: Automation (went over this in February!)

Automating finances will save you. It includes:

• Setting up auto-pay for bills, ensuring timely payments and good credit.

• Making financial goals automatic (systematic contributions to your investment accounts).

• Removing the need for constant monitoring, while still maintaining control.

Steps for financial automation:

• Automate your paycheck: Ensure the correct amount is deposited in your account. I can not tell you the amount of times I have seen someone being overly deducted by their employer. If your employer offers a retirement plan, contribute to it. This is usually matched by the employer up to a certain percentage (aka free money), providing instant returns.

• Set up your system: Create a cash cushion in your checking account to avoid a negative balance. Set up auto deductions for investments and savings, ideally at least 20% of your take-home pay.

• Automate debt repayments: Especially for low-interest debts like student loans and mortgages. It’s ideal to pay off high-interest debt (like credit card debt that’s behind) before investing.

• Automate bill payments: This avoids late fees and credit hits. Set up alerts on your phone to monitor transactions and review statements periodically.

• Monitor variable expenses: Ensure you have enough money after the first 4 steps. If so, here’s where you flesh out what you would like to allocate to what variable wise (eating out, shopping, trips etc). Some people don't even do that, though. They just automate literally everything and spend whatever's left over and often times find that there's enough guilt-free money left over that they can just spend freely.

• Set a check-in date: Periodically review and adjust deductions based on your goals. Aim to increase contributions to investments and debt repayments over time.

Number 2: Maximization

See, the thing is you can only save so much money…but your income potential is uncapped. That means that after you sort out these baseline things of automating and cleaning up your finances, ALL your effort should be focused on making more money.

• Start by asking yourself: Am I satisfied with my current income? Despite being grateful for what you have, do you see a path to significantly increase your earnings in your current job? If the answer is anything but a definitive yes, it's time to seek a new role that will take your earnings to the next level.

• The conventional model of staying with a company for many years has changed. A lot. Job hopping can be an effective strategy for maximizing your income. With strategic career advancement and a proactive search for opportunities, you can potentially earn into the high six figures.

• Begin by spending 30 minutes each night reviewing new job roles. Attend local networking events in your industry to build your reputation and start to poke everyone in your existing network around opportunities they think you could be a great fit for.

• Use LinkedIn to find individuals who work at companies you're interested in and initiate casual conversations with them. Landing a higher-paying job often comes through referrals. So, expand your network and make yourself known. With consistent effort, you're likely to secure some interviews and eventually a better-paying job.

• If you're running a business, growth will naturally result in income boosts. But what if you don't own a business?

• Freelancing or starting a side hustle can be an excellent way to supplement your income. If you have unique and specialized skills, consider doing side projects or consulting to earn extra money. Use your expertise to offer services or create products that others need. Platforms like Upwork, Fiverr, and Etsy can help you get started.

Number 3: Reinvestment

There are two main types of investments you can make with your income: short-term investments in yourself and long-term investments in assets.

Short-term investments can be into your business, such as buying new equipment, expanding your team, and making moves that will increase your earnings. This can also include investments in your skill set, like taking courses, consulting calls, attending conferences - anything that enhances your skills and can help you earn more money in the short term.

Long-term investments in assets, on the other hand, often bear fruit over decades. While short-term investments can compound and benefit you in the long run, here we're mostly talking about the magic of compound interest. These investments can be in index funds, exchange-traded funds, real estate, blue-chip stocks, or even alternative assets like art. Though you won't see immediate substantial returns or cash flow, over time, consistent buying and holding can build considerable wealth.

So, which should you invest more in?

That depends on your goals. It's wise to invest in both areas, but the amount varies. A good starting point could be to max out your work retirement accounts, if available, then make monthly contributions to your TFSA/Roth IRA and your RRSP/401K, and invest the rest back into things that can increase your earnings. A regular investment of 10-15% of your income in the market every month, automated for consistency, with the rest allocated to personal or business growth, can provide a balanced approach to building long-term wealth and increasing income.

Some people choose to invest heavily in themselves, pouring money into their business endeavours to maximize their chances of making a lot of money quickly. While this isn't a bad idea, having some money set aside for the long term in addition to such a strategy is a pretty prudent thing to do.

The gist is this: if you can automate, maximize, and reinvest consistently… Earners, I have zero doubt you will reach your first $100k in no time.

Earn more,

Nate