7 tips on how to make $100,000 a year

For many people, financial stability means being confident in your ability to pay for all the expenses in your life — whether expected or not.

There's no one-size-fits-all number in your bank or investment account that means you've achieved this stability, but $100,000 is a good amount to aim for. For most people, it's not anywhere near enough to retire on, but accumulating that much cash is usually a sign that something's going right with your finances.

That said there's nothing magical about a six-digit number — if you think you can reach financial stability with a smaller amount, then great! The good news is that the fundamentals of how to save money will remain pretty much the same.

To find out how much you can reasonably save each month, you need to know how much money you have coming in vs. how much you spend on necessary expenses such as rent, groceries, commuting and more.

Remember that it's possible to save too much money. If you try to dive into an unsustainable lifestyle that puts you on a diet of only ramen and tap water (for example), you might end up abandoning your savings goals altogether out of frustration.

Take advantage of tools like budgeting apps Quicken Simplifi or Empower to get a good picture of your budget so you can formulate a realistic plan to get to $100,000. These platforms connect directly to your bank account and automatically track and categorize your spending and income.

Once you know how much money you have to spend on necessities, you can decide how much you'd like to save each month. Just remember to account for surprise expenses and for the expenses and activities in your life that give you joy.

Consistency is key when it comes to saving your first $100,000. One of the best ways to remain consistent when you have a savings goal is to take on a set-it-and-forget-it approach with automated savings.

You can schedule recurring deposits into your savings account or investment account for the same day each week or even each month. You can also choose a fixed amount of money you'd like deposited into savings every time.

By automating your savings, you avoid accidentally spending money you had intended to save. Plus, you're getting closer to your savings goal without thinking about it.

Also, make sure that you're saving your money in a high-yield savings account since these accounts let you earn more interest on your balance than you otherwise would with a traditional savings account. Granted, you won't be earning hundreds of dollars in interest (unless your balance gets really high) but every dollar counts and gets you closer to your goal.

The  Marcus by Goldman Sachs High Yield Online Savings is a solid pick since it doesn't have a minimum deposit amount and doesn't charge fees for overdrafts, excessive transactions, or monthly maintenance. UFB Portfolio Savings is another great option since it currently offers a strong APY at 3.26%.

Don't discount your employer-sponsored 401(k) account or HSA account when it comes to reaching your savings goal. You contribute pre-tax dollars to these accounts, which means you don't even have the option to spend the money on something else. And, of course, you don't have to manually move the money into your 401(k) or HSA.

Pretty much all retirement accounts have contribution limits that can change each year due to cost-of-living adjustments. According to the IRS, you can contribute up to $23,000 to your 401(k) for 2024. If you were to max out your 401(k) contributions every single year, it would take you just under five years to reach your $100,000 goal.

Of course, maxing out your 401(k) isn't easy to accomplish given all of life's other expenses. A more realistic goal might be taking full advantage of your employer's match (if they offer one), which is getting extra money for retirement for free.

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You might see a big tax refund or work bonus as an excuse to splurge (and sometimes, that's exactly what you should do), but you should at least consider putting that extra money into a savings or investment account to bring you closer to your goal.

Paying off credit card debt can help you get closer to your savings goals. The money that would have gone toward paying interest on that debt can now go toward your goal of reaching $100,000.

If you've been carrying around stubborn credit card debt that's been tough to pay down because of interest charges, consider using a balance transfer credit card. These cards help you pay down the balance quicker since they typically offer a 0% intro APR period (but after that period is over, interest charges resume). During this time, you won't be charged interest so more of your monthly payment can go toward your principal.

The Citi® Diamond Preferred® Card offers a strong 0% intro APR period on balance transfers of 21 months from date of account opening (16.49% - 27.24% variable APR after), which means you get almost two years to make interest-free monthly payments. Balance transfers must be completed within 4 months of account opening. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

Sometimes, to reach a lofty savings goal you need to reassess whether your current level of income needs to change. You can only cut back on expenses so much, and you don't want to pare down your spending so much that you're miserable.

Earning more money without inflating your standard of living and other expenses can give you a lot more room to save even more. This makes reaching your $100,000 goal feel even more attainable.

It would be prudent to approach the conversation of getting a raise at your current job when appropriate. Alternatively, you might apply for a new job with a higher salary, or pick up a side hustle.

Saving your first $100K is no easy feat and you'll almost certainly need to make some sacrifices — whether going out to eat less or skipping that vacation or not buying that dress. Just avoid depriving yourself of the things that bring you joy for the sake of saving money, as that can lead to burnout.

Also, remember that the journey won't be linear; you may have a surprise expense that pops up and forces you to use your emergency fund. Or, you may decide that to be happy, you need a graduate degree or a wedding or any number of major life changes that cost a significant amount of money. You may take a step (or 10) backward on your journey to $100,000, but you can always pick up where you left off.

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Andi Jones contributed to this story.