$200k a year is an impressive wage for many people across the US. But just how feasible is this goal? What can you do to start reaching milestones along the way?
In this quick guide, I’ll show you how to make $200k a year (hypothetically). However, remember that you might not make your fortune overnight – and that there’s always going to be plenty of work involved.
Let’s run through a few top tips.
Learn skills that people pay more for
Nice and easy, right? Maybe not – at least, it’s going to take some time. However, some skills pay more than others in this day and age, and more often than not, a fast-track to earning $200k a year lies in studying computer science, software engineering, and network management.
The legal sector, too, pays handsomely depending on your experience and tenure. Lawyers and judges can receive more than $200k a year once within the top 10% of their industries. That means, of course, you’ll need to commit to learning law, and to working in a highly affluent area.
Doctors and physicians, too, can make more than $200k a year depending on their experience and reputation. Again, that means you’ll need to head to medical school and then scale your way up the ladder, which could take a decade or more.
Other jobs and roles where you may make more than $200k each year include airline piloting, psychiatry, gynecology, dermatology, and plastic surgery. You can even make more than $600k a year as a voice actor if you work hard enough!
That’s the key to this tip – you’re going to need to plan carefully for lots of study. People get paid well in most of these roles because they require incredible competence and expertise!
Find a job with executive routes
If spending years in college doesn’t sound too appealing, consider looking at career paths where you can quickly rank up as an executive.
Banking and investment firms, for example, typically offer executive positions where you can expect to earn more than $200k a year in the long term. However, just as you’ll need to work and study hard elsewhere, you’ll need to prove you’re worth this money as an executive.
Can you drive exceptional results for your clients and portfolios? Are you dedicated to your job? Are you willing to go the extra mile to find solutions that don’t just pop out at you?
Yet again – it’s not a quick or easy route to $200k, but if you can, start early. Show aptitude, be professional, and keep your eyes on the prize.
Move to a new state
No, really! Some states pay far more in average wages than others, and typically, you’ll earn more the closer you get to the bigger cities.
There’s no guarantee how much you’ll earn in a given state (as there are lots of mitigating factors), but working in Massachusetts is likely to get you a higher salary than elsewhere. Here, the average yearly salary is $72,940. New York isn’t far behind on $70,460.
Now – that’s not even half of the wage you’re looking for. However, by working in these more affluent states in the positions detailed above, you’re likely to hit that magic $200k much quicker.
Unfortunately, it’s a slow ride to the top if you work in South Dakota, Arkansas, West Virginia, or Mississippi – as the average salaries here all fall below $45,000.
Before we leave this point, it’s important to put in perspective that states with higher average income levels also often have higher average cost of living. So be sure to check what you can save, not only after taxes, but also after all costs are considered.
Invest in passive assets
One way to make big bank over a long period, according to several successful portfolio builders, is to invest in assets. If you are able to achieve a net worth of $5 million dollars, you can very easily generate over $200k a year of income from just the passive investments. Think of an asset as something that makes you money over time, not necessarily something you put money into and leave to build value.
For example, why not consider getting into real estate? Rates are picking back up post-pandemic, and a great way to make passive income is to build a solid portfolio of rental properties. You can also invest in trusts and still make money.
Of course, there are also tons of stock you can make $200k a year from. However, you’ll only reach this total if you diversify your portfolio, and if you buy and sell without emotional attachments. Given that there are so many books and guides out there on making money through investing and trading, this is a well-worn point.
But the key to remember in this context is that you should start as soon as possible! You never know what kind of fortune you could build with a small amount of capital.
Find big-bonus jobs
Alongside the high-paid roles suggested above, do also take the time to find positions with lucrative bonus and performance incentive structures.
As mentioned, while banking and investment positions already offer executive hierarchies, they will also provide performance bonuses depending on projects and timescales.
If you’re particularly adept in a given field or you’re simply willing to put in a ton of effort, there are lots of great bonus opportunities out there to seize upon.
Thankfully, most businesses willing to offer such incentives will be fairly forthcoming in job listings. Therefore, you don’t have to spend years wondering when your next big bonus is coming.
Of course, you can also boost your wage by asking for a rise… a daring move, but one that many employers are willing to honor – providing you’re the right fit, and you work hard.
Before You Go…
$200k is a big target to shoot for and it’s not easy to get there! However $100k in salary per year is much more achievable. We’ve covered the topic if you’re wondering whether $100k a year is a good salary in the US.
If you do like to aim high though, perhaps you might be wondering how many people make more than $300k in the US?
Do check out these article before you go and I hope you find them useful!
What are some of the highest-paid jobs in the US?
Across the states, some of the highest-paid people include surgeons, OB-GYNs, physicians, pilots, dentists, psychiatrists, and orthodontists. As you can see, America rewards its medical personnel when you work hard and make a difference!
Can I make $200k a year without college?
Yes – consider starting your own business or consultancy if you’re talented in any given way, or even if you have just a passing interest in a specific field. Self-employed people such as makeup artists, videographers, drivers, voice actors, and sales consultants can all make over $200k after several years in their given businesses.