14 Smart Financial Moves to Make Once Your Net Worth Hits $100,000

Is your net worth over $100,000? Then you are doing pretty well! You worked hard to get to this monumental wealth bracket, and you need to start acting like someone with money. These 14 tips and tricks will help you make smart decisions and continue to grow your wealth. Most rich people know all about these monetary hacks, so make sure you do, too! After all, $100,000 is pretty rich!

Note: The content of this article is for informational purposes only and is not a substitute for professional advice. Always consult with a qualified professional for advice tailored to your individual circumstances.

Maximize Your Retirement Contributions

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No matter how wealthy you are, you should always have a retirement plan. No one wants to work forever! Now that you are making over 6 figures, you need to put more cash into your retirement fund. Contribute more to your 401(k) or your IRA. Not only will you be saving money for your future, but you will also be able to take advantage of tax breaks that come with retirement contributions. 

Pay Off Debt

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When you have a high net worth, you should also try to have very low debt. First, pay off any high-interest debt, reducing the amount of cash you are throwing away on interest payments. Then, try to eliminate your debt altogether. Make a plan to tackle your debt and start chipping away until it finally reaches zero. 

Build Up Your Emergency Fund

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If your net worth is $100,000, then you are feeling pretty good. But you never know when things could change. Always have an emergency fund to cover any unexpected expenses. Experts typically recommend having enough money on hand to cover three months of living expenses. Having that money set aside and secure will give you peace of mind and enable you to worry less about the future.

Talk to an Advisor

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Now that you have reached a new income level, consider talking to a professional about your monetary goals. Having an advisor will help you decide where to invest your money and how to save. They can help your money grow and increase your income, too. Having someone watching over your accounts and making informed investment decisions on your behalf is a brilliant idea. 

Update Your Estate Plan

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When your net worth increases, you want to be sure that your plans for that money are very clear. Update your will, assess and designate beneficiaries, and consider setting up trusts to ensure that your assets are distributed according to your wishes. If anything happens to you, then you can rest assured that your asset will go exactly where you intended. Try to update your estate plan annually or as any major changes pop up. 

Diversify Your Income Streams

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If you have a net worth of $100,000, then you are probably good at making money. Why not make some more by diversifying your income streams? Consider using some of your cash to buy investment properties, start a side business, or look for passive investments that may bring in regular income. Having more than one income stream is fantastic for ensuring you always have money coming in! 

Donate To Charity

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Not only does it feel good to donate to charity, but you will also get a few tax benefits and write-offs when you gift your money. Look into charities that are making changes you believe in. Consider setting up regular donations or making one larger gift. Your money will be used to make positive changes in the world! Now, that is something you should smile about. 

Invest in Yourself

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You are your number one asset, so why not invest a little bit of your money into yourself? Allocate some of your money for personal development, such as taking advanced education classes, getting certifications, or buying books that teach you new life skills. Not only will you be learning and expanding your mind, but you may also enhance your earning potential as you develop more applicable job skills. 

Optimize Your Tax Strategy

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Once you have a large number of assets and a high income, you should really consult a professional tax strategist. Working with a tax professional will help you explore tax-saving strategies that you may have yet to hear of, such as tax-loss harvesting. They will help you get the most out of every tax filing, taking the maximum deductions possible. Not only can this help save you money, but it will also ensure you are filing your taxes accurately. 

Make Investments

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When your assets reach $100,000, it is time to make some of that money work for you. Consider investing in the stock market or funding a friend’s growing business. Make smart investments that make sense for you. You may want to consider talking to an advisor to help you build a strong investment portfolio. When you invest wisely, your money will continue to grow and grow! 

Look into Real Estate

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Why not consider adding some real estate to your investment portfolio? Real estate can often be a smart investment as it tends to appreciate over time. Your wealth will continue to grow as property values increase. It also provides potential rental income, offering a steady cash flow that can supplement your earnings. Real estate investments also offer tax advantages like deductions for mortgage interest and property taxes. Buy a piece of property in a beautiful location, and you can also take advantage of your vacation house! 

Reassess Your Financial Goals

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With a high net worth and income still coming in, it may be time to reassess your financial goals. You can do this on your own or with the help of an advisor. Set new attainable targets that you want to reach. Do you want to achieve millionaire status, or do you just want to retire early? Think about the future and what you want to get out of your money. Then, make those goals happen! 

Automate Your Savings

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Once you have a good amount of money in your bank account, you want to keep it there and also help it grow. Contributing regularly to your savings is essential! Rather than manually saving and thinking about what to save, automate your savings. Set up money to automatically be transferred into a savings account on a regular basis. When you automate your savings, your accounts will grow without you even having to think about it!

Live Within Your Means

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Once you have $100,000 in the bank, you probably feel like you can spend whatever you want. However, you should still remember to live within your means. You’re not a millionaire yet! Make sure you spend within your budget and continue to save you money rather than spending it all. Make a plan that you can stick to and one that will allow you to enjoy life without overspending. Even wealthy people need to follow a budget!

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