You may have heard of a business and productivity concept called SMART goals. “SMART” is an acronym that is specific, measurable, achievable, realistic or relevant, and time bound.
When we are talking about personal finances, the details can be difficult to determine. For example, how much money do you really want to make? Many might see him aiming for $1 million as an achievable goal. The main reason is that it puts you in a category called “millionaire”.
You may be surprised to learn that you don’t have to earn much to be in the top 1% of earners in our country. In a post on X (formerly Twitter), entrepreneur and investor Grant Cardone explained what it takes to become a top earner.
Cardone writes: “No matter where you are now, have a goal of what you want to be: Top 1% of Income $823,763 Top 5% of Income $342,987 Top 10% of Income $173,176.”
With these numbers in mind, you can set specific, measurable financial goals.
How to start reaching your financial goals
If those numbers don’t seem achievable, think about where Cardone started. In the same post he writes: “I remember when I made $36,000 a year and vowed that one day I would be in the top 10% earners.
According to Cardone, to be in the top 10% of earners, you need to earn at least $83 an hour, or $173,176 a year. It’s not out of the realm of possibility for many. Zippia recently released a list of jobs that pay over $200,000 a year to the top talent in the field. These jobs include corporate lawyers, plastic surgeons, and, for careers that don’t require an expensive advanced degree, voice acting.
If you’re not earning that much at your day job and you don’t think you’re likely to get a high salary, why not consider a side hustle or investment to increase your income.
It may help to break down your goals into how much you need to earn each month or week. For example, we already know that to be in the top 10%, you need to earn $83 an hour. You need to earn $3,330 a week, or a little more than $13,320 a month.
Even if those numbers don’t seem achievable right now, aim to increase your weekly income to $1,000 first. With a clear plan, financial success feels more real (his fourth tenet of SMART goals) and relevant to your life.
Start thinking about ways to earn passive income, or find a side hustle that will fill the gap between your current job and the money you need to make $1,000 a week. You won’t get there any time soon, so it’s important not to get discouraged.
Set the duration to reach that point. Maybe 6 months or 1 year (remember the “time bound” aspect of SMART goals). Once he hits that goal, focus on making another $1,000 a week until he makes $3,330 a week in total.
Once you reach the top 10% of income, use the same procedure to reach the top 5%. As long as your income is expandable, you need to know how to keep growing your income. With passive income, the more funds you have available to invest or the more sources of income you can get from your investments, the more you can earn.
As you take steps to reach your income goals, follow people who have already achieved what you want and are living the life you want to live. Entrepreneurs like Cardone have paved the way to show others how to increase their income and ultimately reach the top 1% of earners in the United States.
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