News & Trending Money News

15 Things You Must Do Once You Start Making $150,000

Learn how to manage your income effectively while still enjoying your hard-earned money.

confident senior businesswoman posing at work
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

If you’ve recently started earning a six-figure salary, while it’s an exciting milestone, it can feel a little intimidating to use your earnings responsibly.

There are ways to make the most of your new income and keep it safe, like building an emergency fund and hiring a financial advisor. It's possible to manage your money responsibly while taking vacations or donating to charity.

To help you best plan for the future, here are 15 very smart money moves to make once you start earning $150,000.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

Open a high-yield savings account

Vitalii Vodolazskyi/Adobe black piggy bank over banknotes

A high-yield savings account provides a safe place to keep your money while earning decent returns. Its competitive interest rates and easy accessibility make it ideal to hold your emergency fund.

When shopping for a savings account, look for an FDIC- or NCUA-insured bank or credit union. You should also watch out for any hidden fees or minimum balance requirements.

Review your financial plan

Drazen/Adobe couple consulting African American financial advisor

As your income increases, your priorities may shift. Consider setting more ambitious goals now that you have more money.

You may want to strive to retire early, invest in real estate, or create an education fund for your children.

Review your financial plan and adjust your budget, savings, and spending habits so you can maximize your income.

Avoid lifestyle creep

highwaystarz/Adobe senior businessman posing in vintage car

Lifestyle creep is when you increase your spending after receiving an income boost.

It’s easy to do when you have extra money for a bigger house, fancier car, and other materialistic items.

While occasionally treating yourself is fine, you should aim to keep your spending and expenses around the same level. You can then put your extra income toward your savings, debt, and investments.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Build an emergency fund

maew/Adobe banknotes with emergency funds note

Emergencies happen when you least expect them and can often be costly. You should have a safety net in place for these instances so you won’t have to take on debt to cover them.

Start by saving at least three to six months of expenses. If you’ve already hit that goal, start working toward one to two years of expenses.

Max out retirement accounts

lordn/Adobe woman working from home using laptop

Opening a 401(k) or IRA may help you have a financially secure retirement. You should maximize your contributions to these accounts to accelerate your savings and defer income tax.

Many employers will match 401(k) contributions, so maxing out your account could significantly increase your savings.

Retirement accounts are also protected from creditors in certain circumstances, so that money may be safe if you run into financial trouble.

Learn new skills

fizkes/Adobe people enjoying at diverse art class

Now that you’re earning more money, it may be easier to cover the costs of learning a new skill. You could learn how to code apps, play an instrument, or speak a new language.

Learning a new skill can have many professional benefits, including career advancement and increased earning potential. It can also be a great way to relieve stress and take a break from work.

Hire a financial advisor

InputUX/Adobe couple consulting female finance advisor

If you’re feeling stressed or lost about what to do with your new income boost, a financial advisor may set your mind at ease.

Together, you can create a plan for your finances so you can grow your wealth and save as much as possible. A financial advisor may help you with retirement planning, managing debt, and investing.

Renovate your home

Azeemud-Deen Jacobs/peopleimages.com/Adobe couple getting renovation ideas using laptop

Once you start making six figures, renovations may liven up your home and increase its market value.

Adding more bedrooms, remodeling bathrooms, and finishing your basement can be attractive selling points if you put your house up for sale. It can also make your space more open and enjoyable while you live there.

You might also consider upgrading your home’s energy efficiency to reduce your utility bills and environmental impact.

Open a regular brokerage account

LALAKA/Adobe man holding digital dividend globe

You can easily invest in stocks, bonds, ETFs, and mutual funds with a brokerage account. It’s an excellent way to diversify your portfolio so you can manage risk and hopefully earn decent returns.

Brokerage accounts are usually more flexible than other investment accounts, like 401(k)s and IRAs, because there are no contribution limits or early withdrawal penalties.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Hire a housecleaner

Pixel-Shot/Adobe Female janitor with cleaning supplies

If you work a lot of hours, you may want to consider hiring some help around the house. Coming home to piles of laundry and dirty dishes may make it difficult to relax and unwind.

For those who work from home, a clean space can help you concentrate on your work rather than worrying about messes around the house.

Take regular vacations

Keitma/Adobe mother enjoying roller coaster with son

While keeping your financial affairs in order is essential, relaxing and recharging is just as important. Make sure to take a vacation from work at least once or twice yearly.

You can responsibly step up your travel game, but even taking a simple staycation can reduce stress and improve mental health.

Breaks from work allow you time with your loved ones and may even improve your productivity once you return to work.

Pay off debt

Donson/peopleimages.com/Adobe african american couple sorting bills

While putting money away into savings is important, you should also concentrate on paying down debt.

Start with high-interest debt first, like credit cards and personal loans. After that, focus on making extra mortgage and student loan payments.

Paying these debts off early can save you money in interest charges, but it can also be a massive burden off your shoulders.

Create a will

Yakobchuk Olena/Adobe senior couple checking documents at tea

Although it’s a grim subject, creating a will can save your family time, money, and stress during a time of grief.

It gives your loved ones directions about how you want your assets and property divided, who will take care of your children and pets, and your preferred funeral arrangements.

You can confer with an estate planning attorney to create a will and legally document your wishes.

Increase insurance coverage

InsideCreativeHouse/Adobe female lawyer talking to couple

A higher income usually comes with more assets and lifestyle changes that may require additional coverage. Here are some types of insurance policies you should review or consider:

  • Homeowners
  • Auto
  • Pet
  • Travel
  • Life
  • Disability

An insurance agent can help you find the right policies to meet your needs. You should regularly review your insurance policy coverage to ensure you have proper protection for your situation.

Pro tip: A good first start might be reviewing your auto insurance coverage. You could save money on car insurance by simply asking about discounts.

Donate to charity

zimmytws/Adobe banknotes with charitable giving note

If there’s an organization or cause that you’re passionate about, consider setting some money aside in your budget to donate.

It can give you a sense of fulfillment to help your community, and you can write the donations off to reduce your tax liability.

Before giving money to a charity, thoroughly research the organization to ensure it’s reputable and determine how much money actually goes toward the cause. You want to avoid throwing money away on disreputable charities.

Bottom line

deagreez/Adobe confident handsome businessman at office

While earning more money will likely make your life easier, it’s important to remember that true happiness and financial fitness often come from your achievements and contributions to society.

Remember to balance responsible investments with things that will help you feel fulfilled, like learning new skills, traveling more, or investing in learning new things you're passionate about.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details