How much is six-figures?
You may have heard many young people say – I wish to graduate and earn a six-figure income.
For them, the dream of earning a six-figure income equates to having made it in life.
Earning a six-figure salary has been considered a benchmark of success for a long time.
But how much are six figures? What does the six-figure mean?
Read on as we explain to you the answers to these questions in detail.
In this post, we will also explain how you can make a six-figure salary and how you can achieve financial stability?
How much is a figure?
To understand how much is six figures, you first need to know how much is a figure.
Let us start at the very beginning. Simply put, a figure is a number, for example, 2, 4, 5, 7.
The number 3472 is made up of four figures – 3, 4, 7, 2.
Similarly, the number 24789 is made up of five figures – 2, 4, 7, 8, 9.
And the number 9867453201 is made up of 10 figures – 9, 8, 6, 7, 4, 5, 3, 2, 0, 1
How much are six figures?
Six figures mean that the number has six digits in it. It can be any number from 100,000 to 999,999.
100,000 is the smallest six-figure number, while 999,999 is the biggest six-figure number.
All the numbers that lie between these two numbers are also six-figure numbers because they too will have six digits.
How much is six figures income?
When someone says they earn a six figures income, it means their income lies between the range of $100,000 per annum to $999,999 per annum.
The key part to note here is that this income is annual income. When you hear someone say that he/she earns six figures, they are referring to what they earn in a year.
This means they may be earning $100,000 to $999,999 per year or any amount in between. This figure is before tax and other deductibles.
This shows how different the salary can be for two people earning six figures. One person may be earning $150,000 per year, and the other can be earning $950,000, but they would be earning in six figures.
The second person, however, is earning $800,000 more than the first person.
Is a six-figure salary a good salary?
Many people hope to earn a six-figure salary one day. They associate it with being able to afford a dream life that includes fancy cars, designer clothes, luxury vacations, and luxurious homes.
According to the Census Bureau data, only about 20% of American households broke the six-figure household income mark in 2015.
According to Yahoo Finance, Only 9% of Americans make more than $100,000 or more a year.
However, whether a six-figure salary is good or not depends on a lot of different factors, including where you live, your family size, and your lifestyle.
Where do you live?
The cost of living varies quite a bit around the country. Generally, cities like New York, San Francisco, and Washington DC have a higher cost of living.
Did you know the average rent of a one-bedroom apartment in New York City is $2,945 a month? This means you will use $35,000 of your salary for your rent every year.
Places like Orlando have a lower cost of living. The average one-bedroom apartment costs around $1060 here. This means you will use less than $15000 of your salary for your rent every year.
The cost of living in Texas is much lower than that of New York.
Size of the family
The size of your family also makes a difference in how much money you need. A family of three can live much more comfortably on $100,000 than a bigger family.
Similarly, if you have many debts to repay, the loan payments can leech away at your earnings. You cannot enjoy your six-figure income if most of it goes towards debt repayment.
So, you can see that even people earning a six-figure salary can end up living paycheck to paycheck without sound investment and planning.
How much is six figures income monthly?
Since the six-figure income is annual income, you will need to divide this amount by 12 to calculate the monthly income.
So, if your yearly pay is $100,000, you will make $8333.33 per month. And if your annual income is $999,999, you will make $83,333.25 per month.
How much is the tax on a six-figure salary?
A six-figure salary puts you in a higher tax bracket. If your salary is $100,000, you are in a 25% tax bracket. This means that your take-home pay is only $75,000.
So, you must aim to make more money than $100,000 to be able to bring home six figures after taxes.
Jobs that earn six figures
Most jobs that pay six-figure salaries require a solid foundation in education.
Most six-figure income jobs are in senior management and business ownership, and they require a college education.
Here’s a list of common six-figure careers and the average income they pay –
- Anesthesiologist – $292,000
- Surgeon – $250,000
- Psychiatrists -$216,000
- Dentist – $156,000
- Financial Manager with MBA – $127,000
- Petroleum Engineer – $138,000
- Software Developer – $105,000
- Actuary -$103,000
Here is the list of 30 side hustles that can help you reach your goal of making a 6-figure income!
Which jobs pay six figures without a college degree?
It is possible to earn six figures without a college degree. These are the jobs that don’t require a college degree and the average annual income they pay-
- Crane Operator – $500,000 (in NYC)
- Real Estate Broker — $120,000
- Air Traffic Controller – $159,000
- Web Developer – $100,000
- Commercial Pilot – $110,000
What does making 7, 8, 9, and 10 figures mean?
The same rule that applies to 6 figures applies to making 7, 8, 9, and 10 figure salaries as well.
How much is a seven figures income?
Seven figures is a number between $1,000,000 and $9,999,999. Not many people earn a seven-figure salary. People who earn this much either owns their company or they are very high up in a corporation. The jobs that bring in a seven-figure salary include –
- Investment bankers
- Movie stars
- Fashion designers
- Business owners
- You tubers
How much is an eight figures income?
Having an eight-figure income means that your annual income has eight digits.
This means a minimum of $10,000,000 and goes up to $99,999,999. An eight-figure income means you are a multi-millionaire.
Hedge fund managers, website owners, movie stars, athletes, and CEOs earn eight-figures.
How much is nine figures income?
Nine figures income means an income that has nine digits in it – $100,000,000 to $999,999,999. This is truly a mind-boggling amount.
Only a select group of people in the world earn a hundred million dollars and above. Roger Federer, a world-famous tennis player, made $106 million in 2019.
How much in 10 figures income?
Ten figures are $1,000,000,000, commonly known as one billion dollars.
Having a 10 figures income means the person earns between one and nine billion.
Jeff Bezos, the Founder, President, and CEO of Amazon, make 10 figures. Mark Zuckerberg, Bill Gates, Alice Walton, and Eric Yuan are a few other people who earn in 10 figures.
Can you build wealth and retire early without a six-figure income?
According to the US Bureau of Labor Statistics, the median salary of all Americans over the age of 16 is $984 a week, which is $51,168 a year.
The median wage rises for 25 years olds and above to $1,029 a week or $53,508. Both these figures fall short of a six-figure income.
So, does this mean that these people cannot achieve financial security?
No, it is quite possible to build wealth with a small income. Building wealth is more about what you save than about what you spend. Here are a few tips to achieve financial stability –
- Set a goal for yourself.
- Create a debt management strategy to pay off your debt.
- Evaluate your lifestyle and cut down your spending.
- Save your money. Every little bit counts.
- Invest your money well. Investments allow your money to grow over time.
- Increase your income. You can ask for a raise or pick a side hustle to boost your income.
Final thoughts on how much is six figures?
If you want to earn a six-figure salary, you must take your education seriously.
According to the Occupational Outlook Handbook of the US Bureau of Labor Statistics, 55 of 818 jobs listed offer salaries of at least $100,000 every year. Of these 55 jobs, 53 require at least a bachelor’s degree.
A high income is helpful but is not the most crucial aspect for building wealth. You can build wealth and reach your financial goals by learning how to invest your money, time, and knowledge.
I wish you all the best in reaching your financial goals!