If you are like most people, the first time you heard someone say, “I make a six-figure salary,” your mind probably automatically went to millionaires and billionaires. You may have even thought, “wow, that’s a lot of money!”
But what does it actually mean, and how much is 6 figures in money, exactly?
This post will explain exactly how much money you need to make each year to be in the six-figure club. So read on to find out whether or not you are in luck!
Ready? Let’s fly!
Note: This blog post is for informational purposes only and should not be taken as legal or financial advice. Please consult with a professional before making any significant financial decisions.
- What is a Figure?
- What are 6 Figures in Money Terms?
- How Much is 6 Figures Per Month?
- Does a Six-Figure Salary Make Me Rich?
- Which Jobs Can I Make 6 Figures a Year From?
- Close the Gap to $100K with Side Hustles
- High-Figure FAQs
- Bottom Line
What is a Figure?
To first understand multiple figure incomes, we should go back to basics and have figures explained.
In mathematics, a figure is a number that expresses a quantity.
When we talk about figures in the number system, we’re referring to the digits 0 through 9. The number 26 can be thought of as two figures (2 and 6), while the number 103 can be considered three (1, 0, and 3). There are also decimal fractions, like 0.75, with a figure after the decimal point.
To complicate things a little further, we are only concerned with the figures before the decimal point. Someone earning an annual salary of $105,000.97 is not an eight-figure salary.
The number of digits before the decimal point (105,000) is only six figures.
What are 6 Figures in Money Terms?
A six-figure salary is anything that pays $100,000 or more per year. So it includes any annual salary between $100,000 and $999,999. It’s the benchmark for high-income earners and can vary greatly depending on your occupation, location, and other factors.
For example, in some parts of the country, a six-figure income might only be enough to put you in the middle class. But it can be considered wealthy in places like New York City or San Francisco. And, of course, there are plenty of jobs where a six-figure salary would be regarded as modest or even low pay.
Breaking it down further into a low, medium, or high-income category depends on the individual and the industry. As an example, however, you could have:
Low: $100,000 to $350,000
Medium: $350,001 to $650,000
High: $650,001 to $999,999
How Much is 6 Figures Per Month?
To figure this out will require a little bit of maths, but it’s ok. I’ve got you!
Because this is such a vast range ($100,000 and $999,999), let’s look at both ends of the scale.
First, we need to take $100,000 per year and divide it by 12 months per year. This gives us approximately $8,333.33 per month.
Depending on where you live and if you want to look at gross (pre-tax) or net (after tax) figures, it could mean that after-tax, you are really earning five figures.
Now, if you want to say that you earn a 6 figure income every month (a very impressive amount!), here is what that would look like if we retake the bottom and top-figure salaries.
$100,000 per month x 12 months = $1.2 million per year.
$999,999 per month x 12 months = just shy of $12 million per year ($11,999,988 to be exact).
How Much is 6 Figures Per Day?
To calculate this one requires drilling down further. It’s not as simple as dividing the annual income by 365.
This is because no one works every day of the year (if you do, let me help you get out of the rat race!). The trick here is to get your money working for you through passive income.
To calculate how many days there are in a working year, first, take 365 (or 366 if it’s a leap year) and minus the ten days per year Americans get (on average and will vary depending on employer), then minus 104 days for weekends.
365 days per year – 10 days holiday – 104 days for weekends = 251 working days.
Now, just like we did above:
$100,000 / 251 days = $398 per day.
How Much is 6 Figures Per Hour?
To do this, I’m assuming a 40-hour work week and the typical vacation period for the United States. But going from the daily rate above the hourly rate becomes:
$398 per day / 8 hours per day = $49.75 per hour.
Does a Six-Figure Salary Make Me Rich?
This depends on many factors, including your lifestyle, cost of living in your area, number of dependents, and spending habits. But generally speaking, a six-figure salary is respectable and indicates that you’re doing well financially.
However, it’s not necessarily indicative of wealth. There are many people who earn high salaries but still live paycheck to paycheck because they have expensive lifestyles (known as lifestyle creep) and can’t control their spending.
But that doesn’t necessarily mean you’re rich.
Wealth is typically defined as your net worth—the value of your assets minus your liabilities. And if you live in an expensive area or have significant debts, a six-figure salary might not be enough to make you wealthy.
For example, you earn $100,000 annually and have $50,000 in savings. That means you have a five-figure net worth of $50,000.
On the other hand, there are also people who earn less than six figures a year but are very comfortable because they’re very frugal and don’t waste their money on things they don’t need. So it really depends on the person’s circumstances.
Remember, though, that the amount of money you make is only one part of the equation for happiness and satisfaction in life.
It’s just as important to live a meaningful and fulfilling life by pursuing your passions and spending time with the people you love, regardless of how much money you make.
So don’t get too hung up on making lots of money – focus on creating a life that makes you happy instead!
Which Jobs Can I Make 6 Figures a Year From?
Earning a six-figure salary with the right skills and a college degree is possible. For example, someone in business, finance, engineering, or technology often has the potential to earn high incomes and would need a college degree to get their desired position.
Additionally, possessing high-income skills such as programming, data analysis, or digital marketing can lead to significantly higher earnings.
The best way to achieve six-figure status is typically through a combination of education and skills development paired with hard work and dedication. With the right approach, anyone can make significant progress towards this goal.
How to Earn a $100K Per Year Salary.
First, it’s important to upskill yourself and continuously learn new things. This makes you more valuable to your current employer and gives you the confidence to negotiate for a higher salary.
Second, expanding your network is critical. The more people you know, the more likely you will hear about new opportunities.
Finally, don’t be afraid to ask for what you’re worth. If you have the skills and experience, then you deserve to be paid accordingly.
By taking these steps, you’ll be on your way to earning a $100K per year salary in no time.
Jobs That Pay a Six-Figure Salary.
Let me preface this by saying that it will be pretty impossible to walk in off the street and find yourself in an interview hoping to earn a six-figure income without some kind of bachelor’s degree or the necessary skills to go with the job.
Yes, being an airline pilot can make you well into the 6 figure income range. The median salary is around the $140,000 mark. Of course, this will depend on your base, the airline you’re flying for, and the trips you get.
The more flying you do, the more you get paid. Pilots also have a sliding income scale where the longer you have been with the company, the higher the pay rate.
It’s no secret that lawyers make a lot of money. In fact, according to the Bureau of Labor Statistics, the median annual salary for lawyers was $120,910 in May 2019.
But what may be less well-known is how lawyer salaries compare to other professions.
For instance, the median annual salary for all occupations was just $39,810 in May 2019. That means lawyers earn more than three times the median wage.
But it’s not just their high salaries that make lawyers one of the highest-paid professions. It’s also their job security. The unemployment rate for lawyers was just 2 percent in 2018, compared to 3.7 percent for all occupations.
So if you’re looking for a high-paying profession that offers job security, becoming a lawyer is a smart choice.
It’s no secret that professional athletes often earn a healthy salary. In fact, many of them are able to bring in a six-figure income without even having a bachelor’s degree.
While some may view this as unfair, there are several reasons why this is the case. For one thing, professional athletes have dedicated their lives to perfecting their craft.
They’ve put in countless hours of training and have made numerous sacrifices to become the best in their field.
In addition, professional sports is a highly competitive industry, and only a tiny percentage of athletes can achieve success at the highest level. As a result, those who do make it to the top are rightly compensated for their achievements.
Many people dream of earning a six-figure salary, and investment bankers are among those who can achieve this goal.
While the job may be demanding, the compensation is often remarkably high. Investment bankers typically earn a base salary plus bonuses, and the total package can easily exceed $100,000 per year.
For many people, the lure of high earnings is too great to resist, and they are willing to put in the long hours and make the sacrifices necessary to succeed in this competitive field.
However, it is important to remember that not everyone who works in investment banking earns a six-figure salary. While the top performers can bring home huge paychecks, there are also many lower-paid employees who work behind the scenes.
In addition, the hours are often very long, and the work can be pretty stressful. For these reasons, it is crucial to weigh the pros and cons of investment banking before deciding to pursue this career.
Doctors and Medical Professionals
Doctors and medical professionals are some of the world’s most highly-trained and highly-skilled workers. Their years of education and experience allow them to provide vital patient care, and their expertise is essential for keeping people healthy.
As a result, they are among the highest-paid workers in the world. In many cases, they earn six-figure salaries that reflect their essential role in society.
While there are many factors that contribute to their high earnings, one of the most important is the demand for their services.
With an aging population and advances in medical care, the need for qualified doctors and medical professionals is higher than ever before. As a result, these workers can command high salaries.
Close the Gap to $100K with Side Hustles
If you’re looking to boost your salary and get closer to that six-figure mark, adding a side hustle is a great way to do it.
There are many ways to go about finding a side hustle that is right for you, but there are a few things to keep in mind.
First, think about what skills or talents you have that could be turned into a profitable business. If you’re good at writing, you could start a blog or become a freelance writer.
Or, if you’re handy with tools, you could start a home repair business. There are also several ways to use technology to your advantage when finding side hustles. Software developers, I’m looking at you!
You can use platforms like Fiverr or Upwork to find freelancing gigs or start an online course and sell it through sites like Udemy.
Start a Business in Your Spare Time.
Looking to make a six-figure salary by starting a business as a side hustle is a great way to do it. Many business owners find that their business quickly becomes their primary source of income, and as their business grows, so does their salary.
Of course, starting a business takes time, effort, and money. But if you’re willing to put in the work, it can be an incredibly rewarding experience – both financially and personally. If you’re ready to take the plunge, you should keep a few things in mind.
First, research your industry and make sure there’s a demand for your product or service.
Second, create a detailed business plan and track your progress.
And third, don’t be afraid to ask for help – there are plenty of resources available to help you get started. With dedication and hard work, you can turn your side hustle into a six-figure business.
Is a 6-Figure Salary a Million?
No. A 6-figure salary is not a million.
While it is certainly nothing to sneeze at – it’s a very impressive income. But it’s not in the same ballpark as a million dollars. A million dollars is a lot of money, no matter how you slice it.
The closest you could get to a million dollars but still earning six figures is $999,999.
How Much is Seven Figures a Year?
Seven figures means earning between $1,000,000 and $9,999,999 per year, so it’s definitely not chump change. It may seem like a pretty high goal for most of us, but it is achievable if you’re smart and work hard.
You’ll need to be in a high-paying profession such as investment banking or tech entrepreneurship to earn a seven-figure salary.
So if you’re thinking about going for the 7 figure salary dream, just remember that it takes dedication and hard work to get there!
How Much is Eight Figures?
A salary of eight figures generally means a yearly income of at least $10 million up to $99,999,999 ($99 million). And yes, many people in the world have those kinds of earnings.
Apple CEO Tim Cook had a $99 million payday in 2021, with much of that coming from stocks.
It’s important to note that there are different ways to make money, and not all high earners are in the same tax bracket.
For example, some people may earn a lot of money from capital gains (investment income) which is taxed at a lower rate than regular income. Others may have businesses or trusts that shelter their earnings from taxation.
How Much Do Nine Figure Jobs Pay?
Nine-figure salaries are the big bucks in the job market. However, there is a wide range in how those salaries look. This can be anywhere from $100 million ($100,000,000) and $999 million ($999,999,999).
Your income as a professional in any of these fields will vary on your level of experience and expertise. Still, if you’re lucky enough to have landed one of these top-paying jobs, you can expect to bring home some serious bank.
How Much is 10 Figures?
A 10 figure salary is from $1 billion dollars (that’s $1,000,000,000) to $9 billion dollars ($9,999,999,999). This is a rare amount of money to make in one year, with only a handful of people likely ever to make this much.
CEOs and Founders typically make the highest salaries in this range. Even then, it’s not guaranteed that someone in one of these positions would make a 10-figure salary – it all depends on individual circumstances and negotiation skills.
For the average person, 10-figure salaries are extremely rare!
How Many Figures do the Richest People Make?
The wealthiest person in the world (at the time of publishing) is Elon Musk, with an astonishing net worth of $224 billion! That’s 12 figures ($224,000,000,000 – and a lot of zero’s!).
The next richest is Jeff Bezos, with a cool net worth of $144 billion ($144,000,000,000).
It will take some hard work if you want to make a six-figure salary like the top earners in your industry. But it is doable!
Start by evaluating your skills and knowledge that are in demand, then focus on developing those skills even further. When it comes to getting hired for a high-paying job, having a great resume and networking with influential people is essential.
And finally, don’t forget to ask for more money when you feel you deserve it. With these tips in mind, go out there and start making that big bucks!
Do you have experience making a six-figure salary? If so, please share your story in the comments below!
It’s time to be the pilot of your life, not just the passenger.
Chris Bournelis is a blogger and part-time web developer. He has been working in online business since 2015. Join him here at ChrisBournelis.com for the best SaaS reviews and tips to get the most out of your online business.