When it comes to money, people like to assign arbitrary labels. For example, any salary above $100,000 and below $999,999 is generally considered “high income” or “six figures”. But what does this really mean?
Knowing the salary range is important in personal finance and job search. It helps in negotiating contracts and finding new jobs. It’s not just about how much you earn, but also how your earnings compare to others in similar positions.
The figure indicates digits. Figures generally refer to the total sum of money a person receives from their employment. For example, a salary of $100,000 is a six-figure salary as it has 6 digits.
A six figure salary ranges from $100,000 to $999,999. This amount is usually considered a high salary, and many people in the US earning such a salary tend to be in the upper-class economic bracket.
Let’s say you earn $100,000 a year by working 5 days a week and 8 hours a day. In this case, six figures salary is equal to $50 an hour.
$100,000/250 = $400 a day
$400/8 = $50 an hour
However, 6 figure salary is roughly equal to $500 an hour for a person making $999,999 a year assuming the above conditions.
Calculating 6 figures a day involves dividing the annual salary by the number of calendar days worked.
For instance, if you worked five days a week and made $200,000, your daily wage would be $1,000.
Like above, 6 figure salary a month is calculated by dividing the annual salary by 12.
i.e; $250,000/12 = $20833.33 a month
When it comes to 6 figure salaries, taxes are an important factor to consider. Your net salary may be less than your initial compensation since your earnings are subject to both federal and state income taxes.
This means that if a person makes $100,000 per year, they may only take home a net salary between $76,096 and $68,308 according to moneywise.
In addition to income taxes, state or local sales tax, social security taxes, and Medicare taxes may also reduce the net income.
For many people, making a six-figure income is a goal that can become a reality with the appropriate actions.
Education is the first requirement for achieving a six-figure salary. Building upon your existing skillset with more education and credentials can open up opportunities that may lead to six-figure salaries.
Additionally, it is important to understand the job market. Knowing which roles typically offer six-figure salaries is important in targeting the right job openings.
Once you have thoroughly researched the job market and identified the roles that offer six-figure salaries, you should focus on curating a professional and impressive resume and application.
Building relationships and networking can also open up potential job opportunities, so reaching out to recruiters, employers, and industry experts is an effective strategy.
Lastly, remaining open to different opportunities and regularly applying to different job postings can increase your chances of getting a six-figure salary.
When discussing salaries, it is often assumed that six figures is good, and a salary of that size equals financial success. Although many people have achieved financial success in this range, it is important to remember that six digits represent a wide range of salaries and is not necessarily reliable predictor of financial status.
For instance, in areas with a greater cost of living, a $100,000 income could not be enough to support a person’s lifestyle.
Yet, an income of $1,000,000 provides a higher level of financial security. In the end, determining if a six figure wage is “excellent” relies on the individual’s lifestyle, family, location, and other financial aspirations.
Six figure salaries are on the rise across many different types of industries. However, they still remain uncommon compared to other salary levels.
According to the Spendmenot, 34% of households in the US had an income of over $100,000 in 2021.
But on an individual basis, only 5.4% of the US population makes 6 figures a year. This suggests that 6 figure salaries are still relatively rare and largely reserved for those in executive, management, and high-level professional positions.
A six figure salary is a set sum of money paid on a regular basis, typically once a month or twice a month. The majority of people who earn this type of money work full-time employment.
On the other hand, a six figure income can refer to any sum of money made, regardless of whether it was obtained through a specific work or professional source or through salary, wages, or investments.
It is possible to achieve a 6 figure income through self-employment and investment strategies, including rental properties and stock investments.
Making a 6 figure salary is no small feat, but it is attainable with the right career path and hard work. Here are 5 of the top jobs that pay 6 figure salaries:
1. Software Developer: It is one of the top high-paying jobs and there is an increasing demand for software developers to develop websites, applications, and platforms. With the right training and experience, software developers can make anywhere from $90,870 to over $151,960.
2. Investment Banker: Investment bankers work with governments, companies, and individuals to raise money and help them handle investments. They have advanced degrees in finance or business administration and lots of experience. These professionals can earn around $133,743 per year.
3. Doctor: Although becoming a doctor is often a difficult and lengthy process, they can earn outstanding salaries. The salary range for doctors is between $125,000 and over $500,000.
4. Corporate Attorney: Corporate attorneys offer legal guidance to organizations on a variety of matters, such as complicated transactions and mergers and acquisitions. Another well-paid position, corporate lawyers frequently earn six figures.
5. Airline Pilot: Becoming an airline pilot can be very rewarding if you have the necessary talents and commitment, but it often requires lengthy training and experience. A pilot’s average annual salary is $202810.
The ultimate objective for many people is retirement—a moment when they can stop worrying about making a living and instead devote their time to the activities they like. Many individuals wonder if a six-figure salary is enough to retire on.
The answer really depends on your lifestyle and financial circumstances. If you are disciplined about saving and investing, and budgeting to meet your retirement needs, then 6 figures may be enough to retire.
However, it’s important to understand that 6 figures alone may not cover all of your retirement costs.
Low-end six figures may not be enough to cover all of your expenses, which include travel, medical, and other lifestyle charges. It’s important to plan ahead and budget for the future to ensure that you’re able to meet your retirement needs.
The 5 figure salary is an annual salary that falls between $10,000 and $99,999. A 5 figure salary is typically earned by individuals in entry-level, mid-level, and some senior positions.
There are numerous job titles and occupation types that can lead to a five-figure salary. The secret is to be aware of the duties and skills required to be successful in the career path. Here is a list of five careers that can earn you a five-figure salary ranging from $50,000 to $100,000.
1. Front-end software engineer: Engineers that work on front-end software are experts in creating and implementing user interfaces for digital systems. They are also in charge of creating software that satisfies user requirements. Experienced engineers can earn six figures with top employers like Google and Amazon.
2. Data analyst: Large amounts of data must be gathered and analyzed by data analysts in order to spot patterns and trends. Their conclusions are used to guide strategic planning and decision-making. Data analysts can make six figures with organizations like Microsoft and IBM.
3. Medical doctor: Medical doctors care for their patients and diagnose and treat injuries and illnesses. Many physicians specialize in specific areas, such as neurology or oncology, and are often paid impressive salaries as a result.
4. Systems analyst: Systems analysts work to improve the efficiency of computer systems, as well as identify problems and develop corrective solutions. Experienced systems analysts can make six figures at top tech companies like Oracle and Apple.
5. Veterinarian: Diagnoses, prophylactic care, and therapeutic care are all things that veterinarians offer to animals. A veterinarian could own their own business or work in clinics or animal shelters.
Seven-figure wages are sometimes seen as the pinnacle of financial accomplishment. A 7 figure salary is defined as an individual earning seven digits of salary income per year, often ranging from $1 million to $9.9 million.
Most CEOs of large firms, for example, routinely receive seven-figure incomes. As with six-figure incomes, the actual amount of one’s seven-figure compensation is determined by a variety of criteria, including industry, job title, geographic region, and experience.
Furthermore, depending on the company’s financial status and the employee’s specific performance, the actual salary may be increased or cut.
It takes a great amount of experience and subject-matter knowledge to command a seven-figure pay. Those who can earn this much money typically have a minimum of five years’ worth of experience, advanced degrees, and a specific understanding of the industry. These credentials along with a lot of effort, commitment, and long hours can result in a seven-figure pay.
Additionally, an entrepreneur mindset can help one work towards a seven-figure salary as well. Focusing on creating a high-value product or service, taking calculated risks, and having an entrepreneurial mindset can help one move toward a multi-million-dollar salary.
A salary that is over $10 million but under $100 million is considered to be in the eight figure range. The highest-ranking CEOs and other executives of significant corporations typically receive a pay like this.
It is also for people who, owing to their exceptional talent or achievement, can command such a high pay, such as professional athletes, business investors, and well-known entertainers. Most people may never be able to earn an 8 figure wage because they are uncommon.
Making eight figures a year is possible through a combination of saving, investing, and entrepreneurial enterprises.
Making a successful business, whether online or offline, is a wonderful place to start. Investing in stocks, bonds, and other financial assets is an excellent way to generate passive income.
Furthermore, saving as much as possible and reinvesting that money can assist grow wealth over time. Anyone can earn eight figures in a year with the appropriate strategy and work ethic.
The most accomplished and powerful persons in top-level positions at major enterprises, businesses, and organizations typically earn nine-figure salaries. While six-figure salaries earn up to $999,999 per year, nine-figure salaries are those who earn more than $100 million but less than $1 billion.
A 10 figure salary is one that is worth more than one billion dollars and less than 10 billion dollars. This figure is extremely rare and is reserved for the most elite business executives, CEOs, and entrepreneurs.