How much is 6 figures and how to reach a six-figure income?
You may have heard people bragging about making 6 figures, 7 figures, 8 figures, or even 9 figures. In this day and age, we often see articles on how young adults or even kids make six figures online.
It is statistically proven that, over the years, more and more people reach the 6 figure salary in the United States. By doing so, they get to live a more comfortable life, without worrying too much about whether or not they have enough to pay the bills.
That sounds quite impressive, but how much is 6 figures in money, and what do 6 figures mean? If you want to know what it means, keep reading.
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What do 6 figures mean?
Although 6 figures are mentioned a lot these days, not everyone knows exactly what it means. To be honest, I have seen a lot of confusion online. Some people think that 6 figure earners are millionaires or that 6 figures are a monthly salary.
None of the above are true.
I think it’s about time to shed some light on the following questions.
- What do 6 figures mean?
- What do 7 figures mean?
- What do 8 figures mean?
- What do 9 figures mean?
Here is the answer:
A 6 figures income refers to an ANNUAL income that consists of 6 numbers (figures). As you can see in the following image, each figure corresponds to a number.
As a result, a six-figure income can be anywhere between $100,000 and $999,999.
With that said, we can also come to the following conclusions.
- 7 figure income = income that ranges between $1,000,000 – $9,999,999
- 8 figure income = income that ranges between $10,000,000 – $99,999,999
- 9 figure income = income that ranges between $100,000,000 – $999,999,999
So now you know what six figures mean and you can understand why so many people set it as their financial goal. That’s a lot of money right?
If we go into more detail, we can divide 6 figures into three separate ranges which are:
- Low six-figures = $100,000 – $400,000
- Mid six figures = $400,000 – $700,000
- High six-figures = $700,000 – $999,999
The majority of people in the United States fall under the Low-six figures category, but there are many people that reach the mid and high six figures range every year.
Why do people strive to reach a 6 figure income?
These days, many people set a 6 figure salary as their money goal. That’s because 6 figures is a salary that can offer financial independence in one person’s life. (If you know how to manage your money, that is)
Six figures are also described as a state of security, wealth, and success.
To some, six figures is like a dream come true but for others, it’s the bare minimum to live a stable life.
Nevertheless, reaching a six-figure salary is considered a great achievement because it can indicate a financially successful and hard-working individual.
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How to make six figures?
Reaching a six-figure salary is not an impossible goal, and it’s definitely more achievable than becoming a millionaire.
Making 6 figures a year will require knowledge, effort, dedication, and a proper mindset. Moreover, you will need to think out of the box if you want to make more money.
You will also need to work smart, not hard. You may have heard it a thousand times, but it’s 100% true.
If working hard could make someone reach 6 figures then the majority of people would have done it. Think about it. Millions of people work 8+ hours every day, but they still aren’t even close to making six figures a year.
Let’s break down some numbers, shall we?
In order to earn a six-figure salary, you’ll need to find a career that pays more than $8,333 per month.
If we look at it in more detail, the minimum of 6 figure salary equals to:
Hourly Income = $12.40
Daily Income = $297.61
Weekly Income = $2,083.33
Monthly Income = $8,333.33
On another note, education plays a big role in making six figures, but there are many cases when you can still make 6 figures without school. You can do that by starting something of your own, for example.
Moreover, it is worth mentioning that most people who make 6 figures have multiple income streams. Having multiple income streams can add up to a 6 figure salary quicker than having only one income source.
In today’s world, there are many side hustles you can do to increase your income streams.
Although obvious, keep in mind that no one reached a six-figure salary overnight. You will need to work smart, have faith in your abilities, and be patient.
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What jobs can earn six figures?
In general, pursuing a high-paying career would require a bachelor’s degree, PhD, or a professional degree.
A lot of people want to enter higher education in order to follow a career that offers a 6 figure salary or even more.
Let’s take a look at some careers that have a 6 figure potential.
- Dentists ($169,964 per year)
- Psychiatrists ($232,941 per year)
- Financial Managers ($134,180 per year)
- Surgeons ($401,611 per year)
- Lawyers ($126,930 per year)
- Financial Managers ($134,180 per year)
- Actuary ($107,260 per year)
- Anesthesiologists ($396,600 per year)
- Petroleum Engineers ($137,170 per year)
- Software Developers ($110,140 per year)
It’s important to choose a career that you actually like doing and not just a career that pays well. Many chose to follow a career just for the money only to quit it a few years or even months later.
Six-figure salary jobs that don’t require a degree
Let’s say that you didn’t go to college, but you still want to reach a 6 figure salary. Is that possible? Fortunately yes!
You don’t always need higher education to reach a 6 figure income, and that is proven every single day.
Nowadays, there are many things you can do to reach a six-figure salary without a degree. There’s a huge number of people who started something as a side hustle and they made it their full-time jobs a few months later.
Below, I have gathered some of the best side hustles that have a 6 figure income potential:
- Web Developers
- Air Traffic Controllers
The Internet has helped people without a degree not only make a living online but reach 6 figures, 7 figures, 8 figures, or even 9 figures.
Will a 6 figure salary make me rich?
Many people wonder if reaching six figures can make someone financially rich. The short answer is NO. Money alone won’t make you rich.
A good income doesn’t make you rich if you don’t know how to manage your money. You’ll have to find a way to manage and invest your money properly if you want to become rich.
Do you think that people like Bill Gates or Mark Zuckerberg are rich because of their salaries? Absolutely not.
They know how to manage and invest their money so that they can make even more money.
In other words, their income makes them even more money (a.k.a passive income). How cool is that?
As a result, the only thing that can make someone rich is a financial growth mindset. If you have that, you can easily increase your income year by year and thus get a step closer to becoming rich.
What does a six-figure salary get you?
Reaching a six-figure salary can help you live a better quality of life with more wealth and peace of mind. It will also take some stress away when it comes to bills and paycheck-to-paycheck living.
Overall, making six figures is a good point where you can feel financial security, especially if you live alone.
Keep in mind that as your income increase, your expenses will do as well. Taxes, daily expenses, and necessities will most likely increase as your income goes up.
Aside from your income, you’ll also have to consider your expenses. This will highly depend on where you live. Each province and state have different living costs. Some states are more low cost and some others high cost.
Therefore, your spending habits will play a big role too. Many people don’t realize how much they spend every single day, little by little until they check their monthly expenses.
In the end, if you know how to manage your money, 6 figures is a very good salary and it can offer you a better everyday life.
If I want you to remember one thing from this article is that if you know how to manage your money, you can achieve any money goal you have set.
Money isn’t everything. It’s the life you live that matters. Don’t you ever forget that.
On the contrary, whether we like it or not, money is essential if we want to live a good life including the basic necessities.
So, my advice to you would be to stay positive, work smart, and I am sure you will reach your goals sooner than you think.