How Much Is 6 Figures? [+9 Other Burning Salary Questions You Want Answers To]
Figures in salaries are frequently used as a polite and less nosy way to describe a person’s income. They place earnings in a range that provides us with more insight into people’s success. This vague politeness begs the question, though, “how much is 6 figures, really?” What does it say about a person’s lifestyle? Can you actually rate somebody’s success based on it?
We’ve got the answer to this question and nine more you maybe didn’t consider. In addition, you’ll learn more about what different figures mean in terms of salaries as well as which professions could bring you that kind of money.
What Is 6 Figures?
The term “6 figures” refers to a person’s earnings. This kind of income basically means that a person earns between $100,000 and $999,999 a year. Six figures do sound amazing and can be a dream come true for many.
As you can see, however, this range shows that the term doesn’t tell us almost anything about a person’s specific income. People with a 6-figure salary can live a modest lifestyle or be really wealthy.
While the term is pretty popular, you shouldn’t be quick to assume that the person is filthy rich. As the median income in the United States sits at $50,000, it can be said that people with 6-figure earnings per year are well off, although none of them reach millionaire status.
1. What Is a Figure in Money?
(The Practical Saver)
Simply put, a figure represents a digit. Of course, many other things could be referred to as figures. In money, the number of figures represents a number of digits in a person’s annual earnings and is useful for vaguely describing earning ranges. For instance, a salary with six digits means that somebody is earning from $100,000 to $999,999 annually.
It could also help you determine a career level. Making 6 figures in most professions means that somebody is successful. Keep in mind that their position on the corporate ladder also depends on the specifics of their job, though, as earning potential for different careers varies. For example, this salary range for lawyers or doctors probably means they’re moderately successful.
Salary figures can provide you with some insight into a person’s lifestyle, although not their exact level of wealth. This is especially true if you know the cost of living in their place of residence and how many family members they have.
2. How Much Is 5 Figures?
(The Money Galileo)
If someone is earning five figures, that means their salary ranges from $10,000 to $99,000 annually. As the range is pretty big, it could be difficult to make any conclusions about their quality of life.
For instance, earnings below $30,000 is a low annual earning in the United States. Depending on the state, it may not be enough to meet basic standards of living. On the other hand, it’s a guarantee that a 7-figure salary will be more than enough, regardless of location.
By knowing exact salaries, it’s much easier to predict the cost of living and lifestyle. However, figures are commonly used to protect the privacy of individuals and their wealth status in society. The higher five-figure earnings should be enough to cover the basic necessities and have some extra money to spare or save, though.
3. What Is a 6 Figure Salary?
A six-figure salary presents earnings that can go from $100,000 to $999,999 a year. Therefore, that’s anything higher than $99,999 and lower than a million. While we used dollars for our example, that doesn’t mean that the salary can’t refer to any other currency. For example, those who live in the UK could also say they have a 6-figure income. In their case, that would be from £100,000 to £999,999.
4. How to Make 6 Figures?
(Clever Girl Finance)
Making 6 figures can be very easy if you choose the right profession. For example, lawyers and doctors typically make that much after completing their education. The median lawyer salary is around $120,000 annually, while the median pay for doctors is $208,000.
Other professions where it’s possible to make that kind of money quicker are financial managers, pharmacists, marketing managers, and HR managers. Typical 6-figure jobsinclude air traffic controllers, health services managers, anesthesiologists, software developers, surgeons, dentists, architecture and engineering managers, and certain professors.
Many newer internet careers can also get you to 6 figures. For instance, influencers on YouTube and Instagram can make that much. The same goes for bloggers.
You can earn that amount of money without officially receiving a 6-figure income. Taking on extra jobs, such as freelancing, can help increase your annual earnings. If you live in an expensive neighborhood, these earnings won’t do much for you. Plus, credit card debts, taxes, and student loans can significantly reduce the amount of money you actually have in the end. This aspect is essential to consider as most Americans are in some kind of debt.
5. How Common Is a 6 Figure Salary?
According to the latest data available, around 5.4% of the American population makes 6 figures, but most of them earn in the lower range. For example, approximately 15.5% of 6-figure earners in the US make between $100,000 and $149,999.
A smaller percentage of the population earns from $150,000 to $199,999, accounting for 8.3%. Surprisingly, 10.3% of people in the 6-digits salary category make around $200,000.
Typical earnings depend on the state. Still, there isn’t any state with median household earnings of above $100,000, showing that most people in the US make 5 figures. Some of the states where people tend to make more money are Maryland, Massachusetts, New Jersey, and California. Connecticut, Washington, and New Hampshire are other high-earning
6. How Much Is 7 Figures?
When it comes to money, the number of figures shows the actual number of digits in a person’s earnings. Thus, a 7-figure salary means that a person makes between $1,000,000 and $9,999,999 a year. If you know someone with this kind of earnings, you definitely know a millionaire!
The situation is the same as with the 6-figure salary, meaning that the difference between 7-figure incomes is huge. It’s important to know exactly how much a person makes to understand what kind of lifestyle they have.
Most people who earn this kind of money are business owners. Entrepreneurs and CEOs are likely to earn 7 figures in their careers. Additionally, stockbrokers are popular positions that usually entail this kind of money. Most of the famous influencers you know earn a 7-figure range, and lastly, athletes and some actors and actresses make a few million dollars every year.
7. How Much Money Is 8 Figures?
(Call It Adventure)
If a person earns 8 figures, that means their salary goes from $10,000,000 to $99,999,999 a year, or anything from $10 million to just under $1 billion. These earnings are extremely rare, especially in traditional careers. A “regular” career path often doesn’t allow people to reach this level in their lifetime. With innovation and opportunity, however, it’s not impossible to reach an 8-figure salary.
For example, positions such as Fortune 500 CEOs or founders of unicorn start-ups can bring in that kind of money. Real estate brokers and entertainment agents are two great examples of people with “regular” careers rising to a high level of success. Most people with annual earnings of 8 figures, however, are celebrities such as entertainers, musicians, and famous athletes.
8. How Much Is 9 Figures?
(Call It Adventure)
A 9-figure salary goes from $100,000,000 to $999,999,999 a year. People who earn this enormous amount of money are extremely rare. You can see these people in your everyday lives, mostly on TV. These are the people with worldwide fame and powerful influence.
Most professional athletes and the most popular entertainers likely earn 9 figures a year. CEOs of billion-dollar businesses typically make from $100,000,000 to $999,999,999 annually. Lastly, real estate investors could reach this level of success, but it’s very rare.
9. How Many Figures Is a Million?
A million presents a 7-figure salary. These earnings amount to hefty taxes, so most people who make a million a year end up with a way lower sum to spend. Still, this income is amazing and usually an indicator of a very high standard of living.
Even though it’s a lifestyle almost everyone aspires to, the majority of people don’t even come close to making $1 million a year. According to the latest data available, around 0.1% of the total population of the United States makes millions of dollars every year.
Conclusion on What 6 Figures Really Means
Six figures is a salary range just like any other. Using figure ranges to discuss earnings can be helpful to protect people’s privacy in terms of the money they make.
If you strive to be a high earner, choosing a lucrative career is the way to go. Doctors and lawyers fall into that category, for example. As a lawyer, you can expect to make around $120,000 a year, while working as a doctor can bring you almost twice as much. Alternatively, you can always test your luck at becoming famous.