How much is 6 Figures and Who makes it?
Making 6 figures is often perceived as the holy grail of personal and professional success. But what does it feel like to have a 6-figure salary? Well, depending on where you live, having a six-figure household income can provide you with financial freedom that leaves your worries behind.
Still, for many of us, it may seem like an unreachable goal or something so unobtainable we simply don’t know how much money 6 figures entail. So how much is 6 figures? Buckle up and let’s take this financial journey together – navigating salary tiers in modern industries has never been so exciting!
How much is 6 figures when it comes to income?
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While 6 figures may sound like a lot of money to some, it’s all relative. Depending on where in the 6 figures range you fall can make all the difference in terms of what your financial reality looks like.
With a low 6 figures income, you may feel pretty affluent but with a mid to high 6-figure income that’s when the real benefits start to kick in. From vacations, private school tuition, and luxury cars to generous savings accounts, these are just some of the perks that come with a much larger paycheck.
When it comes down to it, being able to pull in mid to high 6 figure income is truly life-changing – and thankfully these days we have more tools than ever before for getting there and beyond.
How much is 6 figures in annual income?
Earning 6 figures in annual income is something of a milestone in our modern economy. We tend to consider anyone who brings home that kind of cash to be living a successful life; saving for retirement and upgrading homes with every paycheck. Earning between $100,000 and $999,999 a year puts you in the six-figure incomes bracket.
However, if you take a closer look, it’s clear that that number alone doesn’t buy financial security or freedom. It takes careful budgeting, thoughtful planning around long-term investments, and smart risk mitigation tactics to make those 6 figures count in your financial future.
So, while the rags-to-riches story might look like a one-way ticket to luxury, it takes just as much work—if not more—to maintain success as it does to achieve it.
Who earns six figures?
There are many ways to earn a six or even a seven-figure income, but most people have a few things in common. Let’s see who gets six-figure jobs.
People with a bachelor's degree or higher
One thing is certain if you want to hit the six-figure mark – you need some education under your belt. Higher education qualifications such as a bachelor’s degree can give you an edge over the competition and are increasingly becoming one of the most straightforward ways to get into those higher-paying career positions.
You don’t have to limit yourself either; there are so many pathways available that getting a bachelor’s just starts the ball rolling. Take it from there by progressing to higher levels of education and opening up even more career opportunities you never thought were possible. If money is what motivates you, then make sure you have the qualifications to back it up!
Business owners
Owning your own business is a tantalizing way to earn a six-figure income. Unfortunately, it’s not quite as effortless as movies make it out to be. Being successful takes commitment, blood, sweat, and tears – and lots of time!
Unlike a 9-5 job where you can clock in and out, becoming a successful entrepreneur requires passion and dedication every single day if you are to rise above the competition. If you’ve got all of those bases covered, then who knows? You just might turn your business into a major success!
People who love to work
Are you yearning to make six figures but keep feeling limited by your rate of pay? While it’s true that not everyone is a high hourly earner, there’s no need to despair; overtime is an invaluable opportunity that allows anyone to reach their salary goals.
Working extra hours opens your eyes to the power of additional income and provides a great entry point for those who want to start earning serious money. Just make sure not to rely solely on this form of compensation, since that’ll create a dependency if you ever decide not to work overtime.
People who work side gigs
Are you stuck at that frustrating five-figure salary? Tired of coming up just short of clearing the magical six-figure mark? Well, if you’re searching for a way to break through that bump and get on the fast track to financial success, your answer is here: start a side gig!
It doesn’t have to be anything huge – if you can make an extra $1000 a month on top of your regular income, then depending on how much you’re already making, you could find yourself heading towards a six-figure income more quickly than you ever thought possible.
Depending on how successful your side gig is you could be looking at a seven-figure salary or even an eight-figure salary!
What jobs make an average salary of 6 figures?
Are you looking to obtain a six-figure job? Let’s look at a few of the most popular jobs that have a yearly income of six figures.
Aerospace Engineer
Average salary of: $109,891 a year
Data Scientist
Average salary of: $129,303 a year
Legal Counsel
Average salary of: $133,040 a year
Physician
Average Salary of: $147,909 a year
Physician Assistants
Average salary of: $117,750 a year
School Principal
Average salary of: $107,695 a year
Software Engineer
Average salary of: $122,366 a year
How much is 6 figures in monthly income?
When it comes to 6 figures in monthly earnings, it’s important to break it down between low, mid, and high earners. This is because each group has different priorities and goals.
Low Six Figures
For low six figures, making between $8,500 and $15,000 in monthly income, the focus should be building your career and earning potential. You are making enough to have a strong foundation, but to be considered a high six-figure earner, you have more to do.
Mid Six Figures
For mid-six-figure earners, making between $15,000 and $40,000, you won’t have much in the way of financial worries any longer. Your main focus will be on growing your net worth. With all that extra money retiring early should be an easy goal to obtain.
High Six Figures
For high six figures, making between $40,000 and $80,000, your main focus should be building your legacy. You are making generational wealth that can be passed down to your family for the foreseeable future.
If you are more concerned about growth, then seven figures is well within your grasp. Continue building your business, you know what you are doing. Though few have obtained it, perhaps even eight figures is on the radar!
How much is 6 figures in weekly income?
Let’s break down the above examples into weekly income, to give you a better idea of how much you could be making.
Low Six Figures
For low six figures, you could be making between $2,000 and $4,000 in weekly income.
Mid Six Figures
For mid-six-figure earners, you could be making between $4,000 and $9,500 in weekly income.
High Six Figures
For high-six-figure earners, you could be making between $9,500 and $19,000 in weekly income.
How to take advantage of a six-figure income?
So now that you are making over $2,000 in weekly income, your main focus should be increasing your wealth. By using a budget and being smart with your spending, maxing out your company 401k should be well within reason for someone making six figures weekly.
As we move to earnings in the high six figures, amassing large savings should be your main goal. With an increase in disposable income, building wealth and retiring with over one million dollars should be within reach. This is also an annual salary in which looking into investing in a life insurance retirement plan or LIRP makes a lot of sense.
Disadvantages of being Super Wealthy
Making 6 figures a year comes with a lot of benefits but also has its disadvantages you may have not thought about.
You'll Pay High Taxes
What does this mean for you? Well, for starters, you can expect to pay a lot in taxes. Of course, there are ways to minimize your tax liability, but even so, being a member of the elite comes with a financial price tag.
People Will Dislike You
Additionally, you can expect to face some scrutiny from your fellow citizens. It can be tough to connect with people who have an average annual salary of over $350,000 when you’re struggling to make ends meet. So, if you find yourself among the elite, be prepared to face some jealousy and resentment.
How to increase your income
Are you tired of living paycheck to paycheck? Is your annual income only six figures? If so, there are a few things you can do to bring in additional income.
Educate Yourself
It’s no secret that in today’s economy, a college degree can make a big difference in your earning potential. But did you know that there are other ways to increase your income by working on your education?
Even if you’re not looking to go back to school for a higher degree, there are plenty of continuing education courses and professional development programs that can help you expand your skill set and earn a good salary.
Start A Business
Starting your own business is certainly one way to increase your average income. But it’s important to keep in mind that building a successful business takes a lot of hard work and dedication.
It’s not something that you can just do on the weekends or in your spare time. You’ll need to put in long hours and make sacrifices if you want your business to be successful. But if you’re up for the challenge, starting your own business can be a very rewarding experience.
Start A Side Hustle
Today, it seems like everyone has a side hustle. And with good reason – a side hustle can provide a much-needed financial boost. Whether you’re looking to save for a big purchase, pay off debt, or simply have some extra spending money, starting a side hustle is a great way to make it happen.
But what exactly is a side hustle? In short, it’s an online business or side job that you can run alongside your full-time job. And the best part is, there are no rules when it comes to what kind of business you can start.
Whether you’re selling handmade goods on Etsy, providing freelance writing services, or even just washing windows, a side hustle is a great way to go from a six-figure earner to five figures in a hurry.
Make your money go further
If you are having trouble locking down a six-figure salary, then let’s look at how you can make your income go further!
You Need A Budget To Track Spending
You are going to need a budget to keep track of your spending and keep from going into debt. A six-figure salary is a great start, but money can go faster than it comes in if you aren’t paying attention.
Check out my posts on different types of budgeting plans.
60-30-10 rule budget for high earners who want to focus on saving.
30-30-30-10 budget is a great well rounded, beginner-friendly budget.
Find Ways To Stretch Your Dollar
There are a lot of ways to save money, such as couponing, eating out less, and driving a less expensive car. If you’re looking to build your savings over time, discovering methods of cutting costs can be a great way to bolster your investment funds. It’s amazing how even small changes in spending habits can add up when compounded across many years!
Conclusion
A 6 figure income is possible with perseverance and dedication to your budget. You don’t need to make a high 6 figure income to live a comfortable life – though it doesn’t hurt! If you start saving now and focus on building wealth, you’ll be well on your way to financial success. What are some of your goals when it comes to money? How have you saved in the past?
