Wondering how much is 6 figures in money? Though seems pretty much straightforward, it isn’t. In this article, I break it down what it means to make 6 figures, and how much that amount is worth in different economies.
Now, the internet is full of individuals claiming to:
- Having left a 6-figure job to start a business
- Be making 6 figures from their new venture
- Earning a 6-figure salary from their current jobs.
While it’s a dream of the many to one day make 6 figures from various ventures, this umbrella term can be misleading. This is because the amount’s value varies from currency to currency, economy to economy.
I’m a Kenyan, if I make 6 figures, even if it’s just $100,000, this alone can be a game-changer as I can do a whole lot with that amount. What you can accomplish with the same amount but a different economy, say the US, may not be so much.
What Currency Is Used When Referring To 6-Figures?
Often, when claiming to be making a 6 figure salary, the reference is in US dollars. So, to gauge whether you are really a six-figure or 7 figure earner, you need to convert your earnings into US dollars. In some economies, you need to be a 9 figure earner to make a 6-figure figure US dollars equivalent.
How much is a Figure Income?
When used in money terms, a figure is a single digit, as in whole numbers. Thus, 0-9 are one figure. Thus, cents or decimals don’t count as figures when referring to an n figure income.
Thus, if you are making $10,000.99, you are a four-figure income earner and not a six-figure earner.
Here are a few examples to understand n figure income:
- 0-9— One figure
- 10-99— Two Figures
- 100-999— Three Figures
- 1000-9999— Four Figures
- 10000-99999— Five Figures
6 Figure Meaning— How Much Is 6 Figures in Money?
First, what does it mean to have 6-figures?
A six-figure income falls in the range of $100,000 and $999,999. Now you can agree that between the extremes is quite a lot of difference. So somebody making $100,000 is not in the same class as someone making $900,000. Thus this six figures term doesn’t truly depict someone’s financial situation.
Simply put, an income can be said to be in 6 figures if it’s:
- In the range of 100,000-999,999
- In the US currency
Also, remember that $999,999.99 is still six figures and not 9-figures. So if you’ve ever wondered what it means to have 6 figures, then that’s it.
How Much is 6 Figures Monthly?
Since income and salaries are realized months- to months, it makes sense to want to know what your paycheck amounts read.
The annualized 6 figures translates to $8333 to $83,333 per month. You can see the gap in these figures.
Why the 6-figure, 7-figure Obsession?
For many people, getting a 6 figure salary job or starting a business that makes 6-figures a year is a dream come true. This is because, with those income brackets, you can afford to live comfortably and take care of your loved ones, the way you’ve always wanted.
Having a stable source of income also means that you have time and some resources to spare to build or further your other interests, be it education, hobby or business.
How Much is a 6 Figure Salary?
When used in salaries, six figures can have a different connotation.
A six-figure salary refers to an annual individual’s payout, often before taxes, that’s more than $99,999 but less than $1000,000.
After taxes, somebody making low six figures may actually be a 5 figure earner.
Given that these figures are annualized, saying you are a six-figure earner doesn’t really represent your financial status month to month. Besides, your future earnings are not guaranteed. What you are making every month is what is critical.
What Affects the Worth of Your 6 figure Salary or Income?
There are a few things that can impact the ‘worth’ of your 6-figure salary as well. For instance:
a) Student loans
The degree programs that are likely to get you a 6-figure job are often very expensive, and so if you had taken a student loan, then the majority of your six-figure earnings will go into servicing these loans.
b) Where you live
In the US, though the cost of living is generally high, some states are cheaper than others. For instance, a one-bedroom house in the NewYork city will cost you $3805 a month, meaning that nearly $46000 of your annual income goes to base rent alone. Contrast that with someone living in a more remote state like Orlando, FL, where the same apartment is just $1712, a month or just about $20,000 a year.
Thus, A $100,000 salary could be worth more in a low-cost living area than the same amount in an expensive city like San Francisco or Washington, DC. The same salary is worth way more in developing countries the dollar equivalents of their local currencies are in the range of 100 or more.
Your tax bracket can also eat away at your income. If you are in the 25% tax bracket, it means that your $100,000 gross salary comes down to $75000. Although it’s still a lot, it’s a whopping $25,000 shy of the hundred grand.
6 Figures Careers: What Jobs Make 6 Figures a Year?
Only a few professions do make 6-figures in annualized income and include high demanding jobs that often require longer study years and high tuition fees.
Here are a few jobs with 6 figures salaries:
1) Industrial Production Managers
- Salary: $110,580
- Required level of education:
Industrial production managers oversee the daily operations of a manufacturing plant, making sure everything is running smoothly. They’re also in charge of coordinating the production process.
2) Computer and Information Systems Managers
- Salary: $149,730
- Requirement: Minimum of Bachelor’s degree in IT correlated field
These managers work in IT departments, handling activities related to data management, data processing, information systems and systems analysis. They work with the management team to determine better ways and technology to help companies be more efficient.
3) Medical Doctors (Physicians and Surgeons)
Medical practitioners easily make 6-figures a year, and it’s a profession that is easy to get hired after earning a medical degree
- Requirement: Doctoral or professional degree, multi-year residency
Physicians and Surgeons are some of the most highly paid professions. They specialize in a given area of medicine such as cardiology or serve as general practitioners (GPs.)
Daily activities that physicians perform include medical examination, prescribing medications and administering diagnostic tests. Surgeons are involved in operations.
4) Financial Managers
- Salary: $143,530
- Requirements: Bachelor’s degree in Business Finance, Statistics, or related field.
Financial managers are responsible for coordinating business’ financial activities, including accounting, banking, insurance and banking, and advising the management on their spendings and cashflows.
Financial managers with MBAs and years of experience are likely to command higher pay.
- Salary $141,890
- Requirements; Law degree and Board certifications.
The pay for lawyers varies significantly as public defenders often make way less than those working for private firms. Also, some law professions tend to pay more than others. Specializations in law include Criminal Law, Corporate Law, Family Law etc. Lawyers are also paid to draft legal documents such as business contracts and wills or consult on matters legal transactions such as business acquisitions.
6) Software Developers
- Salary: $164,590
Software developers are on-demand as every business looks for unique and creative ways to deliver digital experiences to customers.
As a software developer, you’ll be designing and developing custom software solutions that enable people to accomplish certain tasks faster and automate the way they do business.
7) Ethical Hacking
- Salary: $105,765
Another 6 figure job opportunity is ethical hacking. Ethical hackers use their cybersecurity, coding and other technical skills to identify vulnerabilities in systems likely to be exploited by cybercriminals.
To enter this field, you generally need to have the expertise required, which you can do so online, taking a Bachelor’s degree in IT, or getting certified by relevant boards.
- Salary: $108, 350
If you have an eye for statistics, and analysis, then becoming an actuary is a great six-figure opportunity path to take. Actuaries use their skills to determine the likelihood of certain events occurring and therefore help companies to decide whether to implement or halt certain measures.
9) Big Data Engineers
The world has been talking about Big Data for a while now, and the impact it’s gonna have on the digital economy. Having data work for companies s something that most businesses are still trying to figure out.
As a Big Data engineer, you help companies make sense of their data.
What Percentage of Americans Make 6 figures or More Annually?
According to new data from YouGov shared with Yahoo Finance, only 9% of Americans are earning $100,000 or more a year
Is 6 Figure Salary Good?
Ever wondered if a 6-figure salary is good enough? Good question.
A 6 figure salary is good as it can afford you a fairly lavish and comfortable lifestyle. With this salary range, you can raise a family, fund an emergency kit, further your education and pay off your student loans with ease, without neglecting to treat yourself and your loved ones from time to time.
Of course, higher numbers are better than lower ones in this salary range. Someone making $83,333 a month has a lot to play with and invest than someone earning just $8,333 a month, before all the other deductions.
The worth of a 6-figure salary also depends on the age brackets of the earners. In fact, most millennials making 6 figures still feel broke. This is courtesy of lifestyle creep as they prefer comfortable and more expensive living.
What Does a 6 Figure Salary Get You?
The worth of a six-figure salary varies from economy to economy, and individuals to individuals.
Picture this, you’re from a developing country where an average salary is $1000 per month, translating to just $12,000 in annual income, getting a 6-figure salary job will have more impact compared to somebody living in developed countries where the cost of living is relatively higher.
Here are a few things you can do with a six-figure salary:
- Service your student loans
- Acquire a car
- Purchase a house and service mortgage
- Take care of your family financially
- Finance your kid’s education
- Further your education
- Move to a better apartment
How you budget your 6-figure salary will largely depend on your current needs and wants, but the majority will go into fixed expenses such as rent and daily expenditures on fuel, food etc.
You should also develop a savings culture where you dedicate 10-20% of your net earnings to savings and investments.
Do You Need a 6 figure Salary to Build Wealth?
Only just about 9% of the US workforce earn six figures a year. This number is considerably lower in other countries. However, the number of people who can be considered ‘wealthy is much higher.
So, yes. You can build wealth without a 6-figure job. You just have to have the right mindset and the determination to keep going, when the going gets tough. The median salary of working Americans is about $47,000, ($908 a week) using the data by the Bureau of Labor Statistics.
Even with this amount, it’s still possible to build wealth with the right saving culture and the willingness to invest in high-return ventures.
6 Figure Business Ideas
Now, you can still make a six-figure income even if you don’t have a high salaried job. The way to do so is to start a business. Today, technology has made it possible for anyone to start online shops and start selling online.
However, not all businesses are on route to generating six figures in annual revenues. To make sure that you’re on course, first make sure that your business idea has a potential for growth and scalability.
Here are a few 6 figure business ideas that can turn you into a six-figure earner in a spun of 3 years or less that don’t require a college degree:
a) Start a YouTube Channel
You don’t need a college degree to make 6 figures. Content creators are making tons of money on YouTube leveraging their YouTube partner program.
To succeed as a YouTuber, you need a niche and don’t need to be super-specific. In fact, if you are witty or love interviewing others, you can get popular quickly doing interviews, comedy or pranks.
Another way to monetize a channel, besides ads, is through affiliate marketing. This works well in reviews, tutorials and tools recommendation videos.
Once your channel is big enough, you can collaborate with big brands. You create sponsored content that natively promotes a companies product and you are paid a one-time fee. Combine these strategies and you can easily make that $8333 a month that puts you in the six-figure income bracket.
While it’s easier to start, blogging takes time to earn you a substantial amount of money. Many 6 figure income bloggers only achieved this milestone 7 years down the road.
To start a 6 figure blog, develop a strategy. Take time to map out your reader’s journey and strategies on how to attract them. Here are a few of my strategies if you are considering starting a blog:
- Do audience research. Use relevant tools to help you understand whom you will be writing for. In so doing, you won’t be sticking things on the wall, hoping that some would stick.
- Do keyword research. This is perhaps the most critical and effective tip of them all. There’s a ton of competition out there. By doing thorough keyword research, you are more likely to uncover some hidden gems that many bloggers are not targeting at the moment. Explore these topics
- Build up your own style. From the choice of words, your intros and your writing style to the design and layout of your posts, everything should work to emphasize your brand.
Dropshipping is an eCommerce business model where you sell physical products without ever creating or handling the products yourself. All you need is to find your suppliers, connect your store with a drop shipping service and start listing your products.
The only thing you need to do is to market your store. Once someone places an order in your store, the supplier receives this info, processes the order and ships the product to the customer.
The supplier takes the cost of the product and you keep the rest. This is different from affiliate marketing since here you are the boss. You are in charge of the pricing of the products in the store, and how you market them. You can use paid ads, while most affiliate programs don’t allow targeting their brands.
To make six figures from dropshipping, you need a minimum of 2 years. During this period you focus on growing a reputable brand and employ the use of creative marketing techniques to create a buzz over your brand.
d) Freelance Copywriting
Sales is where the money is, and copywriters are one of the highly paid content developers today.
As a copywriter, you use your skills and expertise to create highly converting sales copy for various marketing use cases to help clients sell their products.
You leverage some of the proven copywriting frameworks such as AIDA, PAS, Features— to— Benefits etc to create a captivating and persuasive copy.
Most copywriters can easily make $10,000 a month, making their annual earnings just about 120K.
Is Making Six Figures a Year Considered Rich?
It really depends on how big your six-figure income is. Somebody making $999,999 annually, is way richer than someone making $100,000.
That said, six-figure earners aren’t really millionaires. To be considered a millionaire you need to have a net worth of $3Million. That’s right. Courtesy of inflation, $3 Million is today’s 1Million. But again, rich is subjective and many factors play into this term, including the neighborhood where one is living.
In developing countries, someone making $10,000 a month is considered rich, while in developed countries that amount doesn’t really cut it.
Mindset Shifts: Developing a 6 Figure Mindset
To make 6 figures, you need some mindset shifts. By being a go-getter and an investor, you’re more likely to reach your financial goals much faster. Here are a few mindset shifts you need to make if you want to hit your 6 figure financial goals:
Be willing to spend, but wisely: Successful people are those who spend money on bettering themselves, acquiring better technology, learning new skills and outsourcing skills they don’t have.
Get things done: In life, and in business, nothing moves until you do. By developing a get-t-done mindset, you accomplish small chunks that usually build up to great tasks with higher returns.
Have an Investment Mindset: Let money move. Find low-risk investment opportunities, educate yourself about them and then start investing.
Have a saving mindset: To ensure that you always have money to play around it, develop a strict saving culture. Your savings always come in handy when there’s an investment opportunity worth taking a shot at.
Invest in education: If you foresee that your career path is a feasible way for you to start earning 6 figures, then find ways to upskill. You can further your education by taking evening Masters classes or enrolling in relevant professional courses that give you a competitive edge when it comes to company promotions
Since you now know how much is 6 figures, the big question is, are you willing to work towards making 6 figures. Sometimes one investment is enough, other times you need to juggle jobs and various businesses to make that amount. Either way, it can be done.