Have you ever wondered what a figure is? As in, when you hear someone say ‘I have a 6 figure job’.
You might have heard a lot of similar sayings thrown around: 7-figures, 8-figures, and 9-figures. These can either be related to how much someone makes from their work or business, or their net-worth.
It’s important to understand these figures as they can help you reach your financial goals and plan out your future. But what do these actually mean? What’s a 6-figure job or a 9-figure net worth? How do you get a 6-figure salary job?
We’ll talk about all that just below. Let’s get started!
What is a Figure?
A figure is simply a single digit. So this would be 0,1,2,3,4,5,6,7,8, or 9. Usually, these are referred to as someone’s salary or net worth.
How Much is 6-Figures?
6-figures are any numbers between $100,000 – $999,999. So when someone says they have a 6-figure job, they mean their salary is $100,000 or more. While this may sound like a lot of money, it doesn’t necessarily mean someone with a 6-figure salary is wealthy. Remember, your net worth is determined by the gap between your assets and liabilities.
Net worth is calculated by subtracting your liabilities from your assets.
Use Personal Capital to quickly find out your net worth.
Is a 6-Figure Job Good?
Earning a 6-figure job can make a great difference between living paycheck to paycheck and having a sizable savings account, depending on how you manage your money.
While 6-figure jobs are more common than ever these days, it’s still a great salary to have. According to the Bureau of Labor Statistics, the median weekly wage for US workers is $988, or $51,896 per year.
Given the average salary for US workers, a 6-figure job is still amazing in comparison.
However, there are a few things to consider so that the money works the best in your favor:
Budget Your Money
It’s pretty easy to lose track of where your money is going – it can feel like a chore! But it’s important to know where your money is going after it comes in. Many times even with a 6-figure salary, you might find that it doesn’t let you live a life you may have imagined.
To increase your income as much as possible, having a handle on your money is crucial. You can use a tool like Personal Capital to start tracking your income and expenses, or do it yourself by creating a budget.
Know That Lifestyle Creep Can Creep Up Fast
As your income increases, most likely so will your expenses. When we make more money, we tend to buy more things…things that cost money.
So even when you make 6-figures or more, it can still feel like you’re living paycheck-to-paycheck because your expenses can eat up most of that money. That $100,000 salary can start to disappear really fast.
To avoid this, it’s important to keep an eye out for lifestyle creep. Keeping your expenses low and avoiding new shopping urges can help tremendously.
Where You Live Makes a Difference
Where you live makes a lot of difference in how much you can save and invest.
Sure, a $100k salary is great, but if you’re in a big city like New York City or Seattle, that amount of money isn’t much. In these high cost of living areas where home prices and groceries cost more, companies usually pay more because it costs more to live there.
For example, making $100k in NYC where expenses are higher, it can feel like making $50k a year. On the other hand, living in Cincinnati where it’s cheaper to live, you’ll be paying half the amount to live the same lifestyle.
Here’s a great article to understand more about what a difference moving to a cheaper city can make.
What Jobs Pay 6-figures a Year?
There are many jobs in the market today that you can get in order to be in the ‘6-figure earners’ club. It’s quite honestly easier than ever to earn this amount per year, with online schools available to bring your skills to a level these jobs require.
Examples of 6-figure jobs are:
- Software Developer
- Airline/Commercial Pilot
- Human Resources Manager
- Finance Manager
- Advanced Practice Registered Nurse
- Petroleum Engineer
Related: Find out what kind of lifestyle you can have with a 6-figure salary
How Much is 7-Figures?
Going up one level is 7-figures. Here the numbers fall between $1,000,000 – $9,999,999 and are referred to as someone’s income or net worth. When you make 7-figures, you are in the millionaire’s club.
How Much Is a 7-figure Salary?
A 7-figure salary is when you’re earning anything between $1,000,000 to $9,999,999 per year. Even though it’s difficult to reach that level, it’s not impossible.
How to Make 7-Figures?
There is certainly more than 1 way to make 7-figures. It can be through a job, a business, or a portfolio of investments. You’ll be surprised that a lot of people are millionaires with the amount of assets and/or investments they hold.
For example, you can use the target rate fund strategy to reach your 7-figure goal with your investments. Maxing out your 401k the right way is another great thing to consider for this goal.
While investing may take you longer to reach your goal, running a business might be a quicker way. There are tons of business owners who make a 7-figure income, which you can find in almost all types of businesses – blogging, fast food restaurants, residential/commercial property, advertising agencies, and so on.
It’s also important to note that budgeting plays an important role here, as well. Managing your money the right way can make a big impact on reaching a 7-figure net worth. Here are some great tips to manage your money to $1 million.
What Jobs Pay 7-Figures a Year?
Jobs that pay a 7-figure salary are harder to get than your usual jobs. Still, not impossible.
These jobs are usually held by people who are very skilled in their work and are in high demand. They require specialized skill sets that you can’t easily find. Most people don’t get to this level of income right away. Most start working lower-paying jobs and work their way up. So it’s definitely not out of anyone’s reach!
Examples of 7-Figure Jobs Are:
- Business Owner
- Corporate Lawyer
- CEOs and C-level executives
- Investment Bankers
- Actors / Actresses
- Sales Executives
- Professional Athletes
- Social Media Influencers
- Medical Professional
How Much is 8-Figures?
8-figures is a whole new level of money. This is when you’re considered a wealthy person.
8-figures represent eight figures and an 8-figure salary falls between $10,000,000 – $99,999,999.
What Jobs Pay 8-Figures a Year?
Having a 8-figure job is quite the challenge – I won’t sugar coat you here. But again, not impossible. These types of jobs are not easy to get and require many years of experience on top of being one of the top players of your industry.
Examples of 8-Figures Jobs:
- Top Professional Athletes
- Hedge Fund Managers
- Start-up Founders
- Movie actors/actresses
How Much is 9-Figures?
9-figures are nine digits total. A 9-figure salary falls between $100,000,000 – $999,999,999. Most people who make 9-figures a year usually have a net worth in the billions area.
Earning or having a net worth of 9-figures will put you in an elite club. It’s a whole new level of ‘I live life by my own rules’. But don’t get me wrong, even a 5-figure job can open a lot of doors for you to live a comfortable life. Again, this is where managing your money comes into play.
Jobs that Pay 9-Figures
9-figure paying jobs are one of the most difficult to get. Earners in this category are usually CEOs of large companies, top performing athletes, or celebrities.
Examples of 9-figure earners:
- Apple – Tim Cook – $265,043,550
- Axon Enterprise Inc – Rick Smith – $246,000,000
- Professional Athletes / Movie Stars
- Football – Cristiano Ronaldo – $109,000,000
- Basketball – Lebron James – $111,200,000
- Actor – Daniel Craig – $100,000,000
Increasing Your Income Figures
Although increasing your salary or net worth to 7-figures or higher can be extremely difficult to do, getting to 6-figures is a reasonable goal that you can accomplish. In today’s job market, there are tons of jobs in IT, business, and medical fields that offer a 6-figure salary.
Many people also get to 6-figures a year by having multiple streams of income. You could have a 9-5 job and a side hustle or two that make up to 6-figures combined.
Tips to Help You Increase Your Income Figures
You can always take an extra step to increase your income and get to the next level of figures. Here are some things that can help:
- Ask for a raise
- Get more qualifications for your work and get paid more
- Start a side hustle like blogging or YouTube or in the gig economy
- Start a small business
- Get higher education to move up within your company
- Job hop every few years for salary increases
- Negotiate a higher salary
- Invest in real estate
- Learn new skills and apply them to your job to become more valuable
- Switch fields that pay more
Related: Best Delivery Apps to Make More Money
Again, when people talk about 6-figures or 7-figures or anything like that, they’re usually talking about their salary or net worth. While you most likely may never see 9-figures in your bank account in your lifetime, seeing 6-figures is definitely achievable within a few years.
While I do believe money doesn’t buy happiness, it does open a lot of doors. I look at it this way – money buys you opportunities to enjoy life a little better.
It’s also important to keep in mind that the value of your net worth will depend not only on your income, but also how you manage your money. Live within your means, pay off any debts, and focus on saving and investing. These tips can help you rise through income figures and live the life you want.
What income figure are you trying to get to? Let me know in the comments!