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You might have heard about people having a multi figures business or 6-figures, or 9-figure income. But what is the meaning of these figures, and how do you scale your life to earn that much? How much is 6,7,8, or 9 figures and what are the requirements and complications for it.
In this article, we will learn all about these terms and beyond. So without further ado, let’s jump into this interesting topic.
What is a figure?
A figure infers to a single number or more commonly called a digit, Which would comprise numbers 1,2,3,4,5,6,7,8,9,0. And when someone uses the work figure, they mean the salary or net worth of an individual.
What are 6-figures?
6 figures mean the salary of people that ranges between $100,000-$999,999. It is usually used for the money on an annual basis. Although it may seem like a lot of money, it doesn’t exactly mean that someone is very rich or wealthy.
Is 6-figure a lucrative salary?
A 6-figure salary means you will save and earn more and also enjoy a more financially stable life. However, the 2 extremes of the figure play an important role in determining whether you are having a good salary or not. The normal expenses like taxes, debt, and miscellaneous expenses can blow through a 6-figure salary within a small time.
Today, you can see a lot of people with a 6-figure salary but it still means that you are living a very successful life, and you are earning sufficiently to support your needs. As per BLS (Bureau Of Labor Statistics), the median income for US workers in 2020 was $994/week or $51,688 yearly. If you compare to this number, having a 6-figure salary is still really great.
Here are a few things to monitor when you earn 6-figures:
1. Avoid the lifestyle creep
When people earn more, they spend more. They get more reeled in towards buying expensive things, and their wants start competing with their needs. And this habit makes even a 6-figure salary look small.
According to Investopedia, 1/5th of Americans are still dependent on paycheck each month, despite having a good 6-figure income. And the Will Tower Watson Survey shows that 18% of people with 6 figure salaries of more than $100,000 are dependent on their paychecks each month.
2. Track your money
When you earn more, keeping track of where that money is going is hard. And without a record, you will not realize how much you have left. Hence, to maximize this salary, keep a personal budget and track monthly expenses, savings, and investments, and make the best of that 6-figure salary.
4. Your current living situation
The place where you live plays a pivotal role in determining how much your 6 figure salary can help you grow. For instance, living in New York, a 6-figure salary might still feel like 5 figures if you are not conscious of budgeting.
But with the rise of remote work, people can now choose the workplace of their choice, and save and earn more from a comfortable and more affordable setting.
Making 6-figures is a great financial status and it also helps your personal finances greatly. However, if you look at your income after removing the debt, expenses, and how much you save and invest, is it really that good?
Jobs that make 6 figures annually
Many people start with the goal of making 6-figures or more. And earning them through a job is more common than you think. People take years to reach this level, while some take a degree and take a job that pays that much, both need equal hard work.
However, with inflation and spiking living costs, this income has become more common and also not as big as one might think.
If you are looking to snag those 6-figures, these jobs will be the best fit:
- Marketing and sales managers.
- Financial Managers.
- Software Developers.
- Physician assistants.
- Information Systems Managers.
- Software Developer.
- Financial Manager.
Most of these jobs will require you to have a bachelor’s degree. And for you to have a good skill set that you can apply to solve the problems in the respective fields. However, if you don’t have the degree you can also take an alternative path, and do a business, or freelance work from home, that can help you support your education and reach the 6-figure milestone early.
What is 7-figure?
7-figure infers an income or annual revenue that ranges from $1,000,000 to $9,999,999. These people are millionaires, and that is a given unless they have a very big debt.
Are 7-figures lucrative today?
7 figure is usually referring to the net worth of an individual just like 6-figures. It is more genuine to be a millionaire when considering all the assets. Earning 7-figures gives you a respectable living standard. And in a practical sense, having a 7-figure net worth is more common than having a 7-figure salary.
However, both require passion and determination. But most people without a 7-figure salary reach that point easily. For example, through investing. For instance- Maxing the contribution limit on IRA or 401K and investing in a 3-fund portfolio can lead to the achievement of this status.
Jobs that pay 7-figure annually
A 7-figure salary needs a lot of passion and courage to pursue. This income is usually possible for people who have special skills that are in demand currently. Or they have exceptional skills in the industry.
Some 7-figure jobs are:
- CEOs or C-suite executives
- Private Equity Managing Director
- Corporate lawyers
- Fashion designers
- Social media influencer
- Enterprise sales account executive
- Professional athletes
- Movie actors
While seeing the alternatives like bloggers, and YouTubers may excite you to embark on this journey. It is crucial to remember that they work very hard to reach this point. And a lot of dedication is needed.
How Much are the 6 and 7 Figures?
Income that you receive from 100 000 up to 999 999 is called 6-figure income while income from million up to 9 999 999 is called 7-figure salary.
What is 8-figure?
8-figures means people who have a salary or net worth of over $10,000,000- $99,999,999. These people are rich and are also called multi-millionaires.
Jobs that make 8-figure annually
Getting an 8-figure job is not easy but many people in the U.S. still earn it and have a great financial standing in the economy. They either bring great results for their employers or have a business.
Some 8-figure paying alternatives are:
- Movie stars
- Hedge fund managers
- Founders of Unicorn start-ups
- High-profile athletes
- Fortune 500 CEOs
Some prominent personalities who are earning 8-figures right now are:
- Athlete, James Harden: $47,8000,000
- Actress Scarlett Johansson: $56,000,000
- Athlete, Naomi Osaka: $37,400,000
- Walmart CEO, Douglas McMillon: $22,110,000
- Actor, Dwyane Johnson: $87,500,000
- Starbucks CEO, Kevin Johnson: $19,200,000
What do you mean by 9-figures?
9 figure is a very high-income status, which means, you are having a newt-worth of $100,000,000- $999,999,999. People in this club enter the rare club and their net worth is in billions.
Jobs that pay 9-figure annually
The 8-figure and 9-figure paying jobs are in the same sphere. They are usually CEOs who have a lot of experience and work for well-known companies around the world. Or they can also be the people in the entertainment, sports, or arts industries.
Some people who earn 9-figures are:
- Athlete, Roger Federer: $106,300,000.
- Oracle CEO, Safra A. Catz: $108,200,000.
- Athlete, Cristiano Ronaldo: $108,200,000.
- Discovery CEO, David Zaslav: $129,500,000.
- Palo Alto Networks, Nikesh Arora: $106,300,000.
What does it mean when you have 9-figures under your belt?
A 9-figure income means you have achieved it all, you have an income and wealth that is next level, and you can fulfill all your dreams, and you will have no worries or money problems in your life. It’s also something very rare and 99% of people can never reach this level in life.
However, reaching 6-7, 0r 8 figures is also very good, and you can still accumulate good wealth by investing and saving through your present income situation.
You must be familiar with the saying that money is not always equivalent to happiness. Hence, even if you earn multi-figures, there is no guarantee that you will also be able to attain the maximum level of happiness.
With this kind of money, you will surely have some great activities to indulge yourself in and have lower financial stress, but the challenge of handling this much money is also massive and often takes a toll on the mental health of people.
The key to remaining happy is to live modestly and save and invest a lot. You should look for ways to make more money on the side and do smart money management. More money means the quicker achievement of goals, and better status. Hence, you are all set for retirement and to enjoy as you like.