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The ultimate guide to how much six figures actually is, how to make six figures, and everything else you need to know about making 6 figures.
Today, we'll discuss what a six-figure salary is, some six-figure jobs to consider, how to maximize your income, and what the take-home earnings are for a six-figure salary.
We'll also dive into what a 7 figure, 8 figure, and 9 figure salary looks like and discuss everything you need to know.
By the end of this post, you will be an expert in 6 figure salaries.
Table of Contents hide
What is a Figure?
How Much is 6 Figures per Year?
How Much is 6 Figures an Hour?
How Common is a 6 Figure Salary?
Is Making 6 Figures a Year Considered Rich?
What is the Take-Home Pay for a Six-Figure Salary?
How to Maximize Your Income from a Six-Figure Salary
Budgeting with a Six-Figure Salary
Ways to Invest Your Money with a Six-Figure Salary
Average Age to Make Six Figures
How Hard is it to Make 6 Figures?
Six-Figure Jobs to Consider
Do You Need a Six-Figure Salary to be Successful?
How to Avoid Lifestyle Inflation with a Six-Figure Salary
How to Build Wealth if You Don't Make Six-Figures
1. Spend Less than You Earn
2. Budget Your Money
3. Pay Off Debt
4. Start Investing
5. Save for Retirement
6. Implement a Money Management Strategy
How Much is 7 Figures a Year?
How Much is 8 Figures a Year?
How Much is 9 Figures a Year?
Salary Summary
Helpful Articles about Financial Planning
What is a Figure?
A figure is simply a number.
For example, there are 5 numbers in $75,000, otherwise known as a 5 figure salary.
When you hear the term “figure”, just think of “number”.
How Much is 6 Figures per Year?
When you hear the term “6 figures”, people are usually referring to a six-figure salary.
A six-figure salary is an annual income that can total anywhere from $100,000 to $999,999 per year.
You'll notice that there are 6 digits in the salaries mentioned above, hence the term “six-figure salary”.
This means that if you earn a six-figure salary of $100,000, your monthly earnings before taxes would total around $8333 per month.
If you earn a salary of $200,000, your monthly earnings before taxes would total $16,666.
Low Range: $100,000- $400,000
Mid Range: $401,000-$700,000
High Range: $701,000- $999,999
How Much is 6 Figures an Hour?
If you are employed in a full-time job, working 40 hours a week for 52 weeks a year, you would work 2080 hours a year to make 6 figures.
Therefore, if your annual six figure salary is $100,000, you would be making around $48 an hour before tax.
If your annual salary is $200,000, you would be making around $96 an hour before tax.
If you make $300,000 a year, you would pull in $144 an hour before tax.
However, there are additional things to consider when looking at how much you're making per hour. I always encourage employees to calculate their commute time into their per hour wage when deciding on a new job.
My job comparison spreadsheet can help with all of the 25+ items to think about when considering a new job.
Related:
- Job Offer Comparison Spreadsheet: How to Decide on Your Career
How Common is a 6 Figure Salary?
According to a study done by IBISWorld, more households than ever before in history are earning 6 figure salaries.
Since the rate of inflation has been steadily increasing each year, so have the salaries. It now costs more than ever to live.
In 2022, IBISWorld found that 34.4% of households were making 6 figure salaries (over $100,000).
Is Making 6 Figures a Year Considered Rich?
I wouldn't say that making 6 figures a year is “rich” per most people's standards.
While six figures may sound like a lot of money, it actually ends up not being as much as you'd think after taxes.
However, I will say that a person making six figures a year is definitely in the top percentile of people in the world and a higher percentile in the United States.
I consider “rich” to be a direct reflection of net worth.
Just because someone makes six figures doesn't mean they have money in their bank account.
I know many people that make over six figures that have enormous amounts of debt and have no money in the bank. Crazy, right?
Often, when people make six figures, they also increase their lifestyle. This means luxury cars, designer items, and nicer homes.
In turn, this means that they are spending more money.
If you make six figures, avoid lifestyle inflation by budgeting wisely, paying off your debt, following money management steps, investing your money, and finding side hustle passive income ideas to try!
Track everything in my DIY financial planner.
Related:
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- 15 Passive Income Ideas for Beginners in 2022
- Free Debt Payoff Printables: Exact Steps You Need to Know to Get Out of Debt FAST
- FREE Printable Expense Tracker: The Downloadable Budget Binder You Need
- How to Make Your Own FREE Personal Finance Organizer
- Financial Tools
- Free Net Worth Tracker Spreadsheet to Reach Your Financial Goals
- Ultimate List of 45 Insanely Easy Ways to Make Money (that are actually good)
- Beginner’s Guide to Investing: Step by Step Tutorial on How to Invest
What is the Take-Home Pay for a Six-Figure Salary?
The take-home pay (money that hits your bank account) for a six-figure salary will vary depending on your federal, state and local tax brackets, employer benefits, medical and retirement deductions, and whether you have any withholdings from your paycheck.
As of 2022, there are 7 federal tax brackets. Tax brackets are assigned based on the income you make and are done on a tiered basis.
This means that just because you are in a 24% tax bracket doesn't mean you are paying 24%. Your money is taxed at different tiers as it goes up.
In addition to federal tax brackets, there are state, city, and county taxes to be aware of.
Taxes really eat up your take home pay so always be sure to plan ahead.
Other things that affect your take home pay are benefits from your job and money that's added to retirement accounts.
If you are lucky enough to make a six-figure salary, you'll want to be very careful about how you manage your money. With a strong financial strategy and good planning, you can make the most of your six-figure income and ensure that you're on track to reach your financial goals.
How to Maximize Your Income from a Six-Figure Salary
Once you've landed a 6 figure job, it's important to take some steps to ensure that you're making the most of your income.
Here are my favorite tips for managing a six figure salary to it's full potential:
- Follow my money management steps to ensure you're using your money efficiently and effectively.
- Put together a financial plan.
- Come up with a debt payoff strategy and pay off your debt.
- Learn to budget and stick to it.
- Open a HYSA for your emergency fund.
- Contribute to your 401k or a retirement plan. Make sure you contribute at least enough to get the employer match, if it's offered.
- Invest additional money into other brokerage accounts.
- Track your net worth.
- Invest in yourself by taking advantage of opportunities for professional development and continuing education.
- Save for major purchases so that you're not putting them on a credit card and paying interest.
Budgeting with a Six-Figure Salary
Even if you have a six-figure salary, you need to be very careful with your budget.
Some of the most in-debt people I know earn six figure salaries and live paycheck to paycheck.
Just because you make more money doesn't mean you'll HAVE more money.
Lifestyle inflation is real and there's a reason most of America is in debt. I recommend reading this book to help you think about money completely differently. If you can get your mindset on the same page as the character in this book, you will be successful, without a doubt.
Even a six figure salary earner should create and stick to a budget.
A budget can help you make sure that you're spending your money in a way that aligns with your values and goals. It can also help you track your progress over time, which can be motivating.
There are a number of different ways to budget, so find one that works for you and stick to it. You may want to use a budgeting app, create a spreadsheet, or use the envelope system.
No matter how you budget, the important thing is to be mindful of your spending and make sure that you aren't spending more than you make and that you're living within your means.
If you have a six-figure salary, congratulations! You've likely worked hard to get where you are. Remember to budget carefully and invest in yourself so that you can make the most of your six-figure income.
Related:
- Lessons from Rich Dad Poor Dad: The Finance Book That Will Make You A Millionaire
- FREE Printable Expense Tracker: The Downloadable Budget Binder You Need
Ways to Invest Your Money with a Six-Figure Salary
If you are making 6 figures, you likely have some extra money that you can invest. Investing your money is a smart way to grow your wealth and secure your financial future.
There are a number of different ways to invest your money, so figure out what makes the most sense for you.
Some options to consider include:
- 401(k) or other retirement account: Investing in a retirement account is one of the best ways to grow your wealth over time. If your employer offers a matching contribution, be sure to take advantage of it.
- Real estate: Investing in rental properties can be a great way to generate passive income. Just make sure you thoroughly understand the costs of home ownership.
- REIT Investing: If you don't have the money for a physical home, you can invest in REITs.
- Real Estate Crowd Funding: If you still like the idea of owning rental homes, you can own a portion of a rental home via crowd funding.
- Start a Business: Invest in yourself and come up with businesses that can earn you more money. For example, I started this website with money earned from my day job. Now, this website earns $7,000 a month as a side hustle. Here's how you can start a website as well.
- Stocks and Mutual Funds: Investing in the stock market can be a riskier proposition, but it can also lead to higher returns. If you're not sure where to start, consider investing in a mutual fund.
- Bonds: Bonds are generally considered to be a less risky investment than stocks, which makes them a good option for conservative investors.
- Index funds: Index funds are a type of mutual fund that track a specific market index, such as the S&P 500. They typically have low fee percentages.
There are many different ways to invest your money, so do some research and figure out what makes the most sense for you. With a six-figure salary, you have the opportunity to grow your wealth significantly over time.
Related:
- Beginner’s Guide to Investing: Step by Step Tutorial on How to Invest
- Dividend Stocks for Beginners: Guide for the New Stock Investor
Average Age to Make Six Figures
The average person doesn't start making a 6 figure salary until their mid to late 30s.
However, since six figure salaries are becoming more and more common, we are starting to see younger people in their 20s with 6 figure salaries.
In fact, I graduated college and was able to get a 6 figure job at 21 years old. It is definitely possible. It wasn't easy…at all…but it was possible.
Don't be hard on yourself though if you aren't making 6 figures yet.
Read books, listen to podcasts, and encourage yourself to constantly learn and you will get there!
Related:
- 5 Books Every Woman Should Read in Her 20s
- 5 Books Every Woman Should Read to Take Her Career to the Next Level
- The 5 Best Financial Books that Will Change Your Life
- Lessons from Rich Dad Poor Dad: The Finance Book That Will Make You A Millionaire
- 6 GIRL BOSS Books That Will Change Your Life
How Hard is it to Make 6 Figures?
Making a 6 figure salary is certainly possible, but it's not a walk in the park.
There are many industries that offer 6 figures, but some of them require a certain level of education, experience, or expertise.
However, if you put your mind to it, there is a good chance you can achieve it.
There are many different six-figure jobs available across a variety of industries.
Six-Figure Jobs to Consider
If you're looking for a jobs that makes 6 figures, here are some options to consider:
- CEOs and other corporate executives
- Lawyers
- Physicians
- Software Developer
- Architect
- Surgeons
- Marketing Jobs
- Veterinarian
- Financial Advisors
- Sales Jobs
- Business Owners
Do You Need a Six-Figure Salary to be Successful?
The simple answer is no, you don't need a six-figure salary to be successful. There are plenty of people who have found success without earning six figures.
However, that doesn't mean that a six-figure salary isn't worth striving for. If you have the opportunity to earn a six-figure salary, it can be a great way to increase your wealth and reach your financial goals.
Of course, it's important to be realistic about what you can expect to earn. If you're not currently earning six figures, it may take some time and hard work to get there. But if you're willing to put in the effort, a six-figure salary can be within reach.
How to Avoid Lifestyle Inflation with a Six-Figure Salary
Lifestyle inflation is a real danger for people who receive a six-figure salary. It's easy to fall into the trap of spending more money just because you have it.
As I mentioned above, several of my friends that make over $100,000 are significantly in debt, have no money in their bank account, and are living paycheck to paycheck always stressed out about money.
One of them even lives with their parents!
That's crazy!
Avoid lifestyle inflation like the plague.
You don't need to impress others. Fun fact: nobody cares if you have designer items or luxury cars! Literally no one!
It can be detrimental to your financial health to not save enough money. If you're not careful, you may find yourself living beyond your means and struggling to make ends meet.
To avoid lifestyle inflation, be mindful of your spending and make sure that you're living within your means. Just because you have a six-figure salary doesn't mean that you have to spend it all.
Be smart with your money and focus on building passive income and long-term wealth.
How to Build Wealth if You Don't Make Six-Figures
Just because you don't make six-figures doesn't mean that you can't build wealth. There are plenty of people who have done it without earning a six-figure salary.
Think about starting a business, investing in passive income, learning new skills, saving money fiercely, etc.
The key is to be mindful of your spending and focus on building long-term wealth. I know people making $50,000 that have a higher net worth than people making over $100,000.
Salary has nothing to do with wealth. Saving and investing has EVERYTHING to do with wealth.
Invest in yourself and your future by saving money and investing in assets that will appreciate over time.
With a little bit of discipline, you can build wealth even if you don't make six figures. So don't let your salary hold you back from achieving your financial goals.
Here are some tips to build wealth even if you don't make a six figure salary:
1. Spend Less than You Earn
One of the simplest and most effective ways to build wealth is to spend less than you earn.
This may seem like common sense, but it's often easier said than done.
If you want to build wealth, you need to be mindful of your spending and make sure that you're living within your means. Track your expenses and make
2. Budget Your Money
Another key element of building wealth is developing a budget and sticking to it.
When you have a budget, you're able to see exactly where your money is going and make adjustments accordingly.
If you want to be successful in building wealth, you need to be proactive about your finances. Track your spending, develop a budget, and make sure that you're living within your means.
3. Pay Off Debt
Another important step in building wealth is paying off debt. If you have high-interest debt, it can be difficult to make progress in other areas of your finances.
Focus on paying off your debt as quickly as possible so that you can free up more money to save and invest. The sooner you pay off your debt, the closer you'll be to achieving your financial goals.
4. Start Investing
Investing is one of the most important aspects of building wealth. When you invest, you're able to grow your money while taking less risk than if you were to simply save it.
There are a variety of different ways to invest, so it's important to do your research and find an investment strategy that meets your needs. If you're not sure where to start, consider talking to a financial advisor.
5. Save for Retirement
One of the most important things you can do for your future is to save for retirement. The sooner you start saving, the better off you'll be down the road.
6. Implement a Money Management Strategy
Follow my money management tips to help you build your own financial strategy.
How Much is 7 Figures a Year?
When you hear the term “7 figures”, people are usually referring to a seven-figure salary.
A seven-figure salary is an annual income that can total anywhere from $1,000,000 to $9,999,999 per year.
You'll notice that there are 7 digits in the salaries mentioned above, hence the term “seven-figure salary”.
This means that if you earn a seven-figure salary of $1,000,000, your monthly earnings before taxes would total around $83,333 per month.
Low Range: $1,000,000- $4,000,000
Mid Range: $4,000,000-$7,000,000
High Range: $7,000,000- $9,999,999
How Much is 8 Figures a Year?
An eight-figure salary is an annual income that can total anywhere from $10,000,000 to $99,999,999 per year.
You'll notice that there are 8 digits in the salaries mentioned above, hence the term “eight-figure salary”.
This means that if you earn an eight-figure salary of $10,000,000, your monthly earnings before taxes would total around $833,333 per month. Wow! Wouldn't that be nice!?
How Much is 9 Figures a Year?
A nine-figure salary is an annual income that can total anywhere from $100,000,000 to $999,999,999 per year.
You'll notice that there are 9 digits in the salaries mentioned above, hence the term “nine-figure salary”.
This means that if you earn an nine-figure salary of $100,000,000, your monthly earnings before taxes would total around $8,333,333 per month.
At that point, I'd say you don't need to be working for a salary anymore, but that's just my opinion. =)
Salary Summary
With a little bit of discipline and the right strategy, you can achieve your financial goals. So don't wait any longer, start building wealth today.
Do you earn a six-figure salary? What tips do you have for making the most of your income? Share in the comments below!
Helpful Articles about Financial Planning
- Wise Money Management: 22 Steps to Take for Financial Freedom
- Beginner’s Guide to Investing: Step by Step Tutorial on How to Invest
- FREE Printable Expense Tracker: The Downloadable Budget Binder You Need
- Free Debt Payoff Printables: Exact Steps You Need to Know to Get Out of Debt FAST
- What is a High Yield Savings Account (HYSA)?: Ultimate Guide
- 15 Passive Income Ideas for Beginners in 2022
- Ultimate List of 45 Insanely Easy Ways to Make Money (that are actually good)
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