When most people hear the phrase “six figures,” they immediately think of a huge salary. After all, six-figure incomes are often associated with high-powered jobs in the business world or top-tier professionals like doctors and lawyers.
And do you know 18% of American individuals are six-figure earners, according to Zippia? That’s a lot of money a person could earn in a year!
So, what exactly does it mean to make six figures? Is it as lucrative as everyone thinks?
In this article, we’ll explore what exactly goes into making a six-figure income and the types of jobs that can provide an annual salary in this range.
We’ll also explore other ways to increase your earnings if you already have a job that pays well but is not quite enough for the lifestyle you want.
How Much Is a Six-figure Salary?
Earning a six-figure salary means you make an annual income between $100,000 and $999,999, which is far above the average salary of $53,490, according to the Bureau of Labor Statistics (BLS). That’s a huge difference, no matter how you look at it!
This amount is based on gross income, which is before taxes and other deductions are taken out.
If your gross salary is $110,000 per year, but your take-home pay is $80,000, you can still say you earn a six-figure salary. However, it’s important to note that a six-figure salary can cover a wide range of incomes and lifestyles ranging from middle-class to millionaire status.
To be more specific, some people may indicate whether their six-figure income is low, mid, or high as follows:
| Low six-figure salary: | $100,000 to $350,000 |
| Mid-six-figure salary: | $350,000 to $700,000 |
| High six-figure salary: | $700,000 to $999,999. |
| Multiple six figures salary: | $200,000 to $999,999 |
FACT:
Individuals earning more than $900,000 are among the top 1% of income earners in the United States.
How Much Can I Make a Month, Week, Day, or Hour in 6 Figures?
How Much Is 6 Figures Monthly?
To determine the monthly income of a six-figure annual salary, divide the yearly amount by 12. Note that this will give a wide range of values. However, the smallest monthly income to earn a six-figure salary would be $8,333.33.
| $100,000 per year / 12 months | = $8,333.33 per month |
Keep in mind that after taxes, the amount you receive will be reduced to a five-figure sum.
This question could have a different angle if you earn 6 figures per month. Then your annual income will be a minimum of $1,200,000 or more.
How Much Is 6 Figures a Week?
If we were to divide the six-figure annual salary by 52 weeks, then the minimum weekly income would be $1,923.08.
| $100,000 per year / 52 weeks | = $1,923.08 per week |
At the same time, if you earn 6 figures per week, your annual income will be a minimum of $5,200,000 or more.
How Much Is 6 Figures a Day?
To find out the daily earnings from a six-figure annual income, divide it by 365. This will give you minimum daily earnings of $273.97 if you earn money every day of the year. This is how you can become a part of the six-figure club.
Check out the calculations:
- $100,000 per year / 365 days = $273.97 per day
Assuming you take weekends and U.S. holidays off, let’s calculate how much you would need to earn per day to make $100,000 per year. The amount comes out to be:
- $100,000 per year / 262 days = $381.68 per day
This can be considered as a minimum amount to aim for if you prefer earning a six-figure salary without overworking yourself.
How Much Is 6 Figures an Hour?
To earn a six-figure annual income while working on all regular US workdays, you need to make at least $381.68 per day or $47.71 per hour (assuming you work eight hours per day). Even if you work overtime or part-time, you still need to maintain an average hourly wage of $47.71 to achieve this goal.
How Much Is 6 Figures After Taxes?
Your gross income determines the number of figures you earn. For instance, an income of $110,000 per year will likely be reduced to a five-figure net income after taxes.
Factors that can significantly affect the tax bills of six-figure earners include:
- Marital status (married or single)
- Dependents (whether or not you have them)
- Tax deductions (standard deduction or itemized deductions)
- Tax credits (whether or not you have any)
- Investment income (dividend income or long-term capital gains)
Although each state has its own tax laws, a six-figure salary can be whittled down to anywhere between $76,096 and $68,308 after taxes a. This figure will depend on where you live and your tax situation.
Furthermore, aside from income tax, FICA taxes for Social Security and Medicare also deducts 7.65%. This implies that your final take-home salary may go down by 32-38% compared to your gross pay.
Therefore, to ensure that you receive a six-figure income after taxes and deductions, you must aim for six-figure jobs that pay a gross salary of at least $150,000 a year. This will provide you with an after-tax income of no less than $100,000 per year.
TIP: You can reduce your tax payments by choosing to allocate some of your salary into tax-advantaged accounts like a 401(k) or a Health Savings Account.
How Can I Earn 6 Figures?
The real answer to this question depends on your perspective of a six-figure job.
Some people might be able to make the same amount of money by working part-time or freelancing, while some may require a full-time job.
Many people achieve their six-figure salaries through a combination of hard work, skill development, networking, and other strategies.
Here are some tips and suggestions that can help you achieve a six-figure income:
Create Multiple Streams of Income
You may want to invest in different income sources, such as stocks, rental properties, and side businesses, to diversify your income. This can help you generate a passive income that increases gradually.
Here are some examples of additional income sources apart from traditional jobs:
- Start an online service-based business
- Freelance your skills
- Sell products or services on the side
- Buy digital assets
Negotiate Salary Increases
If you’re employed, use your successes at work to negotiate a higher salary with your current employer or switch jobs for better pay and benefits.
When it comes to salary negotiations, preparation is key. Here are some tips to help you get the most out of your conversation with your employer
- Research salary ranges: Find out what other professionals in your field typically earn. Knowing the market rate will help you make an informed decision and give you leverage in the negotiation process.
- Be prepared: Come up with concrete evidence of your contributions to the company, such as increased efficiency or cost savings, that prove your value.
- Use effective communication techniques: Speak confidently but respectfully and be sure to listen carefully during the negotiation process. Focus on phrases such as “I’d like to discuss my salary” rather than “I need a raise,” which can put pressure on the other party.
- Time it right: It’s best to initiate a salary negotiation when you’re trying to move into a new role or after successfully completing an important project or goal for the company. Avoid negotiating at times when there may be negative sentiment towards you (for example, if you just received criticism from management).
Be Practical About Your Finances
Instead of splurging on material objects, allocate your funds towards investments that can generate multiple income streams and provide long-term financial security.
Develop Specialized Skillsets
Learning new technologies or becoming an expert in specific fields (such as programming, marketing, and sales) can open up many opportunities for high-paying jobs.
Take Calculated Risks
Make wise investments such as starting a business (or an additional one if you already have one). Investing in yourself is always a great way to earn money while developing valuable skill sets that you can use later.
Jobs that Pay 6 Figures
Here are some of the most in-demand jobs with salaries of $100,000 or more a year.
- Finance Manager
- Police Officer
- Petroleum Engineer
- Executive Chef
- Nuclear Power Reactor Operator
- Software Developer
- Real Estate Broker
- Information Technology Manager
- Actuary
- Computer Network Architect
- Salesperson
- Air Traffic Controller
- Dental Hygienist
- Physician
- Radiation Therapist
- Dentist
- Pharmacist
- Lawyer
- Physicist
How To Maximize 6 Figures?
Ah…if you are already earning 6 figures or close to it, congratulations, you are in the upper echelons of earners. Still, it is important to maintain good money habits and be intentional with your finances, even if you earn a six-figure income. Neglecting this aspect can make your income appear smaller than it actually is.
To maximize your earnings at this level, focus on financial planning and budgeting, as well as on improving your skills and knowledge.
Here are some helpful financial habits that can allow you to efficiently manage your income of six figures and make the most out of every dollar you earn.
Follow a Budget
Creating a budget is an essential step in setting yourself up for success when it comes to achieving your financial goals. A budget will help you gain clarity on your income and expenses, prioritize where your money should go, and help you create a plan of action.
When creating a budget, the first step is to determine your net take-home pay. Let’s assume that this number is $65,000 per year or $5,416 per month. From there, you can use Dave Ramsey’s recommended percentages as a guide to planning out how you would break down your monthly income:
| Category | Percentage |
| Housing-related expenses | 25% |
| Transportation costs | 10% |
| Food and dining expenses | 10% |
| Utilities and other necessary services | 10% |
| Savings and investments | 10% |
| Miscellaneous expenditures | 10% |
| Health and insurance | 15% |
| Debt repayment | 10% |
| Total | 100% |
Note: It’s important to remember that everyone’s financial situation is different, so feel free to adjust the percentages depending on what works best for you – as long as all of the categories add up to 100%, every dollar spent will be accounted for.
Build Savings
The term “save money” is somewhat cliché, but it’s important to put aside money for savings and investments. Even if you are bringing in a six-figure salary, it’s still important to live within your means and save money. Here are some tips to get you started:
- Make savings a priority by allocating 10% of your income as soon as possible. Set up an automatic transfer from your checking to savings account every payday.
- Once debts are cleared, aim for 15-20% of your income, which is the recommended rate for retirement funds.
- Keep your savings in an online account for maximum return on interest rates.
Pay Off Debt ASAP
No matter how much money you make, excessive debt can be detrimental to your financial, mental, and emotional health. If your goal is to maximize 6 figures in income, then it’s important that you make paying off your debts a top priority.
Start by focusing on high-interest credit card balances and car loans because every dollar of interest you pay is just money down the drain. After these are taken care of, you should work on paying off student loans, personal loans, and mortgages.
Once you’ve eliminated all your debt payments, then you can start putting more into savings and investments for retirement purposes and ultimately begin growing your wealth even further.
Avoid Luxury Lifestyle and Cut Expenses
One of the most common pitfalls is lifestyle creep—the idea that increased income leads to increased spending. You must resist the urge to buy more than necessary.
Here are just a few ideas for avoiding lifestyle creep and cutting expenses:
- Shop around for lower insurance premiums and refinance mortgages when possible. Mortgage refinancing can often yield significantly lower interest rates, freeing up more money each month.
- Cancel any monthly subscriptions you don’t use frequently (gym, newspaper, cable, etc.). This can help reduce your monthly bills substantially over time.
- When buying something, comparison shop for the best deals and conserve energy where possible in order to reduce your utility bill.
- Consider getting a less expensive cell phone plan or an older car that is paid off. And finally, create meal plans for home dinners instead of eating out – this will help save a significant amount of money every month.
Invest Your Money To Grow It
One effective approach to increase your earnings is to invest your money for long-term benefits. However, this requires planning ahead and sacrificing present spending for future earnings.
Investing smartly is crucial if you aim to retire comfortably and have ample support for 30 years during your old age, so it’s important to take the time and assess your investment options.
What Would a 6-Figure Lifestyle Look Like?
If you make six figures, you could have a much better lifestyle compared to the national average salary of a little over $52,000 a year in the U.S. Doubling your current income would be necessary to reach a six-figure salary.
Your take-home pay can provide a comfortable lifestyle even after taxes, but this depends on various factors such as:
- Where you live: Housing costs in certain cities such as San Francisco, Washington D.C., New York City, and Honolulu nearly demand a six-figure salary just to get by. If you choose a location with a lower cost of living, this can make affording a nice house easier.
- Your healthcare costs: Many of us struggle with the ever-increasing health insurance costs and medical expenses associated with serious illnesses or chronic conditions.
- How much debt you have: If you have significant debt, it could be difficult to stay under your budget even if you make six figures.
- The size of your family: Having children or providing for an aging parent can mean having less disposable income each month due to additional expenses like childcare or assisted living care.
- Your tax bracket: Investing in the right retirement plans and other tax-advantaged accounts can help reduce your taxes and leave more money in your pocket each month.
- Your spending habits: Living within your means is key to enjoying the lifestyle that comes with making six figures without being consumed by lifestyle creep.
Conclusion – Making 6-7 Figures
Earning a six-figure salary can be an incredible opportunity to live comfortably and provide financial security for yourself and your family.
However, it’s important to remember that budgeting, investing smartly, reducing lifestyle inflation, avoiding overspending, and planning for the future are essential if you want to make sure you remain within your means with a six-figure income.
With proper management of finances, those who have achieved this milestone will find themselves on their way toward achieving financial freedom.
FAQs – How Much is Six Figures
When it comes to money, “figures” refers to the number of digits in a number. Usually, figures refer to an annual salary unless otherwise stated. For example, a one-figure number is one digit long — like 7. A two-figure number has two digits — like 45. A three-figure number has three digits — like 365. And a six-figure number has six digits — like 123,456. For seven figures and up, the terms “millions” or “billions” are usually used.
A six-figure job is a job that pays an annual salary of at least $100,000. Such jobs typically require specialized skills and often include managerial positions in different industries. Many tech jobs can easily pay a six-figure salary, and some executives may even get an even or eight-figure salary.
A six-figure salary refers to a full-time job that pays an annual salary of at least $100,000. On the other hand, a 6-figure income includes all sources of income, including salary, investments, business profits, side hustles, and more. Your total 6-figure income could be a combination of your salary and other sources of money.
Zippia reports that around 18% of Americans earn a six-figure income, with 15% of those making between $100,000 and $150,000.
The difference between 6 and 7 figures is the number of digits in the number. A six-figure number has six digits — like 123,456. A seven-figure number has seven digits — like 1,234,567.
Yes, depending on your spending habits and location. With a six-figure salary, you can usually afford a comfortable lifestyle if you live within your means, invest intelligently, and plan for your future. However, the cost of living in certain cities may require an even higher income to stay comfortable.
It certainly can be! The latest BLS statistics reveal that the median weekly income of full-time American workers is $1,003, which adds up to an annual salary of $52,156. Depending on where you live, earning a salary of $100,000 per year could provide a very comfortable lifestyle as it would be a 92% increase from the median salary.
A concerning survey reveals that 60% of millennials who earn a six-figure income struggle to make ends meet and have no savings or plans to pay off their debts. This might be due to lifestyle inflation and overspending.