What Does A Six-Figure Salary Get You? what is 6 figures in money?

Many people dream of making a six-figure salary, but they don’t know how to get there and what is 6 figures in money.

In this article we discuss what is 6 figures in money; the pros and cons of a six figure income, why it’s so hard to achieve, and what you have to give up in exchange for that kind of money.

Achieving a six-figure salary is not as simple as just working harder or longer hours. You need skills and experience that will allow you to command such an impressive paycheck. If you want more information on how to make $100k per year check out our detailed guide here…

what is 6 figures in money?
what is 6 figures in money?

what is 6 figures in money?

what is 6 figures in money? A six-figure salary is a term used to refer to an annual income of $100,000 or more. These salaries are typically reserved for high level positions such as CEO’s and other upper management positions, CFOs and other financial officers, COOs and other operations officers, physicians and surgeons (although many would argue that doctors deserve much more than other professions), and other specialized licensed professionals such as lawyers, engineers, and accountants.

Factors that affect your 6 figure salary

Type of Work & Location

The type of work you do will play a large part in determining the salary you are offered. This is because different professions are valued differently by society at large. For example, if you are hired as an administrative assistant in New York City it is likely that your starting salary will be $25k-$30k. In a similar position as a dentist in NYC, you might expect to earn $150k-$200k per year.

As far as location is concerned, deriving your income from an urban area will almost always garner higher salaries than those deriving their income from more rural areas. This is because there simply isn’t enough business and revenue to go around, so the people who live in rural areas have less disposable income to spend on services.

Student loan debt and your 6 figure salary

Another important factor to consider when discussing six-figure salaries is student loan debt. If you have over $100k in student loans, it will very likely affect how much money you can afford to be paid before taxes. Adjusted gross income (AGI) is the amount of taxable income one makes before deductions and exemptions are taken. For example, anyone making $100k per year may deduct $12,000 for oneself and one’s spouse if married filing jointly, as well as another $6,300 for each dependent under the age of 17 before calculating taxable income.

If your AGI is $100k and you have $30k in mortgage interest deductions that brings your taxable income down to $70k. Let’s say you also have $25k of student loan deductions which brings your taxable income down to $40k. Your total student loan debt is $120k, so if you owe over $200k in total it will affect the way your paycheck is taxed, meaning that only about 40% of your income will be pre-tax. That means your take home pay from a $100k salary is closer to $60k per year.

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Happiness and the 6 figure salary

Lastly, according to studies, happiness is not correlated with income level. While this may seem obvious at first, it is important to note that everyone has an idea of financial security and what they feel is a comfortable living. A six-figure salary doesn’t necessarily guarantee happiness or financial security. This being said, there are a few things that you can give up in exchange for a six-figure salary.

Time for family and friends

Even if you have a spouse or children, chances are they will take a back seat to your job. Many people who earn six-figures just don’t have the time anymore for family. It is certainly not impossible, but it does become harder as your salary increases.

Taxes

Although many people complain about paying taxes, the truth is that if you don’t have a lot of deductions it’s not going to make a huge difference in how much tax you pay. Your earnings may be lower due to income taxes, but it won’t be cut by half for example unless you are lucky enough to get one of those sweet “one-in-a-million” jobs.

What skills or experience should I have to make $100k per year?

You will need to be skilled in a position that is in high demand with low availability. This means your skill-set should not only exist but it should also be difficult to attain.

The most common skills that will allow you to command $100k+ per year are:

Medical Professionals (Surgeons, Physicians, etc.) Lawyers Engineers Accountants Business Managers/Executives Data Scientists Managers

It should be noted that any job where you can generate a steady stream of revenue is likely to be a good position to pursue a six figure salary.

How to earn a six-figure salary?

How to earn a six-figure salary?
How to earn a six-figure salary?

To give you an idea How to earn a six-figure salary?, here are some jobs that you may want to consider if you want to earn a six-figure salary:

Six figure jobs that need a college degree

  • CAD/CAM Engineer
  • Registered Nurse
  • Software Developer
  • Construction Manager
  • Tax Manager
  • Audit Senior Manager

Six figure jobs that don’t need a college degree

  • Management Accountant
  • Registered Respiratory Therapist
  • Dental Hygienist
  • Licensed Practical Nurse
  • Electrician
  • Welder

How to be successful with a 6 figure salary?

So you may be thinking, “How do I get such a sweet salary?”, and as it turns out, the answer is simple:

  1. Earn it!
  2. Keep your job to maintain your income! Here are some tips to help you maximize your success:
  3. Stay motivated and take advantage of every opportunity that presents itself to you. Be proactive in your pursuit of promotions and respect the opportunities that come to you.
  4. Use your money wisely- invest in yourself, your career, and your future! This is the best time to start investing for retirement because the return on investment (ROI) will be compounding interest over a long period of time, giving you a HUGE advantage!
  5. Know your worth and recognize it when you see it! If someone else is doing the same job as you for less, do not be afraid to ask them why. Ask yourself if they are just as skilled and hardworking as you or more? Do your job well and others will notice- talk with management about your work and let them know of your accomplishments.

What happens when you make six figures?

What happens when you make six figures?
What happens when you make six figures?

There are no guarantees, but generally speaking there are certain luxuries that will be afforded to you when you make six figures. These luxuries include things like:

Access to better healthcare plans (for example, health insurance) Access to better/higher quality food Better transportation options (more reliable cars, etc.) Improved educational opportunities Ability to travel more often Ability to network with more influential people

As you can see, making six figures has its advantages. It’s up to you to take advantage of them and optimize your life for success!

How to earn more than $100,000 per year?

The only way to earn more than $100,000 per year is by making your skills in high demand with low availability. This means that the jobs listed below need not apply:

  • Waiter/Waitress
  • Retail Employee
  • Non-skilled Labor (laborers, etc.)

For the most part, if you want to make more than $100,000 a year you need to pursue your education and build your skill set. This may include going back to school for an advanced degree or learning a new trade.

Take a look at the jobs below that often pay more than $100k per year:

  • Surgeon
  • Lawyer
  • Engineer
  • Accountant
  • Business Manager/Executive
  • Data Scientist
  • Medical Director
  • General Manager (large companies)
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It should be noted that any job where you can generate a steady stream of revenue is likely to be a good position to pursue six figure salary.

Is making 6 figures enough for good leaving?

Many people consider “building wealth” to be one of the cornerstones of having a comfortable life. So is it necessary to view building wealth as an essential goal in your quest for six-figures? Let’s take a look at some numbers.

The average American household income between 2003 and 2009 was $65,567 according to the U.S. Census Bureau . Using this number as a benchmark for comparison, the average household net worth during that same time was $429,550 according to Credit Suisse’s Global Wealth Databook (2011).

So what does this mean? It means that over the course of about five years, on average, it took an American household about 11 years to build the average net worth of a typical household. Since many households have more than one income earner, it is not an unfair estimation that a six-figure salary would be a major contributor towards building wealth.

Using this logic, though, six-figures aren’t necessarily needed if you have substantial wealth already and are looking to add more. In this case, another million dollars may only improve your life by a small amount since you already have plenty of capital and lifestyle to work with.

However, for most Americans six-figures can be a tipping point in terms of their ability to build wealth and meet long term financial goals such as funding retirement or college.

How much is 7 figures?

So what is the cutoff point between the so called ‘middle class’ and being considered rich?

The cut-off point for being considered rich would be seven figures. At this level, you have enough money to do whatever you want. You are able to buy anything you want or travel anywhere in the world with just a few clicks of your mouse.

To give you a better idea of what seven figures might look like, consider the following:

Let’s say you have $1 million invested in high quality dividend paying stocks and conservatively collect $40,000 in income per year from these dividends (about 4%). This means that over 30 years you could add an extra $7.

What Jobs Pay 7-Figures a Year?

As you might guess the jobs associated with the 7-figure salary are often ones that require advanced degrees and experience. This means, for example, that doctors, lawyers, accountants and business executives could potentially be in this category.

However, given inflation through time it’s not unreasonable to think that $1 million will not buy as much 30 years from now.

How Much is 8-Figures?

Let’s face it, $1 million is no longer rich. However, if you are able to accumulate eight figures then you can consider yourself very wealthy indeed.

What Jobs Pay 8-Figures a Year?

The fields that pay the highest salaries are ones where there are severe limits on the number of people who can be employed. This means that jobs in the medical profession, professional sports and politics fit into this category.

What is 9-Figures?

This is where the big bucks are. Not only are you in control of your own destiny but you can actually make decisions that shape the future for millions of people. What kind of power does this bestow upon you? Well, for one thing you can wipe out entire companies of thousands of employees with a stroke of your pen. In this case, it’s probably best not to do that though.

What Jobs Pay 9-Figures a Year?

Although there are no jobs that pay nine figures on an annual basis, there are some professions where the salaries can reach this level. For example, if someone owns a professional sports team then they could potentially make millions of dollars each year.

What is 10 or More Figures?

At some point seven figures won’t cut it either. There are people who stand to inherit wealth far greater than that and others who make their fortunes by winning the lottery (either once or on an annual basis).

What Jobs Pay 10 Figures?

I’m sure there are some jobs that pay ten figures but since none of these jobs exist, I can’t think of any. Perhaps if someone started their own country then they could potentially collect this level of income. At the very least, if you had nuclear weapons it might be possible…

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How to build wealth without earning a 6 figure salary?

The best way to build wealth without a six-figure salary is by living below your means. If you have the ability to save money and invest it over an extended period of time, you can accumulate a large sum of capital with minimal earnings as long as the market doesn’t take a nosedive as well.

Find your reason

Find your reason for wanting to build wealth and then do your best to live as frugally as possible.

You can also save on transportation by using public transit and not owning a car. Although this won’t be feasible for everyone, it helps if you live in an area with accessible public transit.

The next step is finding the side hustle that works for you. This should be an easy task if you are already working full-time during the day, but finding ways to generate extra income is crucial for your long term financial goals.

Pay off debt

Paying off debt is another way to limit expenses and take control of your finances. Once you have less or no debt left, you will gain more freedom with your money allowing you to save even more!

Also, if you’ve already done the above steps, it would be beneficial to consider building an emergency fund for times when there are unexpected expenses (car breaks down, house repairs, medical bills). This way you don’t end up accruing more debt in order to pay for the unexpected.

Save your money

If you’re struggling to save money, try putting the difference between what you earn and what you spend into a savings account. This will help you build additional capital over time without impacting your current lifestyle.

Also, if your employer offers retirement plans such as 401(k)s or 403(b)s, take advantage of this by contributing as much as you can when your employer provides a matching contribution. This will help build additional wealth with little effort on your part!

This will be a good start to building up enough capital to start investing for the long term.

Increase your income

If you need to increase your income, there are several ways to do so. Try working more hours, gaining new skills/certifications, or finding a way to work remotely (this will be harder for some).

The main idea is that you want to find something that pays better than what you’re currently doing and then commit the necessary time.

FAQ

What’s considered a high salary?

What’s considered a high salary varies depending on where you live. If you live in New York City, your salary will be significantly higher than someone living in another city.

A good rule of thumb is that the annual salary for any occupation should be at least twice the local cost of living (rent, groceries, etc). For example, if someone is living in New York City, they should be making at least $100k per year.

Is a six-figure income good?

A six-figure income is good but depending on where you are in the world, the cost of living may be so high that it restricts your ability to build wealth.

If you’re living in New York City and making $100k annually, then yes it’s a good salary. However, if you’re trying to live in NYC on $100k per year then this would be considered a low salary.

How many dollars is a figure?

A figure is a number with no specific unit of measurement (ie, 10 figures).

What is a 4 figure salary?

A 4 figure salary is an income of $40k or more.

Is 120k a good salary?

Is 120k a good salary? A 4-figure income of $120k is great given that it’s more than twice the local cost of living. However, if you’re trying to live in NYC on $120k per year then this would be considered low due to the high cost of living in New York City.

Conclusion

The main thing that you need to remember is that money does not equate happiness. Once you get past the basic necessities of life such as food and shelter, additional wealth will only go so far towards improving your life.

If your main goal in life isn’t to earn $100k+ per year or build a net worth of several million dollars, then it’s probably not

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