How Much Is 6 Figures in Money?

A salary of six figures can be a dream come real. After all your efforts, you’re awarded less zeros on your check. But, one important thing to remember is that these zeros don’t necessarily translate to whole life.

A six-figure annual income is the height of their potential earnings. However, many do not reach that level of income. What exactly is a six-figure salary, and how can the salary of a top earner help you attain?

What Are 6 Figures in Money?

So, any sum of more than $100,000, but not less than a million, is 6 figures of money. Then, from that, what exactly is a six-figure salary? In general, any job that pays more than $100,000 per year but not more than one million dollars is thought to be an income of six figures. As you can see, the amount of money is huge when you look at a salary of six figures.

Does a Six-Figure Salary Make You Wealthy?

The fact that you earn a certain amount of money is not always a sign of wealth since the definition of wealth is of greater significance to how your finances are managed, saved, and invested. Of course, for certain people, a six-figure salary, paired with financial knowledge and sound financial management skills, such as having an account for savings or budgeting and investing, can lead to a life of luxury.

But, things like your living expenses and your money habits, and prior debts have a significant impact, as do the increasing inflation rate and the rise in the cost of living, the need to earn in the upper range of six numbers to qualify as to be wealthy for the U.S.

The phrase 6-figure lifestyle could be different for different people, mainly according to where they live. In an expensive city, such as San Francisco in California or New York City, a low-end 6-figure salary could not provide an enjoyable lifestyle due to the costs of living within these cities.

For example, if you earn approximately $100,000, by the time you have had your taxes removed, you may be left with approximately $70,000. Your actual wealth could depend on the size of your family.

What Jobs Can Earn 6 Figures?

According to the U.S. Bureau of Labor Statistics, let’s look at the various professions that could pay six-figure wages within the United States.

Lawyers

The median annual salary for lawyers within the United States as of May 2020 was $126,930 ($61.03 per hour). For a salary that is close to this amount, you need to hold a law degree and take the bar exam passed.

Physicians and Surgeons

It’s no secret that jobs in the medical field typically have high pay. Moreover, doctors and surgeons in the United States earn a median annual wage of approximately $208,000. This is around $100 an hour.

Airline Pilots

Pilots of airline pilots travel for certain airlines, transporting passengers or cargo with the same timetable. We’re all aware of how important the job of a pilot plays, so it’s not a surprise that they earn the same amount as they earn. In May 2020, airline pilots will make an average annual salary of around $160,970.

Human Resource Managers

We are all aware of the vital job that human resource managers play in companies. In the U. S, the average wage is an average salary of $121,220. This equates to $58.28 for an hour.

Pharmacists

The licensed pharmacists in the United States have a Doctor of Pharmacy degree and have passed two examinations before being eligible for employment. They earn an annual median wage of $128,710, or $61.88 per hour.

Actuaries

The certified professionals have extensive experience in mathematics, statistics, and business. They make an annual median salary of around 11,000 dollars ($53.38 for an hour).

Dentists

Dentists licensed in the United States earn a median annual salary of around $164,010 ($78.85 per hour).

Software Developers

The advancement in technology increased the number of software developers that we are currently surrounded by. The median salary for software developers is the wage of $110,140. The median earnings are approximately $52.95 an hour.

[Read more: $20 an Hour Is How Much a Year?]

Life When Earning 6 Figures

Many dreams of an income of six figures. Typically, the dream life includes expensive cars, luxury vacations, and massive houses. But, living a lavish lifestyle that includes expensive items will begin to deplete your savings rapidly. If you spend that whole income on a rich lifestyle that is filled with expensive things, then you’ll be caught in a loop.

Factors that Affect your Income

Where You Live

The cost of living can vary greatly across the United States. In general, the larger cities are associated with higher costs of living. San Francisco, New York City as well as Washington D.C. are high-cost living areas. If you reside in a costly living and earn a high salary, your earnings could not stretch far.

Lifestyle

Six figures is an amazing option to live. But, you must be aware of the rise in lifestyle costs. Whatever you earn, you need to make sure that you spend within your budget to stay clear of living expenses.

Time

Each of us has all day, every day, to do what we want and a finite number of days in our lives. Most people work between 60 and 80 hours per week to earn a six-figure salary. There is a desire for more time with your loved ones, to pursue your passion, or relax in the afternoon.

Happiness

It is said that money can satisfy you, but does this real? Let’s suppose you have an income of $100,000, but it leaves you miserable. What will that salary do to your happiness if you’re sad for at least 40 hours per week? Happiness is not purchased.

Taxes

While your income could exceed 100,000, your take-home income is the amount you’ve made. The post-tax amount could be a bit disappointing.

Credit Card debt

A salary of 6 figures can be plenty if you’re overwhelmed by financial debt from credit cards. Credit card debt with high-interest rates can quickly consume your earnings, leaving you with any money left at the close of each month.

Student loan debt

Debt from a student loan is a huge burden that is a constant burden for Americans. If you have taken out many student loans to finance your schooling, then you’re paying a lot of money.

Do You Need a 6-Figure Salary to Build Wealth?

Many people dream of earning six figures; however, most people don’t. Based on the Bureau of Labor Statistics, the median income for all employed Americans above 16 is $908 per week or $47216 per year. The median is slightly higher for those aged 25-34, up to $1,022 weekly or $53,144. But both are still far from the $100,000.

As you accumulate money over the years, your savings will increase. If you do not spend all your earnings, you will not accumulate wealth in any way. If you earn $100,000, but you spend the entire amount.

Are you more fortunate than someone who earns $50,000 and is able to save each year $10,000? In the long term, there is no way to know. While you might enjoy the luxury of a rich life, they won’t be able to ensure that retirement is an actual reality.

[Read more: How Much is 4 Figures in Money?]

How To Earn a Six-Figure Salary?

Self-Evaluate

Before you decide to make more money, it is important to assess your abilities and figure out your skills, strength, weaknesses, and strengths and what they can do to influence your career choice. Your personal work preferences can help you decide on the best job you can take on.

Keep Upskilling

It is impossible to learn too much about any profession available. What distinguishes the exceptional from the average is the ability to master the correct set of abilities.

Build a Strong Professional Network

A popular saying is that your network is your net worth. It is usually true because the people around you reflect a lot on you as an individual. It is essential to present yourself and make real connections with people similar to you within your field because you can never know the source of your dream job.

Provide Exceptional Work

If you want to make the top positions it is essential to excel in your chosen field to be able to get to the highest levels quickly. Being a professional with a strong working ethic, interacting well with colleagues and superiors, and consistently delivering outstanding results.

Be a Great Negotiator

Achieving excellent negotiation skills is a skill that can aid you greatly in almost any field. You must be a skilled negotiator and be able to ask what you want. Always request your bosses’ periodic appraisals, and then seek out ways you could be doing better.

Add to Your Income Stream

The majority of people do not depend on one source of income to reach their financial goals. Having a side business or hustle, engaging in lucrative hobbies, or earning additional money through investments. You can use your talents to earn extra money.

Conclusion

Any amount greater than $100,000 and less than 1 million amounts to six figures in dollars. The term 6-figure can be different to different people, specifically according to where they live. One of the most effective methods to increase earnings is to work remotely for a business based in an area with high costs of living and living in a cheaper place. As you earn money over time, your savings will accumulate. If you do not spend the entire amount of your salary, you won’t build wealth.