You may have heard people talk about 6 figure incomes, or a 6 figure salary. But what does 6 figures mean in money?
Part of being a successful business leader requires a solid grasp of numbers. In this article I’ll break down the meaning of 6 figures, 7 figures, 8 figures and 9 figures! Plus, I’ll give you an idea of the types of jobs that earn 6 figure salaries.
Let’s get started.
What is a figure?
A figure is also known as a single numerical digit.
Here’s what that is defined as:
- 1 is a single figure.
- 5 is a single figure.
- 7 is a single figure.
Numbers 0, 1, 2, 3, 4, 5, 6, 7, 8, 9 are all single figures.
What is two figures (or double digits)?
Number 10 is two figures, make up of a 1 & 0.
Number 457 is 3 figures, made up of 4, 5 & 7.
What is a 6 figure income or salary?
In money, 6 figures is defined by two things:
- The number of figures BEFORE the decimal point.
- The amount of earnings over a YEARLY period.
This means that a 6 figure salary is between $100,000 and $999,000, per year.
In other words, someone who earns 6 figures makes more than 100k a year, but less than 1 million a year.
Why is 6 figures before the decimal point?
Let’s say that your yearly salary is $25000.50
That is technically 7 figures.
However, when people talk about 6 or 7 figure incomes, they aren’t referring to cents (or pence, in the UK).
That means that a salary of $25000.50 would be considered a 5-figure salary. The figures that count are 2, 5, 0, 0, 0.
What are examples of 6, 7, 8 & 9 figure incomes?
Here are some examples:
- If you earn $349,000 per your, you have a 6-figure salary.
- Those who earn $1,100,00 have a 7-figure salary.
- Those who earn $12,300,000 would have an 8-figure income.
- And anyone who earns $100,000,000 has a 9-figure income!
What is a 4 figure salary and who earns it?
A four figure income is very low. It is between $1000 and $9999 a year.
People who earn 4 figures are typically working part time, or as students.
What is a 5 figure income?
A 5-figure income is anywhere between $10,000 and $99,999.
This is the bracket that most people’s wages fall into.
Here is the average salary in the US:
Here is the average salary in the UK:
In both instances, the average salary falls into the 5 figure bracket.
That’s why a 6 figure salary is generally talked about as something that people should aspire to:
Who earns a 6 figure salary?
A 6 figure salary is between $100,000 and $999,999.
That’s a pretty large earnings bracket to fall in to.
6 figures is seen as an aspirational goal for many people in their career.
You’ve probably seen countless articles that promise a six figure salary:
And this one:
How much does a 6 figure income give you a month?
If you earn exactly $100,000 then your monthly income before tax and deductions will be $8,333.
That’s 100k divided by 12.
What do low, mid and high 6 figures salaries mean?
Given that 6 figures in money means anywhere between 100k and 1 million, there is a lot of different earning scope within it.
For example, someone on $999,999 earns almost exactly 10 times as much as some on $100,000.
And yet, they still both earn 6 figure salaries.
Here is how they are normally classified:
- Low 6-figures is between $100,000 & $399,999
- Mid 6-figures is between $400,000 & $699,999
- High 6-figures is between $700,000 & $999,999
What percentage of people in the US earn six figures?
Here is a chart from 2020:
As you can see, 33.6% of the US now earn 6 figure incomes.
However, this goal remains rather more lucrative in the UK, where the pound is worth more than a dollar.
The following chart shows that earning 6 figures (in pounds) in the UK is something achieved by just 3% of people!
Most secure six figure salary jobs
From an early age, if you are really clear about your goals you can almost guarantee a 6 figure salary, provided you get the qualifications. Some of these most popular, secure positions include:
Here are some jobs paying more than a $100k salary:
- Head teachers (secondary) …
- Developers (most experienced developers can easily make 6 figures)
Best six figure jobs without a degree or qualifications
It can be a little more of an insecure route to go down if you want a 6 figure job without any qualifications. Many people who achieve this are self made businessmen or women, who’s entrepreneurial talent has helped them build or create a business.
For example, you wouldn’t need a formal qualification to:
- Build an app,
- Start an agency,
- Create your own Etsy products,
- Build an Amazon business
- Create a blog.
- Become a free
Today, there are tonnes of 6-figure earners making money from their personal brand on Instagram, or as an influencer on TikTok.
What is a 7 figure income?
A seven figure income is a LOT of money!
It’s more than 1 million dollars, but just under 10 million dollars.
In other words, more than $1,000,000 but less than $10,000,000.
This amount is usually reserved for top CEOs as well as elite sports stars and successful business owners.
One example of someone who earns a 7 figure salary is Tim Cook, Apple’s CEO.
His reported salary of 3 million is dwarfed by his much larger take home package which is mainly as a result of his Apple share and stock options.
What is an 8 figure salary?
Now we’re getting into the territory of serious, serious money.
An 8 figure salary is between 10 million, and 100 million dollars.
This type of money is usually reserved for elite sports stars, celebrities, high profile execs, bankers and CEOs.
Think of people Like LeBron James, or Cristiano Ronaldo.
What is a 9 figure salary and who earns it?
A 9 figure salary is between $100 million and $1 billion!
That almost defies belief.
Not many CEOs will actually earn a 9 figure salary, since there are much more tax effective ways to pay themselves. For example, Tim Cook of Apple, has a salary of around 3 million, which is in the 7 figure range.
However, his income easily reaches the 9 figure range:
That means he doesn’t have a 9 figure salary, but does have a 9 figure income.
What does six figures mean in money: a conclusion
A 6 figure income has always been something that people aspire to achieve.
However, as inflation rises and salaries increase, it’s become somewhat more common for people to earn 6 figures. In fact, almost exactly 1 in 3 Americans earns 6 figures.
However, these positions are still reserved for well respected jobs, like doctors, dentists and lawyers, as well as ones without a qualification, such as some entrepreneurs, sports stars and other self made business people.
Earning 6 figures generally affords you a comfortable lifestyle in most countries, and an extremely lucrative one on others.
Let us know if we answered your question in the comments below!