6 figures has long been a benchmark of financial success. It’s not uncommon to hear the terms “6 figure job”, “makes 6 figures”, “6 figure income” and other similar statements. It’s usually assumed that someone is doing pretty well financially if they are making 6 figures.
In this post we’ll address a variety of topics:
- How much is 6 figures?
- Jobs that make 6 figures
- Difference between a 6 figure salary and a 6 figure income
- And much more–including 7, 8, and 9 figures
What Does a Figure Refer to?
A figure simply refers to the number of digits in a number. For example:
- 1,000 is 4 figures
- 10,000 is 5 figures
- 100,000 is 6 figures
- And so on down the line
In relation to money, anywhere between $1,000 and $9,999 is a 4 figure salary, anywhere between $10,000 and $99,999 is a 5 figure salary, etc. Numbers after decimal points do not count as a “figure”, as they would be rounded up. Example: $10,000.99 should be rounded up to $10,001 and would be 5 figures, not 7 figures.
How Much is 6 Figures?
6 figures is any number between 100,000 and 999,999. In money terms, simply put a dollar in front of the numbers. In this case, $100,000 and $999,999. 6 figures is a very wide range–$100,000 at the lowest end and almost a million dollars at the highest end.
What is a 6 Figure Salary?
A 6 figure salary is any job that pays between $100,000 and $999,999 per year. Usually salary is defined as a base amount of money, but can include benefits and expected bonuses. It all depends on how the salary package is structured. Some may even include bonus potential, but that’s less common.
If you’re looking for a job and see the term 6 figures, make sure you understand how that company is defining a 6 figure salary. A 6 figure base salary is much different than a 6 figure salary that also includes benefits and potential bonuses.
Jobs That Make 6 Figures
There are many jobs that pay 6 figures. Most are in the lower 6 figures, but there are also many jobs in the medium to high 6 figures. Examples of jobs that pay 6 figures:
- Doctor
- Sales jobs (income widely varies)
- Lawyer
- Entrepreneur (income widely varies)
- Dentist
- Teacher and other school staff (some cities)
- Real estate agents (income widely varies)
- Small business owners (income widely varies)
- Fire Fighters (depending on city)
There are the traditional jobs like doctor and lawyer, but it might surprise you to see other professions on the list. Incomes also highly vary depending on geographical location and cost of living.
6 Figure Jobs That Require a College Degree
Many 6 figure jobs require a college degree, or an advanced degree. Those include, but are not limited to:
- Doctor
- Lawyer
- CPA
- Teacher
- Dentist
For an article at starting salaries for college graduates, see this post from CNBC. And for average salaries for lawyers and similar jobs, follow this link from US News.
6 Figure Jobs That Don’t Require a College Degree
There are also many 6 figure jobs that don’t require a college degree. Including, but not limited to:
- Business owner
- Real estate agent or broker
- Entrepreneur
- Many sales jobs
- Air traffic controller
For a more comprehensive list of 6 figure jobs that don’t require a college degree see this article on Dough Roller.
All 6 Figure Jobs Are Not Created Equally
Just because a job is 6 figures doesn’t mean it is good financially. A low 6 figure job in an expensive city like New York or San Francisco won’t go nearly as far as a high 5 figure job in an inexpensive city. Let’s use the following two scenarios as an example:
- Person A makes $102,000 per year in a high cost of living city. Rent is $2,800 for a one-bedroom apartment. The average cost to purchase an apartment/condo in the area is between $750,000 and $1,000,000. Fuel, food, and other cost of living expenses are high.
- Person B makes $83,000 per year in a low cost of living city. Rent is $750 for a one-bedroom apartment and under $1,000 for a two-bedroom. The average cost to purchase an apartment/condo is between $95,00 and $140,000. The average three-bedroom, two-bath house costs under $300,000. Cost of living is under the national median.
In this example, the person making less is actually in far better financial position than the first person because their money goes so much further. That’s why looking at all factors–not just whether the job is 6 figures is important. For a more in depth post on comparing the cost of two cities, see this post I wrote on moving.
Is 6 Figures a Good Salary?
There are more factors than just cost of living to determine if 6 figures is a good salary. There are multiple variables, many of which are specific to the needs of each individual person. Those variables will be addressed in the sub-headers below.
Debt Required to Obtain Employment
How much debt was required to obtain the career/job? For example, someone who required $200,000 of student loans to acquire a job that pays $100,000 is not in as good of a financial positon as someone with no student loans making 6 figures.
How Many People You Support
How many people you support certainly factors in to the equation. A 6 figure salary goes much further for someone who lives on their own versus someone supporting a family of four, or even extended family.
Lifestyle
Does the profession demand a higher cost of living? For example, a job that requires or encourages hosting events at your personal residence would require a bigger and nicer home than other careers. Or someone in a profession in which many people fall victim to lifestyle creep won’t do as well making 6 figures.
Related: One Simple and Easy Way to Avoid Lifestyle Creep That Anyone Can Do
Investing Ability
A job that has a matching 401(k) or other benefits is much better for the employee than a job without those benefits. In other words, two jobs with a base salary are not created equal. Compare these two positions:
Job Number 1: $100,000 base salary plus matching 401(k) and 90 percent paid medical benefits from employer.
Job Number 2: $100,000 base salary, no matching 401(k). Small percentage of medical benefits covered by employer.
The first job clearly offers a better package than the second job despite the same base salary.
Can You Become Wealthy with a 6 Figure Salary?
It’s definitely possible to become wealthy making 6 figures, especially a high 6 figure salary. Like with any salary amount, it’s about how much you keep that ultimately matters, a principle stressed in the book The Richest Man in Babylon.
Someone making $80,000 per year who invests $2,000 per month is on track to become wealthy faster than someone making a 6 figure salary who invests $500 per month. Likewise, someone making a low 6 figure salary who invests $2,500 per month will become wealthy faster than someone with a high 6 figure salary who invests $1,000 per month.
The higher the salary, the greater chance to become wealthy simply because there is more money available to invest. For example:
- Someone making $500,000 per year who invests 15 percent of their income invests $75,000 per year
- An individual making $200,000 per year who invests 15 percent of their income invests $30,000 per year
What is a 6 Figure Income?
A 6 figure income is how much money a person earns every year. The difference between salary and income is that salary refers to money earned from work. While income refers to money earned in multiple different areas. For example, an investor earns:
- $90,000 per year from her job
- $15,000 per year from stock dividends
- $25,000 per year from rental income
- $30,000 per year from a business she invests in
The investors income is all of the money she earned throughout the year, not just the money from her job. Total income for the year is $160,000 while her salary is $90,000. At $160,000 per year, the investor is making a 6 figure income.
Can You Become Wealthy with a 6 Figure Income?
Much like with a 6 figure salary, you can become wealthy with a 6 figure income. Especially if a large percentage of the income comes from passive investments. Someone whose passive income exceeds their monthly monetary needs is financially independent. Many people would also consider someone in this position to be wealthy.
Related: What is the FIRE Movement?
How to Achieve a 6 Figure Income
You can achieve a 6 figure income multiple ways. Just some of the methods:
- Make a 6 figure salary
- Obtain 6 figures via passive investments
- Business income
- Combination of the above
These are just some of the methods, there are many more ways to earn a 6 figure income.
6 Figure Salary or 6 Figure Income–What’s Better?
Making 6 figures via salary or income are both good things. What’s better is a matter of opinion. However, a 6 figure income gives the average person many more options than a 6 figure salary.
Someone making a 6 figure salary is required to work to earn their salary. In contrast, an individual making a 6 figure income is not required to work if their passive income exceeds their living expenses. That creates many more options because they will have more time to:
- Travel
- Hang out with the family
- Find additional sources of income
- Volunteer and/or donate to a worthy cause
- Any combination of these and more
What is a 6 Figure Net Worth?
A 6 figure net worth is simply someone who is worth 6 figures or more. The formula to calculate net worth is assets minus liabilities. Here’s a simple example using an assets and liabilities table.
| Assets | Liabilities |
| Primary residence: $925,000 | Balance of loan on primary residence: $605,000 |
| Rental property $375,000 | Loan balance rental property: $85,000 |
| Stocks: $210,000 | Student loans: $15,000 |
| Cash: $50,000 | |
| Miscellaneous investments: $15,000 | |
| Total assets: $1,575,000 | Total liabilities: $705,000 |
Assets ($1,575,000) minus liabilities ($705,000) equals: $870,000
In this example, the person owning this portfolio would have a 6 figure net worth because their assets exceed 6 figures ($870,000).
How Much is 7 Figures?
7 figures is any number between 1,000,000 and 9,999,999. In money terms, just put a dollar in front of the numbers. In this case, $1,000,000 and $9,999,999. Much like 6 figures, 7 figures is an incredibly wide range–$1,000,000 at the lowest end and 9,999,999 at the highest end.
What is a 7 Figure Salary?
A 7 figure salary is any job that pays between $1,000,000 and $9,999,999 per year. A salary in the 7 figures usually includes a large benefits package in addition to base salary. This is different from a 5 or 6 figure salary.
Best Ways to Make 7 Figures
There are many ways to make 7 figures. Just some of those ways:
- Salary
- Lawyer, entrepreneur, minor celebrity, athlete, etc.
- Real estate investments
- Stock portfolio
- And more
It’s obviously more challenging to make 7 figures than 5 or 6 figures, but it can be done. It likely will not happen overnight–and it will take dedication and hard work.
Is 7 Figures Good?
Yes, 7 figures is really good money, especially on the higher end. Like with any other salary amount though, it’s about how much you keep that matters. Someone making low 7 figures like $1,000,000 per year but spending over that amount is not doing well. On the contrary, someone making $1,000,000 per year but spending only $100,000 is doing extraordinary well.
How Much is 8 Figures?
8 figures is any number between 10,000,000 and 99,999,999. In money, 8 figures is between $10,000,000 and $99,999,999. 8 figures is an incredibly wide range–$10,000,000 at the lowest end to $99,999,999 at the highest end.
What is an 8 Figure Salary?
An 8 figure salary is any work that pays between $10,000,000 and $99,999,999 per year. A salary this high will likely include a significant benefits package.
Best Ways to Make 8 Figures
It’s challenging to make 8 figures, but it is possible–even without winning the lottery. Some of the ways:
- Salary
- CEO, athlete, celebrity, business owner, etc.
- Real estate investments
- Business interests
- And more
Is 8 Figures Good?
Yes, 8 figures is really good. I’d actually categorize it as great. With reasonable spending, the average person could easily live off low 8 figures the rest of their life. To provide context, the majority of retirees have far less than an 8 figure nest egg.
How Much is 9 Figures?
9 figures is any number between 100,000,000 and 999,999,999. 9 figures in money is between $100,000,000 and $999,999,999. It ranges from $100,000,000 at the low end to $999,999,999 at the highest end.
What is an 9 Figure Salary?
A 9 figure salary is any work that pays between $100,000,000 and $999,999,999 per year. A salary this high will likely include a significant benefits package. Not many people in the world make a 9 figure salary.
Best Ways to Make 9 Figures
9 figures is so much money that most lottery winners won’t reach 9 figures after taxes. Most people in the 9 figure range are:
- Business owners/CEO’s
- High-end athletes
- A-list celebrities
- World class investors
- Select other occupations
Is 9 Figures Good?
9 figures is beyond good. It would be considered rich in any part of the world. Even with frivolous spending, 9 figures goes a long way. Of course anyone can blow through any amount of money but it would be hard to spend this much money.
Conclusion
It’s a fun little exercise to go through what 6, 7, 8, and 9 figures looks like. Especially 8 and 9 figures!
In reality, most people will not approach 8 and 9 figure numbers, but that doesn’t mean all is lost. Money doesn’t buy happiness or make up for lost relationships. As Earl Nightingale spoke many decades ago in the Strangest Secret, “Success is the progressive realization of a worthy goal or ideal.”
Find your worthy goal is and work toward it. Along the way, consistently save and invest–and you’ll be in great position.
