How to Start a Side Hustle With No Special Skills – The Ultimate Guide
How Much Money is 6 Figures Salary a Year, or 7 Figures, 8 Figures, 9 Figures, & 10 Figures?
When it comes to annual income, many of us like to focus on the terms “six-figures,” “seven-figures,” and so on. A 6-figure salary a month means you’re doing well financially. But what exactly is 6 figure salary a year?
An average employee in America and Canada earns roughly $35,977 (U.S. Census Bureau) and $36,400 (Statistics Canada) respectively, a six-figure salary of $100,000 would place you ahead in both countries.
Indeed, they are all impressive sums of money, and it can also imply a certain level of success. But what do they mean in terms of an actual dollar figure?
To answer that question, let’s take a look at the different ranges for these income levels, what they could mean, and the ways to get there.
How Much Is A Figure?
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Before we go deeper into the meanings of these terms, let’s first know what a “figure” is. Simply stated, a figure refers to a digit. It’s a term used to describe figures or digits in the thousands, millions, billions, and so on.
In terms of finance and income, a figure usually refers to earning ranges of annual salary or income. For example, someone who makes $50,000 a year has a five-figure income. Someone who makes $500,000 a year has a six-figure income, and so on.
The figure can also mean the career level or rank. For example, an entry-level job is usually at the bottom of the totem pole and would be classified as a low-figure job. A top CEO position would be classified as a high-figure job.
Ultimately, salary figures only quantify the dollar amount of your income, but not the level of wealth because the cost of living, home cost, number of family members, and other factors vary significantly from person to person.
How much money is a 6-figure salary or 7 figure, 8 Figures, 9 Figures, and 10 Figures
Now that we know what a figure is, let’s dive into the different ranges for six figures, seven-figures, and so on.
1. How Much Money Is 6 Figure Salary a Year?
A six-figure salary is generally considered anything above $100,000 per year. The specific range is $100,000 to $999,999. This is a bracket that many people aspire to reach as it signals a high level of income and success.
Reaching this salary figure generally requires years of experience in your field, working your way up the corporate ladder, or earning a very high wage in a specialized profession.
The average annual salary in the United States is $56,000, which is just being considered above average. This means that having a six-figure salary is definitely something to be proud of.
What Does It Mean To Have 6 Figure salary?
Having a six-figure salary means that you’re earning more than the average American. You have much higher purchasing power and can afford to live a relatively comfortable life. You could also save up money for your future and even invest it so that you can grow your wealth.
Are You Rich If You Earn 6 Figures?
In this category, you could reasonably afford a spacious house in a good neighborhood, a nice car, and still have a lot of disposable income left over each year. You would also likely travel extensively and enjoy a high quality of life.
You can also afford to go out to excellent restaurants and bars, hire a maid service or a nanny, and invest in other luxury items or experiences. You would also have a good amount of money saved up for retirement, rainy days, and other financial goals.
However, you may not be considered wealthy yet, depending on your lifestyle and general spending habits. To reach that level of wealth, your annual income would need to be in the millions.
What’s The Percentage Of Americans Earning It?
According to a 2020 study by IBISWorld, only 30.7% of Americans have a six-figure salary. A six-figure income is no longer rare, but it’s still not the norm.
This income class has been steadily increasing over the years as more high-paying jobs become available. However, it’s still a small percentage of the population that can achieve this income level.
What Jobs Make 6 Figures Salary A Year?
There is no one-size-fits-all answer to this question as the range of jobs that can pay six figures is vast. Generally, however, you will find that high-paying jobs are in the fields of law, technology, finance, healthcare, and business.
According to the 2020 report by the US Bureau of Labor Statistics, lawyers have a median annual pay of $126,930, surgeons earn $208,000 per year, and dentists make an average of $164,010.
In the technology industry, software developers earn an average of $110,140 per year, and computer hardware engineers make about $119,000.
Other professions that pay six figures are marketing managers at $142,170, airline pilots at $160,970, and human resource managers at $121,220.
To land one of these jobs requires intensive education, not only Bachelor’s degrees but further studies. Moreover, it calls for specialized training, years of experience, and certifications, if necessary.
How To Be Successful With A 6-Figure Salary?
Being successful with a six-figure salary is not the same as being wealthy. You could earn more than $100,000 per year but still be living paycheck to paycheck if you’re spending all of that money on luxury items or experiences instead of saving it for retirement and other financial goals.
Therefore, having a lot of income is not enough in and of itself to be successful. You also need to be smart with your money and plan what you want to do with it.
Here are some tips on how to make the most of your six-figure income:
Create a budget and stick to it: Creating a budget is essential for everyone to help you understand how much money you’re earning and where it’s going each month.
Save for retirement: It’s never too early to start saving for retirement, even if you don’t have a lot of money saved up yet.
Always pay yourself first: The rule of thumb is to take 15% of your net income and put it into a retirement account each month, but you can start with whatever amount feels comfortable for now. It is very important to always pay yourself first to save money for retirement and emergency.
Be debt-free: Life without debt is much less stressful than one where you’re constantly worrying about how you’re going to pay back what you owe.
Avoid lifestyle inflation: You don’t want your income to become a burden, so make sure that as your salary increases, so does the amount of money you put away in savings accounts and investments each month. This will help keep everything balanced over time and ensure you don’t get caught up spending all of your money.
What Are Some Of The Ways To Make 6-Figures?
There are many different ways to make six figures, but some of the most common include working a high-paying job, starting your own business, or investing money wisely.
Working a high-paying job: This is probably the most common way to make six figures, as many jobs out there pay well above the median annual salary.
Starting your own business: If you have an entrepreneurial spirit and some business acumen, starting your own company can be a lucrative way to make a lot of money. There’s no guarantee that your business will be successful, but if it is, you could be looking at six-figure profits each year.
Investing money wisely: This is another option that can lead to earning a lot of money over time. If you invest your money in stocks, real estate, or other types of assets that have the potential passive income, you could see your net worth grow exponentially over time.
Doing side hustles: Some people also make six figures by doing side hustles in addition to their regular job. This could involve starting a blog, becoming a consultant, or freelancing in your spare time.
Major inheritance from family: It’s also worth mentioning that some people become millionaires overnight without having to do anything at all, thanks to a large inheritance from a family member or friend. While this is not something you can plan for, it does happen occasionally and should be considered when discussing financial success.
Winning the lottery: Finally, we can’t forget about the lottery. While this is definitely not a reliable way to make six figures, if you happen to win the jackpot, you will suddenly own a lot of money.
2. How Much Money is a 7-Figure Salary?
A seven-figure salary amounts to a million dollars or more per year. This can mean anything from $1,000,000 to $9,999,999 annually.
This income range can include high-earning executives at major corporations and self-made entrepreneurs who have built successful businesses. To be considered in this category, these people have monthly incomes of at least $83,333 up to $833,333 per month.
There is no one “right” answer when it comes to how much money you need to make to be considered successful, but seven figures are certainly a benchmark that many people aspire to reach.
What Does It Mean To Have 7 Figures?
Earning seven figures signifies a high level of financial success. This amount of money usually indicates that you have a large income, significant assets, and a high net worth.
In many cases, those who earn seven-figure salaries can afford to live well without worrying about covering basic expenses like food, clothing, and shelter. Their residences are often luxurious, with many amenities and features.
Aside from having financial stability and flexibility, those who earn seven figures often enjoy a high level of social status and respect. They are typically seen as role models by their peers and colleagues and are admired for their accomplishments.
What’s The Percentage Of Americans Earning It?
Only 0.35% of Americans make over $1,000,000 per year, according to the returns filed before the IRS in 2018. Out of the nearly 154 million taxpayers who filed returns, only 539,207 households had income over a million.
What Jobs Pay 7-Figures A Year?
People who earn seven-figure salaries usually work in industries with high earnings potentials and a lot of growth opportunities. The most common jobs typically fall into three categories: executive, professional, or entrepreneur.
Examples of high-paying positions that can lead to seven-figure salaries include anesthesiologists, physicians, surgeons, corporate attorneys, real estate brokers, and software developers. It’s important to note that these jobs require significant training and education for someone to be considered qualified enough.
Top executives of major corporations can also earn seven-figure salaries, especially if they’re part of its highest-level leadership team or have been with the organization for many years.
It’s also worth mentioning that many celebrities, bloggers, and professional athletes earn millions of dollars per year, which puts them in the seven-figure income bracket.
Success Habits That Enhance Your Chance To Earn A 7-Figure Income
There is no one guaranteed path to earning a seven-figure salary, but certain habits and traits are often associated with those who achieve this level of success. We’ve compiled a list of the most common ones below:
Find the right circle of influence: They say that you are the average of the five people you spend the most time with, and this is especially true when it comes to success. If you want to earn a lot of money, you need to be around other people who have achieved this level of financial stability. This will help motivate and inspire you to reach higher goals.
Being consistent and intentional with decisions: Making money isn’t easy, and successful people usually have to work twice as hard as their peers. This involves making many calculated decisions each day that move them closer to their goals.
Having multiple streams of income: Most people who make seven figures have more than one source of income, which means they’re not relying on just their salary or investments to pay bills. This also helps diversify risk and protect against unexpected financial setbacks.
Never stop learning: Successful people are always learning, whether it’s about new business strategies, how to invest money, or ways to be more productive. They know that to maintain their high level of success, they need to keep expanding their knowledge base.
3. How Much Money is 8 Figures Salary?
Typically referred to as multimillionaires, people who have an annual income of eight figures earn anywhere from $10,000,000 to $99,999,999. This is a very exclusive group and to be called an “eight-figure earner” is quite an accomplishment.
What Does It Mean To Have 8 Figures?
Those who fall within this category should afford whatever they want and live a very comfortable lifestyle.
It is said that eight-figure earners have the means to invest in multiple properties, buy expensive cars and go on lavish vacations every year. They can also afford to send their kids to private schools or let them attend colleges of their choice without worrying too much about tuition fees.
Multimillionaires can also dine in the most expensive restaurants and go on luxury shopping sprees whenever they want. They can even spend money on extravagant hobbies like buying a private jet or purchasing one of the world’s rarest cars.
What’s The Percentage Of Americans Earning It?
Only less than one percent of the American population has an annual income of eight figures or more. The majority of people who fall into the eight-figure income bracket are CEOs, high-profile celebrities, renowned athletes, and business owners.
What Jobs Pay 8-Figures A Year?
There are a limited number of jobs that can lead to this income level. This includes YouTubers who amassed their fortunes through advertising and sponsorship deals, CEOs of large companies, hedge fund managers, and movie stars earning millions per film.
Last year, Walmart CEO Sam Walton earned $22.57 million while Starbucks CEO Kevin Johnson made $20.43 million.
Dubbed the highest-earning female athlete in the world today, professional tennis player Naomi Osaka earned $57.3 million last year.
4. How Much Money is 9 Figures Salary?
Nine-figure earners are also known as billionaires, an even more exclusive group of people with annual incomes ranging from $100,000,000 to $999,999,999. These people are usually the founders or CEOs of well-known companies or world-renowned athletes who have endorsement deals.
What Does It Mean To Have A 9-Figure Income?
For the average person, having a nine-figure income would be unimaginable. It would mean that they are earning more than $100 million per year and can easily afford anything they want without worrying about money.
They can afford anything they want and typically have much more money than they can spend in their lifetimes. They could buy entire islands or purchase the most expensive properties worldwide without having any financial problems.
They live in mansions with all the luxuries and travel anywhere in the world whenever they please. They also have a team of accountants and lawyers to help them manage their money and keep it safe.
What’s The Percentage Of Americans Earning It?
There are currently only around 614 billionaires in the United States. This means that 0.002% of American households have nine-figure incomes or more, and they get to earn thousands of times more than people who are a part of the lower-income brackets.
What Jobs Pay 9 Figures A Year?
Most of these people achieved success through business ventures, while others earned it from having lucrative careers.
For example, athletes Cristiano Ronaldo and Roger Federer have nine-figure net worths of about $105,000,000 and $106,300,000, respectively. Safra A. Catz, CEO of Oracle, is also a member of this exclusive club with an annual income of $108,200,000.
5. How Much is 10-Figures?
How to Start a Side Hustle With No Special Skills – The Ultimate Guide
A ten-figure income is only reserved for business tycoons of companies with a global presence like Jeff Bezos and Bill Gates. Their annual income ranges from $1,000,000,000 to $9,999,999,999, which means they get paid several million dollars per month or day.
They are some of the wealthiest and most influential people globally and can afford to spend money on anything they want.
People in this class of income are often extremely busy and have little to no time for themselves. They are usually very focused on their work and what they can do to increase their income. Even though they have a lot of money, they usually live below their means to continue to increase their wealth.
These people are also philanthropists and donate a large portion of their income to charity. They want to help make the world a better place, so they donate their money to worthy causes and organizations.
Who Earns 10 Figures Salary?
The list of the richest people in the world includes some of the most well-known names.
Based on the World’s Billionaire List of 2021 by Forbes, the wealthiest person in this class is currently Amazon founder Jeff Bezos who has an estimated net worth of $177 billion.
Bill Gates belongs in this class with an estimated net worth of $124 billion. Warren Buffett, the CEO of Berkshire Hathaway, is also a member of this exclusive club and has a net worth of $96 billion.
Last but not least, Facebook founder Mark Zuckerberg rounds up the top five with an estimated net worth of $97 billion.
Hot to Increase Your Income “Figures”
For most people, it is challenging to make more than six figures a year. However, it does not mean it is impossible. Everyone has the opportunity to make as much as they want, so long as they are willing to put in the time and effort.
It will take a lot of sacrifices, but it is possible to increase your income “figures” by saving money through investing wisely or starting a business that grows into something profitable.
If you are serious about making more money, these are the best steps to take to achieve your goal.
How Much Money is 6 Figure Salary or 7 Figures, 8 Figures, 9 Figures & 10 Figures-TAXES
Depending on where you reside in Canada and the States, taxes take away a big chunk of your six-figure salary.
- Income – $0 to $9,950 at 10% marginal tax rate (Taxes).
- Income – $209,425 or more or more at a 35% marginal tax rate(Taxes).
- Income – $0 to $47,630 at 15% marginal tax rate (Taxes).
- Income – $210,371 or more at a 33% marginal tax rate(Taxes).
Once you start making six figures, the IRS and Canada revenue in Canada really start taking an interest in you. So, the amount of money you earn is probably far less than you’d think.
Here Is What You Need To Do:
1 – Learn to budget and follow it: No matter your income level, it is always important to be mindful of how you spend your money. Try to live below your means and save as much money as possible to increase your wealth over time. You may not become a billionaire overnight, but you will see progress if you are patient and diligent.
2 – Understand lifestyle creep and how to prevent it: Lifestyle creep is when you start spending more money on things like clothes and food because of your increased income. Most people who experience lifestyle inflation do not realize what they are doing until it’s too late, so try not to fall into this trap by being conscious about how much money you spend each month.
3 – Have a financial planner develop a plan for you and follow it: A financial planner can help you craft a plan that will allow you to achieve your financial goals and give you peace of mind knowing where your money is going.
4 – Be financially literate: It is essential to be financially literate to make good financial decisions: You should always learn more about money management to become better at managing your finances.
5 – Retirement planning: Retirement planning is one of the most important things you can do for yourself. You should start saving for retirement as early as possible to have a cushion when you stop working.
Here Are Some Tips To Get You There:
Let’s admit that getting to six figures or more is no easy feat. It’s a significant milestone to be proud of, but it will take hard work and sacrifice to get you there.
Here are some tips on how you can achieve this goal:
First off, ask for raises when deserved. It can be intimidating, but if you think you’re worth more than what your current salary is, then ask for it. You shouldn’t expect anything less than what you deserve.
If your employer doesn’t give you a raise, start looking for another job. This might sound extreme, but it is a piece of practical advice: if your company isn’t willing to pay more money, they may not value your work as much as other companies do.
Secondly, make more money through side hustles. There are many ways to do this, such as starting your own business, freelancing, or becoming a consultant in your field of expertise. Several online business opportunities are available for those looking to earn additional income, such as dropshipping, eCommerce, or affiliate marketing.
Another way to make more money is to invest in assets that will grow over time, such as real estate or stocks. These options may require more capital upfront, but they can be a great way to see your money grow exponentially over time.
Last but not least, keep learning new skills and strategies that will help you increase your income. Whether it’s learning to code, mastering social media marketing, or becoming an expert in financial planning, there are many ways to make more money and achieve your six-figure or more goals.
Wrap-up to how much money is a 6 figure salary
Now that you have a good understanding of how much is 6 figures or more a month? You might have heard that money doesn’t make one happy, but it certainly can open new doors and opportunities in life. Having more money gives you the freedom to do what you want when you want without worrying about how much everything costs or if there will be anything left at the end of the month.
It’s essential not just for yourself but also for your family too. If they see that you’re working hard and making sacrifices to achieve a larger goal, it can set an example for them and motivate them to do the same. Reaching six figures or more is definitely not easy, but possible.
It will require hard work, dedication, and even sacrifice, but it is achievable with the right mindset and strategies. Stay motivated and continue working towards your goals!