The term “6 figures” is thrown around a lot when it comes to money topics, but how much is 6 figures?
While most of us aspire to make good money, there is just something about being able to declare that one has a 6-figure salary or has 6 figures saved or invested.
6 figures has a nice ring to it.
So, how much is 6 figures? Below we’ll share what the term figure means, how much 6 figures is, why it’s important, 6 figures in terms of salary and investments, and conclude by discussing other figures in money.
What is Meant by the Term Figure?
The term “figure” is used in money because one meaning of the term is a number, especially concerning statistics or financial performance.
However, a term you’re likely more familiar with is the synonym “digit,” especially as it relates to numbers.
A two-digit number has two numbers, such as 10 or 51 or 99. In this case, one digit represents the ones place and the other the tens.
A three-digit number has three numbers, like 101 or 999. In addition to the ones and tens places, we also have a hundred place.
Skipping ahead a few digits, a six-digit number has six digits, such as 100,000 or 999,999. These examples have numbers representing the ones, tens, hundreds, thousands, ten thousand, and one hundred thousand places. Six digits together.
Thus, the term 6 figure is synonymous with 6 digits and means a 6-digit number.
How Much is 6 Figures in Money?
If a 6-figure number is a 6-digit number with digits representing the one through one hundred thousand places, then 6 figures in money is at least $100,000.
While many think of 6 figures in money as being $100,000, in reality, there is quite a range of 6 figure numbers.
Thus, 6 figures in money can range anywhere from $100,000 to $999,999. As long as the number has 6 digits in it, it is a 6-figure number.
Why is 6 Figures Important?
Whether you’re at the low or high end of 6 figures in salary, investments, or net worth, it’s clear that 6 figures of any kind is a lot of money and a huge achievement.
But aside from the accolade of saying you have a 6-figure salary or investment portfolio, there are some excellent reasons backed by research and math that make 6 figures important.
Here is why getting to 6 figures is held in such high esteem.
A 6-Figure Salary
What is it about a 6-figure salary that seems so magical?
Aside from the achievement found in crossing from 5-figures into 6, some research suggests that it is around this range in salary where the money it takes to make people happy begins to plateau.
A study done at Princeton University in 2010 found that a person’s emotional well-being rose with their income. Around the $75,000 salary mark, a person’s day-to-day experience didn’t improve much more as their income grew.
A more recent study found not only that measures of well-being increased with income but that that correlation did not wane as income continued to increase.
While the second study found that well-being continued to increase with an increase in income, it’s clear that happiness isn’t all about the money for higher-income earners. This is because those making high 5-figures and crossing into the 6-figure range no longer need to worry about being able to afford basic needs for survival. Happiness increasingly comes from relationships, job satisfaction, and enjoying life.
So, why is a 6-figure salary such a sought-after mark? Because a 6-figure salary buys safety and security. Not only can you easily afford all your basic needs, but you also have a surplus available for vacations, self-care, health, and savings to buffer yourself in case of emergencies.
In sum, once you get to around the 6-figure, you have enough money to pay for everything you need, and your well-being will increasingly shift away from money to other aspects of your life.
6 Figures in Investing
The 6-figure mark is not only sought after in terms of salary but also investing.
Have you ever heard the phrase the first $100,000 is the hardest? Many make it a major goal to hit their first $100,000 invested, and for a good reason.
Why? Because after you cross the $100k threshold, the magic of compound interest really starts kicking in, and your net worth will grow higher at a faster rate. That is, it will if you continue to invest the same money as before you hit that mark.
Several articles break the math down in detail, but the reason that the $100k mark is so critical is simple: when starting, the amount you save is far more important than your investment returns.
If you were to save $10k a year, it wouldn’t matter whether your investment returns were at 3% or 9%. It will still take you roughly the same amount of time to hit your first $100k. However, once you’ve hit that mark, it takes you less time to hit the next $100k. At this point, your interest rates matter, as the higher your interest returns, the faster your investments will grow.
As it was with salary, 6 figures in investing is similarly important, and hitting that milestone should be a money goal for everyone.
Who Makes 6 Figures?
We’ve answered the question of how much is 6 figures and why it’s an important milestone in salary and in investing, but what sorts of careers make a 6-figure salary?
A 6-figure salary is a lot of money no matter what end of the spectrum you fall on, but it is important to note that there is quite a range in salaries that qualify as 6-figure. Furthermore, only around 9% of Americans earn a 6-figure salary, so this income level is still relatively rare.
As you can imagine, engineers, doctors, lawyers, and jobs in tech and business often pay 6-figure salaries. However, there are some careers with 6-figure salary potential that may surprise you, including:
- Air traffic controller
- Construction manager
- Commercial pilot
- Owner-operator truck driver
- Car dealership general manager
Furthermore, not all 6-figure salary careers require a degree from a university. An increasing number of trade school jobs have 6-figure earning potential without the need to weigh yourself down with expensive student loans.
I’d also add bloggers, YouTubers, and other social media influencers to the list of people that can potentially command a 6-figure salary. However, this represents the top earners and a small number of people in the space. Additionally, business owners and entrepreneurs can often reach 6-figure salary status.
How Much is 6 Figures in a Month?
You’ve seen that a 6-figure yearly salary ranges from $100,000 all the way up to just under a million at $999,999. Now, what does a 6-figure salary look like monthly?
On the low end of 6 figures, someone with a yearly income of $100k would bring home $8,334 a month before taxes.
In the middle of the 6-figure range, someone with a yearly income of $500k would bring home $41,667 a month before taxes.
On the high end, someone with a yearly income of $999k would bring home a staggering $83,250 a month before taxes. That’s almost as much as the average U.S. yearly household income!
What About 5, 7, 8, 9, and 10 Figures?
How much is 6 figures? A 6-figure number is any number with 6 digits, with a range from 100,000 to 999,999.
But, what about 5, 7, 8, 9, and 10 figures? Let’s break down what these figure numbers look like in money.
- 5 figures – $10,000 up to $99,999
- 7 figures – $1,000,000 up to $9,999,999
- 8 figures – $10,000,000 up to $99,999,999
- 9 figures – $100,000,000 up to $999,999,999
- 10 figures – $1,000,000,000 up to $9,999,999,999
As you can see, someone with 7 figures would be considered a millionaire, someone with 8 figures would be considered a multi-millionaire, and someone with 10 figures would be considered a billionaire.
However, it’s important to remember that the designation of a millionaire, multi-millionaire, or billionaire is about someone’s net worth, not necessarily their yearly salary.
However, these numbers only continue to grow, and with discipline, perseverance, and patience, almost anyone can become independently wealthy and reach financial independence.
Moral of the Story
How much is 6 figures?
Simply put, 6 figures is any number that has 6 digits. Regarding money, 6 figures is anything ranging from $100,000 to $999,999. Thus, someone with a 6-figure salary falls somewhere in that range.
In terms of income and investing, 6 figures is an important threshold. Not only does it allow one to easily meet basic needs and have surplus income, but $100k invested is the point where compound interest really begins to work in your favor.
Now that you know how much 6 figures is in money and why it’s such an important mark, will you make it your goal to hit 6 figures?
Talk about Money Learned.