A career in finance can be both lucrative and challenging. A 5-figure salary may sound like a dream job, but it’s not always as simple as it seems. We break down 7 recent success stories to show that making money doesn’t have to feel impossible or even insurmountable.
The “what is a 6 figure salary” is a question that often arises in the workplace. The “6-figure salary” refers to wages that are at least $60,000 per year. A 7-figure salary would be over $7 million annually.
When it boils down to it, we are a fairly egotistical culture. We want to brag about our accomplishments and brag about how great we’re doing to our friends and family.
Don’t get us wrong: for the most part, this is a positive thing. However, some individuals utilize statements like “I’m working and earning a six-figure wage” or “I’m working and earning a six-figure salary” to make money.
This kind of bragging may be irritating, especially if you make an ordinary wage and don’t want to hear about someone else’s yearly earnings!
We all know that if you’re making large cash, like seven-figure wages, you’re probably in a decent profession with a bright future – like investment bankers, right?
Not always, of course. We’ll get to all of that later.
This article aims to provide answers to all of your pressing salary-related queries. We’ll look at what they are, who could be eligible for them, and what they imply to you.
So buckle up and hold on tight — we’ve got this!
What Exactly Do We Mean When We Say “Figure”?
A digit or a number is referred to as a figure. It might be as little as $1. Cents are not a figure since they are not a complete number, but rather a fraction of a dollar. 50 cents, for example, is half a dollar.
The more numbers you add to a pay, the more “figured” it becomes.
What Does It Mean To Earn A Five-Figure Salary?
To put it simply, five-figure wages are those that have five figures in them before taxes are removed.
Before tax, the salary number must contain five digits. Any value between $10,000 and $99,999 is an example for you. Even if the tax rates change, you may still claim to be on a five-figure wage.
This is the most common pay range in which Americans will find themselves. In reality, previous to current events, we may look at the median household income or wages in the United States, which was $68,702 in 2019.
This bracket is usually divided into three components. We have the low end of the five-figure compensation, the middle of the five-figure salary, and the high end of the five-figure salary.
If your yearly income is less than $40,000, you are considered poor according to the federal government.
If you make more than $40,000, you are slightly over the poverty line. However, since this is merely a guideline and does not account for any excess money or wages, this should not be construed as a definitive definition of poverty.
Jobs in the $10,000 to $40,000 range are often minimum wage positions that do not need a college diploma or extensive expertise.
As we rise through the rankings, we might consider the middle end of this group. This is a figure of revenue ranging from $40,000 to $70,000. This range of incomes is reasonably comfortable, since the individual is often neither destitute nor wealthy.
Jobs in this category include high Teachers in schools and those in the hospitality business who get a steady stream of tips. Some people in this group may need a college diploma to find job, but not all.
The high end of this bracket is anything between $70,000 and $99,999 a year, and positions in this range will almost certainly need a college diploma.
Professionals in this division may start with a salary like this and then work their way up the compensation ladder.
A five-figure wage might represent many things, but as you can see, there is a significant difference between a ten-thousand-dollar job and almost a hundred-thousand-dollar pay.
Someone on the bottom end of the income range will almost probably be living paycheck to paycheck and may need further financial support.
People in these earning groups are more likely to take on a second job to supplement their income. However, this will be determined by where you reside, since housing, food, and energy expenses vary greatly from state to state.
It will also be determined by your specific circumstances. If you’re married and your spouse earns more money, your paycheck may be enough to meet your monthly costs while theirs may be enough to cover a house payment or other more costly items you need.
People earning between the mid and high-end of the five-figure salary range may live comfortably. They may not need a second income to get by and may be able to live independently as a consequence.
Jobs in these fields may provide opportunities for advancement, which is something to keep in mind. With the lower pay range, they are usually dead-end positions with little opportunity of someone going up and earning more money.
Jobs that need a college diploma or specialized credentials, on the other hand, will typically pay more and provide opportunities for advancement, mobility, and professional growth.
What Jobs Pay a Five-Figure Salary?
These may vary by state and, of course, by wage grade, but the following occupations are commonly found in this category:
- Waiting tables (hospitality employment with gratuities)
- Teachers in schools
- Entry-level nurse
What Would a Six-Figure Salary Look Like?
We can now look at what it means to have a six-figure pay now that we know what it means to have a five-figure wage.
It has the same significance as previously, but with one more digit. So, any wage between $100,000 and $999,999 qualifies.
Six-figure pay positions are uncommon, with just around 5-10% of Americans earning this much each year.
You may expect individuals in this salary bracket to live well, but it’s possible to live above your means – so just because someone earns this much money doesn’t indicate they’re wealthy.
Due to the amount of money they make, this area of income is not generally divided into low, mid, and high, but taxes will be greater as a result of their earnings – so be aware of that as well.
Jobs in this category include medical and information technology. As you can expect, there are several tasks in these sectors, so we’ll leave it up to you to figure out what they are.
This level of pay is generally earned, since most positions demand at least a bachelor’s degree to begin, with certain jobs, notably in medical, requiring a master’s degree and even a PhD.
This is another issue that must be addressed. People who study enough to earn enough are considerably more likely to have student debt and will need to pay off a significant portion of their wages each month to attempt to pay it off in a reasonable length of time.
However, this does not apply to everyone. Many individuals were able to pay for college via a job, a sponsor, or a scholarship, but the majority of people needed to take out a student loan.
What If You Earned A Seven-Figure Salary?
The same approach applies to interpreting the figures. It’s just a matter of adding one more digit. People in this income level, however, are referred to as millionaires.
This is due to the fact that they may earn anywhere from $1,000,000 to $9,999,999. Naturally, a large variety of individuals make this kind of money, and the occupations in this division might be quite diverse.
This may include those who make money via sports, social media, stocks and business, entertainment, and so forth.
It is not necessary to have credentials to reach this salary range, but it definitely helps. What we mean is that many individuals who make money via business have business credentials, but this isn’t always the case.
When it comes to sports, a college diploma may not be required since athletes may be recruited for particular sports before graduating, or they might skip college completely.
The same is true for actors, television personalities, and social media influencers. People may make millions by making clever moves in particular sectors, but in many cases, it boils down to dedication, some talent, and a lot of luck.
Consider Justin Bieber, who was found on YouTube by Usher and now makes millions of dollars from his own songs. When he was first found, he was a young adolescent who had not gone through the educational system.
Instead, he used his vocal ability, his resolve to be heard by utilizing YouTube, and a large amount of luck to get found by a well-known musician.
What About Eight and Nine-Figure Earnings?
Seven-figure salaries are impressive, but eight and nine figures are nearly inconceivable and incomprehensible amounts of money.
People in these pay ranges make between $10 million and $1 billion each year. People who make enormous sums of money are usually highly business-savvy. These people include people like Mark Zuckerberg and Jeff Bezos.
These folks made their riches by beginning at the bottom and working their way up, but they both had a lot of business sense and knew how to advance in respective areas.
Anyone with these pay scales lives in luxury and has access to the finest of everything. The greatest food, the best vehicles, the best residences, the best clothing; some even buy whole islands with private aircraft and a staff of maids and helpers.
This manner of living was reserved for royalty until the world of business took off, and it was unthinkable for anybody else to be able to compete financially with such a lifestyle.
People who are skilled in the financial market, as well as movie and music stars, may make such large sums.
By launching a company, Dr. Dre became the first hip-hop millionaire in the world. He was once in the seven-figure wage bracket, but his business mistakes forced him into this group.
He made a deal with Apple to buy the rights to his distinctive Beats headphones, which became tremendously famous throughout the globe thanks to simple plugs from music industry stars wearing them and athletes wearing them at the Olympics and World Cups.
Does the number of figures in a salary matter?
It depends on your perspective. We would say that it makes no difference to your own societal worth since everyone is equal in value, regardless of their income. It’s more about being content, and wealth does not necessarily equal contentment.
Many examples have surfaced of individuals who have won the lottery or game shows and become very wealthy, only to claim that their newfound fortune has “ruined” their life. This may sound like a strange thought to some of us, yet it makes sense.
The more money you have, the greater your obligation. You might be paying employees and making the difference between life and death.
When rich individuals witness impoverished people or the homeless struggling to find their next meal, they often feel guilty, and this may have a major negative impact on their mental health.
Furthermore, there is an underlying assumption that the more money you have, the better your life should be, although some individuals do not like spectacular lives and would rather live as they choose.
Furthermore, if you’re earning six-figure incomes, the strain of sustaining these yearly revenue streams might be overwhelming.
Every day, you must assure that you will not be fired, that your firm will not fail, that the stock market will not fall, and that your art will continue.
Sports stars must be concerned about their fitness and the possibility of injury. Movie actors have to care about their own performances, as well as their appearances. Musicians must consider if their music is excellent or whether they are reaching the correct listeners.
The point is that having more money does not mean you are free of anxieties or stresses, and the strain may often be much higher than if you were earning a five-figure income.
However, the potential to live better with significantly better housing, food, clothes, transportation, and education cannot be overlooked.
If someone makes enough money and is financially savvy, they may save money or invest in other financial instruments to guarantee they have a safety net.
Worries about food and energy expenditures go away when a person’s quality of life improves. Even simple issues like the desire for a vacation due to everyday worries may be resolved quickly. Some millionaires can just jump on their own plane and go whenever they want.
However, individuals might get so engrossed in their career and wealth that they ignore their personal lives and end up in even worse circumstances.
People may delegate parenting responsibilities to others or ignore their spouses owing to obligations, resulting in an unhappy family.
Additionally, some individuals who make a lot of money may get addicted to alcohol or drugs as a result of stress, boredom, or being in the wrong groups. In reality, these crowds should be considered since your circle of trust has been breached.
You’re always concerned about whether someone is honest or just wants your money. These issues may easily lead to addiction, which can have a negative impact on one’s career and personal life.
It’s no surprise that many celebrities wind themselves in recovery facilities. It’s a terrible thing to see, yet we can understand how it occurred.
How Do People Make a Lot of Money?
It is entirely dependent. You have a few options to consider. Let’s begin with growth.
When it comes to job advancement, you typically start at the bottom and earn a five- or six-figure income before working your way up. Additional credentials, hard labor, and many years of employment are usually required.
When you’re anxious about not stepping out of line with your boss and want to advance as quickly as possible, this might be stressful.
People often work for an employer in their chosen sector for numerous years and experience little advancement. They may then choose to transfer to another office.
When this occurs, they will consider everything carefully. Do they see room for advancement in this new location? Are they already being promised extra money?
The majority of Americans will strive for career advancement and advancement up the corporate ladder. People may desire to continue climbing the ladder once they have been promoted. They’ve developed a taste for the additional cash and want more.
This is how things operate. If you want to advance your career, ask your boss how they got to where they are and how you may make changes to emulate their success.
Most individuals have talent, but exceptional talent in sports, television, movies, music, and other areas is tough to come by and will take years to develop. If you’re a gifted basketball player, for example, you must continue to practice and play.
You’ll need to chat with folks who know how to get into the NBA, for instance, and they’ll show you how. With skill comes dedication, and those who strive for it will undoubtedly succeed.
Although talent does not need a high level of education or certifications, you may choose to study more in order to grow in your chosen field. Exhibiting your ability is crucial, so take use of social media, open tournaments, open mic events, and other opportunities to do so.
This part combines the two preceding points in a way. Those with sharp business minds will almost always have to start from the bottom and work their way up the corporate ladder.
The more you work, the more probable it is that you will progress your company and, as a result, make commercial transactions. People that excel in business are often adept at public speaking, math, and communication.
Because striking large commercial transactions requires discussions and wise decisions, many entrepreneurs will have a bachelor’s degree in business or economics.
Business Intelligence will usually be good with stock options too, and this is another way these types of people can earn the massive salaries.
Knowing where to search and what to do is crucial in this case, but social skills and communication will always be important, no matter what business strategy you use.
People’s success is also influenced by luck. This may be included in any of the preceding points. Progressing in your career is good, but getting the promotion in the first place is crucial.
When it comes to skill, as we saw with Justin Bieber, breaking into a highly competitive market requires a lot of luck.
Luck may also play a significant influence in business. The luck of being in the right location at the right moment, as well as the luck of a worldwide scenario booming the stock market.
The lottery or other quick millionaire makers are possibly the most well-known examples of luck-based wealth creation. Even while they aren’t incomes, having the money to begin with may open up doors to new ways to generate more money, potentially leading to six-, seven-, and eight-figure salaries.
Contacts And Knowledge
Although academics don’t usually make a lot of money, they may usually make more by performing interviews or working with projects that are occasionally funded by large firms like Coca-Cola.
Knowledge, on the other hand, may earn you money. Elon Musk and Mark Zuckerberg made millions from a concept that didn’t start out as a company but grew into one. They make some of the most money we can imagine just by possessing their intelligence.
When it comes to networking, it’s not always about what you know, but rather who you know. If you have connections in a high-paying field, you may be able to get into a position that you previously believed was out of your reach.
If you have a lot of skill, having clever relationships might help you make a lot of money since your contacts may know who you should expose your abilities to.
If you have both Contacts And Knowledge, you’re easily set to earn yourself the high salaries. You just need to get out there and take them for yourself!
Although nepotism is frequently frowned upon, inheriting a top position in a business or sector might put you on the fast track to making a lot of money.
It doesn’t even imply you can pass this on to your children. As said before, you may have a contact or friend that may let you fill in for them if they need to leave their employment.
Simply make sure you know what you’re doing when you start your new job!
High-five-figure earnings are fantastic to have and something you should strive for, but keep in mind that they don’t necessarily imply a flawless existence.
To get there, you usually have to work for it and then sustain it. If that’s something you’re interested in, we wish you luck!
The “4 figure salary” is a term that has been thrown around for years. It’s a common misconception that if you make 4 figures, you are living the good life. But this is not true at all. For example, in the United States, the median household income in 2017 was $61,372. So if you want to know what your potential earnings could be with a certain job, it’s best to use a calculator and plug in your numbers before making any decisions about whether or not you should apply for said job.
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