Everybody wants to have money. Being rich is probably the most common “dream” that people have. This is why so many people play the lotto or gamble. Money makes the world go around and seeing as so many people treat it as the north star of happiness, often happiness is equated with being rich.
People will brag about earning “six figures,” which can make us feel insecure because if we don’t earn as much money, we feel like we aren’t doing things correctly. In reality, someone can be earning six figures but have a mortgage to pay off, a car loan, student debts, and other commitments that mean they are coming out with just as much as the little guy at the end of the month.
Aside from that little pep talk, what this article looks to do is provide you with a basic understanding of what “six, seven or eight” figures are in terms of money. It will also offer you some practical tips on how to grow your income, and perhaps one day, you can be the guy that tells people that you make “six figures”. But don’t be that guy; nobody should want to be that guy.
How much are we talking?
There is a simple way of understanding what someone means when they say, “I make seven figures in my job”. Figures are just numbers, so the number of digits in their salary is the number of figures they make. For example, $100,000 has six numbers, so if you earn $100,000, you make “six figures”.
Here is the problem though, six-figure salaries range dramatically. Someone who earns $100,000 and earns $900,000 makes six-figure salaries, but there is a massive difference. This highlights the fact that the term “figures” concerning money can be unreliable. Here is a table that outlines what 5,6,7 and 8 figures look like in monetary terms.
| 5 figure salary | $10,000 – $99,999 |
| 6 figure salary | $100,000 – $999,999 |
| 7 figure salary | $1,000,000 – $9,999,999 |
| 8 figure salary | $10,000,000 – $99,999,999 |
Making 6 figures
For the sake of argument, I will focus the article’s content on earning six figures and how to go about doing it, because I feel like most people are making five figures and may be wondering how to break through that 6-figure threshold.
Getting a job that pays
It shouldn’t come as a surprise to hear that working in a job with solid credentials and high demand is the easiest way to earn six figures. However, it is rare to find someone that will tell you that they began their journey with a large salary.
Getting to the point of making $100,000+ per year takes dedication, hard work and determination. Usually, jobs that pay out such sums require higher education, and you may need a Bachelors’s or a Masters’s degree. Here are some jobs that are known for paying more than $100,000 per year.
- Entrepreneurs – This is the exception to the rule regarding needing qualifications, so I wanted to start with it. Running your own business of any kind does not require a Masters’s, but it does require a lot of work, patience, and expense. However, if your product is well designed and there is a demand for what you offer, the sky is the limit. As an entrepreneur, you are your own boss and make the executive decisions yourself, meaning that you live or die on your own sword. This has its perks and its downfalls, but especially with the rise of social media and dropshipping, becoming your own boss and earning six figures through your ideas is becoming more common.
- Software Development– The average wage for a software developer is said to be upwards of $110,000. Considering the rise of technology, computer games, and applications, this is no surprise. There is a huge demand for software developers to test and fix games and mobile applications. The typical software engineer will be qualified, but a computer science degree is not essential. There are online courses available now that will get you an entry-level position, and as a result, you can work your way up the ranks.
- A doctor or medical professional – Working in medicine requires a lot of dedication and hard work. Usually, you will need to get your master’s and then specialize in a particular field of care. Wage can depend on what area you are in, but a cardiologist who specializes in working with people with heart problems may see $150,000 per year. Similarly, a radiotherapist may see $110,000 per year. Regardless of what field of medicine you enter, six figures are likely, but you’ll be spending a lot of that money paying off college loans.
Other ways to make six figures
If you are in a job that pays $50,000 per year and all you want to do is make it to that $100,000 mark, I will offer a few tips and suggestions.
- Pay off your loans ASAP– this is super important. Nothing kills potential wealth faster than loan repayments. If you are paying $500 per month in loan repayments, that is $6000 per year that you could be investing or saving. Once you cut down on your debts, you can start investing your money and making it work for you.
- Invest – speaking of investing, it is often seen as the best way to build wealth over time substantially. However, it needs two things to grow, patience and consistency. Investing in the stock market will not make you rich overnight. Still, compound interest on index funds or investing in growth stocks that you believe in consistently may well set you on the path to 6 figures within a few years especially if you combine it with your job earnings.
- Side Hustles – this is a brilliant way to make extra money. Think of your wealth as a bucket; your income is a tap that fills that bucket up with water (or money in this case). Having more taps will ensure that your bucket fills faster. Side hustles are extra taps, and they will fill that bucket up far quicker if there are more of them. Whether it is selling items, freelancing, working a second job, washing cars or cleaning houses, spending your extra time developing different streams of income is a foolproof way of building your wealth over time.
