If you’ve been watching any YouTube video regarding making money online or finance, you heard the phrase “6 figures”. Maybe you’ve heard someone claiming that he makes a 6 figure salary. Or maybe even someone that has a 6 figure amount of money in his bank account.
Did you know that only about 6% of the entire U.S. population makes more than $100.000 per year? However, this statistic also takes into account the people under 18 and the retired people. Therefore, you should take it with a grain of salt.
Every 17 year old claims that he is making 6 figures a month from home, but that’s an entirely different article. Many people are wondering what it actually means to make 6 figures.(1)
So … how much is 6 figures? If you’re here in order to find out the answer to this question, you’re in the right place! By the end of this article, you will know everything about the most sought after amount of money on the internet!
How Much Is 6 Figures?
When you hear someone say the word “figure” when the topic of the discussion is finance, he refers to a “digit” from a longer number.
The digits are the numbers from 0-9. A very good example is that if you have $20 in your bank account, you can proudly say that you are worth “2 figures” (just joking. You shouldn’t be too proud if that’s the case!)
Most people are making anywhere from $1000-$9000 per month from their job. That means that they have a 4 figure salary. So, as you can probably guess by now, a 6 figure salary means more than $100.000.(2)
It’s important to note that whenever someone says that he is making 6 figures, he most likely refers to his annual salary, and not the monthly one. Let’s be honest: what companies pay their employees more than $100.000 per month?
Basically, any amount of money between $100.000-$999.999 is referred to as “6 figures“. So, the real question here is: how do you find out how much money a person is making?
Low, Mid and High 6 Figures
You’ve probably heard the term “low six figures”. The same can be said about mid and high six figures. What do these phrases actually mean?
The answer is more complicated than you think. Many people misunderstand these terms, as they quickly jump to conclusion without researching further.(3)
If we view these number in a purely mathematical way, then we will end up with these numbers:
- Low six-figures = $100,000 – $400,000
- Mid six-figures = $400,000 – $700,000
- High six-figures = $700,000 – $999,999
However, not all people agree with this. For example, if someone tells you he is making “high six figures” per year and he is actually making $650.000, he wouldn’t be wrong. $650k is certainly now low by any means. Maybe just if you’re Elon Musk.
Does This Amount Make You Rich?
It depends. I know that you don’t really like this answer and it can be quite annoying to hear, but this is the truth. “Rich” is a pretty relative term, so it’s quite difficult to establish whether or not a certain amount of money gives you this title.
For example, now I’m in Thailand. I also make 6 figures a year. Am I rich? Well, considering the prices for food and rent in Thailand, then yes, I am rich (even if I don’t view myself as such).
On the other hand, if I were to live in Los Angeles (no, thank you), would I be rich if I had a salary of $100.000 per year? Let’s break that down: $100.000 per year means $8.333 per month. The rent in Los Angeles is very expensive, and the food is not cheap either.
If that were the case, I would definitely be able to afford a 2 bedroom apartment and live quite a decent life. But that wouldn’t make me rich. Not by a long shot.
Also, you can live a frugal lifestyle (which I don’t recommend) and save $100.000 in your bank account after several years of hard work. Then, you can brag to your friends that you have a “six figure bank account”. If that were the case, then you and I would now that you wouldn’t really be rich. You would just have $100.000 in your bank account.
So … “rich” is definitely relative. Leo Messi makes $127 million per year. In that case, we can all agree that he is rich. Because he can basically afford anything he wants.(4)
So … what are your options? Can you realistically make 6 figures? Well, yes. You can either start a business or get a job that pays a 6 figure salary.
6 Figures Salary Jobs
First, let’s have a look at what the best paying jobs are. It’s important to note that these are not your typical 9 to 5 jobs that you can easily get.
These are professions that require years of training and dedication. We did out research so you don’t have to, and came up with a couple of very interesting jobs that you probably didn’t know pay so much.(5)
Let’s have a look at the ones who stand out the most:
- Dentist (very interesting, right? Maybe you didn’t know that dentists make so much money, but they do. They actually make an average of more than $10k per month. If you’re relatively young, you might want to consider this career path)
- Gynecologist (these professionals make an average of more than $200.000 per year. Maybe you want to consider becoming a gynecologist, as you will be paid really good money. Also, you will be able to help women with their intimate problems, which is a noble gesture)
- Psychiatrist (making more than $140.000 per year, psychiatrist are some of the most respected individuals. If you enjoy helping people get their lives back and want to make a good living, you can consider a career in psychiatry)
- Surgeon (surely one of the most difficult jobs in the world is performing surgeries. These doctors get more than $250.000 per year. A well deserved pay)
- Physicist (if you love physics, it would be a very good idea to start a career in this field. Why? Because you can make nearly $150.000 per year)
As you can tell, these professions require extensive training and incredible dedication. If you are young and some of these jobs appeal to you, then you can go ahead and start studying! There are no shortcuts here.(6)
But what if you don’t want to make 6 figures from a job? What if you want to start your own business and travel the world? What if you want to spend more time with your friends and family? Well, you should be happy to hear that this is definitely possible!
Probably the best way to make 6 figures per year is to start your own business. Because you don’t need to depend on a boss that can fire you at any time.
My advice is to take the OFA challenge because it’s one of the best business courses out there. Also, it’s very affordable. You first need to learn the fundamentals of business that apply in any market at any time. And this is a great place to start.