A six-figure salary is a benchmark of financial stability and security.
It is typically received by executives, management, and experts in the field who have a great deal of experience—and in some cases, advanced degrees.
Wondering how much is 6 figures?
A 6-figure salary is a salary of at least $100,000 per year and caps out at $999,999.
What is a Six-Figure Salary, and How Does it Actually Work?
A six-figure salary is a salary that ranges from $100,000 to $999,999.
This kind of salary can be earned by people who have been in the workforce for a long time or have a solid educational background.
A six-figure salary is not just about the amount of money you make. It also includes your benefits and bonuses. A six-figure salary can also be achieved by working in many industries and professions and gaining relevant experience.
The average annual income for a six-figure earner is around $150,000 per year.
How to Earn a Six-Figure Salary?
There are three important things that you must do to earn a six-figure salary:
1. Get your college degree or at least a high school diploma
2. Find the right job
3. Work hard and be willing to sacrifice
Six-figure salaries are not something a lot of people think they can achieve. They read about them in the news and see celebrities posting photos of large checks on Instagram, but they often wonder if it’s even possible to make that much money with their bills and student loans.
Here are some tips for earning a six-figure salary:
1. Don’t be afraid to ask for a raise: Most people fear confrontation, but if you ask for a raise professionally and respectfully, you’re more likely to get it.
2. Take on side jobs: Even if you already have a full-time job, you should take advantage of any opportunities to pick up freelance or extra work. The more money you make, the faster you’ll reach your goal of earning six figures!
3. Establish a budget: Before you learn how to save money, it’s best to know how much money is coming in and going out each month. You may be surprised by what you find!
4. Stay well-rounded: Just because you want to earn more doesn’t mean your education should suffer. Keep up with your studies and strive for excellence in all areas of your life.
5. Think outside the box: If there’s an opportunity that seems too good to be true, take it (but tread with caution). You never know where your next big paycheck will come from, so never turn down exciting work opportunities.
Positions That Lead to 6 Figure Salaries
If you’re looking to make more money than you are right now, working in the following positions might be the ticket.
1. Actuary
Actuaries are the unsung heroes of the insurance industry. They spend their days crunching numbers to assess risks and reduce costs using statistics and mathematics. They earn $100,610 on average, as of 2018, according to the U.S. Bureau of Labor Statistics (BLS).
A typical day for an actuary starts by looking at reports and data from recent claims to make sure the company is predicting new ones accurately.
This involves assessing factors like the weather, location, and type of work performed by clients. Actuaries then use statistical models to estimate how much a company should charge in premiums to cover its costs and ensure it’s profitable in the long run.
They examine past claims to see if they can predict what kinds of claims will happen next. They also keep track of legislation that might affect premiums or coverage limits.
Since they rely on statistical analysis, actuaries need good math skills, particularly the ability to analyze large amounts of data and spot trends or patterns in it.
Some actuaries also need to be able to program computers or use databases.
2. Finance Manager
Banks and insurance companies are always looking for ways to make more money. That’s why they hire finance managers to develop strategies that keep the company financially stable.
A finance manager’s typical annual salary is $121,750.
If you’re interested in becoming a finance manager, you need a Bachelor’s degree in finance or accounting. A master’s degree in business administration (MBA) can also help you land this position.
Some other positions include:
3. Internist/Internal Medicine Doctor
4. Petroleum Engineer
5. Software Developer
What are the Best Ways to Earn a Six-Figure Salary?
When looking for a high salary, it is important to remember that not all jobs pay that much. The best way to earn a six-figure salary is to ensure that your job title suggests the right amount of responsibility and prestige command a high pay rate.
If you’re not too concerned with your title and just want to make money ASAP, here are some tips:
1. Look for some kind of designation or certification that proves that you have the skills to do whatever it is that you’re doing.
2. If you can’t get certified, focus on your resume and cover letter and try to make your experience look as impressive as possible.
3. Try networking with people who have more experience than you. They can help you learn about other jobs that might pay more than the one you have now.
If they cannot, they may help you get hired at their current company where they might be able to give you a higher salary.
4. Seek out opportunities within your company to take on more responsibility or gain new skills. This will usually result in higher pay or bonuses.
5. Consider changing companies if you feel like there are no opportunities available. The next company may have a different culture and be interested in developing other aspects of your skillset.
How Much Does It Cost to Live the Lifestyle You Want?
There are a lot of ways to calculate this. The simplest method is to note down your annual salary and subtract any expenses such as college tuition, utilities, retirement savings, and insurance premiums.
This leaves you with your “net income”.
You can also add discretionary spending that isn’t strictly necessary for survival: eating out or annual vacations.
Final Thoughts
To achieve your six-figure salary goal, first, determine what standard of living you want to achieve. For everyone, this may be different.
Once this is done, start tracking your expenses and work towards your goal.
