5 figures

How much is 5 figures? Definition and context

5 figures
Photo by Waldemar Brandt on Unsplash

Defining 5 figures. What do these phrases mean?

  • 5 figures
    • A number that is greater than or equal to 10,000 and less than 100,000.
    • A number in the tens of thousands, which has 5 digits. 
  • 5 figure salary
    • An annual salary that is greater than or equal to 10,000 and less than 100,000.
  • 5 figures meaning
    • 5 figures refer to a number in the tens of thousands, which has 5 digits. When people use the phrase 5 figures, they’re most likely talking about money. 

Is making five figures suitable?

It’s average. Average is excellent when you’re doing government work but not when you’re on the path to FIRE, as a high achiever looking to exit the workflow early and do great things. You need to be above average. An above-average earner. An above-average investor. Be weird, and don’t settle for average. Let the C students be average. 

If you’re working and earning a 5 figure income, focus on getting to 6 figures. That’s when things will start to accelerate. That’s when your financial journey begins to evolve. 

How many people make 5 figures a year?

95% of Americans make 5 figure incomes. From the 11th ($10,000) to 84th percentile ($99,999) of annual income. That’s approximately 150 million people in the United States. 

Here’s the average income of an American individual in 2020. 

  • The median individual income was $43,206.00
  • The average individual income was $62,518.13

Financial freedom milestone: 5 figure networth

One of the first milestones on your path to financial independence is net worth = zero. It’s not exciting, but it’s essential to get to zero. After that, getting to 5 figures is the key next step. Having ten grand in the bank starts to ease the stress of being broke. Twenty is better, and when you get to thirty grand, you’ll begin to walk with more swagger. Let’s hope you don’t turn into your creepy uncle Larry and start dishing out fives to the kids at the next family reunion. 

The emotional journey from end to end of the five figure net worth experience is wild. It brings about a whole new set of feelings about money. $10,00 to $100,000. Five figures to six figures. It’s an incredible difference. Your perception of money changes. It evolves, and with it, your sense of what a lot of money is. It’s a slog to go from ten grand in the bank to one hundred. 

Key Takeaways

If you have a five-figure income, you need to figure out how to get to six figures. To accelerate your journey to financial freedom, you need a high income. Looking to supercharge your journey? Negotiate for equity as part of your performance compensation. 

If you have a five-figure network, you’re on the path! Manage your spending categories, invest all your savings, and get the income up! You’re putting the habits into place to guide you. You’ll be a six-figure net worth before you know it.