6 figures

How much money is 6 figures? And why it matters to your financial freedom journey

6 figures
Photo by Clem Onojeghuo on Unsplash

Defining 6 figures. What do these phrases mean? Let’s jump in. 

  • 6 figures
    • A number that is greater than or equal to 100,000 and less than 1,000,000.
    • A number in the hundreds of thousands, which has 6 digits. 
  • 6 figure salary
    • An annual salary that is greater than or equal to 100,000 and less than 1,000,000.
    • The colloquialism of 6 figures most often refers to 6 figure income. So when someone says I make 6 figures, they’re referring to their annual salary or income. 
  • 6 figures meaning
    • To recap, the phrase 6 figures refers to a number in the hundreds of thousands, which has 6 digits. When people use the phrase 6 figures, they’re most likely talking about money. A lump sum of money, a networth but most commonly an annual salary greater than 100,000. 

Is making six figures good?

Yes. But there’s a pretty big range in six-figure salaries. Life at $300,000 per year in income is significantly different than life at $100,000 per year. If your income exceeds $361,000, you’d break into the top 1% of individual income in the US.

It’s unclear when and why a six figures salary became a benchmark or goal for young millennial workers. Humans like round numbers and more zeros are better than less. Maybe that has something to do with it. 

A six-figure salary is a solid goal for the young high achiever. It’s amazing how many entry-level jobs at the big tech companies offer six figure base salaries. In high cost of living cities like NYC a six figures income gets you out of 1st world poverty. It puts enough money in your pocket to enjoy the city around you. 

How many people make six figures a year?

28,092,101 workers, or 15.9% of all individual workers, made a six-figure income.

Earning $100,000 or more puts you in the 84th percentile of workers. Hopefully, that puts things into perspective. If you’re earning more than $100,000, you’re doing better than 84% of people in American. Think about that before you complain about being poor. 

How many millennials have savings of at least $100,000?

24% of millennials reported having savings of at least $100,000. According to the Better Money Habits Millennial Report from Bank of America. However, the median networth for people under the age of 44 is less than $91,300. I bet student loan debts for millennials are bringing their networth worth below six figures. 

Other FAQs about 6 figures or six figures

  • how much money is 6 figures?
    • It’s 100,000 or more and less than one million. The range of 6 figures amounts of money: $100,000 to $999,999. 
  • what is 6 figures? People also ask, what is six figures? 
    • A number with 6 digits. So the smallest 6 figure number is 100,000. The biggest 6 figure number is 999,999
  • six figure salary
    • A yearly income of more than $100,000. The six figures refer to the 6 digits in the number 100,000. 

Financial freedom milestone: six figure networth

I’m not sure exactly how or when Charlie Munger uttered this phrase but he seems to be getting credit for it across the internet. “The first $100,000 is a bitch, but you gotta do it.”

A six-figure networth is a great milestone. It signals a lot about your financial habits and your potential trajectory.

First, you’ve managed to dig yourself out of any student loan or other large debts. Getting to a networth of zero is important but not satisfying.

Second, the first $100,000 is all about earning and saving money. The foundational habits of consistently stashing money in solid investments. Hopefully all low-cost index funds. Your investment returns when your net worth is low will have a small impact on your networth growth rate. A 10% return on $10,000 invested in the stock market only adds $1000 to your networth. The bigger factor to grow your networth faster will be the principal saved and invested.

The first $100,000 of wealth creation is all about hustling, earning more money, and investing as much as can. These habits, this way of life, is the requirement to build a life of financial stability. If practiced for a decade, the results can be transformative. One day you might find the returns from your investments are bigger than your active income. That’s a special day. There are many milestones along the way, and it’s important to celebrate all of them. Enjoy the process, enjoy the ride with its ups and downs. That’s kind of the whole point.

Take your time and celebrate the $100,000 networth milestone. You’ll have this holy shit this working feeling that needs to be nourished. Hopefully, this feeling lights a fire in your belly and propels you all the to seven figures. Adding the second comma and becoming a millionaire is another fun day.