To be a millionaire and earn a 6-figure salary is perhaps one of the most stated goals in the life of today’s generations. Money equals freedom.
Earning a six-figure salary is the biggest step on the route to become a millionaire. Money can make money. The magical sixth figure in the annual paycheck is therefore a dream come true for many individuals. Since only a fraction of the working population are able to pride themselves with earning a six-figure salary, it is considered an epitome of professional success. Here we will tell you all that you need to know about six figure salary jobs and how to get there.
What is a Six Figure Salary?
In the world of business, a six-figure salary is often seen as a measure for success. So what is a 6-figure salary? Technically, it means a salary of at least $100,000 wherein employees cross the five-figure mental obstacle and see the sixth digit in their pay slips. In reality, the six-figure income corresponds to any income equivalent to six-figures in US Dollars and also in Pounds, Swiss Francs, and Euros. Salaries in other currencies should be the equivalent of a six figure income in US Dollar – which can often be a seven figure salary in another currency. You can be earning 7 figures in Thailand for example. This obviously does not count.
To understand what “a 6-figure income” is and the kind of fantasy associated with it, we need to go back to the early 1980s when the American economy was booming and the $100,000 income was seen as magical achievement. Anybody pocketing this salary annually could afford all the luxuries in life. This meant a gradual change in benchmarking the “earning power of individuals” that has evolved from a 4-figure income in the early 1900s to 5-figure post World War II. The fact is that over the last 40 years due to inflation and increase in median income levels, the aura of six-figure salary jobs has gradually diluted. Nevertheless, it still remains a cherished dream for many and is still seen as a clear benchmark of success.
How to Earn a Six-Figure Salary?
Talk of earning a six-figure salary and you obviously will need to start by finding yourself six-figure salary jobs. As per the Bureau of Labor Statistics the annual median personal income in the United States is $35,977 and you can use it as a benchmark for other developed countries in the world. The salaries in developing countries are much lower. This is the reason why six-figure salaries are still viewed as an achievement even though they aren’t the same as they were two decades ago where most could have only dreamed of earning such salaries. Today it actually is within your reach!
It is also important for you to realize that that not every job or profession can guarantee you 6-figure earnings – at least at the start of your career. Eventually you can potentially earn such high paying jobs in almost any field but here we shall focus on career options that offer you a high pay check in the early days of your career
- Doctor/ Surgeon
- Oil Field Work
- Real Estate Broker
- Mobile/Web Developer
- Air Traffic Controller/Pilot
- Construction Manager
- Data Scientist
- Commercial Pilot
- Business Consultant
- Car Dealership Manager
Find here the ultimate guide where we will go into detail for each job.
Don’t Mistake Earnings for Actual 6-Figure Income
Technically anybody pocketing $100,000 or more annually is earning a six-figure salary. However, in reality, this figure is only pre-tax and what you take home after tax is all that matters. Duh! And when you reach such a high income threshold you will also need to part with substantially high taxes. In most countries around the world the rate of tax for high-income individuals is higher than those at the bottom of the pyramid and you’d have to part with anywhere between 20 and 30% of your income as taxes. You basically work for the government the first couple days or weeks.
Thus if you are making $100,000 annually and you fall in the 20% tax slab your actual post-tax income would be well under the six-figure mark at $80,000. Thus if you wish to generate a six-figure income in real terms you will need to earn substantially higher than the $100,000 or if we consider the 20% tax slab, you must earn $125,000 per year to be able to live with the gratification of taking home a six-figure salary. Here again there may be other deductions from your salary such as state taxes, medical insurance, etc. and you must also keep those in mind.
To sum up, If you are looking for a six-figure income you’d have to choose the path early in your career and focus on it. Late career realization often denies people the opportunity to achieve such sought-after goals.
Tell me? Do you think you will reach the goal and earn yourself a six figure salary?!
Good luck, keep moving up!
Let me know what you think in below comment section!!
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