7-Figures fall between $1,000,000 – $9,999,999 and when people use this term, they are usually referring to the income or net worth someone has obtained. When you reach 7-figures, you'll typically have reached millionaire status., unless you're in massive debt.
A 7-figure salary, 7-figure net worth, or 7-figure valuation means that you earn or have something worth between $1,000,000 and $9,999,999.
5. How Common Is a 6 Figure Salary? According to the latest data available, around 5.4% of the American population makes 6 figures, but most of them earn in the lower range. For example, approximately 15.5% of 6-figure earners in the US make between $100,000 and $149,999.
Well, any amount over $100,000 but less than a million is 6 figures in money. So, then based on that what is a 6 figure salary? Basically, any career that earns more than $100,000 in a year but not over a million dollars is considered a six-figure salary.
After a billion, of course, is trillion. Then comes quadrillion, quintrillion, sextillion, septillion, octillion, nonillion, and decillion.
So, what is a 7 figure salary exactly? Well, with a 7 figure salary you earn 1 million dollars. With a 6 figure salary, on the other hand, you earn between $100,000 - $999,999 per year. Of course, it is possible to earn a 7 figure income in more ways than a single base salary!
That means that 0.35% of Americans earn seven figures or more, based on their tax returns. In other words, out of every 1,000 Americans, only 3.5 reach this level.
An annual income of $1 million or more was the most popular answer, with 22% of respondents saying they need to rake in seven figures to feel rich.
And because of racial and gender wage gaps, women are less likely to reach the six-figure threshold compared with men. Just 11% of women make $100,000 or more on a national level, whereas 21% of men do.
To have 8-figures means that you are extremely wealthy and are worth at least $10 million. An 8-figure net worth or valuation means that your assets are worth between $10,000,000 and $99,999,999.
13% of men earn $100K per year and above. Only 6% of women earn that much.
How much money do you need to be considered rich? According to Schwab's 2022 Modern Wealth Survey (opens in new tab), Americans believe it takes an average net worth of $2.2 million to qualify a person as being wealthy. (Net worth is the sum of your assets minus your liabilities.)
A salary between $100,000 – $999,999 is considered a 6-figure income. Anything over $200,000 would be considered a multiple six-figure income. Just because someone earns 6 figures does not mean they are wealthy.
In fact, 5 out of 6 one percenters earned less than a million dollars. What's that mean? Out of a total U.S. population of 327 million people, only 545K will crack the seven figure mark in any given year. That's just 0.17% of the population!
If you earn a five figure salary, you are earning an average income. How good of a salary it is depends on if you are in the low or high end. A low 5 figure income would be from $10,000 to $40,000 while a high 5 figure salary is from $70,000 to $99,000. Anything in between is in the average range.
Average Salary for Ages 20-24
The median salary of 20- to 24-year-olds is $706 per week, which translates to $36,712 per year. Many Americans start out their careers in their 20s and don't earn as much as they will once they reach their 30s.
Landing in the top 10% is a fairly attainable goal for upwardly mobile Americans. A study by the Economic Policy Institute (EPI), found that the average earnings of those in the top 10% were roughly $173,000 in 2020.
To put $100,000 into context, it is just above what many families earn these days. The median income for families (including single parents) was $91,000 in 2021, according to data from the Census Bureau, and about 45% of families earned $100,000 or more last year.
Data collected by Betway Insider has revealed the average age to become a millionaire is only 37. Becoming a first time billionaire takes a bit longer, with the average age coming in at 51.
Around 30.7% of US households earn over $100,000 and 15.5% of Americans earn between $100,000 and $149,999. 8.3% of the population makes between $150,000 and $199,999; and about 10.3% of Americans earn over $200,000. Of course, the nationwide numbers don't paint the full picture.
It can be more than enough for an individual or even a small family to live comfortably. With $100,000 a year, a person could cover typical expenses, pay down debt, build their savings, contribute toward retirement, invest, and still have enough money for entertainment, hobbies, and vacations.