Are you curious about what people mean when they talk about “figures” in relation to money? At money-central.com, we’ll break down the meaning of one to nine figures in terms of income and net worth, helping you understand financial discussions and plan your path to financial success. This guide helps clarify these monetary terms, offers actionable financial advice, and explores different income levels.
1. What Does “A Figure” Mean In Terms Of Money?
In the context of money, a “figure” simply refers to a single digit or numeral. This is any number from 0 to 9. However, it is commonly used as a concise way to describe someone’s income or net worth.
For instance, let’s take $1,500, here the amount contains four figures. It’s important to note that a figure only represents complete dollar amounts, so any numbers appearing after a decimal point are not included in the figure count. Understanding this concept is crucial for anyone looking to improve their financial literacy and achieve wealth accumulation.
Calculator displaying the concept of figures in money
2. What Does It Mean To Earn 6 Figures?
From a numeric perspective, a six-figure number is any number between 100,000 and 999,999. More specifically, earning “six figures” typically refers to a person’s annual salary, meaning they earn between $100,000 and $999,999 per year.
According to research, a significant portion of the American working population earns more than $100,000 annually. “Having six figures” can refer to an individual’s total net worth, annual income, or savings. The significance of a six-figure income can vary based on location and profession.
2.1. What Does It Mean To “Have” 6 Figures?
When someone says they “have six figures,” they are referring to their total net worth, annual income, or the amount they have saved. Having 6 figures can have a different meaning depending on where you live or what you do for a living.
For example, in certain regions with a low cost of living, having six figures can indicate someone is wealthy compared to others. In others, however, this can just mean you meet the average.
2.2. What Jobs Pay A 6-Figure Salary?
A six-figure salary used to be rare, but economic growth and high demand for skilled professionals have made it more common. Historically, a college degree was often a prerequisite, but the modern job market offers opportunities for high earners without formal education.
2.2.1. Six-Figure Jobs That Require A College Degree
Certain competitive fields demand a high level of expertise, typically requiring a college degree. These professions often command six-figure salaries due to the specialized knowledge and skills involved.
- Lawyers: $148,030
- Actuaries: $120,300
- Economists: $120,830
- Financial analysts and advisors: $106,340
- Anesthesiologists: $331,190
- Surgeons: $294,520
- Computer systems analysts: $102,210
- Engineers: $104,000
- Political scientists: $120,430
- Dentists: $117,770
2.2.2. Six-Figure Jobs That Don’t Require A College Degree
Talent is highly valued, and the ability to identify and capitalize on opportunities can lead to substantial earnings, even without a college degree.
- Software developers: $120,990
- Sports agents: $116,410
- Art Directors: $115,430
- Film producers & directors: $109,950
2.3. Understanding A 6-Figure Salary In Context
Despite earning a substantial income, many Americans still live paycheck to paycheck. Research indicates that almost half of Americans earning over $100,000 per year reported living paycheck to paycheck in January 2022.
According to a consumer expenditure survey by the US Bureau of Labor Statistics in February 2022, the average annual expenses for American households were $61,334, or $5,111 per month. This means that many households with a six-figure income spend over half of their earnings on essential expenses.
2.4. Is A 6-Figure Salary Considered Good?
Whether a six-figure salary provides a comfortable lifestyle depends on several factors:
- Position on the Scale: Someone earning $900,000 annually and managing their finances effectively will likely live more comfortably than someone earning $100,000 or $200,000.
- Location: The cost of living varies significantly by location. For example, an individual earning $100,000 in California spends a large portion on basic necessities due to the high cost of living, while someone in Louisiana may have more disposable income.
- Financial Responsibilities: A single-income earner supporting a family may find their six-figure salary stretched thin, while a single individual may have more financial flexibility.
- Desired Lifestyle: A six-figure salary may not suffice for someone desiring a luxurious lifestyle, such as renting a high-end home, traveling frequently, and attending expensive events.
3. How Much Is 7 Figures?
Seven figures refers to numbers with seven digits. Any number between 1,000,000 and 9,999,999 is a seven-figure number. When discussing income, earning “seven figures” means earning $1 million or more but less than $10 million annually.
The term can also apply to net worth, indicating that an individual’s total assets are worth at least $1 million but less than $10 million. Millions of Americans fall into this category.
3.1. What Does It Mean To “Have” 7 Figures?
Having seven figures means the overall worth of their assets is at least $1 million but less than $10 million. According to Capgemini’s World Wealth Report 2022, the number of millionaires in the US increased by 13.5% to 7.5 million in 2021, up from 6.6 million in 2020.
3.2. What Jobs Pay A 7-Figure Salary?
Only a select group of professionals earns seven-figure salaries. These individuals typically hold high-ranking positions in financial institutions and large corporations or are top-tier athletes and entertainers.
3.2.1. Seven-Figure Jobs That Require A College Degree
Wall Street executives often dominate the list of professionals with seven-figure incomes, primarily due to their control over the flow of money to consumers, governments, and businesses.
- Managing directors, investment banking: $1million+
- General partners, private equity: $2 million
- Equity partners at law firms: $1.39 million
- Managing directors of venture capital firms: $1–$9 million
3.2.2. Seven-Figure Jobs That Don’t Require A College Degree
Seven-figure salaries are not exclusive to Wall Street; prominent figures in sports and entertainment also earn substantial incomes.
- Coaches of top-flight sports teams: $1 million–$8 million
- B-list actors in high-budget Hollywood films: $1 million–$5 million
- Bloggers with a broad audience: $1 million–3 million
- Macro social media influencers: $1 million+
3.3. Understanding A 7-Figure Salary In Context
While average household expenses in the U.S. are just over $61,000, even if someone with a $1 million salary spent three times that amount, they would still have over $800,000 remaining. This income level allows for the purchase of homes and cars within a few months of work.
For example, the median sale price of a home in Detroit in June 2022 was $99,200. With a seven-figure salary, one can comfortably cover expenses such as rent, transportation, groceries, health insurance, education, and contributions.
3.4. Is A 7-Figure Salary Considered Good?
A seven-figure salary is exceptionally good, setting one apart from most Americans. In the first quarter of 2022, the median weekly earnings for full-time wage and salary workers were $1,037, translating to $4,148 per month and $49,776 annually.
Individuals with seven-figure salaries can comfortably afford a family home, pay bills, and invest, all while enjoying a comfortable lifestyle.
4. How Much Is 8 Figures?
An eight-figure number is a number with eight digits. A number that falls between 10,000,000 and 99,999,999 is an eight-figure. The term “eight figures” is commonly used to describe a salary of $10 million or more but less than $100 million. Those who earn this much are considered multi-millionaires and are substantially wealthy.
A luxurious mansion symbolizing high wealth and success
4.1. What Does It Mean To “Have” 8 Figures?
Having eight figures means earning or having a net worth of at least $10 million but less than $100 million. An eight-figure net worth at the upper end of the scale ensures a comfortable life in any upscale neighborhood in the U.S., while the lower end allows for a comfortable life in any middle-class city.
4.2. What Jobs Pay 8-Figure Salaries?
Those who consistently earn eight figures are typically hard-working individuals whose success hinges on performance, whether it’s meeting revenue targets, engaging audiences, or maximizing team success.
4.2.1. CEOs Of S&P 500 Companies
Data from The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) shows that in 2021, the Chief Executives of S&P 500 companies received an average of $15.5 million in total compensation.
4.2.2. Prominent TV Show Hosts & News Presenters
In May 2021, Forbes estimated that Ellen DeGeneres earned $50 million a year before she ended her popular show. Howard Stern is the highest-earning radio host in the United States, with an annual salary of $95 million, followed by Rush Limbaugh ($77 million) and Ryan Seacrest ($65 million).
4.2.3. High-Profile Athletes
According to Forbes, Lebron James was the highest-paid American athlete in 2022, with an annual salary of $41.2 million and off-field revenue of $80 million. Steph Curry and Tom Brady also made the list with substantial salaries and off-field earnings.
4.2.4. A-List Hollywood Actors
Top talents in Hollywood earn significant amounts of money. Data from Forbes indicates that the highest-earning actors of 2020 were:
- Dwayne Johnson – $87.5 million
- Ryan Reynolds – $71.5 million
- Mark Wahlberg – $58 million
4.2.5. Musicians And Comedians With A Huge Fanbase
Some musicians and comedians frequently earn eight-figure incomes. According to Rolling Stone, some of the highest-paid musicians in 2021 were:
- Heavy metal band Motley Crue – $95 million
- Country music singer Blake Shelton – $83 million
- Pop star Taylor Swift – $80 million
Forbes reported that the highest-earning comedians of 2019 were:
- Kevin Hart ($59 million)
- Jerry Seinfield ($41 million)
- Jim Gaffigan ($31 million)
- Trevor Noah ($28 million)
4.3. Understanding An 8-Figure Salary In Context
To illustrate the magnitude of an eight-figure income:
- Ten million dollars is 163 times the national average annual expenses for American households in February 2022.
- Ten million dollars is 9,013 times the 2022 minimum monthly wage ($1,109.5) in the United States.
- $99.5 million is more than the total value of financial assistance and debt service relief the International Monetary Fund (IMF) lent Mongolia ($99 million) in 2020 to help combat the economic effects of the COVID-19 pandemic.
4.4. Is An 8-Figure Salary Considered Good?
Earning an eight-figure salary places one well above average. These individuals typically reside in affluent neighborhoods and lead lifestyles they once only dreamed of.
5. How Much Is 9 Figures?
A nine-figure number falls between 100,000,000 and 999,999,999. The term “nine figures” is synonymous with an exclusive income bracket, referring to an annual salary of at least $100 million but less than $1 billion.
5.1. What Does It Mean To “Have” 9 Figures?
Having nine figures means your net worth is at least $100 million but less than $1 billion. With this level of wealth, one can live an affluent life without financial worries, provided spending is managed carefully.
5.2. What Jobs Pay A 9-Figure Salary?
The following profiles represent individuals who commonly have a nine-figure income:
5.2.1. CEOs
Specifically, CEOs of high market cap companies. In May 2022, Fortune Magazine listed the top 10 highest-paid CEOs of 2021, nine of whom earned nine-figure incomes:
- Apple CEO Tim Cook: $770.5 million
- NVIDIA CEO Jensen Huang: $561 million
- Netflix CEO Reed Hastings: $453.5 million
- Regeneron Pharmaceuticals CEO Leonard Schleifer: $452.9 million
5.2.2. Hedge Fund Managers
According to Bloomberg, top hedge fund managers made $15.8 billion in 2021 despite challenging market conditions. Some examples include:
- David Shaw of D.E Shaw Group: $915 million
- Ray Dalio of Bridgewater: $529.8 million
- Bill Ackman of Pershing Square: $528 million
- Paul Singer of Elliott Management: $476 million
- Dan Loeb of Third Point: $411 million
5.2.3. Sports Personalities
Forbes reported that only three sports personalities earned over $100 million between May 2021 and May 2022, primarily through endorsements, merchandising, and image rights:
- Lionel Messi: $130 million (On-field: $75 million, Off-field: $55 million)
- LeBron James: $121.2 million (On-field: $41.2 million, Off-field: $80 million)
- Cristiano Ronaldo: $115 million (On-field: $60 million, Off-field: $55 million)
5.2.4. Entertainers
The entertainment industry offers lucrative contracts for top talents. Bruce Springsteen was the highest-earning musician of 2021, with $590 million, followed by Sean “Jay Z” Carter with $470 million.
5.3. Understanding A 9-Figure Salary In Context
- One hundred million dollars is 1,630 times the national average annual expenses for American households in February 2022.
- One hundred million dollars is 90,131 times the 2022 minimum monthly wage ($1,109.5) in the United States.
- Five hundred million dollars is more than the average annual earnings of all 17,150 gambling change persons and booth cashiers in the US ($499.6 million)
5.4. Is A 9-Figure Salary Considered Good?
A nine-figure salary is exceptionally good, offering a strong chance of becoming a billionaire. Someone earning $200 million per year could become one of America’s billionaires in just ten years by saving half of their income annually. This income bracket is associated with a luxurious lifestyle, including private jets, private islands, and custom jewelry.
6. Final Thoughts
The pursuit of more money can be endless. Those who reach six figures often aspire to seven, and those in the seven-figure club set their sights on eight figures. Even if earning six figures seems unattainable now, it is possible with smart money management, living within your means, and seizing opportunities. The inspiring story of KFC founder Colonel Sanders shows that success can be achieved at any age.
However, wealth does not guarantee happiness. Balancing financial success with personal well-being is essential. For comprehensive and accessible financial advice, explore the resources available at money-central.com.
Are you ready to take control of your finances? money-central.com provides comprehensive, easy-to-understand articles, powerful financial tools, and access to expert advice to help you manage your money effectively. Whether you’re aiming for six figures or beyond, our resources can guide you toward achieving your financial goals.
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7. Frequently Asked Questions (FAQ)
7.1. What is the difference between income and net worth?
Income is the money you earn regularly, typically from a salary, wages, or business profits. Net worth is the total value of your assets (like savings, investments, and property) minus your liabilities (like debts and loans).
7.2. How can I increase my income?
You can increase your income by pursuing higher education, acquiring new skills, seeking promotions at work, starting a side business, or investing in income-generating assets like stocks or rental properties.
7.3. How can I improve my net worth?
Improve your net worth by saving more, reducing debt, making smart investments, increasing your income, and managing your expenses effectively.
7.4. What are some common financial mistakes to avoid?
Common financial mistakes include overspending, accumulating high-interest debt, not saving for retirement, failing to create a budget, and not having an emergency fund.
7.5. What are the key steps to financial planning?
Key steps include setting financial goals, creating a budget, tracking your expenses, saving regularly, investing wisely, managing debt, and reviewing your plan periodically.
7.6. How important is it to have an emergency fund?
An emergency fund is crucial because it provides a financial safety net for unexpected expenses like medical bills, job loss, or car repairs. Aim to save at least 3-6 months’ worth of living expenses in an easily accessible account.
7.7. What are some effective budgeting techniques?
Effective budgeting techniques include the 50/30/20 rule (allocating 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment), zero-based budgeting (allocating every dollar of your income to a specific purpose), and envelope budgeting (using cash-filled envelopes for different spending categories).
7.8. How can I start investing with limited funds?
You can start investing with limited funds by using robo-advisors, investing in fractional shares of stocks, contributing to employer-sponsored retirement plans with matching contributions, or investing in low-cost index funds or ETFs.
7.9. What is the role of credit score in financial health?
A good credit score is essential for financial health because it affects your ability to get approved for loans, credit cards, and mortgages, and it influences the interest rates you’ll receive. Maintaining a good credit score can save you money and improve your overall financial opportunities.
7.10. Where can I find reliable financial advice?
You can find reliable financial advice from certified financial planners, reputable financial websites like money-central.com, books on personal finance, and educational workshops or seminars. Always verify the credentials and reputation of any financial advisor before seeking their services.
