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5 figure salary meaning—explained.
I often hear people talking about 5 figure salary, or 6 figure salaries, bragging about how much they earn.
But is it just me who didn’t know exactly what these phrases meant? Why don’t they just mention how much they earn – a rough number, a ballpark figure, or any kind of actual number! Do they expect me to be a mind reader?
But no worries, I have done the research so that you don’t have to! Keep reading to find out all the answers to the questions you have been too scared to ask.
I am here to walk you through the meaning of these phrases step by step and explain which occupations might pay you these wages.
What is 5 Figure Salary?
To put it simply, a five-figure salary refers to the amount of money that a person earns each year, before tax. If the salary amount has five numbers in it, then it is described as a 5 figure salary.
For example, any wage between $10,000 and $99,999 would be described this way. Think of the term ‘figures’ as ‘digits’ and this will help you get a rough idea.
The median household income in the United States in 2019 was just under $68,703 so the majority of people will earn a 5 figure income.
Low 5 Figure Salary
The lowest five-figure salaries range from $10,000 – $40,000. Some people within this bracket will live below the poverty line, which is set by the federal government.
Jobs within this bracket will be close to the minimum age and require few qualifications.
Mid 5 Figure Salary
Mid five-figure salaries range from $40,000 – $70,000. Jobs within this bracket may include many public sector jobs such as kindergarten or public school teachers.
It will also include service staff such as waiting staff and bar staff once tips are taken into consideration.
High 5 Figure Salary
The highest five-figure salaries range from $70,000 – $99,000. These earners are close to the six-figure bracket and these jobs are likely to require more qualifications.
Many professional occupations may start on salaries in this bracket before moving into six figures as people gain more experience.
What does a 5 figure salary get you?
Because five figures can mean anything between $10,000 and $99,000 this is not a simple question.
People earning five figures can have a comfortable lifestyle if they are nearer the top of the scale, or be living paycheck to paycheck. if they are towards the bottom of the scale.
It also depends on factors such as location, as some areas are more costly to live in, and therefore a person’s salary won’t stretch as far.
5 Figure salary jobs
There are many jobs which earn 5 figure salary jobs, some of which, are listed below:
- Public School Teacher
- Sales Assistant
What is the meaning of a 6 figure salary?
To understand what a 6 figure salary is, you just think about it the same way as a 5 figure salary, but this time, add one extra digit.
This means that the total amount earned per year will have 6 figures or numbers, so be somewhere between $100,000 and $999,999.
It is estimated that only 9% of U.S. workers make 6 figures.
6 figure salary jobs
Some jobs that earn 6 figures are listed below:
- Software Developer
What is 7 figure salary?
A seven-figure salary is when people really enter the big leagues. If a person earns this much money, then they are officially described as a millionaire.
To understand what a 7 figure salary is, you just think about it the same way as a 5 figure salary, but this time, add TWO extra digits. This means that the total amount earned per year will have 7 numbers, so be somewhere between $1,000,000 and $9,999,999.
I can’t even imagine what this much money looks like!
What jobs pay 7 figure salary?
- Social Media Influencers
- Movie Stars
- Financial Advisors
How much is a figure worth?
In simple terms, a figure is the same thing as a digit. One figure means one single-digit – or $1 to $9. Anything more than this is more than one figure.
What do people spend a five-figure salary on?
People on a five-figure salary in the US are near the average salary in the country. This means that people on a 5 figure salary would be spending it on the usual expenses such as accommodation, food, childcare, and transport.
Those with a bigger disposable income, near the top of the five-figure scale, may spend more on luxuries such as entertainment and holidays than those at the bottom.
Is 5 figures a lot of money?
It all depends because five figures can mean anything between $10,000 and $99,000. People earning five figures can have a comfortable lifestyle if they are nearer the top of the scale.
Or, they can be living under the poverty line in the U.S. if they are towards the bottom of the scale. Location is also a big factor as some areas are more costly to live in, and therefore a person’s salary won’t stretch as far.
How do employees go from a five-figure to a six-figure salary?
The main way that employees go from a five-figure to a six-figure salary is by promotion and working their way up the career ladder.
If employees are in a job but think they are being underpaid, then they could research the average salary for their job in the local area, and then ask for a pay rise based on their results.
Final Thoughts On The 5 Figure Salary Meaning
Now that you know the meaning of 5, 6, and 7 figure salary, you have to remember, it isn’t all just about the number of digits on your payslip each month. What matters is how you invest, save, or spend it.
But I do hope that this article has cleared up any confusion on what a five, six, and seven-figure salary is. So the next time someone is bragging to you about their wage, you will have a better idea of their income!
Does a 5 figure salary good enough for you?
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