How much money do you need to make each year to feel comfortable? Many people would say that they need at least 5 figure salary to feel secure. In this blog post, we will discuss what 5 figures actually means. We will also take a look at some jobs that offer a 5-figure salary and how you can save money while earning a 5-figure income. Finally, we will provide some tips for people who want to achieve a 6-figure salary!
How Much Is 5 Figures?
So, what does 5 figures mean and how much is 5 figures when it comes to salary? Five figures is pretty much what it sounds like – a number with five figures in it. A five-figure salary means that you are earning between $10,000 and $99,999 per year.
This is a very broad range, so it is important to keep in mind that your specific situation will dictate how much money you actually need to feel comfortable. For example, if you live in a high-cost city like New York or San Francisco, you will likely need to make more money than someone who lives in a smaller town.
Are Five Figure Salaries Good?
According to the Bureau of Labor Statistics (BLS), the national average salary in the United States was $56,310 in 2020. This means that a five-figure salary falls within the realm of average in the United States. Of course, there are many factors that can impact how much money you need to live and whether a 5-figure salary is good for you.
Whether or not a five-figure yearly salary is a good salary depends on your specific situation. If you are single and have no children, you may be able to get by on a lower salary than someone who is married with kids.
Additionally, your cost of living and lifestyle choices will also impact how much money you need to feel comfortable. For example, if you are content with a smaller apartment and eating out only occasionally, you may be able to get by on less money than someone who needs a larger place and dines out frequently.
Finally, whether a five-figure income is good for you will depend on where you live and the cost of living in your area. While 5-figures may feel like a lot of money in a low-cost-of-living area, it will feel like a lot less in a high-cost-of-living area like Los Angeles or New York City.
What Jobs Earn A Five Figure Salary?
There are a variety of jobs that offer a five-figure salary. Below we’ve included some examples of jobs that earn 5-figures and their annual mean wage:
- Psychologists – $92,100
- Detectives and Criminal Investigators – $90,370
- Credit Analysts – $88,030
- Microbiologists – $87,820
- Film and Video Editors – $76,000
- Kindergarten Teachers – $64,490
- Sheet Metal Workers – $58,760
- Photographers – $48,210
- Skincare Specialists – $41,700
- Phlebotomists – $38,450
- Data Entry Workers – $37,590
- Cashiers – $26,780
- Fast Food Workers – $26,060
How Many People Earn 5 Figures?
According to the most recent data from the US Census Bureau, just over 75% of people in the United States earn five-figure salaries. While the percentage of people earning five-figure salaries has remained relatively stable over the past few years, the actual number of people earning these high incomes has increased due to population growth.
How To Save Money On A 5-Figure Salary
If you earn a five-figure salary, there are some things that you can do to make sure that you are making the most of your money. Below are some tips for how to save money on a five-figure annual income:
- Contribute to a retirement account. If your employer offers a 401(k) match, make sure that you are contributing enough to take advantage of the match.
- Create a budget. Track your spending for a month to get an idea of where your money is going. Then, create a budget that allocates how much you can spend in each category every month. If you’re looking for a good budget planner to get started, check out our post on The 14 Best Budget Planners Of 2022.
- Save automatically. Set up automatic transfers from your checking account to your savings account so that you are regularly saving money without having to think about it.
- Invest in yourself. A five-figure income allows you to invest in yourself by taking courses, attending conferences, and networking. By investing in yourself, you give yourself a better chance of increasing your income over time by improving your job skills.
- Save for a rainy day. Make sure to have an emergency fund in case you lose your job or have unexpected expenses.
- Stay disciplined with your spending. It can be easy to overspend with the rising costs of everyday living, but it is important to make sure that you are living within your means. If you’re struggling with keeping your grocery costs down, check out our post on 45 Best Frugal And Healthy Foods To Buy On A Budget.
How To Achieve A Six-Figure Salary
While a five-figure salary may be good for some, others may aspire to earn more. A six-figure salary is an annual income in the range of $100,000 to $999,999. If you want to achieve a six-figure salary, it will take hard work and dedication. But if you are willing to put in the effort, it is possible to achieve your goal.
Achieving a six-figure salary is no small feat. In order to earn such a high income, you will need to develop a skill set that is in high demand. This could involve becoming an expert in a particular field, getting an advanced college degree, or developing a rare skill that few other people possess.
If you’re currently earning a 5-figure salary and want to achieve a 6-figure salary you will need to consider if your current job will allow for this or if you’ll need to re-train and change your career path to make it a reality. Either way, you’ll need to work on improving your skills and networking to climb the corporate ladder and make the jump to a six-figure salary.
Once you have developed your skills, it will be important to market yourself effectively. Networking and building relationships with key decision-makers can help you get your foot in the door at top organizations. Additionally, you will need to be able to negotiate skillfully in order to earn the high salary that you are aiming for.
Once you have landed a position, it will be crucial to work hard and deliver results that exceed expectations. By following these steps, you can put yourself on the path to earning a 6-figure income and achieving financial independence sooner.
What Jobs Earn A Six-Figure Salary?
There are a number of jobs that earn a six-figure salary. Here are some examples of six-figure jobs:
- Cardiologists – $353,970
- Chief Executive Officers – $213,020
- Airline Pilots – $198,190
- Financial Managers – $153,460
- Astronomers – $139,410
- Software Developers and Software Engineers – $120,990
- Professional Athletes – $116,410
- Veterinarians – $109,920
- Data Scientists – $108,660
- Investment Banker – $103,020
How To Earn Six Figures Without Changing Jobs
If you’re looking to earn a six-figure income without changing jobs, there are a few things you can do to make it happen. Developing new skills and marketing yourself effectively are key. If your current job doesn’t have the potential to earn a 6-figure annual salary, picking up a side hustle or starting your own business can be the best way to help you reach your goal. Having multiple income streams is an effective way to increase your income and get closer to earning six figures.
If picking up a side hustle or starting your own business sounds like something you would be interested in, we recommend you check out the following posts for some great ideas, tips, and tricks:
- 101 Side Jobs For Single Moms To Make Extra Money (2022)
- How To Make Money Sewing
- How To Start A Microgreens Business
- How To Start An Errand Running Business: A Quick Guide
- 6 Easy Online Side Hustles You Can Start Today
Side hustles and entrepreneurship are not for everyone, so another option is to ask for a raise or promotion at your current job. By demonstrating your value to your employer and negotiating skillfully, you may be able to earn the salary you deserve without changing jobs.
Whatever route you decide to take, with a little hard work and dedication, you can achieve your goal of earning six figures without changing jobs.
A five-figure salary is a good income that can provide a comfortable lifestyle for many people. If you earn a 5-figure income, you can make your money stretch further by following some simple tips, such as following a budget, cooking at home, eating out less often, and avoiding unnecessary purchases and lifestyle creep.
For those that aspire to earn more, it is possible to achieve a six-figure salary. This will require developing skills that are in high demand and marketing yourself effectively. Whatever you decide, remember that with dedication and hard work, you can achieve your financial goals and find your way to financial freedom.