We're not here to tell you how to make six figures overnight—and anybody who says they did anything "overnight" is...lying.
Six figures. It’s a shiny financial goal many of us are taught is desirable from a young age.
To some, it means the financial pinnacle of success. A six-figure number might help you afford a lifestyle that seems out of reach when you’re not making this number.
But…(like everything), we think it’s not quite that simple.
Research from the University of Pennsylvania’s Wharton School shows that earning more money can increase your overall feelings of contentment. Higher salaries can correlate with increased autonomy over your life.
A bigger salary can provide a sense of security so that an unexpected medical bill, for example, wouldn’t derail your budget or savings. It would perhaps allow you to afford more of the “unnecessary” extras you enjoy.
It’s important to note, however, that money—especially a six-figure salary—isn’t the only factor that increases contentment. In fact, most people find more contentment in a job that they find meaningful or one that has a company culture that fits their personality.
All of that to say: salary certainly isn’t everything. Your job is not your be-all-end-all path to happiness. If your goal is simply to make six figures for the sake of making six figures, more power to you! But we encourage you to find a role that you genuinely like (or like enough) in order to make it happen.
If six figures and a job you enjoy is your goal, we’re outlining some practical ways to actually get there. Full disclosure: it may take some time.
But first, what exactly is a six-figure salary?
What Is a Six-Figure Salary?
A six-figure salary is one that (literally) contains six figures, or six digits, in the number, so a salary between $100,000 and $999,999. As you can see, it’s a big range from the low six-figures to the high six-figures.
To get this out of the way, we’ll start with a little “rain” on the six-figure parade. There are many factors to consider when you daydream about the “perfect” six-figure lifestyle.
First of all, it's pretty hard to make six figures.
The median household income in 2020, according to the United States 2020 Census Report, was $67,521. This means that while a six-figure income doesn’t always afford the same kind of lifestyle that it did in the 1950s and 1960s, the average household income is still well below the six-figure mark.
As much as we wish it were the case, becoming wealthy from starting a YouTube channel, training to become a professional athlete, or becoming a big-time actor or blogger may not be in the cards for a lot of us.
Secondly, an increasing net worth can cause what's known as "lifestyle creep."
This is a phenomenon that means you start to spend more as you make more. While this doesn't necessarily sound bad, it means that even when earning more, "it's possible to be swept into living from paycheck to paycheck," as this piece from Clever Girl Finance explains. Of course, this would take away some of the freedom that earning six figures could provide.
You’ll want to be mindful of what you’re bringing in and what you’re spending at any income level, and consider the external factors that come into play.
What Are Taxes on a Six-Figure Salary?
It’s worth considering that your tax bracket might change when you begin to earn six figures.
A higher income generally means a bit of a higher tax bracket. Just ask the billionaires that like to complain about it all the time.
That said, that all depends on personal factors like your tax filing status and your state's tax rates.
With taxes in mind, your take-home pay is the number that's worth using when you're planning. When you’re creating a financial plan and saving or budgeting, you’ll want to figure your monthly income (after taxes have been deducted).
You may find you want your salary to be higher (and can negotiate for that when the time is right) once you see your post-tax income. This way, you’ll have a truer sense of what you’re living on—and the kind of lifestyle you can actually afford.
What Is Your Cost of Living?
Where you live has the potential to affect your income exponentially. If you make a six-figure salary somewhere like New York City or San Francisco, for example, it’s simply not going to go as far as it would if you lived somewhere like small-town North Carolina.
You might, for example, be able to afford a studio apartment in New York with this salary or a 4,000-square-foot home in a small town. Why? A higher cost of living means that rent and mortgage payments are higher. Groceries are likely more expensive. Child care is probably a major cost...the list goes on.
You Might Also Like: Can You Ask for a Cost of Living Raise?
A lower cost of living affects how far your dollar goes. We’re certainly not saying to pack up and move to small-town America if you thrive in the big city lights, but take note to factor in where you live when you’re setting income goals. A six-figure salary means more in some places than others.
What's Your Debt Situation?
The other not-so-fun item to consider here is your debt. If you have student loan debt, medical debt, standard credit card debt, or a high car payment, you’ll want to factor in what these payments mean for your six-figure income.
Most financial experts say to work toward paying off debt and save for the future before you splurge too much on the “unnecessary” items you may be tempted by when you first see that higher paycheck.
Earning more money can help you pay off debt faster, which is great. In fact, if you’re deliberate about a debt payment plan and continue to earn more money, you can get more autonomy over the situation and ultimately become debt-free. Our advice: be mindful.
If you have troublesome spending habits, consider starting a money diary to identify when, why, and how you spend your money.
Bonus: Here's more actionable advice for paying down debt—and for managing the stress that debt can cause.
Six-Figure Salary Jobs
If you want to earn a six-figure salary, you’ll want to find a job that has the potential to pay six figures.
Here are some of the roles that the Bureau of Labor Statistics notes were average earners of over $100,000 in 2020. Of course, these jobs pay different salaries based on location, experience level, and more. This list is by no means inclusive of all the options out there.
- Anesthesiologists
- CEOs
- Computer hardware engineers and computer network architects
- Dentists
- Electrical engineers
- Family medicine physicians
- Financial managers
- Lawyers
- Surgeons
You’ll see that many of these roles are specialized positions, but not all of them require years of school and tons of student debt. The below jobs often pay six figures but require less specialization than some of the traditional six-figure roles.
- Advertising and promotions managers
- Air traffic controllers
- Chemical engineers
- Commercial pilots
- HR managers
- Marketing managers
- Medical and health services managers
- Sales engineers
- Sales managers
- Software developers
- Training and development managers
If you’re curious, here’s the Bureau of Labor Statistics's list of highest-paying occupations. Note that the salaries listed here show the median pay in 2020. This might mean that in your area or in your industry, this number varies.
7 Crucial Skills to Help You Earn a Six-Figure Salary
Now, if you’ve got your eye on those six figures, here are our actionable tips to make it happen. These areas of focus will help you maximize your earning potential throughout your career—whether or not you hit the "six-figure" mark.
1. Career Research
Of course, you’ll want to start armed with knowledge. You’d likely be spinning your wheels if you hope to earn six figures in a role that caps out at $75,000. To that end, take some time to do thorough salary research and note some roles and industries that interest you that have a six-figure pay grade.
When you go to research, we recommend starting with The Salary Project, our anonymous database that allows you to see what other people across the country earn in certain roles. It has over 60,000 salaries that real people have submitted, so it’s a valuable resource for your planning.
We also like the salary tools on Glassdoor, Payscale, and Indeed that let you view what people in your field generally make.
A caveat: When researching, remember that in many roles, your starting salary will (most likely) not begin in the six-figure range. Rather, it’s a monetary goal that you’ll work toward as you continue to gain invaluable experience and expertise in your field.
2. Perseverance
To that end, our next piece of advice is to realize that ultimately earning six figures may take some time. It could take a pretty long time, actually.
Even doctors, many of whom ultimately end up making six-figure salaries, spend years in school and in training to finally achieve that sought-after income.
All of that said, it’s important to like what you’re doing.
If achieving your desired salary will take a while, you want to enjoy your work. Here’s where that survey on meaningfulness we cited above comes into play. If your work aligns with your interests, the grinding and working hard to reach your goals won’t feel so draining.
Again, you don’t have to find a job that feels like a “dream job.” We’re advocates of the “good-enough job,” which allows you to have some autonomy, work in a field or in a role you enjoy, and enjoy the lifestyle you want.
3. Negotiation
This header might be slightly misleading since we recommend more salary research here. But we’re recommending this research so that you can use it to your advantage when you’re negotiating your own salary.
Here’s why. As you progress throughout your career, you need to know your general “market worth” so that you know how much money you should negotiate for as you accept promotions, earn raises, or change jobs.
If you don’t know how much others in your industry and position earn, you’ll go into a negotiation unaware (and may unwittingly settle for less than you’d need to).
Every time you talk about salary, there’s room for negotiation. We’re not saying to ask for $100,000 when the salary range on the job posting was $75,000.
Rather, be prepared to counter their initial offer with a salary in the same ballpark range you noticed on the job posting. The whole negotiation song and dance means you’ll likely meet somewhere in the middle.
Plus, the worst they can say is “no.”
Pro Tip: Here’s a step-by-step guide for how to handle salary negotiation, from job offer to signing on the dotted line.
4-5. Career Planning + Goal Setting
We’re all for career transitions and winding career paths. We think that goal-setting is so helpful in these situations, especially if you’re facing what feels like the great unknown.
Goal-setting is also important when you are on a relatively straightforward career path.
If you plan to stay in your position or company, you may consider how goal-setting can benefit you financially. If a six-figure salary is your goal, set short-term and long-term goals that will guide you as you work up the ladder in a way that feels true to your interests and desires.
This ties into the perseverance section above—you may need to take things one piece at a time before you hit that financial goal of six figures. This might look like a plan for how to pay down debt so that you can keep more of what you earn.
It might look like a plan for your career trajectory—when you hope to get a promotion, what roles you hope to take on after your current one, or other ways that you might be able to earn more in your current role or in the future. It might look like working with a financial advisor to set up an investment portfolio and increase your savings.
Starting with an end in mind is great. But it also helps to have concrete steps for how to get there.
6. Skill-Building
Most of the six-figure jobs out there require a college degree. Not all of them require a degree, but many do. This means that investing in your education is likely to pay off in the long run.
That said, many higher-paying jobs utilize specialized skills, so establishing a pattern of professional development as you advance through your career is another helpful step on the way to a higher salary.
If it's not in the cards for you to go back to school to earn a bachelor's degree in a specific subject after the fact or to take on student debt, there are other (often very affordable) ways to invest in your professional skills. Many of these options can be taken on your own time via online classes, and many employers offer a stipend for this type of continuing education (ask HR if yours does).
Let's say you're in marketing but you've gotten a bit stagnant in your current role. If you feel you lack some of the skills needed to earn a promotion, consider taking marketing-centric classes like HubSpot's marketing course or any of Google's digital marketing classes (some of which are free).
Learning all you can about your role and your industry is a clear way to help climb up the salary ladder, especially when so many classes are available at the press of a button. Not to mention, it demonstrates you taking the initiative and seeming eager to learn. A win-win for all involved.
Curious about where to start? We have a list of 75+ online continuing education courses with various topics.
7. Networking
Hear us out. Networking may not directly impact your ability to earn a 6-figure salary or make you the next Bill Gates or Kylie Jenner. But establishing a good network can’t hurt.
For starters, building relationships means you’ll have a bigger network when searching for a new (potentially higher-paying) role. It works the other way too: networking allows you to help others through your experience in a mentor-like capacity.
It’s also key to network within your organization. It can show that you’re a team player or a go-to employee known for problem-solving. It can help you create a reputation for having a strong work ethic, which managers would surely keep in mind during promotion times (or when writing a reference).
All of this relies on a strong network. Here’s how to get to it (even if you’re introverted or working from home). Who knows? Maybe all that networking will result in some friends you can take out for a toast when you start making those six figures.
