There’s no one right way to define 7 figure, as it can mean different things depending on who you ask and what they’re comparing it to. In general, however, the most common meaning of 7 figure refers to an annual income that reaches or exceeds $1 million USD per year. For example, if your annual salary was $2 million USD, that would be considered 6 figures; $3 million USD would be 5 figures, and $4 million USD would be 4 figures. You get the picture!
7 figure explained
A million dollars in annual income qualifies as a seven-figure salary. You’re still just scraping by at that level if you want to live in certain parts of major cities. However, it may be difficult to keep your sanity once your six-figure salary becomes a seven-figure one. Your lifestyle will increase exponentially, and so will the pressure. You can easily lose sight of what matters most—making sure you enjoy what you do.
Once your salary reaches seven digits, being an entrepreneur can seem less risky than having a regular job with traditional benefits. It’s not uncommon for people who have reached these levels to reevaluate their career choices and consider leaving corporate America behind. If you decide to take such a leap, know that money isn’t everything—it’s important to have other things in life (family, friends).
7 figure meaning
In short, a seven-figure salary refers to an income of $1 million or more. But what does that look like in real life? It’s not a pretty picture: It would mean earning $83,000 per month or $1,409 per hour. While hitting that mark may be a lofty goal for most Americans, it is possible for professionals in certain industries and top managers at large companies. To get there, you must have skills and expertise that are highly sought after by employers.
For example, doctors can earn up to $973 per hour—that’s more than double what teachers make on average—and lawyers can bring home up to $659 per hour. But even if you don’t work in one of these high-paying fields, you can still earn a six-figure salary with hard work and dedication. A college degree certainly helps—nearly half (48%) of workers with graduate degrees made over $100K last year—but it isn’t necessary if your industry offers high salaries. For example, computer programmers made over $108K on average last year while working only 35 hours a week.
Are you a 7 figure earner?
This question requires a little math. The median household income in America was approximately $53,718 in 2013 (according to Census Bureau). In order to make $1,000,000 in a year, you would need to generate $20,833.33 per month. To be considered an average earner, you would need to make 2.5 times that amount or roughly $125k annually. If you are making more than that and are looking for ways to grow your wealth, then perhaps it’s time to start thinking about what it takes to become a seven-figure earner.
Is your salary more than 1 million dollars?
To answer that question, we’ll first need to make a distinction between annual income and total earnings. If your salary exceeds $1 million per year, but you have a negative net worth (meaning you’re in debt), you can’t be considered a millionaire. However, if your net worth is high enough to cover all debts and earn more than $1 million annually, you can be classified as a millionaire.
The higher your earnings, the higher your net worth will become. You don’t even have to earn $1 million each year—you just need an annual income of at least $1 million. For example, let’s say you start off with zero dollars in savings and no investments or retirement funds. Over time, through smart investing and saving habits, you manage to save up to $100,000.
That’s a great start! But what happens when market volatility hits? You might lose half of it! In order for someone who started with nothing to reach the seven-figure status, they would likely need at least 10 years of saving experience behind them so they could weather downturns like these without losing their hard-earned money.
The best 7 figure jobs
Starting at a salary of $100,000, these jobs are among some of the top-paying positions in America. The typical annual income for these professions tops $200,000 and can reach up to around $749,999.
People in these fields often go on to become millionaires if they hold onto their jobs for many years. They may have to work long hours with little time off, but it’s worth it when you consider how much money they make.
Most common 7 figure salaries in different countries
When you earn a salary of seven figures per year, you’re in one of two camps: Either you are an executive of a big company that pays well or works in an industry where it’s common to make big bucks.
The following lists explore the most common salaries in several professions and industries, with a minimum annual seven-figure wage associated with them. When negotiating your next pay raise or promotion, you can use these as guides.
7 figure goals – why aim for 7 figures and not 6 or 8?
It’s a fact that nearly anyone can become a millionaire, provided you have patience and are willing to work hard. Everyone who earns seven figures has to work hard to get there; it doesn’t come overnight. Once you have $1 million in assets, you can live off of that money for about 20 years before your assets begin to dwindle. At some point in time, you will need income from another source if you want to continue living your lavish lifestyle. The next step up from being a millionaire is making $7 figure.
There isn’t much difference between making 6 or 8 figures compared to 7, but what makes seven figures so special? For starters, most people never even reach six figures, let alone eight figures. Many people stop at five figures because they don’t think they can make more than that or they lose interest after reaching their goal of becoming financially independent.