With your education, skills, or qualifications, you feel you’re worth the keeps, whether working for the government, privately, or with some establishment.
Figures are always part of the equation because no one truly works for free. How about a 5-figure salary paid to you over a year? While that sounds great, what is a 5-figure salary?
This article explores the meaning behind the figure and considers the fractures that help you achieve it. Also, it covers some jobs where you can earn this figure and enables you to understand whether it’s a salary worth making in your career.
A 5-figure salary ranges between ten and one hundred thousand dollars. Some people confuse a 5-figure income with a 5-figure salary.
However, they differ because an income often includes other components, such as bonuses. That means there’s no additional earning to your salary while incomes have other financial benefits within the year, potentially increasing your income to six figures.
Making a 5-figure salary takes some serious positions that pay well. Some managers, consultants, and healthcare workers often earn this amount thanks to the importance of their roles. Generally, you’ll need top-level career options and opportunities to make a high 5-figure sum.
Factors Affecting Your Chances of Earning 5 Figures
1. Industry or Sector
There are some sectors or industries that command 5-figure salaries. When evaluating an offer, consider the industry and its associated salary range. Also, consider whether it allows you to grow higher in figures and your career.
Often, a good salary may be scratching the bottom barrel in another. For example, healthcare jobs command a higher salary than many administrative roles. However, your qualifications will play some role in determining if the salary is fair.
Consider other factors attached to the industry, such as job satisfaction and career advancement.
2. Your Location
More than the location, where you work matters. Finding many 5-figure salary earners in New York is more straightforward than in areas like Wyoming and Alabama. Your location could provide a comfortable lifestyle against the standard of living or be Insufficient to cover basic living costs.
Even if you earn five figures, cities like New York and Washington are high-cost cities you might struggle in. But these cities have industries like tech, financial, and more that make it likely to earn five figures. Your location should be the next most important thing to consider to earn five figures.
3. Your Professional Experience
How much value are you bringing to your employer? It’s essential to consider your professional experience. Most times that covers your qualifications, certifications, and the years you’ve provided such service. However, some career lines start paying recent graduates five figures immediately.
More than five years of professional experience will certainly command more earnings because your salary must match your skills and experience. That said, consider your career advancement and the financial benefits of each level. In some cases, you have to negotiate your way to higher 5-figure sums or six figures
4. The Size of the Company
Your workplace or company size can determine whether you earn five figures. Some companies are large and established, which means they have a larger workforce than small businesses.
Further, large companies often pay higher salaries, including five figures. But it’s not always about the company’s size. Many startups offer good salaries and benefits packages, so don’t let a company’s size influence your expectations.
With good qualifications and experience, you can still get a five-figure salary, regardless of the company’s size.
Is a 5-figure Salary Good Income?
Yes, a 5-figure salary is a good one. Often, reaching this mark is the first step to financial success, especially if you earn upper 5-figure sums, ranging from $50,000 to $99,999.
That means specializing in a particular field of expertise, developing your skills, and having enough room to grow in your chosen career.
Further, combining education and experience increases your capacity to earn a higher five-figure salary. Generally, education provides the necessary foundations because many graduates will start earning five figures immediately after school. Some healthcare professionals often start with six figures.
Tips to Increase Your Income
Whether your job provides a 5-figure income or less, you can always find ways to improve your financial circumstances. The following ideas will help.
1. Improve Your Skills With Technical Training
Degrees and diplomas present various opportunities, helping you land essential jobs that pay five figures. However, you can earn such figures or more without a bachelor’s degree.
You can get technical on-the-job training if you cannot get a formal degree or enter college after high school. It all depends on your interest and where your skills lean. Additionally, many online courses can help you further your education.
2. Start A Side Hustle
Starting a side hustle or business is an excellent idea and provides additional income streams. In most cases, such companies come from your interests or hobbies. Depending on how good you are, you can turn your skills or hobbies into a lucrative business.
Some side hustles need more determination than capital, so start with some investment to evaluate your chances of running a profitable business.
3. Work Remotely
The rise in technology and other advancements has enabled individuals to work remotely. Also, there are many opportunities online that fit your skills and experience.
You can make money and boost your income by working from home. For example, writers, transcribers, coders, graphic designers, and much more work remotely.
There’s so much opportunity online. You usually only need a computer, a strong internet connection, and pointers to sites where your skills fit.
What is 5 Figure Salary?
If you earn a 5-figure salary, your annual earnings range between $10,000 to $99,999, placing you in the estimated median household income in the United States. Many individual income levels are five figures earned over one year.
5-figures is a good salary, especially if you have the proper work and life balance. Also, it helps if you work in an in-demand industry and live in a state where the standard of living is reasonable. Whatever the case, growth is essential, especially if you can earn your way to six figures via promotions or by adding more skills.
Now that you know this, you can measure your salary to check if you earn five figures. You can make that sum by running a business, working for a company, or the government.
Sam is a brilliant young Nigerian biochemistry student and an aspiring entrepreneur. Despite facing many challenges, he has never lost his passion for learning and drive to make a difference in the world. Read more about him here.