You may have heard the terms 6-figures, 7-figures, or even 8-figures being talked about and wonder exactly what they mean. You would most likely have heard these in the context of money.
I spend a lot of time with entrepreneurs and other people in finance. In these spaces, it’s very common to hear people talking about a 6-figure salary or a 7 figure exit. Let’s take a look at what this phrase means.
Quick Overview
6, 7, and 8 figures usually refer to an amount of money based on how many digits the number has. For example, £100,000 has 6 digits and would be referred to as 6 figures. £1,000,000 would be referred to as 7 figures and £10,000,000 would be referred to as 8-figures.
What Does 6 Figures Mean?
6 Figures refers to an amount of money between £100,000 and £999,999. This is because there are 6 digits (Figures) in the number. You will hear 6 figures talked about in the context of business or salaries.
You may hear someone talking about how they landed a 6 figure job. This would mean that they have a salary of over £100,000 but lower than £1 Million.
Let’s take a look at some jobs that pay a 6-figure salary.
What Jobs Pay A 6-Figure Salary?
Below are a few examples of jobs in the UK that pay a 6-figure salary. This is by no means an exhaustive list but these are a few of the most popular jobs paying 6-figures.
- Tax Partner: A professional in an accounting or law firm who is responsible for tax planning and compliance. They oversee tax-related services provided to clients and often have a share in the firm’s profits.
- Regional Vice-President: An executive who manages operations, sales, and business development within a specific region. They set regional goals, ensure profit margins are met, and often report to a higher-ranking VP or CEO.
- Chief Financial Officer (CFO): A senior executive responsible for managing the financial actions of a company. The CFO’s duties include financial planning, risk management, and financial reporting.
- Vice-President in Financial Services: Senior management role in banks or financial institutions. Responsibilities include strategic planning, overseeing departments, and ensuring compliance with regulations.
- Legal Sector Professional: High-ranking roles in this sector could include barristers, solicitors, or partners in law firms. They provide legal advice, represent clients, and may specialize in particular areas of law.
- Engineering Manager: Oversees teams of engineers, plans and coordinates projects, and ensures that projects meet technical requirements.
- IT Director/Manager: Responsible for overseeing the information technology strategy for an organization, including computer systems, software development, and network security.
What Does 7 Figures Mean?
7 Figures refers to an amount of money between £1,000,000 and £9,999,999. This is because there are 7 digits (Figures) in the number. Generally, you will hear people talking about 7 figures in the context of business.
You may hear someone talk about how they landed a 7-figure contract or did 7 figures in sales. On very rare occasions you may even hear about someone talking about a 7-figure salary.
While it’s extremely rare, there are certain careers that pay salaries in the 7-figure range. Let’s take a look.
What Jobs Pay A 7-Figure Salary?
Below are a few of the ways you can reach a 7-figure salary in the UK.
- CEO (Chief Executive Officer): The highest-ranking executive in a company. They make major corporate decisions, manage resources, and are the primary point of communication between the board of directors and corporate operations.
- Private Equity Executives: Individuals involved in making investments directly into private companies or conducting buyouts of public companies that result in delisting. These roles often involve complex financial structuring and deal-making.
- Hedge Fund Managers: They manage and oversee the operations of a hedge fund. Their primary role is to make investment decisions to generate high returns for their investors.
- Top Sports Professionals: Elite athletes, particularly in popular sports like football, might command salaries, bonuses, and endorsements that push their total earnings into the seven-figure range.
- Entertainment Industry Moguls: Includes film stars, top music artists, and entertainment executives. They earn from movies, tours, endorsements, and royalties.
- High-End Real Estate Developers: Those who handle large, luxury developments in prime locations might see profits that lead to seven-figure incomes.
- Tech Entrepreneurs & Startup Founders: While the average salary might not be seven figures, the potential returns from selling a successful startup or shares in a growing tech company can result in multi-million-pound paydays.
Landing a position that pays 7 figures per year is pretty hard. However, it’s much easier to become a millionaire over a long period of time. Either through selling a company or investing in the stock market.
You may be interested in reading our guide to becoming a millionaire in the UK or our beginners’ guide to investing.
What Does 8 Figures Mean?
8 Figures refers to an amount of money over £10 million but less than £100 million. This is because there are 8 digits (Figures) in the number. Generally, you will hear people talking about 8 figures in the context of business.
You may hear someone say they sold their business for 8-figures or reached 8-figures in sales. You may also hear about it in relation to investing where someone has an 8-figure investment portfolio.
Let’s take a look at what it takes to reach an 8-figure net worth.
How To Reach An 8 Figure Net Worth
Reaching 8 figures in net worth is no easy feat. It’s unlikely that you would reach this level of wealth simply by working and saving unless you had an extremely high-paying salary or business.
Most people in this category will either have invested their way to an 8-figure net worth or sold their company and received an 8-figure payment for it. This is how most non-celebrities reach these extreme levels of wealth.
You also have the celebrity side of things where 8-figure salaries and contracts are much more popular. Footballers, music artists, YouTubers and film stars can earn 8-figures a year through their salaries, endorsements and business ventures.
Are There Any Jobs That Pay 8 Figures?
Earning an eight-figure salary (£10,000,000 and above) is exceptionally rare and typically comes from a combination of salary, stock options, bonuses, endorsements, and other forms of compensation. Most individuals who earn this amount tend to have significant influence in their respective industries or possess unique talents. Here are some roles and scenarios where individuals might command an eight-figure income:
- Global CEOs of Major Multinationals: CEOs of major global companies, especially those in the tech, finance, and pharmaceutical sectors, can receive compensation packages that, when including stock options and bonuses, reach into the eight figures.
- Founders Selling Their Startups: Tech entrepreneurs who sell their companies for billions might earn eight or even nine figures from the sale, especially if they retained a significant ownership stake.
- Top Hedge Fund Managers: The most successful hedge fund managers, particularly those who own or are partners in their funds, can earn substantial returns when their funds perform well.
- A-list Hollywood Actors/Actresses: On top of their movie salaries, they might earn significantly from endorsements, profit shares from blockbuster movies, and other ventures.
- Elite Professional Athletes: Athletes like top footballers, basketball players, or boxers might command eight-figure earnings when combining their salaries, endorsements, and other commercial deals.
- Successful Music Artists: Through a combination of album sales, touring, merchandise, and endorsements, the world’s top music artists can achieve eight-figure earnings.
- Real Estate Tycoons: Those who own or develop high-value properties or significant real estate portfolios in prime locations might see profits that push their income into the eight-figure range.
- Investors & Venture Capitalists: Individuals who make early investments in successful startups or have a series of successful exits can accumulate significant wealth, especially if one of their portfolio companies becomes a major success.
It’s worth noting that individuals in these categories often derive their eight-figure earnings from a blend of their base salary, bonuses, equity in companies, dividends, and other forms of compensation. Many of them also take on significant risks and responsibilities.
Final Thoughts
Now you know what someone means when they talk about 6,7 or 8 figures. If you’re outside the business or investing world it’s pretty understandable that you may not have heard these terms before.
Now you know exactly what these terms mean and how you can potentially start working your way towards one of these numbers. If you want to learn how to reach your first 6 figures invested, check out my free 7-day personal finance crash course.
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