A lot of people want to know what the exact definition of "6 Figure Income" is. And also if there's any way that you can earn more than $70000 per year (or even more) easily without doing anything crazy like investing millions into your business. Well let me share with you my knowledge on these topics.
First off all, what exactly is a 6 figure income? A six-figure income is defined as an annual income of at least $72000. Or it could be said that someone who earns a six-figure income has earned enough annually to buy themselves 2 new cars every 12 months! In other words, they are earning about $72k/year.
But why do we need to have such high amount? The reason behind having a 6 figure income is for those who wish to live better life style by buying bigger houses, owning nicer clothes, taking nice vacations, etc... Basically, they will most likely spend most part of their time focusing on material things instead of working towards building wealth. This type of lifestyle may not last long because sooner or later when you'll start seeing results from your efforts, you won't stick around anymore. You might end up quitting your job and trying something else.
Well, a seven-figure income means that someone earns more than $78000 per year which is almost twice the number of $36k required to call yourself a six-figure earner. If you're still wondering where did this number come from, well here's some information regarding the history of 7 figure incomes: According to Wikipedia, Bill Gates was once estimated to be worth somewhere between $100 billion dollars to $300 billion dollars back in 2001. Nowadays, he probably makes close to $80 million per quarter so his net worth now is somewhere around $2 trillion. But just imagine if you had made half of Bill Gates' fortune ($1trillion)? That would put you in the category of being a true millionaire many times over.
It simply refers to anyone who earns $78k+ per year through self employment. So no matter whether you work fulltime or part-time, if you consider yourself a successful person then you must have been making at least 7 figures throughout 2010. There are people out there making thousands upon thousands of dollars each month but don't count them as rich since they are either too lazy to invest wisely or they are spending their earnings on useless stuffs rather than putting them towards their future goals.
The truth is that nobody knows for sure how much someone should earn to become a 7 figure earner until that particular person becomes one. However, based on statistics, it seems that the average household income needed for living comfortably in the United States is anywhere between $75000 to $175000 depending on where you live. As far as personal expenses go, everyone needs to factor in housing costs, insurance, food, transportation, entertainment, clothing, education, savings, retirement funds, taxes, etc..
If you add everything together after factoring in all the necessary expenses, then you'll see that it takes about 90% of your monthly take home pay before taxes to survive comfortably in America for 1 year.
An eight-figure income is considered to be above $96k while a nine-figure income is above $120k per annum. These numbers are really hard to achieve because only very few individuals ever manage to pull this kind of cash flow in their bank accounts on a consistent basis. Most millionaires today started out with less than $10k in their pockets. It shouldn't surprise us though considering that according to Forbes magazine, 80 percent of all billionaires were born poor. Also, another interesting statistic showed that 60% of all billionaires became wealthy during adulthood whereas 40% inherited their riches.
In general, becoming a millionaire requires quite a bit of luck plus persistence, dedication and drive. Some people say that success comes down to following a path paved with good intentions while others think that success happens naturally. Either way, the bottom line is that if you've got the right mindset along with strong determination and passion, then you'd eventually reach your goal of achieving financial freedom.
To give you an idea of how quickly you can grow your networth to 8 figures, Warren Buffet grew Berkshire Hathaway stock from zero to approximately $65 Billion Dollars within 36 years. Simply amazing isn't it??
There are plenty of ways to create extra cash flowing streams but the key is to find the method that works best for you. Here are some simple steps to follow if you want to increase your chances of creating a 7 figure income in 2011:
Create multiple sources of passive income. Donate blood plasma, sell your car and rent out rooms in your house to name a few examples. Passive income can be created mostly online by selling digital products via websites like ClickBank.com and PayDotCom.
Earn online commissions from affiliate marketing programs. Affiliate Marketing involves promoting other peoples' products and services on the internet. All you'll need to do is help other people promote their product/service using links provided by affiliates. Once potential customers click on your referral link, you receive commission payment directly from the merchant. Many companies offer free training materials to teach you how to market their products effectively. One great example is Amazon Associates Program.
Start blogging. Blogging is basically writing short articles related to your niche and posting them consistently on sites like WordPress.org. Your blog content is automatically published to search engines giving you exposure to hundreds of readers interested in what you write about. Just remember to include relevant keywords in your article titles and tags so that people searching for your targeted audience can locate your site. If done correctly, your blog posts will rank highly among Google searches. Build relationships by interacting regularly with visitors to your site. Be honest, authentic and helpful. You never know who will stumble onto your website someday and check out your content.
Sell physical items. eBay, Craigslist and yard sales are popular methods used by ordinary folks to sell unwanted goods or collect old coins, stamps or antiques. You can also use garage sale ads to advertise your wares locally. Make sure to learn how to price your item properly to avoid losing money due to buyers looking for cheap deals.
Offer paid advertising space on your web pages. Paid advertisements allow businesses to place logos, banners, text links and images on your webpage. For instance, you can display banner ads on your website or newsletter subscription forms asking users to opt-in to receive emails from you. Advertisers usually set their own daily budget and pay accordingly whenever clicks happen. If you run a large website, you could afford hiring an ad agency to handle this aspect of your business for you.
Create a membership club. Membership clubs involve charging fees to memberships with different levels ranging from entry level to premium access. Examples include gym memberships, golfing clubs, wine of cheese clubs, etc... Memberships tend to generate recurring revenue stream for both parties involved. They are particularly useful for larger organizations offering ongoing support to its clients.
Generate leads for your primary business. Leads refer to prospective customer contacts generated by word of mouth publicity, direct mailings, telemarketing campaigns, trade shows, social media marketing, TV commercials, radio spots, newsletters, flyers, newspapers, magazines, billboards, newspaper classified ads, community outreach events, seminars and conferences, etc.... Good quality leads will result in higher conversion rates for your main business thus increasing profits.
Join network marketing opportunities. Network marketing opportunities sometimes referred to as MLM or multilevel marketing plans are ideal for generating additional income streams. They typically require minimal capital investment and the opportunity seeker gets compensated for recruiting other distributors to join him/her in her venture. Multi-level marketing plans often consist of 3 components:
Products or Services
Many experts and entrepreneurs claim that joining a network marketing plan is the fastest way to build a huge nest egg over time. Unfortunately, the vast majority fails miserably at building their dream team. What separates winners from losers in terms of multi-level marketing is the ability to recruit qualified partners faster than competitors. Therefore, it would behoove you to seek advice from mentors and coaches experienced in growing massive teams.
One proven strategy that top earners use to build their networks is by attending networking meetings organized by professional groups like Rotary Clubs, Chambers of Commerce, Chamber Business Groups, National Association of Realtors, American Express, Kiwanis Club, Lions Club, Jaycees, Elks Club, VFW, Boy Scouts, Girl Scouts, Masons, Shriners, Moose, Eagles, Optimists International, Knights Templar, Odd Fellows, Veterans of Foreign Wars, Woodworkers, Artisans, Teachers Associations, Professional Organizations, Church Groups, Senior Citizen Groups, Trade Associations, Sports Teams and Colleges.
These associations provide excellent connections with fellow professionals and business owners willing to exchange ideas and tips. Another advantage of getting involved with local communities is that leaders will frequently sponsor special gatherings designed exclusively for associates wishing to meet influential role models. Such opportunities can significantly boost prospects of earning big bucks.
If you're reading this article then it's likely that you've been looking for ways to make more money online. After all, there are only so many hours in the day, right? That means if you want to earn enough cash to live off of, earning $10k per month will not be sufficient. You'll need at least $50k per year (or whatever your country uses as its measure of wealth). And even though some people might think they can't possibly earn that kind of money, we have found several ways for anyone to become wealthy with just a few simple steps.
You may be wondering what exactly a "9-figure" earner looks like. This isn't really something that most people would consider themselves -- after all, who wants to be part of the top 1% of earners? But don't worry! We know everything about them...
In order to understand what a 9-figure earner looks like, let's first talk about what makes up a typical person's annual earnings. The average American earns around $43k per annum ($33k from wages alone), but according to data collected by Forbes, the wealthiest Americans earned approximately $1 million dollars last year. So, where did these ultra wealthy people come from? In short, they came from investments, inheritances, and other sources of passive revenue.
But what do we call someone who earns over $100k per annum? A millionaire? Not quite. According to Wikipedia, the term actually refers to someone who has amassed a net worth of $5m or more. As such, we should use the phrase "high-net-worth individual," which describes someone whose assets exceed his/her liabilities by at least five times.
Now here's the good news: high-net-worth individuals tend to be extremely rare. There were only 2,000 HNWIs in America in 2013, out of a population of almost 320 million citizens. However, thanks to technology, anyone could potentially join this elite club. All you'd need to do is follow our tips on becoming rich without quitting your job. Of course, it helps when you already own property or work in tech, but even those aren't necessary requirements.
It doesn't matter whether you're trying to improve your finances or start a new business venture, knowing what constitutes a 10-figure income is important because it shows us how far away we currently are from being financially secure. With the way things stand today, it takes years of hard work to reach this point. It requires either luck or skill, but regardless of which one you choose, you won't go wrong following these basic rules:
The easiest way to increase your earnings significantly is to invest wisely. If you don't believe me, check out this list of investment opportunities guaranteed to double your savings. Once again, however, you can't simply hope that the markets continue to grow forever. Instead, you'll have to take control of your investments yourself, using proven strategies.
Once you've managed to save some extra money, you need to decide what you intend to spend it on. For example, investing it into real estate always seems to be popular among investors, especially people living outside of North America. Why? Because unlike stocks, bonds, commodities, mutual funds, etc., real estate offers better returns than any other asset class available to regular folks. And while it certainly isn't free, real estate also allows you to generate rental income without having to manage anything else.
On the other hand, if you prefer to stay closer to home, you could try opening your own franchise instead—you'd eventually enjoy higher profits while spending less time managing each location. Either way, once you've decided on a strategy, stick with it until you see results. You won't find success overnight, but the rewards will definitely be well worth waiting for.
As you probably guessed, earning $8k per month is equivalent to working full-time for eight months straight. Sounds great, eh? Unfortunately, most people never achieve this level of financial security, largely due to bad planning. Most people end up taking loans to pay for education expenses, credit cards to buy gadgets, and other unnecessary purchases, putting them under huge debt loads that ultimately cause them lots of problems down the road. These issues mostly affect younger generations, and we can't stress enough how critical it is to plan ahead before getting married, starting a family, buying a house, etc.
However, if you're lucky and you happen to fall into this category, congratulations! Now it's time to learn how to create multiple streams of passive income, both from within your current career and beyond. Here are two examples of what we recommend:
First, diversify your retirement accounts. Diversification ensures that no single stock dominates your portfolio, thus preventing potential losses during market crashes. Second, open a self-directed IRA account and start saving towards long-term goals. Unlike 401(k)s, IRAs allow you to withdraw tax-free contributions whenever you wish. Finally, leverage social media platforms to drive traffic back to your blog. By doing this, you could easily turn your passion project into a profitable side gig. Just remember that you shouldn't rely too heavily on social media marketing alone, otherwise you risk losing customers' trust.
Achieving a monthly income of $12k per month is very difficult unless you work overtime every week. Even billionaires typically pull in around six digits annually, and yet it's still considered low-income compared to others. On the upside, it pays to focus on increasing your hourly rate rather than base salaries. Working harder now means greater benefits later on.
And speaking of benefits, here are four reasons why employees should strive to receive excellent health insurance plans. While it sounds easy, most companies offer substandard coverage, leaving workers responsible for paying higher premiums. Don't despair; you can easily maximize your employer's offerings by shopping around for better deals. If nothing changes, look elsewhere. Remember that you deserve quality healthcare, and you can afford it.
We hope you enjoyed learning more about different types of incomes. To recap, here's what we learned:
6 figures = $60k per month
7 figures = $70k per month
8 figures = $80k per month
9 figures = $90k+ per month
Whether you're thinking about starting a business or improving your skillset, here are three suggestions on how to boost income faster:
Join affiliate programs. If you haven't heard, joining affiliate networks gives you the opportunity to sell products directly through links placed on relevant websites. When visitors click on your link, you earn commissions based on how much product they purchase. Affiliates usually earn between 5%-75%, depending on the industry.
Create your own digital products. If you aren't sure where to begin, creating eBooks and courses is a fast way to start generating passive income. Although selling physical copies remains lucrative, you could also opt to sell digital downloads.
Start blogging. Blogging is another fantastic method for monetizing content, although some bloggers claim that writing articles for publication generates more income than running blogs. Regardless, building a successful platform often opens doors for future projects.
If you're reading this article then you are probably looking for ways of increasing your current earnings. If so, I'm sure that one question on top of the list is "what is a nine-figure income?" In order to answer it we first need to understand what it actually means.
The term 'nine-figure' refers to anyone who makes more than $9M per year (which can be broken down into any number of units). It's not just about earning $1 million dollars per year, but rather someone who earns over $9M/year. So let's say you earned $2M last year. That would put you at $7,000 per month which equates to around $841K per annum. Now imagine if you were to earn another $5M next year - that puts you up to $20M per annum. You could now afford to buy an island!
In terms of business, a six-figure annual income is generally understood as being worth between $150k-$250k. This covers all levels of management within a company and includes CEO level positions. A few years ago when these salaries became public knowledge they caused quite a stir amongst those earning below them because it meant that they had reached a point where they didn't have to work anymore. They could simply enjoy life without having to worry about money anymore.
For many people however, there was a lot of confusion surrounding the definition of a six-figure income. One person might think that if they make above $100k per year then they must make a six-figure income whereas others may argue otherwise. The truth is that anyone with an annual gross income over $75k qualifies as a six-figure earner. The reason why some people consider $100k+ earners to also be six-figured is due to the fact that most companies will pay out bonuses based upon performance against profit targets. In other words, a big bonus might add up to $100k+, but the real amount paid out depends on whether the employer has set a target compensation package for the individual employee.
It's important to note that while there are a variety of definitions used by different people, the basic principle remains the same across the board. There's no doubt whatsoever that once you reach a certain threshold after working hard for several years, you deserve to enjoy yourself and take time off from work. However, before you start thinking about retiring early, there are still plenty of things you should do to improve your financial situation. For example, you'll want to increase your savings rate since even though you've been fortunate enough to hit a high annual income, you don't yet have sufficient funds to support your lifestyle for 15 months without employment.
Another thing to keep in mind is that it's possible to earn more than one income stream. Even if you only focus on one source of income such as selling physical products like books and DVDs online, you could potentially earn multiple streams of income by creating passive income through affiliate marketing.
Now that you know what a nine-figure income is, let's look at what it takes to become a member of this elite group. What exactly does it entail? How long does it take? Is it possible for everyone? Let's find out...
Achieving a 9-figure income requires very little effort compared to anything else. We've already established that it doesn't require you to produce millions of pounds of product each day, nor does it involve becoming rich overnight. All you really need is passion, determination and discipline.
There are two types of people who achieve great success in their respective fields. Those who believe they are lucky and those who believe they are talented. Lucky ones typically have something going for them right away, whilst talented individuals have developed skills overtime through practice and experience. Regardless of what category you fall under, you need to develop your talents and turn them into cash flow positive propositions in order to generate true wealth.
One way of doing this is by starting small and gradually building momentum until you reach a stage where you can control your own destiny. Once you begin to see results from your efforts, you can then start focusing on growing your existing customer base instead of chasing new customers. At this point you can start attracting investors who can help build your business further. After all, the goal here isn't necessarily to retire early -- it's to create wealth.
Once you receive investment capital, you can use it to purchase distribution channels and market share growth strategies. These are areas in which large corporations spend hundreds of thousands of dollars every year trying to grow their market shares. When you acquire the necessary tools, resources and manpower required to accomplish the task, you can charge fees for services rendered. Your clients will feel secure knowing that you won't disappear overnight with their money.
You needn't worry too much about competition either. As mentioned earlier, you shouldn't expect to perform miracles overnight. Instead, you should aim to provide better value for money than your competitors. Eventually, word of mouth will spread and bring in new customers along with referrals from satisfied customers.
As a general rule, if you consistently outperform your peers in the industry you belong to, you will eventually attract attention from larger players. Most successful entrepreneurs started out somewhere near home town in their youth, perhaps playing soccer together or attending college together. Their paths crossed later in life during networking events, seminars or conferences. Some even met online. Take advantage of social media platforms like Facebook, Twitter and LinkedIn to connect with potential partners and advisors. Be open to feedback from friends, family members and colleagues alike.
Remember, your network plays an essential role in helping you attain bigger goals faster. Don't be afraid to ask questions or seek advice. People appreciate honesty and openness which ultimately leads to mutual respect and trust. Keep focused, stay consistent and never give up!
OK, so you're probably wondering what the difference is between a $70k, $80k or $90k income and a $70000 income. Well, that all comes down to what type of job you currently hold. If you own a franchise business that employs 500 staff members, you'd be considered a millionaire regardless of your actual net worth. On the other hand, if you run your own consulting firm with 5 employees, you'd likely qualify as having made a seven-figure income.
However, if you happen to own a retail chain with 10 stores, chances are you wouldn't get anywhere close to reaching a seven-figure income unless you decided to expand massively. To illustrate my point, if you owned a local grocery store chain with 20 locations, your total revenue would equate to roughly $4M annually ($200k x 20 = $4000 per location / 12 months =$333k). So, if you managed to double that number to 40 stores, your annual turnover would jump to almost $16M ($400k x 40 = $8000 per location / 12months = $667k)! Needless to say, doubling your numbers will significantly boost your profits and thus enable you to earn higher wages.
But wait, you say. Surely it costs a fortune to maintain a retail outlet -- especially one located in prime shopping districts. Not necessarily. Many retailers nowadays hire part-time sales assistants to handle stocktaking duties, greet shoppers and assist customers. Others employ casual workers whose sole responsibility is to operate the tills. Staffing requirements vary depending on location, size of establishment and traffic patterns.
Regardless of your position, if you manage to increase your average sale volume, you will generate additional profits from increased spending power. If you sell luxury items, you could also benefit greatly from rising property prices. Likewise, restaurants tend to fare well financially during economic downturns thanks to increased demand for dining out.
Well, according to Forbes Magazine, the average household income in America is approximately $50k per year. If you took the median American household and divided it equally among its residents, each person would end up receiving $25k. But, if you broke it down by age groups, you would discover that young adults aged 18-34 received the highest median wage of $44k followed closely by 35-49 year olds who pulled in $40k. Meanwhile, seniors over 60 ended up pocketing the least amount of money at $18k.
On the other hand, the average personal expenditure in America stands at $21k per capita. Again, dividing it by age brackets revealed similar trends. Young adults spent the most money eating out at $3k per head, followed by teenagers at $2.6k per head and 25-34 year old at $2.4k per head. Seniors living alone reportedly spent the least money on food at $1.7k per head.
To sum it all up, the bottom line is that a $70000 per year income provides enough to cover both your expenses AND extra disposable income. This gives you room to save towards future investments and allow you to live comfortably without needing to rely on external sources of finance.
Become CEO of your own lead generation software company, just follow our battle-tested guidelines and rake in the profits.