Have you ever wondered how much money is necessary to earn a 5 figure salary? If you’re someone who cares about your finances, then you might be curious about the answer. It is not uncommon for those in the 21st century to have a desire for more money, and there are many ways of achieving this. 5 figures salary or not, some people manage to make that kind of money from their day jobs. This article will help answer any questions you might have about 5 figures salary and how much it takes to earn that kind of income from your job if you’re not already earning it as your main source of income.
What Is 5 Figures Salary?
The term “5 figures” is used to describe income that is between $10,000 and $99,999, this is due to the fact that if you count the number of figures they come to 5 digits. “Figures” is actually a term meaning “money” in most languages and this is the only English meaning we find for it.
When talking about a 5 figure salary, it depends on if we are talking about gross income or after-tax income. A person can be earning a 6 figure salary, let’s say, $100,000 and end up having a 5 figure take-home salary. Since there are different tax rates around the world and how the brackets are set, the actual amount you make might be much less than your gross income. However, some jobs might be more than sufficient to make you at least $100,000 minus taxes. So, if you have a job earning you $100,000 per year, and taxes are taken out of your salary, $80,000 is left as a net salary. You could say that you’re earning a 5-figure salary.
Is 5 figures a good salary?
It depends on which side of a 5 figure salary you fall into. If you are earning around $70,000 annually then you are earning an average salary in Canada. If your salary falls below $70,000 per annum then you are earning below average salary.
Whether 5 figures is a good salary depends on your circumstances. Even if you are earning an average salary does not necessarily mean that it is a good salary for you. If you have high debt or living expenses where you live are high then an average salary of 5 figures may not be ideal for you.
If you have a 5 figure salary and are struggling to make ends meet then I suggest building a budget. Budgeting is a cornerstone for any financial plan and if you don’t budget already then you need to start right away.
How to Earn 5 Figure Salary
Writing is one of the most reliable ways to make money online and you don’t have to have a degree or special skills to get started. Many people choose to become freelance writers because it allows them to work from home and set their hours. Once you have a portfolio of work that shows you have the experience and skill to do the job well, it’s time to find clients.
There are many places to find freelance writing jobs including online forums, freelance job boards, and literary agent websites. You can also look for jobs through social media sites like Facebook, LinkedIn, and Twitter by joining groups that are relevant to your field. Make sure to carefully read job descriptions to see if they are a good fit for your skills before you accept a job.
One of the best ways to start making money is to start a business. Owning a business allows you to have unlimited potential. If you are taking home a salary then that is your ceiling from that job. Having your own business allows you unlimited potential and it all comes down to how much effort you put into your business.
Final thoughts
Remember, 5 figure salary is just a term used to describe a salary range. Whether this is a good salary depends on individual circumstances.
If you are already earning a 5 figure salary and want to move to the higher end of it then you can take steps to move up the ladder.
