What does it mean: 7
figures?
Some people say they make
seven figures or they have
seven figures,
or they have created a net
worth of seven figures,
but what does seven figures
really mean and how much do
people actually have?
I am Tiffany Thomas,
a financially Free
Millionaire.
If you're looking to become
one of those as well,
make sure and hit that like
button, and the subscribe button,
and we are going to dive right
in. First,
I am going to cover what seven
figures really means.
Then I'm going to talk about
the difference between
creating seven figures and
having seven figures or having
a seven figure net worth.
We'll talk about what percent
of people make seven figures,
and then I'm going to share
how I have created a seven
figure net worth.
And then I will let you know
how to create your own seven
figures.
And comment below and tell me
if you already know what seven
figures means.
And in case you don't know,
that is where we are going to
start.
So what does it mean seven
figures?
The actual number of seven
figures is a number that
includes seven digits.
For example,
a million dollars,
if we look at that number,
it's 1 0 0, 0, 0, 0, 0.
So it's one plus six zeros for
a total of seven digits.
So making a million dollars or
having a million dollars would
be having seven figures.
Those that have created or
made seven figures have
created or made a million
dollars or more.
So what does it mean to have
made or created that million
dollars?
Because a lot of people will
say, I have made a million dollars
in my business,
but what does that really
mean?
If they're saying they made a
million dollars in their
business,
it means they have created
that million dollars.
So they have made seven
figures from the sales in
their business,
but what they are not sharing
is how much they spent to make
that seven figures or that
million dollars.
There could be really high
expenses on the backend.
There is software that they
probably use.
They could be doing
advertising or promotion and
paying for that and different
supplies that they would need
like a camera if they are
creating a YouTube business,
there could be a significant
amount of costs that they have
in order to create that
million dollars in sales.
In actuality,
they may have made a million
dollars,
but they did not profit a
million dollars.
So their gross income could be
seven figures,
but their net income could be
a hundred thousand dollars if
they spent $900,000
of that money to create those
sales.
But if the business owner is
specifying that their net
profit is seven figures is a
million dollars or more,
then they have actually
subtracted out their expenses.
So they profited a million
dollars.
Or looking at someone with a
nine to five job,
if they say they have a seven
figure salary,
well that might be the offer
they received from their
employer. They may have not subtracted
out any taxes that they are
paying on that salary.
Most likely when they receive
their paycheck,
they are not going to add up
all their paychecks and have
it be a million dollars,
unless of course they're
getting paid $2 million,
which would still be
considered seven figures
because it would still have
seven digits in that number.
Then they would be bringing
home over a million dollars
after subtracting out any
taxes.
Seven figures could also mean
that they have created a
million dollars all the way up
to $9,999,999.
So any number before hitting
the eight figure mark,
which would be eight numbers,
for example,
$10 million.
And then what does having
seven figures or having a
seven figure net worth really
mean?
It could actually mean having
a million dollars in cash,
or it could mean taking
everything that you own and
subtracting out everything
that you owe,
and that would be worth a
million dollars or more.
By taking everything that we
own,
all of our assets and then
subtracting out everything
that we owe all of our
liabilities.
That would be our net worth.
That is how we would determine
if we have a seven figure net
worth.
So if we have at least a
million dollars or more,
it would be a seven figure net
worth. Just to give you an example,
you would add up any
properties that you own,
any stock market investments
that you have,
any cash in your savings
account,
and you would subtract out any
mortgage loan that you would
have or an auto loan or
student loans,
any debts that you have.
Once you take the total of the
assets and subtract out the
liabilities,
that is going to be your net
worth.
You can see that making seven
figures is very different from
having seven figures or having
a seven figure net worth.
And what percentage of people
make seven figures?
The percentage of Americans
that have made seven figures
is 0.35%.
Only 3.5%
of Americans have created
seven figures or have a seven
figure salary.
And then let's take a look at
what percentage of Americans
have a seven figure net worth.
8.8%
of Americans are millionaires.
They have created that seven
figure net worth,
and that has honestly gone up
over the years.
The amount of actual American
millionaires is less than 10%.
So if you do have a net worth
of seven figures,
you are in that top 10% in
America,
and I personally am in that
percentage.
I have created a seven figure
net worth.
I became a millionaire a few
years ago,
and here is a quick breakdown
on how I was able to do that.
I honestly did not focus on
investing my money as early as
I wish I would have,
which I know a lot of people
think about that too.
When I got my first career
job,
I did contribute to my 401k.
I at least was getting the
match my employer was giving
to me.
And then I did decide to buy
my own property and have two
roommates living with me.
So I was building equity that
way and creating some cash
flow by having my roommates.
And later on,
not until I was in my thirties
did I set up a Roth IRA and
start contributing to that.
And then I started looking
more into the stock market and
I purchased my first stock and
then I purchased some more
stocks and I was considering
investing more in real estate
because I have a friend who's
really successful with real
estate investing.
So I was asking him a lot of
questions about that,
and I decided to invest in a
rental property.
And then once I had my second
property,
I was hooked on real estate.
I wanted another one and
another one.
I ended up purchasing a total
of four properties and I did
sell one of those.
I'll leave a link to a video
about that above.
But while I was getting into
real estate,
I was also focused on the
stock market.
I was investing more of my
money in the stock market and
growing my money that way,
and by doing both types of
these investments,
real estate of course,
is more time consuming,
but it still helped me create
financial freedom and then
having the stock market as
well,
that really helped me create
completely passive income.
And I was able to purchase my
fourth property by taking some
of the money out of my stock
market investments and putting
it toward the down payment on
that property,
seeing how much more my money
can grow by investing it,
I got hooked.
That is really what I started
to focus on,
and that is one of the reasons
I started my own business so
that I could help other people
invest their money as well.
And how can you create a seven
figure net worth or create
seven figures?
It is honestly by investing
your money,
by making your money work for
you so that you don't have to
work for the money all of the
time.
I did it through real estate
and the stock market,
but if you want to be more
passive,
you can definitely just focus
on the stock market and that
will work as well.
And I have plenty of videos
about both types of
investments on my YouTube
channel.
Make sure and check those
videos out.
But if you do want my guidance
on getting into the stock
market and making it very
passive and very simple,
I have a free masterclass I
created. I will leave a link to that
below in the description so
you can click on that and
check out the free
masterclass.
Comment below and tell me if
you are going to make seven
figures and have a seven
figure net worth.
If you found this video
helpful,
please hit that like button
and share it with someone else
who would like to hear this
information and to the
subscribe button to subscribe
to my YouTube channel and to
the little bell, to
get notified on when I post
new videos and make sure and
check out the videos on the
side of the screen.
Thanks so much for watching.
I'll see you in the next
video.