Is $90,000 a Good Salary? - Zippia (2024)

Yes, $90,000 is a good salary. In the U.S., the average individual’s income is $63,214, and the median income is $44,225. As a result, a $90,000 salary would put you well above the national average, and while this money will go farther in some cities than in others, it’s still typically considered a good salary.

In addition to a $90,000 salary being higher than the average individual’s earnings, it’s also more than the average U.S. household’s annual income of $87,864. The median household income is $61,937, which provides an even starker contrast.

What Makes a Salary “Good”?

Even though a $90,000 salary is typically considered to be a good salary, several factors can go into your definition of what makes a salary “good” or not.

1. Location/Cost of Living

   No matter how much you earn, a salary isn’t any good if you can’t pay your bills and buy groceries, and the cost of these will depend greatly on where you live.

   The cost of living varies between states, cities, and even neighborhoods, which means your salary will go farther in some of these areas than it will in others. As a result, a $90,000 salary may be more than enough in one area and at or below average in another.

   When you’re trying to figure out if $90,000 will be a good salary for you in a particular location, look up the cost of living for that community. You can usually find at least a range that will give you a reference point for how expensive the area is.

   After you do this, look up the average salary for the state or city you’re going to be living in. You might be shocked to find out that what you had initially perceived as “okay” is actually far above average, or what you thought was a generous paycheck is really the bare minimum for living comfortably in that area.

2. Taxes

   Just like the cost of living will vary depending on where you live, so will your tax rates. The amount you need to pay in state and federal taxes each month factors heavily into whether or not a salary is “good,” as these will determine how much of it you get to keep.

   When you’re calculating your local tax rates, pay attention to how much you have to pay for each type of tax, not just income tax. This is because while some states or cities may not have an income tax, for example, they usually have to make up for it somewhere else, so your property or sales taxes might be higher than you’re used to.

   While this scenario may mean that you get more of your paycheck deposited into your bank account every month, you’ll still have to shell out extra money later with higher property tax payments or sales taxes applied to your groceries.

3. Family Status

   The second factor to consider when deciding if a salary is “good” or not is your family status. If you have kids or other dependents who are relying on you to pay for their food, clothes, and other expenses, your salary will be stretched thinner than it would be if you were single.

   Whether or not yours is the only salary your family will be living off of is another factor to consider. If you and your spouse or partner both work, a salary that some may consider low may be just fine for you.

   All of these factors are important to consider when you’re weighing how far a $90,000 salary will go.

4. Lifestyle

   Your lifestyle standards and goals determine a lot about whether or not a salary is “good.”

   If you’re perfectly happy to earn enough money to pay your bills and have a little extra to go out to dinner and see a movie every once in a while, your “good salary” threshold will be lower than that of someone who wants to be able to eat out every day, buy designer clothes, and travel multiple times a year.

   Neither of these lifestyles is right or wrong, they’re just different and require different salaries to achieve.

5. Financial Goals

   Many people have financial goals outside of paying their bills and having some disposable income left over. If you want to save up for a down payment for a house, for example, you’ll likely only consider a salary “good” if it allows you to do that and still pay your bills.

   The same goes if you want to put some money away for retirement, add to a college fund for your kids, or even give a significant amount to charity.

   The specifics of how much you’ll need to earn to accomplish these goals will greatly depend on the previous three criteria, but it’s important to keep these goals in mind as you consider what a “good” salary would be for you.

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   For example, if you’re married and your spouse works a job with a generous salary but you want a little extra to put toward a down payment, a position with a $30,000 salary might be just what you’re looking for.

   At the same time, that paycheck may be nowhere near enough for someone who only has one income or who is struggling to make ends meet on the two salaries they do have.

6. Job Level/Stage of Career

   Whether or not a salary will be good for you also depends on where you’re at in your career. If you’re about to sign on for your first job and are offered $90,000, that’s usually going to be a great salary, depending on what industry you work in.

   On the other hand, if you’re 30 years into your career and are working in an executive-level position, a $90,000 salary may simply be adequate (again, depending on the industry you’re working in).

   If you’re wondering if the salary you’re being offered or are earning is on-par with others at your level in your industry, start doing a little digging. Look online at salary estimators and job descriptions that are similar to your current role, and ask what others are making on online forums.

Is $90,000 a Good Salary for a Recent Graduate?

Yes, $90,000 is a good salary for a recent graduate. As a recent graduate, you’re likely going to be going into an entry-level position to start with. Your salary range will depend on where you live and the industry you’re going into, but it isn’t common for most recent graduates to be making $30,000 over the national average salary during their first year of the workforce.

To see how far a $90,000 salary would go for you if you’re striking out on your own for the first time, look up your estimated state and federal taxes for where you’ll be living. Subtract that amount from the $90,000, and start budgeting what’s left.

Step one is to pull out your unavoidable expenses, which include:

• Rent

• Utilities

• Gas

• Car payments

• Car insurance

• Renter’s insurance

After that, estimate how much you spend on necessities like groceries, clothing, and toiletries each month. Add that number to any debt payments you may have and the amount of each paycheck you want to put into savings (10% is usually a good rule of thumb to start with), and then look at how much you have left for fun and less-necessary things you want to buy.

Once you have all of this lined out, you won’t necessarily have an exactly realistic budget, but you will have a better picture of what it’ll be like to live off of $90,000 a year in a particular location so you can decide if it’s a good salary for you or not.

Remember that if this is your first job, you’ll likely only go up in pay from here, so if things are a little tight to start but you’re able to pay your bills and have some leftover, that’s not necessarily a bad place to be.

Is $90,000 a good salary for a single person?

Yes, $90,000 is a good salary for a single person. This of course depends on where you live, but typically $90,000 will allow you to pay for your necessary expenses and still give you a good amount of disposable income afterward.

If you look at your expenses and know that $90,000 a year won’t cover them, there are some things you can do to try to make your money go further.

1. Tighten up on your unnecessary expenses. You might think there isn’t any wiggle room in your budget, but in reality, there are probably a few “wants” you could technically give up.

   For example, if you regularly go out for coffee and lunch, try making your coffee at home and packing your lunch a few days a week. Cut down how much you spend on groceries by working a few meatless meals into your recipe rotation, or simply start cooking at home more often in general.

   Shop your favorite clothing brand outlets instead of buying the latest releases, or choose more versatile pieces that allow you to purchase fewer clothing items. Consolidate your streaming service subscriptions into just the ones that you use the most often, and look for free activities to do during your time off.

   It might be painful at first, but once you get used to trimming back your purchases a bit, the financial breathing room will be worth it.

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2. Consider living with a roommate. Yes, living on your own is a valuable experience, but if you need to stretch your paycheck farther, living with a roommate can make a huge impact on your finances.

   Housing is usually one of the most significant expenses people have, so being able to reduce that by splitting rent with a roommate will give you significantly more wiggle room in your budget.

   Not only that, but you’ll usually be able to split up utility bills as well, and, depending on your relationship with the person, you can also share grocery costs, streaming service subscriptions, and even some furniture and decor purchases.

3. Create a second stream of income. This is a great way to reduce the strain of bills on your paycheck, and you don’t necessarily need to get a second job to do it.

   Side hustles are becoming more and more commonplace, which means it’s easier than ever to monetize a hobby or skill you may have in your free time.

   This will take some legwork up front to ensure you are obeying all the legal requirements of starting your business, but once you get all that figured out, a side hustle that you enjoy doing can be a fun way to increase your income.

   If you don’t have the time or desire to start a side hustle, odd jobs might be a good option for you. Walk dogs, house-sit, nanny, or mow lawns on your weekends off.

   You can also sell your old clothes and furniture on social media to earn a little extra cash, sign up with a grocery or food delivery service to take jobs as you have time, or even open a high-yield savings account to have your money work for you.

   Even just a few hundred extra dollars a year can go a shockingly long way.

Is $90,000 a good salary for a family?

Depending on where you live and what your needs are, $90,000 can be a good salary for a family. In general, since it’s far above the average salary, $90,000 should provide a comfortable living for you and your family in most parts of the country.

However, before you decide whether or not a $90,000 salary will work for your family, you should 1) compare that to your current expenses and 2) consider your financial needs over the next few years.

Looking at your finances from a multi-year perspective is important because your kids are always growing and changing, and, as a result, their expenses are always growing and changing.

Just because $90,000 would be more than enough for your family now doesn’t mean it will give you the same margin once your kids are older and are in extracurricular activities, need cell phones, start driving, and are just eating more than they did when they were toddlers.

You likely won’t be making the same salary when your kids are in high school as you were when they were born, so it’s usually not necessary to look that far ahead. However, it is wise to look at additional expenses that might be coming down the pipeline in the next few years when you’re accepting a new salary.

You should also consider any additional income streams when you’re calculating all of this, including any money your spouse or partner may earn, any alimony or child support payments you receive, and any side hustle income.