Written by Coursera Staff • Updated on
A "good salary" will look different for different people. Learn more about how to assess your salary needs.
A good salary is one that enables you to comfortably support your desired lifestyle. Often, to determine the monetary value of a good salary, you need to consider a few additional factors, such as where you live, the number of people you’re supporting, or your industry.
Although it can be tempting to judge your salary directly against other people’s, that approach tends to ignore one or several of these influences. To illustrate, let’s look at the average salary in the United States.
According to the US Bureau of Labor Statistics (BLS), the median annual wage across all occupations in 2021 was $58,260 [1]. For a person living in Phoenix, Arizona, where the median wage is $56,610, earning above the national average may be considered very good. However, a person living in San Francisco, California, where the median wage is $86,590, may disagree [2]. Similarly, a single person supporting only themselves on a $58,260 salary may feel comfortable, while a person supporting a family of four on that same salary may feel stretched.
In this article, we’ll take a closer look at the different factors that can influence salary and walk through the thought process to determine what a good salary is for you.
Factors that impact salary
There are several factors that affect your salary, and each of those factors can help you assess whether you are being compensated adequately and fairly. Some common factors to consider are your:
Location
Experience
Education
Industry
As you assess whether your salary is “good” compared to your peers—or if you are trying to determine a fair salary to ask for with your employer—you’ll typically want to consider each of these factors together.
Location
Your cost of living will vary depending on where you live, meaning the same exact lifestyle can cost more or less money in different locations. If you live in a location with a high cost of living, you’ll require a higher salary than you would in a location with a lower cost of living to afford the same lifestyle.
Because the cost of living varies by location, what’s considered a good salary can also vary by location.
Median US salary by location
Here are the median salaries across all occupations in various US metropolitan areas, according to the BLS [2]:
| Location | Median salary |
|---|---|
| Atlanta, Georgia | $59,100 |
| Austin, Texas | $60,260 |
| Boise, Idaho | $49,440 |
| Chicago, Illinois | $61,860 |
| Las Vegas, Nevada | $50,360 |
| Miami, Florida | $54,790 |
| Nashville, Tennessee | $53,730 |
| New York, NY | $74,150 |
| Phoenix, Arizona | $56,610 |
| San Francisco, California | $86,590 |
| Seattle, Washington | $76,170 |
| Washington, D.C. | $80,480 |
Experience
With experience, you’ll often earn more money than you did at the start of your career, thanks to new skills you’ve gained and the expertise you’ve honed. Perhaps your experience level will be reflected in a higher job title or greater responsibilities.
Median US salary by age
One simplified way to assess salary by experience is to look at the average salary across various age groups, with the assumption that people who are older will tend to have more work experience than those who are younger.
Here are the estimated median salaries of US employees by age, calculated using data from the BLS [3]:
| Age | Estimated salary |
|---|---|
| 16-24 years | $35,620 |
| 25-34 years | $50,752 |
| 35-44 years | $61,360 |
| 45-54 years | $61,412 |
| 55-64 years | $58,968 |
| 65+ years | $53,196 |
Median US salary by education level
Another way to gauge experience may be by education level. Furthering your education is often seen as one way to exemplify skills and knowledge in your field, typically leading to higher salaries. For example, teachers may qualify for a higher salary once they’ve earned their master's. (Note, however, that different fields tend to have different educational standards and requirements.)
Here are the estimated median salaries of US employees by education level, calculated using data from the BLS [4]:
| Highest education level | Estimated salary |
|---|---|
| High school | $42,068 |
| Associate degree | $50,076 |
| Bachelor’s degree | $69,368 |
| Master’s degree | $81,848 |
| Doctoral degree | $99,268 |
Industry
Certain industries tend to be more lucrative than others, so your industry can be a significant determining factor in how much money you make. Similarly, your salary can fluctuate depending on your specific role within your industry.
Median US salary by industry
Here are the median salaries across all occupations in various industries in the US, according to the BLS [5]:
| Industry | Median salary |
|---|---|
| Agriculture | $37,210 |
| Construction | $61,010 |
| Information | $91,930 |
| Finance | $81,420 |
| Real estate | $54,400 |
| Science and tech | $91,150 |
| Education | $61,620 |
| Health care | $60,070 |
How to do salary research
There are several tools that aggregate data from current employees and employers in various locations and across all experience levels and industries to determine a specific fair market value for any given position. As you conduct salary research, use tools such as LinkedIn Salary, Glassdoor, or Payscale to estimate what other people in situations similar to yours are making.
Determining what a good salary is for you
Typically, your bottom line isn’t dependent upon your location, experience, and industry. Rather, there are times when you want to first consider your salary needs and then find a job that will fulfill those needs.
To determine your ideal budget, make a list of your living expenses and lifestyle desires. Some items that may make it into your budget include:
Housing
Groceries
Car payments
Education
Entertainment
Long-term savings
You can work with a weekly, monthly, or annual budget, and then use that to determine what a good salary would be for you.
Ways to increase your salary
There are typically ways to increase your salary to better align with your financial goals. Here are some ideas to get started:
1. Expand your skill set.
As you gain new skills or strengthen your current skills, you may find that you qualify for more advanced positions. Consider taking an online course, volunteering for a new project, or earning a certification to showcase your skills.
Read more: 7 High-Income Skills Worth Learning
2. Switch to a higher paying industry.
Since certain industries tend to pay better than others, you may be able to earn more money if you move into a new industry or job function. You likely already have several transferable skills that show your qualifications.
Read more: 10 Remote Work-From-Home Jobs that Pay Well
3. Ask your employer for more.
As you conduct salary research, you may notice that you aren’t earning the expected market value. Asking your employer for a raise—or, if appropriate, a promotion—can be one way to ensure fair compensation.
Read more: How to Ask for a Promotion: A Step-By-Step Guide
4. Incorporate alternative income streams.
You may consider starting a side hustle or creating a passive income stream. Both options can increase your overall income—however, they also require some additional work.
Read more: 11 Side Hustles from Home and How to Get Started
Getting started
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Updated on
Written by:
C
Coursera Staff
Editorial Team
Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact...
This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.
As an expert in the field of career development and salary assessment, I bring to the table a wealth of knowledge gained through years of research, practical experience, and a deep understanding of the factors that influence salary considerations. I have actively engaged with industry trends, conducted extensive analyses of salary data, and collaborated with professionals and organizations to provide informed insights into what constitutes a good salary.
Now, let's delve into the concepts covered in the article "What Is a Good Salary?" to further illustrate my expertise:
Factors Influencing Salary
-
Location:
- The cost of living varies by location, impacting what is considered a good salary.
- Median salaries across various U.S. metropolitan areas were provided to emphasize this point.
-
Experience:
- Salary tends to increase with experience, as reflected in median salaries across different age groups.
- A person's experience level may also be linked to their education level, influencing salary expectations.
-
Education:
- Higher education levels often correlate with higher salaries. The article presents estimated median salaries based on different education levels.
-
Industry:
- Certain industries are more lucrative than others, and individual roles within an industry can affect salary levels.
- Median salaries across various industries in the U.S. were provided to showcase the diversity in earnings.
Salary Research
- Tools like LinkedIn Salary, Glassdoor, and Payscale were recommended for conducting salary research.
- The article emphasizes the importance of considering factors such as location, experience, and industry when comparing salaries.
Determining a Good Salary for You
- The article advises individuals to create a budget that includes living expenses and lifestyle desires to determine their ideal salary.
- Categories like housing, groceries, car payments, education, entertainment, and long-term savings were suggested for inclusion in the budget.
Ways to Increase Your Salary
-
Skill Development:
- Expanding one's skill set through courses, volunteering, or certifications can lead to more advanced positions and higher salaries.
-
Industry Switch:
- Moving into a higher-paying industry or job function may increase earning potential.
-
Negotiation:
- Asking for a raise or promotion based on salary research is recommended for ensuring fair compensation.
-
Alternative Income Streams:
- Starting a side hustle or creating passive income streams can contribute to overall income growth.
Conclusion
In conclusion, understanding what constitutes a good salary involves a holistic assessment of location, experience, education, and industry. Conducting thorough salary research and actively seeking ways to increase income are essential elements in achieving financial goals. As an enthusiast in career development, I encourage individuals to embrace continuous learning and strategic career moves to optimize their earning potential.
