What Is a Good Salary?

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 mean annual wage across all occupations in 2024 was $67,920 [1]. For a person living in Phoenix, Arizona, where the mean wage is $67,540, earning around the national average may be considered good [2]. However, a person living in San Francisco, California, where the mean wage is $100,140, may disagree [3]. Similarly, a single person supporting only themselves on a $67,540 salary may feel comfortable, while a person supporting a family of four on that same salary may feel stretched.

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. Then, consider enrolling in the Tally Bookkeeper Professional Certificate, where you’ll have the opportunity to explain and apply the fundamentals of accounting in as little as four months. Afterward, you’ll earn a shareable credential for your portfolio or LinkedIn profile and have the tools to manage your personal finances as well.

Factors that impact salary

Several factors 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 your employer for—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 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.

Average salary in US by location

Take a look at the mean salaries across all occupations in various US metropolitan areas, according to the BLS [4]:

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 annual salary by age in the US

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.

Consider these estimated median weekly wages of US employees by age, calculated using data from the BLS [5]:

Median annual salary by education level in the US

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.)

Explore the estimated median weekly wages of US employees by education level, calculated using data from the BLS [6]:

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. 

Average salary in US by industry

Take a look at the mean salaries across all occupations in various industries in the US, according to the BLS [7]:

How to do salary research

Several tools 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 Salary.com, Glassdoor, or Payscale to estimate what other people in situations similar to yours are making.

What is a good salary? Determining what a good salary is for you

Typically, your bottom line isn’t dependent upon your location, experience, or industry. Rather, you may 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

Certain strategies can help you increase your salary to better align with your financial goals. Get started with these ideas:

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.

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.

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.

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

Take steps toward a good salary

Connect with professionals and gain job tips by subscribing to Career Chat on LinkedIn. Prepare for career opportunities by exploring free digital resources, such as:

• Watch on YouTube: 9 High-Paying Jobs, No Degree Required

• Take a career quiz: Career Test: What Career is Right for Me Quiz?

• Explore job opportunities: High Pay, Low Pressure: 10 Career Paths to Explore

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