According to the government census, the national average household income in 2018-19 was $68,703. A living cost can be lower from this number but a good salary must be greater than that. By means of this, a good salary would be around $80,000.
It is more than the national average income and hovers around the average salary for the 10 most expensive states in the nation. In other words, an $80,000 salary would be sufficient to cover the basic necessities in even the most expensive areas of the united states.
Actually, there is not a fixed amount that you can consider a good salary. It’s all depending on your need and monthly expenses. There are so many things in defining a “good” salary. To determine what a “good” salary is, decide what “good” for you. Let us explain in a simple way:
- Living wage: It is good if you are just satisfying your daily needs like food transportation and living expenses.
- Comfortable wage: It is good if you can afford something more than the basic necessities.
- Ideal wage: If you are able to manage the cost of basic necessities, living expenses, along with some savings for the future, and even fulfill some dreams such as travel and entertainment.
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Why good salary is so important?
Earning a good salary can give you mental peace and a personally and professionally happy life. The person who is earning a good salary is able to manage his basic needs like food, transportation and even some expenses on travel and other entertainment also helping others for charity. Then it may be Considered a Good Salary.
Professionally, a good salary can reduce your work stress and improve your confidence, as it is a good sign that you are efficient for your position. Better reward always encourages people to work more. Similarly, salary encourages the employee also.
What is considered a good salary?
Getting a good job offer is not sufficient if not getting a good salary, its most important factor while you excepting any job offer. Each profession is paying different pay ranges according to the work profile and positions. Not anything you get can be Considered a Good Salary, but there should be a specific demand and supply that must be met.
Pay ranges depending on multiple factors also, like what type of experience you have, what is your qualification and the geographical location also plays an important role. Sometimes people get some increase in their starting salary after some period of time. It is nothing but to check your caliber in the training period also.
Major Factors To Determine a good salary
The most relevant criteria for determining what is a good yearly salary are:
Geographical location
Salaries across the United States depend on geographical location, along with other factors such as job profile, candidates’ work experience, and industry are even the same. There are many reasons for these differences, like taxes in the states, cost of individual standard living, and local job demand and supply. According to these differences in cost of living standards, the same salary can be good in one location and below average in other locations. So when it justifies all our expenses can be Considered a Good Salary.
Experience level
As you start your career in any field the starting salary always starts from the beginning or basic salary. Companies have their own salary structure for fresher’s and experienced employees. Generally, you got a higher salary when your experience increases then it can be Considered a Good Salary. Based on average earnings data, employees with experience ranging from two to five years can expect to earn 32% more on average than those who are only starting their careers.
Similarly, employees with work experience of more than five years can expect to earn an average of 36% more than those with lower than five years of experience. Those with over 10 years of experience can expect a 21% salary increase, with an additional 14% after 15 years. In short, we can say salary grows as the experience increase. You can check the most expensive area here.
Education
Education also has a great impact on your salary, whether it qualifies as a good one. According to the Bureau for Labor Statistics and based on average wages across industries and geographical locations. An employee without high school will earn 21% less than an employee who passed his high school.
Those who have an additional certificate or diploma earn 17% more than high school graduates, and bachelor’s degree holders earn 24% more than those with a certificate or diploma.
Hope this article gives you the best understanding of what is Considered a Good Salary. If you need any further assistance you can contact our financial advisor free of cost.
