What Is a Good Salary?

Written by Coursera Staff • Updated on

A "good salary" will look different for different people. Learn more about how to assess your salary needs.

[Featured image] A woman in an orange blazer discusses her salary expectations in a job interview.

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 2023 was $65,470 [1]. For a person living in Phoenix, Arizona, where the mean wage is $64,890, earning around the national average may be considered good [2]. However, a person living in San Francisco, California, where the mean wage is $97,460, may disagree [3]. Similarly, a single person supporting only themselves on a $65,470 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.

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 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.

Mean US salary by location

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

LocationMean salary
Atlanta, Georgia$66,910
Austin, Texas$69,150
Boise, Idaho$58,390
Chicago, Illinois$69,490
Las Vegas, Nevada$57,860
Miami, Florida$63,380
Nashville, Tennessee$61,540
New York, New York$82,050
Phoenix, Arizona$64,890
San Francisco, California$97,460
Seattle, Washington$86,520
Washington, DC$88,370

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.

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

AgeEstimated salary
16-24 years$38,792
25-34 years$57,564
35-44 years$67,652
45-54 years$69,628
55-64 years$65,936
65+ years$58,292

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.)

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

Highest education levelEstimated salary
High school$46,748
Associate degree$55,016
Bachelor’s degree$77,636
Master’s degree$90,324
Doctoral degree$109,668

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. 

Mean US salary by industry

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

IndustryMean salary
Agriculture$43,010
Construction$67,430
Information$108,110
Finance$94,150
Real estate$61,630
Science and tech$102,670
Education$67,020
Health care$67,320

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.

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Determining what a good salary is for you

Typically, your bottom line isn’t dependent upon your location, experience, and 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.

Read more: 8 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

Take steps toward a good salary with a Professional Certificate

Increasing your skill set is one way to boost your salary potential. Keep learning with Coursera by earning a Professional Certificate in digital marketing, web development, data science, or sales from industry leaders including Google, Meta, IBM, and HubSpot. Learn in-demand skills from anywhere with an internet connection. Sign up for a free seven-day, all-access trial and start learning today.

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Article sources

1

US Bureau of Labor Statistics. “May 2023 National Occupational Employment and Wage Estimates United States, https://www.bls.gov/oes/current/oes_nat.htm#00-0000.” Accessed December 6, 2024.

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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.