What is the average salary in US? And how can you make sure yours is enough to survive on?
In the US, there are several factors
that go into determining a good salary in any given job. First, you have to
consider the cost of living in your area. Then you have to look at the average
salary for similar roles in your industry. Finally, you have to think about
what’s fair for you personally and what you’re willing to accept in terms of
pay.
The average salary in the US is $59,039 per year.
The average salary in the US is
$59,039 per year. This is a good salary for someone with a college degree and
it's not even close to what the highest paid CEOs make. To be considered highly
compensated by your peers, you should make at least $125,000 per year. If you
have an advanced degree like an MBA or are in a high-demand field like computer
programming or medicine, you will earn more than this amount.
Average income vs good income
So what is a good salary? The answer
to this question is different for everyone. However, there are some standards
that can help you determine whether or not you’re earning enough money to live
comfortably.
The first thing you should know
about average income vs good income is that average income does not tell you
how much money people actually make; rather, it is the median of all incomes in
a given population at a specific time period (e.g., 12 months).
Average income doesn’t tell the
whole story because it doesn’t take into account:
- Your personal situation and needs (if your family has
special requirements).
- Your financial goals and aspirations (for example, if
you want to live somewhere with lower rent or travel more).
The average salary by state
The average salary by state is a
helpful tool to get an idea of how much you can expect to make in your area.
For example, if you live in California and are interviewing for a job there,
the average salary may be higher than if you were interviewing in Missouri. The
best way to get a real number on what your specific industry should pay is by
talking with friends or looking at Glassdoor's list of salaries by city.
Average salary by job position
Looking for a different position?
The average salary by job position varies widely from industry to industry, and
even within companies of the same size.
Let’s say you’re interested in
becoming an accountant at Apple. You might think that since Apple is one of the
largest and most profitable companies in existence, it would offer its
employees some pretty good salaries. But as it turns out, that doesn't always
hold true.
For example, according to
Glassdoor's data on accountants at Apple:
- The lowest-paid 10% earned less than $38K per year
while the highest paid 10% earned more than $90K per year;
- Accountants with 3 years or less experience made
between $46K-$91K annually; while those with 4-6 years commanded $62K-$99K
per year; and lastly veterans who had 7+ years under their belt pulled
down anywhere between $74K-$133K annually!
How to negotiate a good salary
Once you have the experience and
skills to convince the employer that you are worth a salary that meets their
requirements, it's time to prepare your negotiation strategy.
- Know your worth. The first step in negotiating a good
salary is knowing how much money you want and why. If you don't know what
companies like yours pay for someone with similar job duties, look into
what other people at similar companies make with similar job titles. You
might not be able to get as much as someone at another company might, but
having some idea of what market rates are will help you negotiate
aggressively without being unrealistic about what is possible for your
position and background.
- Know the market value of your position within the
organization and in general across industries (if applicable). By knowing
where your position falls on this scale, both within specific
organizations and more generally across industries, you can better
understand how much value an employer places on those skillsets when
considering compensation packages for any given role or project; this
allows them flexibility in deciding how much money they're willing to
spend towards acquiring those skillsets while still being able to justify
paying employees less than industry standard wages if necessary.*Be
prepared with examples of previous offers made by competitors'
organizations who were competing against each other during recent hiring
processes involving similar positions (unless all candidates were offered identical
salaries). This information helps show employers that not only do they
need something special from us in order not go elsewhere but also helps
demonstrate why we should receive higher salary offers than other
candidates would because we offer something unique here which makes up for
any difference between our past salaries/salary expectations now versus
current ones once hired."
Understand your local market and the value of your work
Knowing what other people in your
field are earning is one of the most important steps to negotiating a good
salary. While it’s possible to find out what your competition is making, this
information can be difficult to uncover without insider knowledge or access to
a company’s confidential records. It’s also not always accurate because some
companies might not be completely honest about how much they pay their workers.
Some jobs have set pay scales that
are based on experience level and education, but others don’t—and even when
they do exist they aren't always easy to find! Asking around can help you
discover how much others in similar positions earn at nearby businesses, but
keep in mind that individual results vary widely depending on factors like
gender bias and discrimination (which do still exist).
Know how much you need to live on
The first step to negotiating a
salary is knowing how much you need to live on. While it may seem like an
obvious point, many people don't know how much they spend per month, or how
much their debt payments are each month.
You should also consider your
savings, investments, charitable donations and any insurance payments you make
(car insurance, life insurance). If possible, track these expenses for at least
three months so that you can see if there are any changes or trends in your
spending habits over time. The more specific data points the better!
Know what you'll bring to the table
Before you can ask for a good
salary, you need to figure out what makes your skill set worth paying for. Are
you passionate about management? Does your resume show that you're a whiz at
writing code? Do other people praise your ability to organize projects and keep
them on track? Start by assessing what kind of job search would interest and
challenge you most, then think about how much money it will take to lure you
away from the work or projects that already interest and challenge
you.
You also have to assess where your
current skills fit into the world of employment. If they don't align with the
types of jobs available in your area right now, consider taking courses or
workshops (or even internships) that teach new skills before reaching out for
employment opportunities.
Know your boundaries from the start
When it comes to negotiating your
salary, one of the most important things you can do is know what you are willing
to negotiate and what you are not. If there are certain aspects of the job that
aren't negotiable for you, such as its location or work hours, make sure they
don't become part of the discussion. If possible, try to get some idea of what
other companies would be paying someone with your qualifications in this field
before discussing base salary with your potential employer.
In addition to knowing your
boundaries when negotiating a salary offer, it's also important to know when
and how much is too much. If an employer has made an offer that doesn't meet
all of your needs and desires but seems reasonable given their circumstances
(e.g., if their budget is limited), consider accepting it while keeping in mind
that another opportunity might come along that offers more benefits later on
down the road; then again maybe not!
Finally—and most importantly—if
things don't go well during negotiations for whatever reason...walk away! It's
OK; trust me: no one needs any more drama than necessary during this process
anyway."
Decide whether or not to share past salaries with prospective employers.
If you are a job seeker, you may be
faced with the decision of whether or not to share your past salary with
prospective employers. If you choose to do so, there are some guidelines that
should help guide your decision-making process:
- Only share if asked. It is typically best practice not
to volunteer information about your past salaries unless specifically
asked by an employer. You may find yourself in an awkward situation if
they ask why they shouldn't pay you more than what they have offered
because this could indicate that they have already made up their minds
about how much they will offer based on previous offers made by other
potential employers (or based on what others in similar positions at
similar companies earn).
- Share only under certain circumstances if at all
possible. It's best not to volunteer information about past salaries
unless specifically asked by an employer since doing so could imply that
there has been some sort of discrepancy in compensation between jobs,
which could lead them into thinking that the applicant wants more money
just because he/she has been underpaid in previous positions rather than
because it is deserved based upon experience and skill set development
achieved during employment history thus far (which would be reflected
primarily through performance reviews). Also keep in mind: sharing salary
history does not mean sharing every detail! Specifics such as exact
figures should only be revealed when directly questioned; otherwise try
keeping them vague--for example: "My last two salaries were
$X-$Y."
Do your research beforehand.
- Do your research beforehand.
- Know the market rate for your position and company.
- Know what you want to achieve in the position, and how
much money will help you get there.
- Know the boundaries of what the company can offer and
what they're willing to pay for (their budget).
- Ask yourself questions like: What are my goals? Why am
I leaving my current job? Do I want a change of scenery or a change of
career path? Would I prefer working with people who are older than me or
younger than me? Am I looking for something with more flexibility than my
last job offered, or am I seeking total commitment from an employer that
would require less flexibility on my part?
Negotiating is an important skill for anyone looking for a higher paying job.
Negotiating is an important skill to
have, whether you are looking for a new job or trying to get a raise from your
boss. Whether you’re asking for more money or something else, knowing how to
negotiate can help you achieve the best possible outcome for yourself.
Negotiating can be a very
intimidating process and it may take some time before you feel comfortable with
this skill. If negotiating makes you uncomfortable, try practicing with friends
or coworkers before going into an actual negotiating situation.
Conclusion
Although it can be a daunting
process, negotiating your salary is an important skill to have. If you don’t
ask for more money, nobody will offer it! Negotiating is not just something for
high earners; anyone who wants to earn more money should know how to negotiate
their salary.