Salaries can have different values based on various criteria. Many factors, like your geographical area, housing costs, family status, etc., can significantly affect the answer to whether or not 90000 is a good salary. So, let’s take a look at some factors that affect the value of the amount and if it’s feasible.
Is $90,000 A Good Salary?
To answer the question in short, yes, $90,000 is a good salary. In the United States, the average annual income of a single person is around $97,962 in 2021.
This makes $90,000 not just good but rather a great salary, putting you above the nation’s average income. Though the value of the compensation may vary from one place to the next, $90,000 is typically considered a good salary.
Apart from it being a significant amount when compared to an average individual’s earnings, it is also higher than the average income of a two-person U.S. household, which is around $75,143. The median household income for most Americans amounts to $62,000, which contrasts even higher.
What Makes A Salary “Good”?
Though typically considered a good salary, the value of $90,000 can be influenced by many factors that deem it good, such as
1. Cost Of Living
Irrespective of how much money you earn, a salary is only good enough if it enables you to pay your bills and buy groceries comfortably. This heavily depends on the location that you reside in. The cost of living is remarkably different in each city, state, and neighborhood, meaning your salary can be more than plenty in some cities but barely enough in others.
If you are trying to figure out if 90000 is a good salary in a particular location, an ideal thing to do would be to research the locality and its cost of living.
Once you do this, you can learn about the average salary of the locality you plan to move to. Certain times, a salary package that is considered a generous paycheck will be an “okay” salary in some cities.
2. Paying Taxes
We know that the cost of living can vary from one city to the next. Similarly, tax rates can also be quite different in each city or state. A significant factor that decides if your salary is good or not is the amount you would have to pay in state and federal taxes every month. This amount will determine how much of your salary you actually get to keep in your bank account.
While calculating your local tax rates, remember to calculate each kind of tax and not just income tax. Why? Because some cities or states may not have tax income, where they make up for it with any other type of tax like property or sales.
3. Family Status
The third factor to consider when you decide on the value of your salary is your family status. If you have children or any member of your family who are dependents on you to sustain, your salary at hand, in the end, will be a lot less as opposed to being a single person.
Another factor to consider is if you will be the only source of annual income for your dependents to live off of. If you and your partner both work, sharing expenses will not drain your savings account.
Your lifestyle is the key factor determining if your salary is good enough.
If you earn enough money to make ends meet and do not have a lavish lifestyle, a decent salary will be more than enough due to lack of expenditure. However, for someone who is keen on traveling every month, buying expensive clothing, and eating out every day, a higher salary will be a prerequisite .
Keep in mind that both these lifestyles are not right or wrong- the choice will be heavily based on your preferences.
5. Financial Goals
Your financial goals will also be a critical factor that heavily influences your salary value. For example, you may want to save up for the down payment of a house. If your salary allows you to pay your bills and save up simultaneously, you will consider the salary “good.”
Similarly, if you want to put away money for retirement, add college funds for your kids, or even donate to charity, a salary that allows you to pay your bills without compromises will be considered good. Though this factor only comes after the initial three factors, it is essential to keep it in mind when you’re trying to figure out what a “good” salary is.
6. Stage Of Career
Another factor that plays into the value of your salary is the stage of your career you are currently in. If you are a fresher stepping in for your first job, $90,000 will be a good pay. However, if you’ve been experienced in the field for a long time and hold an executive-level position, $90,000 would be just adequate.
Make sure you ask around and do a little digging to determine if your salary is on par with the average salary for the particular position and experience in your industry. You can find salary estimators online and job descriptions that are similar to your role and compare them.
Is $90,000 A Good Salary For A Recent Graduate?
Yes, $90000 is an excellent salary for a recent graduate. Being a fresher, naturally, you are bound to secure an entry-level position. Though your salary will depend on your area and the industry you’re stepping into, making $30,000 over the national average is relatively uncommon.
To see if $90,000 would be sufficient for you, look up the cost of living and federal tax rates of the state you’ll be living in. Subtract the said amount from $90,000, and you can start budgeting the rest.
The first step, however, is to keep a note of all unavoidable expenditures. These include:
- Insurance payments for car, health, renting homes, etc.
Once you’ve calculated the above expenditure, take note of how much you would need to spend on necessities like groceries, clothing, and hygiene products every month. If you have any debt payments, add this number to it and also the amount you would like to put into savings. Once everything is calculated, look at how much you have left for leisure and other miscellaneous things.
Though this may not offer an incredibly realistic budget, it will give you a well-formed idea of what it would be like to live off of $90,000 in a particular city. This can allow you to decide whether it’s a good salary.
Do keep in mind that this is your first job, and your salary will only tend to increase from this point on. So, if things are a little stuffy but you can still afford to pay your bills, it is not necessarily an insufficient salary.
Is $90,000 A Good Salary For A Single Person?
Yes, $90000 for a single person is a great number. It does depend on where you live, but $90,000 does allow you to pay your expenses and have a little disposable income afterward.
However, if you think your expenses won’t be covered by $90,000, here are some things you can do to save money.
1. Cut Down On Unnecessary Expenses
It might be hard to cut down on things when you already do not spend much. But, we all have a few day-to-day “wants” that would be better if given up.
Perhaps, you enjoy going out for coffee and lunch on the regular, which is, in all honesty, unnecessary expenditures. You can make coffee at home and pack lunch for at least a couple of days a week or cut down on snacks and other junk food.
Shopping in either clothing brand outlets or thrift shops rather than purchasing all the latest releases will also help. Try to go for versatile pieces that allow you to style them with various items. Cut off subscriptions for streaming services that you rarely use and stick to the ones you consume the most.
This might be tricky to do at first, but once you get more financial room, it will be worth it.
2. Try Living With A Roommate
We agree that living alone has its own beauty and advantages. But, if you plan on cutting down your living expenses, living with a roommate can help significantly. Rent is one of the biggest expenses that most people have. When you split the rent with someone, that expense is literally being cut down in half, thus allowing you to save more.
Apart from rent, you can split utility bills and groceries, too. If you’re close with your roommate, you can even share the cost of streaming services, furniture and decor, and even some leisure activities.
3. Create A Second Stream Of Income
This is one of the best ways you can reduce the stress on your primary source of income. With the betterment of technology, side hustles have become increasingly common. This means it is easier than ever to monetize a skill or hobby in your free time and fix the shortage of cash.
At certain times it may take a while to ensure you get all the legal procedures done, such as company registration and license, in case you want to start your own business. But once that is out of the way, you can begin a side hustle you thoroughly enjoy to increase your income and earn extra cash.
Odd jobs are your friends if you do not have the time or interest in starting a side business. It could be walking dogs, house-sitting, nannying, or mowing lawns on your days off that can help you get more money or create a wiggle room in your budget.
You can also consider selling your old items like clothes and furniture to earn some extra money. Even a few hundred dollars can help you immensely.
Is $90,000 A Good Salary For A Family?
$90,000 can be a reasonable amount for a family, but it depends on where you live and what your expenses are. Since $90,000 is much higher than the average median income, it should be sufficient to provide for your entire house in most parts of the country.
However, before you make up your mind on whether $90,000 is a good salary for a family, you should:
- Compare all current expenses to your exact salary
- Consider financial needs for the upcoming years
Taking the upcoming years into consideration is important because many factors are dynamic. Your kids are growing and changing their needs; likewise, the expenses tend to grow and change.
$90,000 might be more than enough for your family currently, but one cannot guarantee that it will be enough throughout the years. Especially when your kids are older and their needs change, warranting the need of a new car to new cell phones, the expenses pile up.
The chances of one making the exact same salary up to when their kids turn into teenagers are relatively low. However, it doesn’t hurt to be prepared and calculate further ahead when you are accepting a new salary with more money.
Do keep in mind to calculate any additional streams of income, be it from your partner or any other side business that you may have, to get the correct average expense.
To conclude, $90,000 is beyond a good salary for the majority of the people in most parts of the country. Though the value may be seemingly different when many criteria are considered, $90,000 still amounts to a good deal of money for someone to live comfortably. If you are waiting to accept a job with a $90,000 salary in 2023, we suggest you go ahead.
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