Is 120K USD a good salary in the US?

Question

Prateeksha Manral · Accepted Answer

A salary of $120,000 in the United States is generally seen as a good income. It is significantly above the median household income of about $68,700, indicating that you are earning more than many households
However, the true value of this salary can vary widely based on several factors.
Location is a critical factor. In high-cost areas like New York City, San Francisco, or Los Angeles, $120,000 may not provide as much financial comfort due to high expenses for housing, transportation, and everyday living. These cities can be quite expensive, and what seems like a high salary may not go as far.
Conversely, in cities with a lower cost of living, $120,000 can offer a very comfortable lifestyle. Places in the Midwest or the Southern states often have lower living costs, which means your salary can cover more, from housing to leisure activities.
Your personal financial obligations also play a significant role. If you have significant expenses such as student loans, a mortgage, or family responsibilities, your disposable income will be impacted. It's essential to consider these obligations when evaluating your salary's adequacy.
Additionally, lifestyle choices are crucial. If you prefer a more luxurious lifestyle with frequent dining out, traveling, or other costly hobbies, your salary may not stretch as far as it would for someone with a more modest lifestyle.
Other factors to consider include job benefits and career growth opportunities. Comprehensive health insurance, retirement plans, bonuses, and other perks can add significant value to your overall compensation package, making your salary more substantial than it appears on paper.
In summary, while $120,000 is a good salary in the U.S., its adequacy depends on where you live, your financial obligations, lifestyle, and job benefits. It's important to assess these factors to determine if this income meets your personal and professional needs effectively.