Is $58,000 a Good Salary? Factors to Consider

Financial well-being is shaped by a combination of individual circumstances and broader economic conditions. A specific income figure rarely tells the complete story about one’s financial standing. Various elements influence how effectively a salary supports an individual’s lifestyle and financial aspirations.

Personal and External Factors

Whether a $58,000 salary provides a comfortable living depends significantly on geographic location. The cost of living varies widely across the United States, with urban centers and coastal regions typically having much higher expenses for housing, transportation, and daily necessities compared to rural or inland areas. A salary comfortable in a lower-cost region might be stretched thin in a high-cost metropolitan area, where housing alone could consume a substantial portion of income.

Financial goals and existing obligations also play a considerable role in assessing a salary’s adequacy. Those with significant financial burdens, such as student loan debt or credit card balances, may find a $58,000 salary less sufficient. The average federal student loan debt is around $39,075 per borrower, while average credit card debt can impact discretionary income.

The industry and experience level within that field further influence how a $58,000 salary is perceived. Some professions command higher compensation due to specialized skills or market demand, while others may consider this figure above average. Whether this income represents the sole earner in a household or contributes to a multi-earner household alters its financial impact, as shared expenses can reduce the individual burden.

National and Regional Salary Comparisons

Benchmarking a $58,000 salary against national averages provides an objective perspective. For full-time, year-round workers, the median annual earnings in the United States were around $60,000. This indicates that $58,000 falls somewhat below the national median for full-time workers. When considering household income, the median was around $80,000.

The purchasing power of $58,000 is heavily influenced by regional cost of living variations. The national average cost of living index is 100, but this can range drastically, with high-cost areas like Manhattan having an index of 227.8 and low-cost areas such as Decatur, Illinois, at 77.0. This means that the same $58,000 salary could afford significantly different lifestyles depending on whether one resides in an expensive urban center or a more affordable rural community.

Comparing $58,000 to federal poverty guidelines and living wage benchmarks offers another lens for evaluation. For a single person, the federal poverty level is $15,650, while for a two-person household, it is $21,150. A $58,000 salary is well above these thresholds, providing sufficient income for basic needs and some discretionary spending. However, a living wage, which accounts for the actual cost of living in a specific area, could be higher than the federal poverty line.

Understanding Total Compensation

A base salary of $58,000 represents only one component of an overall financial package. The true value of employment extends beyond the direct paycheck to a comprehensive benefits package. These benefits have a monetary value that, when added to the base salary, can substantially increase the total compensation.

Employer-sponsored health insurance is a valuable benefit. The average monthly premium for single coverage is $746 and family coverage is $2,131. While employees typically contribute a portion, the employer’s contribution represents a considerable financial commitment. This coverage helps protect against unexpected medical expenses.

Retirement plans, such as a 401(k), are another important component of total compensation, especially when employers offer matching contributions. Employer matches are typically between 4% and 6% of an employee’s salary. This employer contribution adds to savings, compounding over time to build a retirement nest egg.

Paid time off (PTO), including vacation, sick leave, and holidays, also carries monetary value. The average private sector employee receives paid days off annually, which can increase with tenure. Many roles offer performance-based bonuses, providing an opportunity to increase overall earnings. Perks like professional development, tuition reimbursement, and flexible work arrangements contribute to job value by fostering career growth and improving work-life balance.