Is $94,000 a Good Salary? It Depends on These Factors
Is $94,000 a good salary? Understand the personal and external factors that truly determine its value for your life.
A salary of $94,000 can seem substantial, but its true value is not universal. What constitutes a “good” salary is subjective, depending on an individual’s unique circumstances and external financial factors. A numerical figure alone cannot define a salary as good or bad without understanding its context. Various elements collectively determine one’s purchasing power and financial well-being.
Geographic Considerations
Geographic location profoundly influences the purchasing power of a $94,000 salary due to variations in the Cost of Living (COL). For instance, this salary in a high-COL area like New York City or parts of California would provide a significantly different lifestyle compared to a low-COL area, such as many regions in the Midwest or South.
Housing, transportation, groceries, and utilities fluctuate dramatically by location. In high-COL cities, median rent for a one-bedroom apartment can exceed $3,000-$4,000 per month, while in more affordable cities, it might be under $1,000. Utilities also vary, with average monthly bills ranging from $380 to over $700 depending on the state.
Grocery costs average around $504 nationally, but are higher in states like Hawaii and Alaska. Transportation costs, for vehicle ownership or public transit, also differ significantly by region. These combined expenses mean a $94,000 salary could offer comfortable living and savings in one area, but only cover basic necessities in another.
Professional Context
The professional context significantly shapes how a $94,000 salary is perceived. Factors such as industry, specific job role, years of experience, and educational background determine if this income is competitive or below market value. For instance, a $94,000 salary might be considered excellent for an entry-level position in certain fields, while it could be considered below average for a senior-level role in other highly compensated industries.
Average salaries vary considerably across industries. For example, the Utilities sector averages about $114,000 annually, and the Information industry around $100,000, while Leisure and Hospitality averages $30,167. Within finance, a Financial Controller might average $90,034, a Financial Analyst $73,569, and a Chartered Accountant $93,143. Job roles with specialized skills or higher responsibility command higher compensation.
Experience levels play a substantial role, as professionals with more years in a field earn more than those just starting out. Educational attainment, such as advanced degrees or specific certifications, also influences earning potential within a given role or industry. Resources like online salary aggregators, industry surveys, and the Bureau of Labor Statistics provide valuable data for understanding salary ranges for various positions.
Personal Financial Landscape
An individual’s personal financial landscape determines whether a $94,000 salary is considered “good.” This assessment includes household composition, existing debt obligations, and personal financial aspirations. A single individual with no dependents will have different financial needs and discretionary income compared to someone supporting a family or managing significant debt.
Household debt in the United States is substantial, with the average American household debt reaching $105,056 as of Q2 2025, and mortgage debt comprising a significant portion. Average total consumer debt for an adult was $63,000 in Q2 2025, including credit cards, student loans, and auto loans. Managing these debt payments, which represent 11.2% of income, directly impacts how much of the $94,000 salary is available for other expenses or savings.
Personal financial goals, such as saving for a home down payment, retirement, or children’s education, define the adequacy of a salary. This includes building an emergency fund, paying off debt, and saving for major purchases. A $94,000 salary is good if it allows an individual to comfortably cover necessary expenses, manage debt, and make consistent progress toward their financial objectives.
Total Compensation Beyond Base Pay
Total compensation extends beyond base salary, encompassing non-salary benefits that add value to an employee’s financial package. These benefits can significantly enhance a $94,000 base salary. For instance, the average cost of employee benefits for a private sector worker is $26,561.60 annually, representing 30% to 40% of total compensation.
Common benefits include comprehensive health insurance, valued at $9,000 for an individual or $15,000 for a family annually. Dental and vision coverage, life insurance, and disability insurance also provide financial security. Retirement plan contributions, particularly employer 401(k) matching, are a valuable component, with average matches ranging from 3.5% to 4.7% of an employee’s annual compensation.
Paid time off (PTO), including vacation, sick leave, and holidays, offers value by allowing for rest and personal time without loss of income. Bonuses, stock options, or equity can increase total earnings beyond the base salary. Other perks, such as professional development opportunities, wellness programs, or tuition reimbursement, contribute to an employee’s financial well-being and career growth, making a base salary more competitive.