What Is Considered a Good Salary in Denver?

Defining a “good” salary is subjective, particularly within a dynamic urban environment like Denver. What one considers sufficient income differs greatly based on personal circumstances, lifestyle, and economic conditions. A salary adequate in one city might be insufficient in Denver due to its unique cost of living. Therefore, understanding a good salary here requires examining various financial components that shape daily life and long-term financial stability.

Understanding Denver’s Cost of Living

Living comfortably in Denver necessitates understanding its cost of living, which is generally higher than the national average. Housing typically represents the most substantial expense. The average monthly rent is around $1,935, with a median for a one-bedroom apartment often reaching $2,000. For homeownership, the average home price is about $650,555, and the median listing price was $600,000 as of February 2024.

Transportation expenses also contribute significantly. Owning a vehicle involves fuel, maintenance, and insurance. Public transportation, provided by the Regional Transportation District (RTD), offers an alternative with monthly passes available. These costs collectively impact a household’s disposable income.

Food expenses include groceries and dining out. A meal at an affordable restaurant costs around $20, while a mid-range meal for two can be $80. Monthly household grocery bills can range from $1,370 to $1,598. Utility costs, encompassing electricity, heating, cooling, water, and garbage service, average approximately $177.72 per month. High-speed internet services cost around $65.85 monthly.

Healthcare costs for a household range from $400 to $457 per month. Colorado has a flat individual income tax rate of 4.25% for the 2024 tax year. The state sales tax is 2.9%, with an average combined rate of 7.81% when local sales taxes are included. Denver also levies a local occupational privilege tax of $5.75 per month for individuals earning at least $500 monthly.

Typical Salary Ranges in Denver

Typical income levels in Denver provide context for what constitutes a good salary. The average annual salary is around $68,072, and the median is about $66,516. Salaries vary considerably across industries and experience levels, with the median household income approximately $85,000.

The technology sector generally offers competitive compensation, with an average salary of $164,284. Specific roles like Software Engineering Managers earn around $142,000, Data Scientists about $126,000, and Cloud Solutions Architects approximately $141,000. Software Engineers see an average total compensation of $156,500, and IT Professionals earn an average of $82,243.

Within healthcare, salaries exhibit a broad range. A general healthcare position averages $19.58 hourly, or about $40,725 annually. Specialized roles like Healthcare Sales professionals earn an average of $70,483, and a Registered Nurse at Denver Health earns about $73,351.

The finance industry also commands higher salaries, with average compensation ranging from $74,638 to $138,556. Professionals in Banking & Finance can earn an average of $168,477. An entry-level Financial Analyst earns around $68,703, while the broader Financial Analyst role averages $73,168. Those with a Finance Degree can expect an average annual pay of $95,344.

Government employees have varied salary ranges. The average salary for City and County of Denver Government positions is $49,854 annually. General Government Employees earn an average of $63,313, while Federal Government employees average $115,842. In the education sector, the average yearly salary for educators is around $60,776, with public school teachers earning a median of $54,596. The tourism and hospitality industries also contribute, with Tourism Management roles averaging $135,545 and general Hospitality positions around $58,536.

Salary expectations are shaped by experience and educational attainment. Entry-level positions offer lower starting salaries than mid-career or senior roles. For instance, an entry-level financial analyst earns approximately $68,363, which increases with experience. Educators with more experience or advanced degrees also earn more. Higher education correlates with increased earning potential across most professions.

Factors Influencing a Good Salary

Beyond numerical figures, a good salary is deeply personal and intertwined with individual lifestyle choices. Where one lives in Denver, whether urban or suburban, significantly impacts housing costs and necessary income. Preferences for dining out, entertainment, and travel habits all contribute to monthly expenditures, directly influencing how far a salary stretches.

Household composition also plays a significant role in determining financial needs. The presence of dependents, such as children or elderly parents, increases expenses related to childcare, education, and healthcare. A single-income household will have different financial requirements than a dual-income household, even with the same gross income. These responsibilities necessitate a higher income to maintain a comparable standard of living.

Existing debt obligations, including student loans, car payments, or credit card debt, reduce disposable income. A salary adequate for someone without significant debt might be strained for an individual carrying substantial liabilities. Managing these obligations effectively is crucial, as they directly affect the amount of money available for discretionary spending and savings.

The ability to achieve savings and long-term financial goals is a key indicator of a good salary. An income allowing consistent contributions to retirement accounts, a down payment on a home, or other investment objectives provides a sense of financial security and progress. Without the capacity to save, even a high salary can feel insufficient. Personal values, such as work-life balance or job satisfaction, can also influence what someone considers a good salary, sometimes prioritizing non-monetary benefits over the highest possible income.

Financial Planning for Denver Living

Effective financial planning is essential for navigating Denver’s cost of living and achieving financial goals. Developing a detailed budget is a foundational step, allowing individuals to track income and expenses. Budgeting frameworks, such as the 50/30/20 rule, provide a useful guideline: allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. This approach helps ensure essential expenditures are covered while allowing for discretionary spending and future planning.

Consistent expense tracking enables individuals to identify areas where spending can be optimized. Utilizing financial tracking apps or spreadsheets provides clarity on spending habits and highlights opportunities for savings. This monitoring is particularly helpful in a city where costs, like housing, are notably higher than national averages.

Building an emergency fund is a paramount financial safeguard, especially in a high-cost urban area. This fund, ideally covering three to six months of living expenses, provides a buffer against unexpected financial disruptions like job loss, medical emergencies, or unforeseen home repairs. Readily accessible funds can prevent high-interest debt during challenging times.

Optimizing income can further enhance financial well-being in Denver. This might involve negotiating salary during job offers or performance reviews, exploring side hustles, or investing in professional development to acquire in-demand skills. Aligning one’s skills with prominent industries like technology or healthcare can lead to higher earning potential.

Integrating long-term financial goals, such as saving for retirement or a home purchase, into the budget is important. Achieving these milestones often requires disciplined saving and strategic investment. Regularly reviewing and adjusting the budget and financial plan ensures alignment with evolving personal circumstances and economic conditions, fostering ongoing financial stability.