Defining success is tricky. For some, success may mean achieving personal growth or fulfillment. For others, it means gaining fame and admiration. But for many, success boils down to one thing: money. Specifically, having a high salary. But what salary is actually considered successful?
The Average Salary
First, it helps to look at average salaries. According to the Bureau of Labor Statistics, the median annual wage for all occupations in the United States is $37,690. This means that half of full-time workers earn more than this amount, and half earn less. Looking specifically at common professions:
- Accountants earn a median salary of $71,550
- Software developers earn a median salary of $107,510
- Mechanical engineers earn a median salary of $87,370
- Elementary school teachers earn a median salary of $59,670
- Registered nurses earn a median salary of $71,730
So across a variety of professions requiring different education levels, the median salary tends to fall between $60,000-$90,000. Earning the median salary or above for your job could be considered moderately successful.
The Top 10%
Looking beyond the median, the top 10% of earners tend to be considered truly successful in financial terms. The 90th percentile indicates the wage at which only 10% of full-time workers earn more. According to the Bureau of Labor Statistics, the 90th percentile wage across all occupations is $81,430. That means only 10% of full-time workers earn more than $81,430 per year. Here’s the 90th percentile for some common professions:
| Occupation | 90th Percentile Salary |
|---|---|
| Accountants | $122,840 |
| Software Developers | $167,430 |
| Mechanical Engineers | $128,340 |
| Elementary School Teachers | $96,970 |
| Registered Nurses | $106,530 |
Earning a salary at or above the 90th percentile for your occupation signals that you are more successful than 90% of your peers. This level of pay tends to grant access to upper middle class or wealthy lifestyles.
The 1%
The top 1% of earners represent the highest tier of financial success. These are the professionals earning enormous salaries at the pinnacle of their careers. According to the Economic Policy Institute, the average income of the top 1% in 2019 was over $737,000. Here are some examples of professions with top 1% earning potential:
- Physicians – Top doctors and surgeons can earn $500,000+ per year
- Corporate Executives – Fortune 500 CEOs average around $18.6 million per year
- Law Partners – Elite trial lawyers and law firm partners can make millions per year
- Investment Bankers – Top Wall Street bankers take home seven- and eight-figure salaries and bonuses
- Entrepreneurs – Successful founders and startup CEOs can become deca-millionaires or billionaires
Cracking the top 1% of earners indicates you’ve made it to the absolute peak of your field. While a small number of elite athletes, celebrities and Instagram influencers can earn 1% salaries, it is extremely rare and difficult to achieve for the vast majority of people.
Location-Adjusted Salaries
It’s also important to consider cost of living when evaluating salary success. Making $100,000 in San Francisco or New York is very different from making that same salary in Milwaukee or St. Louis. To account for this, some look at location-adjusted salaries using cost of living indices. For example, according to Bankrate’s cost of living calculator:
- Earning $75,000 in Houston is equivalent to making $124,764 in San Francisco
- Earning $60,000 in Nashville is equivalent to making $103,786 in New York City
- Earning $50,000 in St. Louis is equivalent to making $68,966 in Los Angeles
So while someone earning $75,000 in Houston might feel like a moderate success in their city, they’d be considered much more successful and top-tier if making the equivalent salary in San Francisco. Location matters.
The Million Dollar Dream
For many, the highest level of financial success is becoming a millionaire. Having a net worth of over $1 million represents entering the top 3-4% of wealthy households according to data from the Federal Reserve. While becoming a millionaire is rare, here are a few common paths:
- Top Executives – Corporate executives like Fortune 500 CEOs routinely earn multimillion salaries
- Business Owners – Founders of successful companies can become millionaires by selling their business or taking it public
- Finance Professionals – Top investment bankers, hedge fund managers, and investors can accumulate seven- and eight-figure net worths
- Doctors/Lawyers – High-earning specialists like surgeons and trial lawyers commonly reach millionaire status
- Entrepreneurs – Successful founders and startup CEOs often earn equity worth millions
- Real Estate Investors – Those who build large property portfolios can become millionaires through appreciation
- Celebrities – Famous actors, musicians, athletes and influencers frequently leverage their platform into millions in earnings
While not the norm for most workers, breaking the million dollar threshold represents true financial freedom to many people. It signals you’ve made it to the top.
When Is Enough, Enough?
At a certain point, higher salaries and more money fail to substantially improve happiness and life satisfaction. The peak annual salary for emotional well-being is estimated to be $75,000 according to researchers. Earning more than $75,000 per year doesn’t seem to make people notably happier day-to-day.
However, life satisfaction and overall happiness continue to rise gradually with higher incomes past $75,000, up to around $500,000. But the effect is small. So while more money can help relieve stress and increase security, the link between salary and happiness fades as you earn more.
This suggests that above a certain level of comfortable, middle-class living, money isn’t as critical for fulfillment. Other factors like strong relationships, a sense of purpose, contribution to society, and enjoyment of life’s small pleasures end up mattering more. Soknowing when you’ve earned “enough” is very personal.
Questions to Ask
- Are you able to afford your needs and reasonable wants – housing, food, transportation, leisure, etc.?
- Do you have the ability to absorb unexpected expenses and set aside savings?
- Are you on track to meet your retirement savings and lifestyle goals?
- Are you avoiding stress, overwhelm, and burnout from overwork?
- Do you have time available for family, relationships, and activities you enjoy?
If you can answer yes to these questions, you may have reached an income level that provides happiness and security. More money can always provide more opportunities and comforts. But runaway materialism can be unhealthy. If your current income allows you to live the life you want, then you’ve likely earned “enough.”
Success By Age
What constitutes a successful salary also shifts with age and life experience. Income trajectories and needs evolve over different career stages. Here are some age-based guidelines for success:
In Your 20s
- Earning more than the median salary for entry-level roles in your field
- Establishing yourself as a top performer to set the stage for rapid income growth
- Developing skills, credentials, and expertise that bring higher salaries
- Out-earning your peers and finding a path toward six figures
In Your 30s
- Breaking the six-figure ceiling
- Reaching a senior role with management responsibilities
- Cracking the top 25% of earners in your profession
- Balancing career success with personal milestones like marriage, home ownership, and children
In Your 40s
- Achieving executive or senior technical contributor status
- Joining the top 10% of earners in your field
- Maxing out 401(k) contributions for retirement
- Sending kids to college while maintaining your lifestyle
In Your 50s and 60s
- Earning enough to afford the retirement lifestyle you want
- Reaching your peak earning years as an executive or industry expert
- Building substantial retirement savings and passive income streams
- Being able to retire comfortably on your own timeline
Priorities shift as you progress through different life stages. But the underlying metric of success is having the income needed to fully enjoy each phase.
The Freedom of Financial Independence
Many consider the ultimate salary success to be reaching financial independence. This is the point where your assets and passive income are enough to cover your living expenses without needing to work. While difficult to achieve, financial independence provides complete freedom and life control.
The FIRE movement (Financial Independence, Retire Early) provides some guidelines. To reach FIRE status:
- Save 50-75% of your income
- Maintain expenses under $40k/year (or 25x your annual spend saved up)
- Build an investment portfolio capable of generating $40k+/year in passive income
This allows you to potentially retire and live off your portfolio by your 40s or 50s without ever needing to work again. While not realistic for many, reaching this “salary escape velocity” represents the ultimate financial and lifestyle freedom to FIRE devotees.
Success Defined By Passion, Not Pay
Passion is vital for career satisfaction. Chasing money for its own sake often leads to unfulfilling work and life imbalance. High salaries should follow doing meaningful work you care about. Some signs you’ve achieved passion-fueled success:
- You wake up excited about your job
- Your work aligns with your natural talents and interests
- You are constantly learning, growing, and challenged
- Your work provides a sense of purpose and impact
This intrinsic motivation leads to your best performance. When combined with skill development, the money tends to follow. Motivation matters more than money. Loving what you do is success defined on your own terms.
Work-Life Balance and Quality of Life
Having ample time for family, relationships, hobbies, and passions is vital for life satisfaction. While money can enable more options, success shouldn’t come at the cost of work-life balance. Some signs you’ve achieved work-life success:
- You don’t regularly work overtime
- You use all your paid vacation time
- You have time for family and friends after work
- You have energy left at the end of each day
- You don’t check email and work tasks after hours or on weekends
Enjoying life’s simple pleasures and having time to recharge brings happiness. Sacrificing too much personal life for professional advancement can lead to burnout. Balance is key for sustainable success.
Conclusion
In the end, definitions of a successful salary are highly personal. Most Americans seem to agree that earning a six-figure income represents doing objectively well and cracking the upper middle class. But happiness and fulfillment do not continuously rise with higher pay after meeting basic needs. Doing meaningful work you enjoy and having strong relationships end up mattering more to life satisfaction.
While everyone’s goals and motivations are different, focusing on passion and purpose, maintaining balance, and aligning your work with your innate strengths and values will lead to the greatest rewards. Success is best defined not by dollars, but by living life on your own terms.