When you’re looking for a job, how much money you’ll earn is probably among the top factors you consider. Sure, you may look at location, benefits and other things, but salary is likely high on the list.
The salary you are aiming for may have a lot more to do with your age than you think. That’s according to a study from financial services company Empower, which showed huge differences in how much members of different generations think they need to make each year to be financially successful. Be prepared, the numbers may surprise you.
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High Expectations
According to the study, the average American thinks a salary of just more than $270,000 a year qualifies them as financially successful. However, the amount varies greatly between generations. Here are the amounts broken down by generation:
- Boomers: $99,900
- Gen X: $212,000
- Millennials: $181,000
- Gen Z: $588,000
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Signs Your Expectations Are Too High
If you think the expectations from Gen Z are high, it can be helpful to take a look at the actual annual salaries of most workers in the United States. According to the U.S. Bureau of Labor Statistics, median weekly earnings of the nation’s more than 120 million full-time wage and salary workers were $1,165 in the third quarter of 2024 (not seasonally adjusted). That’s about $61,000 a year.
They Don’t Line Up With Reality
That means a good first sign your salary expectations are too high is if they far exceed what most workers are earning. However, it’s important to remember that salaries vary widely. You need to take into account your career field and research what other people are making.
Your Credentials Aren’t at That Level
A second sign you may be asking for too much when it comes to your salary is if your credentials don’t match up to what an employer would pay someone at that level.
“Compare your credentials to the ones the employer is requesting,” according to a post by Indeed. “If you find that you have all or any of the qualifications listed, this can give you more leverage for negotiating your salary.”
You Chose the Wrong Company
Your salary expectations may not be in line with the specific company where you’ve applied. If it’s a big-name company, a higher salary may be in line with what other employees there make. If it’s a startup or a nonprofit, you may need to have lower salary expectations.
Your Network Doesn’t Agree
You may not need to rely on other opinions to set your salary expectations, but it can help you figure out if you’re aiming way out of range for what might be normal. You can ask connections what they’re making or what they think might be appropriate for the job you want. If their numbers are way lower than your expectations, it might mean some adjustments are needed.
Other Goals To Consider
You may find it helpful to focus on your net worth instead of simply your salary. If you can’t find an employer willing to meet your salary expectations, you can set other goals. For example, you can negotiate on benefits, time off and position title. After all, you could set a goal to move up in the company and reach a certain level within a set timeframe.
Another goal to consider is your investment level. You may be able to start putting more money into investments to reach a yearly goal. In addition, you may want to set savings expectations for yourself. You can plan to put aside a certain amount of money each month in order to build your savings.
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This article originally appeared on GOBankingRates.com: 4 Signs Your Salary Expectations Are Too High (and What To Reach for Instead)
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