A scary question

So, what is your desired salary?

This is a question that can make any job candidate’s stomach drop, whether they’re reading it on an application or hearing it from an interviewer. You don’t want to give a lowball answer, but you also don’t want to seem like you have unrealistic expectations.

Before you can give a concrete answer to this question, you should have an actual number in mind. You should know what you’re aiming for, and what’s realistic, so you can be confident about the salary offers you will and won’t accept. Here are a few things to help you figure it out.

1. Research. A Google search can usually tell you the industry standards for salary in your desired position. Most job search websites will let you search for the standards in your geographical location, as well. Sometimes pay ranges vary depending on state or region. The size of the company you’re looking at and its level of success will also affect the pay scale.

Another way to research is by asking other employees in similar roles what their pay is like. Keep in mind, though, this is personal information and not everyone may be comfortable sharing. You could also ask any recruiters in the field (who don’t work at the company you’re applying to) if they can share the average salaries they see for the type of position you want.

2. Skill level and experience are factors. If you know me, you know I’m a big believer that you don’t have to get a four-year degree to get a great-paying job. Still, education and training will still be taken into consideration at many companies, depending on the role. Having more years of experience in a given industry will usually mean higher pay. So, even if you don’t have a ton of education but you’ve spent years getting hands-on experience in jobs that are related to the one you want now, your pay should reflect that.

Another thing to consider is skill level. Skill level isn’t necessarily equivalent to the amount of time you’ve spent working in an industry. Be honest with yourself about your skill level, and if you’ve got a competitive edge, factor that into the amount you think you should be paid.

3. Cost of living. How much do you realistically need to make to take care of all your family’s expenses (or if you’re single, even just your own)? How much do you need to make to live comfortably? Would you need to relocate if you were to take a certain job?

We all need to budget our money and live below our means. However, there’s no denying an income can make or break the ability to reach our financial goals.

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