What am I worth? How much money do I need to make?
The best advice I can give you when negotiating a salary is to sit down with your potential employer face-to-face and talk like real people. This process does not have to be a difficult, hard-nosed, business transaction. The second and third-most important aspects of salary negotiation are knowing what you are worth and how much you need to make. Lastly, you need to understand how your benefits package fits into your compensation package.
- Don’t make the salary the primary issue of your job interview. You will look greedy. Remember that you are there to give something to the potential employer—not to “just get a paycheck.” I prefer to let the interviewee bring up money first. However, if they don’t mention wages and the interview is ending, it is okay to ask, “I am wondering, what is the pay range for this position?” Then you will have an idea of what you will be earning. This will be especially helpful if you are offered a job.
- So… what are you worth? The age-old question is difficult to answer. The good news is that you have many resources that will help you determine how much you should make at your job. There are several different ways to research how much money you should make. First, ask your instructors for a generally accepted wage in the field and geographic location you are entering. You can also ask AI. This might be the most efficient way to get up-to-date data.
- I suggest you add up all your “bare” expenses to see how much money you will need to make. I have provided an example below. I chose slightly lower-than-average costs for each category. If you move to a larger city, these costs may be higher; in a smaller city, they may be lower. Check online to learn how much an apartment rents for in the city you may live in.
Average Monthly Expenses
The average monthly expenses for an American under 25 in 2025 are approximately $2,863.
These expenses can vary widely based on location, lifestyle, income, and whether the individual lives with roommates or family. Common expenses for a 22-year-old typically include:
| Category | Average Monthly Cost (Approx.) | Notes |
|---|---|---|
| Housing (Rent) | $600 – $2,250+ | Highly variable; can be much lower if living with family/roommates, or higher in major cities. A one-bedroom in Onalaska, WI is about $1,327. |
| Food (Groceries & Dining out) | $450 – $800+ | Cooking at home can significantly reduce this cost. |
| Transportation | $300 – $1,100+ | Depends on car ownership (payments, insurance, fuel), public transit, or rideshares. |
| Utilities | $150 – $260+ | Includes electricity, water/sewer, internet, and phone service. |
| Health Insurance | $140 – $450+ | Costs vary based on employer plans or individual coverage. |
| Student Loans/Debt | $500 (average U.S. adult) | Many 22-year-olds carry student debt, which is a major expense. |
| Personal & Discretionary | $250 – $500+ | Includes entertainment, shopping, and subscriptions. |
Hourly Pay Needed
Approximately $2000 in monthly expenses is $24,000 per year ($2000 x 12 months). Each of you has a unique financial situation, but this is a good average to begin with.
You would have to earn about:
| Hourly Pay | Hours Worked Per Year | Annual Income | – 30% Taxes | Annual Take-Home |
|---|---|---|---|---|
| 12.00 | 2080 | $24,960 | -30% | $17,472 |
| 13.00 | 2080 | $27,040 | -30% | $18,928 |
| 14.00 | 2080 | $29,120 | -30% | $20,384 |
| 15.00 | 2080 | $31,350 | -30% | $21,945 |
| 16.00 | 2080 | $33,280 | -30% | $23,296 |
| 17.00 | 2080 | $35,360 | -30% | $24,752 |
| 18.00 | 2080 | $37,440 | -30% | $26,208 |
| 19.00 | 2080 | $39,520 | -30% | $27,664 |
| 20.00 | 2080 | $41,600 | -30% | $29,120 |
Key Factors Affecting Costs
- Location: Living costs in areas like Onalaska, WI, differ significantly from those in large coastal cities.
- Living Situation: Sharing rent and utility costs with roommates is a common strategy for young adults to manage expenses.
- Debt: Student loans and car payments can add substantially to monthly obligations.
- Lifestyle: Discretionary spending on dining out, entertainment, and shopping accounts for a large share of a typical budget.
Using a budgeting guideline like the 50/30/20 rule (50% for needs, 30% for wants, 20% for savings/debt repayment) is a recommended way for 22-year-olds to manage their finances.
Starting wage
The average starting wage for a graphic designer is $14 to $18 per hour. If you are asked for a starting wage range, tell an employer you would like to start at $16–$18 per hour and that you are willing to negotiate. Don’t start at $14, or that might be what they offer.
Be careful thinking that fringe benefits are money in your pocket. If your company offers to pay for your health insurance, that is money in your pocket. If they offer you an extra week of vacation, that is not money in your pocket. You can’t pay your rent with vacation time.