[Singularity77]

Just curious … if this is all worth it!

What is the highest CPA’s salary that you know of?

What does the highest-earning CPA you know of earn, per year?

I am not talking about a CPA that ends up doing something other than CPA career stuff…

Thanks!

[samdiegoCPA]

@OneStep@aTime I am just so curious what you are spending money on making $130k and barely getting by in ALABAMA! Serious question. Like I've said a bunch, I make about 1/3 of that and own my car and I live in freaking Southern California and am not worrying about bills. Zero parent contribution and I commute to work.

This thread is so interesting to me, I hope more people chime in. I have a few friends who make between 70-100 (I don't know exactly) and some complain about money sometimes. I get I am more “money-minded” and am always thinking about what I buy and always shop around, where most people are impulsive which creates this “can barely make it at 150k a year” situation.

AUD: 84
REG: 84
BEC: 79
FAR: 83

[Guti]

If you are making around 130K as a couple and barely surviving is either because you are saving for a sex operation, or you are into high price hookers on the weekend.

FAR-84
AUD-
REG-
BEC-

[Anonymous]

I've skimmed this thread and just wanted to throw out there my own income and budget for consideration…

I currently make approx. $30k. I'm 23, I've paid off my school debt, am paying off my house (50% escrow in it ATM) which has 3 BR 2 BA on a nice little lot in a quiet town (we pay extra each month), drive a 2012 Toyota Corolla (which I still owe on…it's going next after the house!), am the primary income for myself and my boyfriend (he has autism – he works some, but we don't count on his income for bills – it's “fun money” and/or savings and/or extra payments on the house), and we get along fine – a little tight at times, but fine. I live in an area with a very low COL – our mortgage payment is under $350/mo. But my point is, $30k can support a couple in a certain location and do so quite fine. I don't want kids (have too many siblings to want my own kids 😛 ), but without kids, we're OK on $30k. With kids, I'd imagine $40k would be sufficient but on the tight side (kids are expensive 😐 ). My dream would be to make about $60k at some point in the future – with that, we could live comfortably and save well for retirement…but if I keep making my $30k (adjusted for inflation), I'd be OK. 🙂

@samdiegoCPA I know people – coworkers who are in accounting, friends and family who aren't – who make easily double what I make and can “barely make it”. I think some of it is that people want to feel like things are tight, and some of it is just poor money management. If you get used to spending your paycheck, then every bump in the road is rough; if you get used to not spending your paycheck, then it's not. I know people who seem jealous of me and like they think I'm rich cause I can put cars on my tires and pay for it with cash, or cause I had a down-payment for my car…it's not cause I'm rich; it's just cause I watch my money!

[How many letters do you need]

A big part of this is lifestyle, cost of living, if you have kids or not, income of your spouce if married, etc. I think most everybody can get by on mid 100s just about anywhere (except perhaps NYC & SF) if they choose to. However, if they need $500 dinners three times a week, $5,000 suits, a $100k+ car and a huge house in an exclusive neighborhood that mid 100s salary starts to feel like slave wages, even in places like Alabama. In most of Southern CA, the mid 100's salary won't even get you into the exclusive neighborhood, much less anything else I listed. It will, however, give you a nice comfy lifestyle in a nice area if you aren't the type to need all the bling.

MBA,CMA,CPA, CFF?, ABV?

[Liss, Master of Coin]

@samdiegoCPA,

FYI: I live in SoCal. I do well for myself; I am in the 70-100 range, it has afforded me a great home, but not my dream beach house in Orange County.

I worry about bills but mostly because I'm trying to pay off student loans and pay off my house. Until those 2 things happen, I doubt I'll stop worrying about money; ha! I worry a lot about money, but the reality is, as long as I don't loose my job, I'm fine (I'm freelance so that is where that worry comes from).

My 10+ year old car has been paid off for years; meanwhile a lot of people around me are leasing fancy cars that I know they can't afford, which just makes me smh.

RE: the original topic. $175k is a lot of money! I work in the entertainment industry; I see a lot of people make that (and, honestly, double that), but even so that takes at least 3-5 years of working 16+ hours a day, 6 days a week, for most people to get the kind of experience to make that kind of money. It is not a starting point.

(I “only” work 50-60 hours a week, 5 days a week, which is why I'm not in the 6 figures, yet!)

EDIT: @How many letters do you need, you are very right, $100s will not get you in an exclusive area. I am glad I don't live in a gated community, with neighbors like Justin Beiber! haha. Though there are a lot of actors in my town, but they are mostly B and C list, or actors that were popular in the 80s and 90s.

@Fanalyst reminded me, I pay higher property taxes than most people, due to Mello-Roos (which I believe is a California thing). Apparently it goes to help my area's local public schools; people says our public schools are as good as the private schools. So I better have kids to take advantage of what I help pay for.

CPA (MA, Non-Reporting)

The difference in winning & losing is most often, not quitting - Walt Disney

B - 33, 71, 79!
A - 32, 61, 70, 83!
R - 33, 58, 73, 69, 81!
F - 47, 78! 🙂
After 3 long years, I'm finally DONE!
I could not have done it without NINJA MCQs.

Used: Roger for his Videos, WTB, and NINJA Audio, Notes and Test Bank.

[Fanalyst]

I love this thread…great illustration of “perception is everything.” I live in KS, in my second year working in corporate finance at a midsize company. I'll make around $50k gross this year. Bought a modest house in a decent neighborhood – mortgage around $600/mo. Prop taxes less than $2k/yr. No fancy car=no car payment. No student loans (scholarships, worked throughout college, help from parents). I've kept a detailed budget the last year and my total outgo was about $25k (not counting the 10% going to 401k).

My little sister (frosh in college) recently asked what my friend does for a living because he clearly makes more than me.

In reality, my friend makes about $35k but borrowed money from grandparents to put 3.5% down on a house he couldn't afford. Owes $30k on a truck and $7k on a boat. Will be paying back student loans for years to come. Probably hasn't even heard of a 401k or IRA, and the dude barely lives paycheck to paycheck. Yet, my little sister (and probably everyone else) assumes his big house, badass truck, and sweet boat means he's pullin in the big bucks.

Perception is everything.

[KBinMN]

I don't care where you live in the US $30k a year is damn near poverty level. I mean at 2080 hrs/yr that is not even $15/hr. I threw away a flyer in the mail to work for USPS slinging mail for $15 an hour, you don't need a college education for that. Maybe for part-time 30k is reasonable but wow.

And living paycheck to paycheck is NOT ideal. Ever. To think that someone paid and went to college to live paycheck to paycheck is mind boggling. And a CPA? I really hope that is part time.

[Fanalyst]

Oh and I guess I'll chime in on the original question of the thread. At my company (2k-3k employees) I know of 5 people in top level management with CPAs. CFO, Controller, and the rest are EVP's of different divisions, and they all make $200k+. However, they got where they are because of their management skills, their accounting/finance skills were just prerequisites.

[John Tucker]

Yes, if you solo or as a couple are bringing in over $150k and you “can't make it” then your EXPENSES are too high lol. That's it, period. As I mentioned earlier in this thread, if you are making $200k but spending $300k then of course it will feel as though you can't get by.

I still stand by my original premise that there's no “average CPA Salary” but if someone wanted some ballpark figures for having a CPA license and working in a variety of positions within business, IT, accounting, finance and sales I would use the following:

No Experience – 3 Years Experience: $20k a year – $40k a year, if you are in a big city it should be $30k – $50k but the big city higher cost of expenses brings it back down to around the same range anyway.

4 Years – 8 Years Experience: $50k – $65k, big city $60k – $80k

8 Years – 14 Years Experience: $70k – $100k, big city $90k – $120k

15 Plus Years Experience: Over $100k, big city over $150k

If you are at or above these levels based on your experience and location, consider yourself doing well. If you can't “make it” at the 4 year plus level then your expenses are TOO HIGH, cut them down.

* State of MA CPA Exam Candidate
- BEC: Sunday, August 24th
- FAR: Saturday, November 29th
- AUD: TBA for February 2015
- REG: TBA for May 2015

[OneStep]

@samdiego & 14Month-Monk, there is no need to attack me like that. I never said that we live paycheck to paycheck with 130k. Another point was made here about 401k and savings. How much do YOU save? We put 20% into 401 and about 10% in our savings account. We dont have any student debt but we have some credit card debt that we want to pay off.

Everyone's life is different and people spend their money on different things. I may spend more on food, while someone else might spend it on doctor bills or kids, travel or something else. You get the picture.

FAR - Apr 2013 - PASSED
REG - Oct 2013 - PASSED
AUD - Apr 2014 - PASSED
BEC - May 2014 - PASSED

[Anonymous]

My parents raised me and my sister off of 70k (together) in South Florida. I don't understand this thread at all. Even in incredibly high COL places like NYC, it still doesn't make any sense to me. South Florida's cost of living is relatively high, and 175k is still a ton of money.

With that said, I think some of the figures people are dropping on here are too low. Maybe you live in a place with a low cost of living, but maxing out at 80k as a CPA seems a bit too low to me. I'm under the impression that Big 4 managers in South Florida top out at 100k right before they're ready to be sr. managers. Probably higher if you go into an advisory practice.

EDIT: I just looked up a COL calculator, and 175k is New York is around 80k in Miami – so it's not a TON of money after all. However, like I said, both my parents made 75k together and I live just fine. Your wife probably would have to work if you want to live more than ‘just fine,' but you're by no means destitute.

[PurpleK]

@Entendu Thanks for the cost of living comparison.

My monthly income is about $12k after taxes but before my 401(k) contribution. After saving 20 – 25%, maxing out my 401(k), maxing out my IRA, paying my mortgage, and paying all other living expenses, I am left with about $1,000 to $1,500 of discretionary income, which does not get you very far in NYC.

Last month, my water heater broke and I was already having to pull from my savings account.

My goal is to travel more and take advantage of life while I am still in my mid-20s, but I find that I have to watch my spending very carefully. Obviously I am not living paycheck to paycheck, but in some geographies, $175k is really not that much.

[Anonymous]

My husband and I live in North Florida, gross over $100K annually, have a decent house in a decent neighborhood, have 3 children, pay child care, have internet/cable/cellphones/house security/life insurance/pest control/401K and just bought a new car. We also managed to pay off all of our credit card and student loan debt (over $30K) AND put $16K in savings in the last 3 years, while having 2 in diapers and 1 on formula. We've taken a nice vacation each year and taken the kids to Disney on Ice, the Circus, etc. I don't care where you live, you can control finances and make changes to your spending to get the things you want out of life if you have patience and figure out what's really important to you. If you don't want to put in the work to control your expenses/bills then you will always struggle. That's life. Balance your wants/needs with what you can afford. The more money you make, the more things you will want, and the more you will spend unless you figure out how to balance and budget. This is true no matter where you live.

[Anonymous]

Oh–I should also have added that when we were younger and made less and had less monthly bills and no children was when we created all that credit card debt and still couldn't save any money. Changing the way you plan things, instead of being impulsive all the time will do wonders for your finances.

[nbad311]

I know a CPA who is a partner at a small firm @ 29 yrs old, salaried at 70K-something and gets quarterly distributions that total a few grand a year. To me, that's rolling in dough!

Also, “salary” means so much less when you enter the work force with student loans / car note / CC debt, etc. I know people who graduated and were debt-free. WUT?? Must be nice, I guess. I remember when I was interning my junior year of college: making $22/hour was HUGE MONEY, but when I graduated and started my job (and student loan repayments started, along with other real-world adult finances), I was still living paycheck to paycheck on a 50K salary.

REG - 65, 70, 80!
BEC - 35, 62, 79!
AUD - 73, 75!
FAR - 65, 73, 70, 75! DONE.

[Author]

Replies