djusting for Texas’ low cost of living, financial professionals in the Lone Star State make more than anywhere else in the country.
This is from Accounting Principals, which measured four areas — entry-level salaries, mid-level salaries, top-level salaries and increase/decrease in total amount of financial professionals since the 2009 recession — in a recent study.
Texas ranked No. 1 in the entry, mid and top level salary categories and No. 2 in increased level of jobs, behind only Arizona.
The Accounting Principals used cost of living to handicap all salary figures, because a dollar isn’t worth the same everywhere in the U.S. Their salary index, where 100 is the average, ranges from Mississippi at 85.3 to Hawaii at 192.8.
Let’s look at how using cost of living affects the true value of a salary using the two most populated states in the U.S. — Texas and California. The salaries below are for entry level jobs, which are described as bookkeepers and auditing clerks.
- Texas annual mean salary: $39,010
- California annual mean salary: $44,200
Looks like California pays way more, right? Well, according to the cost of living index, Texas is a 91 and California is a 136.2. So after adjusting for cost of living, the salaries look like this:
- Texas adjusted salary: $42,868(1st in the U.S.)
- California adjusted salary: $32,452(45th in the U.S.)