When it comes to building wealth, Certified Management Accountants (CMAs) have an advantage. It’s not that getting paid to perform CMA duties is an automatic jackpot, but rather, CMAs have access to opportunities that other people don’t usually get.
CMAs can get promoted to high-paying positions
Building wealth requires having access to money that you can invest. High-paying positions are a great way to amass large amounts of investment capital.
High-paying positions generally require stricter qualifications as an employee moves up the corporate ladder. Sometimes experience can take the place of certifications and degrees, but not in professions that require strict adherence to federal, state, and local laws.
Certified Management Accountants work hard to earn the qualifications that grant them access to those higher-paying positions. After getting a bachelor’s degree, studying for hundreds of hours, and finally passing the CMA exam, they’ve earned the right to hold a high-paying position.
What high-paying positions can CMAs hold?
There are three main positions CMAs hold in the corporate world: Chief Financial Officer (CFO), Corporate Controller, and Financial Controller. The average salary for each of these positions is $148k, $105k, and $90k, respectively.
Additional positions CMAs hold include:
- Senior Financial Analyst ($82k)
- Accounting Manager ($75k)
- Senior Accountant ($71k)
- Financial Analyst ($63k)
There are plenty of other titles CMAs hold within their companies, but these are the most common.
How high-paying positions help CMAs build wealth
The more money a CMA can access, the easier it is for them to build wealth. CMAs that hold the title of Senior Financial Analyst or Financial Controller generally have enough free cash flow to invest in real estate, CDs, and the stock market. They can also start their own business on the side. Some CMAs do all of the above.
Smart CMAs can also save an incredible amount of money by living a frugal lifestyle. For example, while a CMA earning $100k per year can certainly afford to pay $4,000/month for rent, not everyone will do that. Many CMAs choose to rent an apartment or buy a small house while they work on investing their money and watching it grow. Many plan to buy their dream house later on and prefer to save and invest as much as possible.
CMAs can take on additional responsibilities
Since CMAs are trained in management and strategic decision-making, they’re often promoted to higher positions and/or given additional responsibilities with a pay raise. Even some standard positions are changing where companies prefer to hire a CMA over other certifications.
For example, CMAs are starting to replace CPAs as accountants. Many accountant positions now require skilled financial management and decision-making, which is exactly what CMAs are trained to do for organizations. CPAs are great with crunching numbers and managing financial records, but they aren’t trained to advise upper management regarding financial decisions – CMAs are trained to perform that function.
CMAs generally hold supervisory positions, and even entry-level positions come with big responsibilities. For example, CMAs are often tasked with supervising lower-level accountants handling tax liabilities and other simple record-keeping duties.
Like everything else, additional responsibilities equal more income, which amounts to more opportunities to invest larger amounts of money to build wealth.
CMAs connect with other investors
Another way CMAs can build wealth easier than most is through their corporate connections. There are definite perks to being high up on the corporate ladder. CMAs often meet other investors who turn them on to unique opportunities. Sometimes they come across clients with investment opportunities.
Some organizations send their staff members to conferences and trade shows to see what their competition is doing. Others attend digital tech conferences to network with other organizations to find potential clients, business partners, and joint ventures. When a CMA gets to attend these events, they could end up meeting connections for their own business and the company they represent.
Want to build wealth? Consider getting your CMA certification
The opportunity to build wealth is always present with any profession, but CMAs have an advantage. Becoming a CMA requires becoming a financial expert in many ways. What you lean on the path to getting certified will certainly help you make sound financial decisions that support your efforts to build wealth.
While becoming a Certified Management Accountant isn’t the only path to wealth, it’s a great option if you love finances, numbers, and helping organizations make solid financial decisions. If you see yourself in the role of a financial advisor, you might enjoy being a CMA.