Greenwood holds an Associate of Science in nursing from Shasta College. Firstly, every private practice sells a service, usually psychotherapy or psych testing. Therapists want more freedom and money than typical mental health jobs allow for. However, a psychologist in this group who practiced in Mississippi -- the lowest-paying state -- earned as little as $50,660. The actual costs of a psychologist’s practice will vary by state. Typical Retainer Percentage for Consultants, American Psychological Association: Member Profiles, American Psychological Association: Young Psychologists Face a New Bottom Line, American Psychological Association: Eight Tips for Trimming Your Practice Expenses, U.S. Bureau of Labor Statistics: Occupational Employment and Wages, May 2012 19-3031 Clinical, Counseling, and School Psychologists, The Disadvantages of a Career in Psychology, How to Start a Private Practice in Psychology. Clinical, counseling and school psychologists, the group most likely to be in private practice, earned $72,220. For example, in 2009 clinicians with five years of experience earned an average of $54,000 while those with 10 to … Advertising, a website or networking expenses, all designed to bring in more business, also add to her costs. A PayScale.com salary survey found that the median annual salary for clinical psychologists was $79,117. This does not detract from the accuracy of our math at all. In addition, she may need to furnish her office, buy material for patient charts or purchase an electronic health record and buy office supplies or equipment. Salaries for Various Psychology Jobs . Practice location choices such as paying rent for an office or setting up a home office can make a dramatic difference in costs. The Expected Salaries for Child Therapists, Job Description for an Addiction Psychologist. However, the higher your education, the more you can earn. A psychologist who lived in Hawaii might earn as much as $90,420, but WallSt.CheatSheet reports the cost of living in the Honolulu area is 21 percent higher than the national average. In private practice, therapist pay is rarely based on a salary. A psychologist’s income varies according to her specialty and location, according to the U.S. Bureau of Labor Statistics. Psychologists can also decrease expenses by shopping carefully for services such as a phone, internet and billing or other cost-cutting strategies. Typically both the client and often an insurance company pay part of the fees. Experience has a major impact on salaries. Office rental, staff payrolls and health insurance are typical costs for a self-employed psychologist. Private Practice Clinical Therapist. 13. Clinical psychologists work in a variety of settings including hospitals, mental health clinics, and private practice. Jobs like non-profits, agencies, community mental health, and college counseling centers. You need to pay taxes whether you have a $100,000 salary, or your private practice makes $100,000. And psychologists in private practice typically have the option to set their own hours. Many psychologists graduate with almost $70,000 in debt -- sometimes almost twice that amount -- and have additional expenses when they begin their careers, according to an October 2012 article on the APA website. A psychologist’s income varies according to her specialty and location, according to the U.S. Bureau of Labor Statistics. If you work in a metro area you might be billing $200 for a 50 minute hour, but the average psychologist today is not one who only has patients who pay out of pocket, but depends on third party insurance and managed care contracts. In 2016, clinical psychologists in general brought home an average of $78,690 a year, according to the Bureau of Labor Statistics. The average annual salary for all psychologists in 2012 was $73,740. Salary Ranges. Earnings by Experience What Is the Difference Between a Psychologist & a Psychiatrist Salary Wise? A psychologist who buys used office furniture or who shares office space with another professional will have a very different expense picture than a psychologist who chooses an office in a luxury building and furnishes it with new items. Thirty-one percent of the American Psychological Association’s members were in private practice in 2012, according to the APA. However, those who are self-employed in private practice reported significantly higher annual earnings of around $110,000. Property taxes in Mississippi are low, although sales taxes and unemployment are high, which may affect people’s ability to pay for psychology services. The following are some of the median annual salaries for different psychology jobs as of 2018, according to the Bureau of Labor Statistics. Membership with the American Counseling Association (ACA) is $130.00 a year. The average annual salary for all psychologists in 2012 was $73,740. Starting a business -- even when your goal is to help people -- means start-up costs. The average salary for a private practice clinical therapist is $150,000 per year. If she outsources her billing, she will need to add that cost to her budget. It is impossible to quantify a psychologist’s exact costs because of the variables involved. About professional dues, to answer your question we are not joking. Clinical, counseling and school psychologists, the group most likely to be in private practice, earned $72,220. In Mississippi, for example, where her income is likely to be the lowest, the cost of living is also quite low, according to financial media company WallSt.CheatSheet. In the highest-paying state of Rhode Island, however, psychologists earned nearly twice that amount, for an average annual salary of $92,580. Virginia ranks number 12 out of 50 states nationwide for Clinical Psychologist Private Practice salaries. In addition to the rent or mortgage, food, transportation and utilities, psychologists in private practice have expenses related to being self-employed. A 2013 survey by the American Psychological Association provides a figure, finding that licensed clinical psychologists earned roughly $90,000 when in private practice. A Clinical Psychologist Private Practice in your area makes on average $117,137 per year, or $6,434 (5%) less than the national average annual salary of $123,571. Instead, here is how it works. Interestingly, this field of work requires slightly less education, with some completing a specialization in therapeutic practice in between six and eight years. Beth Greenwood is an RN and has been a writer since 2010. She specializes in medical and health topics, as well as career articles about health care professions. In Iowa, however, where a psychologist could expect to earn $71,010 annually, the cost of living is 10.6 percent below the national average, and the unemployment rate is only 4.6 percent. And then they collect payment for that sale. This often means earning at least a $100,000 therapy private practice salary–or more.