5 Money Mistakes Lawyers Make

It’s a well kept secret, but many lawyers aren’t that good with money. Sure, we’re experts in our field and ask great questions (especially when we already know the answers) but when it comes to money…well, most of us went to law school to avoid math!

So it’s no surprise that many of us struggle in the finance department.

I certainly did.

I practiced law in Washington, D.C. for nearly 14 years before deciding to pursue my true calling: financial coaching.?

I graduated from Columbia Law School in 2004 as a single mom of twins with over $200,000 in student loans and went straight to work at a Biglaw firm. Even with my Biglaw salary I still felt like me and my little family were just scraping by.

After eight years I switched roles and became Senior Counsel at the Division of Enforcement at the United States Securities and Exchange Commission. The 50% pay cut certainly changed my financial habits!

But law was no longer my true passion. And I knew I’d need to get my money in order if I were going to leave such a lucrative profession.

So I finally stopped avoiding the money stuff and became a personal finance expert in the process.?

I then left the SEC to become an Accredited Financial Counselor? and now work in an area of the financial industry outside of the securities world, teaching other lawyers how to use their money to finance their dream lives.?

I’ve worked with hundreds of attorneys who want to manage their money better to do big things, and that’s exactly what I’ve helped them achieve. (If you think you might like some personal guidance in the personal finance department, schedule a free consultation to see if we’d be a good fit.)

And with this newsletter, I’d like to share some of my best personal finance tips that actually work for the lawyer life.

So what are the biggest mistakes I see my clients make when it comes to money?

Here they are…

#1 Prioritizing student loans over financial growth

Lawyer career paths often start later than other professionals so waiting another five years to focus on retirement savings may not be the best idea. There are very few people whose best plan is to pay off their student loans as quickly as possible, especially if it’s at the cost of other financial goals.?

So don’t believe the hype…all debt is not bad.

For help on picking the best student loan repayment strategy for your situation, check out my FREE email series that will help you answer that question.

#2 Not paying attention to where the money goes

Paying off your credit cards in full every month is a good habit, but it isn’t enough…you need to know what you’re actually spending money on to make progress toward financial goals.?

But you don’t have to track every single penny if you have a good system. That may be a spreadsheet, an app, or a set it and forget it system like the one I teach my clients.

Just make sure you can tell when you have true surplus, because that's what will supercharge your financial progress.

#3 Golden handcuffs aren’t limited to the big house or fancy car

They can be all the little things you spend money on just because you’re unhappy in your job.

• Take out every night (ok, breakfast and lunch, too!)
• A shiny new pair of earrings
• A fancy new gadget that’s supposed to help you fix your life but you never end up using anyway because you work all the time
• And on and on and on.

Switching to something that is more fulfilling, in all the right ways, can be one of the best things you do for your budget.

When you’re not trying to add happiness to your life with comfort, convenience, and things…it’s not so hard to imagine life without the fancy lawyer salary.

#4 Making choices based on convenience rather than research

No need to search for the best deal on peanut butter, but we can make huge progress by focusing on the BIG things.?

Look for “fixed” recurring bills that you can lower while still getting comparable service, e.g., health insurance plans, car insurance, streaming services, etc.

#5 Treating Biglaw as a burden, rather than an opportunity

Biglaw gets a lot of flack for how overwhelming, stressful, unfulfilling, and frankly soul-sucking it can be, but it’s more than that. It can be the golden opportunity that opens the door to the most fulfilling life you could imagine.

Ask me how I know :)

So what now? Check out my full guide on these 5 Money Mistakes Lawyers Make and learn what to do instead to see how to address these money issues and make better choices.?

***

Jessica Medina is a former lawyer turned Accredited Financial Counselor on a mission to help attorneys create the financial freedom they need to do big things. She graduated from Columbia Law School in 2004 as a single mom of twins with over $200,000 in student loans and went straight to work at a Biglaw firm. After eight years she switched roles and became Senior Counsel at the Division of Enforcement at the United States Securities and Exchange Commission.?

She left the government to work in an area of the financial industry outside of the securities world and now teaches other lawyers how to use their money to finance their dream lives.

If you enjoyed this article, subscribe to this newsletter and make sure to join my community of lawyers looking for better personal finance advice at https://www.jessicamedinallc.com/email