Golden Handcuffs: Lawyer Edition

How much does it really cost to work at a job you find unfulfilling??

Golden handcuffs can look different for lawyers...they're not limited to the big house or fancy car. And don’t get me started on the lackluster retirement contributions from most law firms.

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

There were a lot of things for me that were just part of the lifestyle of being a 24/7 Biglaw attorney. My coffee budget was unlimited (as was the alcohol) and I took little pleasure in my actual work so instead I spent money on other things to try to get to a little version of happy.?

• Take out every night (ok, breakfast and lunch, too!)
• A shiny new pair of earrings
• A fancy new gadget that was supposed to help me fix my life but I’d never end up using anyway because I worked all the time

And on and on and on.???

Identifying Your Golden Handcuffs

So when I’m working with my clients, I like to look at 4 Categories of Golden Handcuffs:

Just knowing what you spend in each of these categories and making an honest evaluation of their value in your life can help you determine if you’re spending because it’s meaningful or because your job isn’t.?

And by looking at your current finances it’s much easier to envision what your future life could look like post-transition.

Here’s a real life example of one of my clients’ Golden Handcuffs spending…

This is a professional couple, living in DC, three kids in private school, and totally overwhelmed by the demands of their high stress careers.

Now I’m not saying that they’d save an entire $12,650 per month by switching jobs, but a change in work & life situation could definitely make a dent.?

Moving 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 Biglaw salary.

And let me be clear, I’m not here to tell you how to spend your money, that goes against my own values of respecting what my clients deem important.?

But I am here to make sure the money you spend goes toward things that actually bring you joy.?

Loosening Your Golden Handcuffs

Now that you know how golden handcuffs can show up for lawyers, it’s time to start thinking about how to loosen their grip.?

When I begin working with clients it’s very hard for any of them to imagine what a new life could look like. We’re so stuck in the survival mode of just getting through our day to day, we don’t have the energy to tap into our imaginative side.

So let me help…

How much have you saved during these crazy times by working from home? (not to say this hasn’t come with costs – emotional and financial – but let’s focus on the financial savings for a moment)

Think about what expenses have just gone away while we’ve all been working from our home offices:

• Are you saving on commuting expenses?
• Are you saving on workday lunches?
• Are you saving on the work wardrobe?
• Are you saving on childcare??

(Ok, maybe that last one just isn’t worth it!)

These are some of the expenses that inevitably change when you make a change in your career.?

Maybe not all of them, but it’s worth considering.?

I work with my career transitioning clients on the concept of Golden Handcuffs a lot and when we do the analysis it used to be hard to imagine what life would be like if their work situation were different...uh, not so hard anymore.?

All of us probably have a sense of what a different work situation would feel like now!

We actually have some real life examples to work with.

For me, the gas savings during the pandemic that went along with a non-existent commute (for me) and less traffic for my husband amounted to hundreds of dollars a month – and we went even further by selling our cars after relocating to DC proper (huge savings!).

And seeing these types of changes could be just what it takes to inspire you to think of what’s possible if you made a more permanent change in your career.

Download the Golden Handcuffs worksheet and see for yourself how much it’s costing you to work at a job you don’t find meaningful.?

My clients are often considering a dramatic career change and I help them think through all the ramifications of that decision, from both a financial and emotional perspective.?

This is part of that work.?

Schedule a free consult if you’d like help thinking through what a change could look like for you.

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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.

She’s also the host of the monthly podcast Beyond Biglaw: Money Management for Lawyers.

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