Prior to law school, I worked as a financial adviser where I met clients to gain an understanding of their financial situation and recommend a strategy for them to achieve their goals. I was surprised at how young professionals often accomplished so much in their careers yet were struggling to manage their personal finances. This article sets out habits that young lawyers should use as a catalyst for their financial success.

Avoid the Golden Handcuffs

For many young attorneys, a position at a reputable law firm or agency is perhaps their first experience with a substantial paycheck. Seeing these new numbers appear in their account is exciting and creates the illusion that they have an ample capacity to spend much more than as a law student and can finally live their dream life. However, it is prudent to think twice before taking on hefty financial obligations such as leasing a luxury car, renting a high-end apartment or joining an exclusive fitness club. These “golden handcuffs” create fixed costs that can inhibit your ability to make strategic career changes. For example, many associates at large law firms leave to pursue in-house counsel opportunities which often pay significantly less. Living well below your means will not only result in less stress but can grant you the fiscal flexibility to make tactical career changes if needed.

 Set a Plan of Action

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