Bar Tabs: Legal Career Advice, Served Neat

Stay money wise, my friends.

whiskey whisky drinker drink drinking lawyer attorney.jpgAs a challenge to myself, I decided to take a break from alcohol this year. That still hasn’t stopped me from pulling up a chair and ordering a ginger beer or two. Why? It’s definitely not for the sports — I don’t know the difference between a touchdown and a turnover — I do it for the ambiance. Between coworkers blowing off steam post-clock-out or Tinder dates that clearly aren’t going anywhere, there’s usually some conversational snippets you get to hear that keep you interested. But I know what the white whale and holy grail of my bar eavesdropping and observing is. I’m looking for that person with a drink in hand and a story to tell to anyone who notices that gleam in their eye. They aren’t always decked out in suits like most interesting man in the world types, but the attentive know that they’re there. And sometimes, they give phenomenal advice that you just know is steeped in lived experience. Like this contribution from a fellow Bar Tabber:

“I graduated with around $180,000 in student loan debt.  I was unable to obtain legal work upon graduation and opened up a solo practice immediately..  In all honesty, I had been preparing for that scenario since my 2L year and had been reading up on trial advocacy materials and law practice materials so that I would be prepared to practice immediately.  My office began making 6 figures in year 3.  We’ve averaged around 275k the last three years. 9 years of practice.  And I still owe student debt.  Why you might ask? Because of interest.
The name of the game is compound interest. Its why financial companies jump at the chance at possessing your law school debt.  When people say you will end up paying twice as much for what you ended up borrowing, that is technically true.  Do not rely completely on the remedial programs the loan companies have set up for any long period of time.  During forbearance, interest will continue to accrue on all your loans.  Income based repayment is not designed to lower your interest rate or assist you in making an overall lesser payment on your total debt.  All that income based repayment does is provide you with a monthly payment you can afford based on your income. So if the interest which accumulates during is higher than what you’re paying, then you will never pay off your loan, your debt will simply continue to grow.  During a deferment, interest will accrue on unsubsidized loans but not subsidized so know the difference.  Most of your loans will be unsubsidized anyway so even during a deferment, interest will still mostly accrue on your student loan debt.
Finally, I wouldn’t rely on that median income of 60k purportedly earned by most lawyers on average.  I’m out on the field and I see and talk to attorneys who make much less than that.  These lawyers have side jobs, they uber during nonwork hours, they do doc review on the side, the wages paid by their law firm are not great.  Law firms will churn through new associates as many will not stay long given the weak compensation.  That’s if you can even get a legal job upon graduation.  Law is not like medical school or dental school where there’s a base income and a steady need.  There are plenty of attorneys in the world and many who will gladly charge half or a quarter of what your charging to get work.  Its a very tough earning situation, especially now with the COVID situation and everybody placing their lives on hiatus until this pandemic is resolved.
You make a gamble on yourself. Just be sure you are apprised on the stakes.  The scenario of a lifetime defined by abject poverty and everlasting financial debt is certainly on the table here after law school.  So know what is possible.  If you are smart, you will get that posh firm job at Snell and Wilmer and none of this will apply to you.  But many others will not.  And you can certainly fall among them do not blindside yourself of that.  My advice to any law school applicant is to apply to as many schools as you can and resign yourself to accepting the largest scholarship offer on the table, whatever your view on the school might be.  Because not getting a job right out of the gate, while owing 150k or more, is basically a financial death sentence.  I got lucky, I was ready, I came out prepared after graduation.  And most crucially, Google Ads was just in its infancy. Others are not so lucky.  And they will have this debt hanging over their heads for the rest of their lives. So know what failure entails in this situation and ask yourself if such a risk is one absolutely worth taking given your life objectives. If not, do yourself a big favor and just go to trade school, your net worth in your 30s will thank you for it.”
If you’d like to ask for or give some advice to 1Ls, graduating 3Ls, and new hires trying to hit a net worth of zero and beyond, send your contributions to cwilliams@abovethelaw.comAll information that is read and shared will be anonymous unless requested otherwise. Let’s figure it out together.

Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s.  He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who cannot swim, a published author on critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at cwilliams@abovethelaw.com and by tweet at @WritesForRent.

Sponsored