How To Take Control of Your Money Early (Lawyers Connect Newsletter)

The following is based on the 2023 program Crafting Your Financial Transition Plan by Jessica Medina, Accredited Financial Counselor and former lawyer, and Founder, Jessica Medina LLC.

A commitment to law school often means sacrificing financial security now for better long-term prospects. Many new lawyers step into their first paycheck with a five-or-six-figure loan balance, an unfamiliar salary, and no real plan for either. Even the ones who avoid student debt will still feel the effects of job-driven lifestyle inflation. That applies to anyone across the range of sectors and can severely affect how new lawyers plan the future of their careers. The good news is that a few smart habits now can build you real flexibility later, no matter which path you’re on. 

Tip #1: Run the 50/30/20 check on your budget. 

Instead of tracking every latte, zoom out: what share of your after-tax income covers your needs (rent, insurance, minimum debt payments), wants (travel, dining out, fun), and “shoulds” (retirement contributions, extra debt payments, savings)? The ideal target is roughly 50/30/20. Although almost nobody meets that goal exactly, especially in a high cost-of-living city like New York, it’s a valuable measuring tool to see which direction you’re trending to help you make adjustments. It’s also a great filter for evaluating any future offer, whether that’s a partner-track raise or a shift to something else. 

Tip #2: Match your student loan strategy to your salary. 

If your gross salary is higher than your total loan balance, aggressive repayment usually makes sense: pay loans down while your income can absorb it. If your total debt outweighs your salary, it’s worth seriously exploring federal forgiveness programs instead of chipping away at a balance that outpaces your paycheck. And if the two numbers are close, you don’t have to pick a lane forever. Many borrowers shift strategies as their income and life circumstances change. The point isn’t to lock in one plan at graduation. It’s to revisit the math whenever your salary, city, or job changes. 

Tip #3: Notice your “golden handcuffs” spending. 

A lot of new lawyer spending isn’t driven by greed—it’s about surviving a demanding job. “Golden handcuff” expenses often manifest in three categories: job-related costs (parking, dry cleaning), 24/7 job costs (extended daycare, last-minute shopping), and self-soothing spending (coffee, alcohol, hobbies). None of this is a character flaw, but naming it matters. Trimming a few of those expenses when possible can free up money for whatever you’re actually working toward. And if you’re ever weighing an opportunity to jump to something new, knowing how much of your current spending is job-driven makes that decision a lot more informed. 

You don’t need a finance background to get a handle on any of this, just a willingness to look at your numbers honestly. As you progress in your career, a little more clarity on your spending now goes a long way.