|By: Jack McDonough|
Isn't it common knowledge that they all drive expensive foreign cars, are members of exclusive country clubs and wear expensive suits? I mean after all... anyone who is raking in $150...$250...$350...or even $500 per hour has got to be loaded. Don't you think?
The reality is most lawyers end up dead broke. Surprised? I'm not. Especially when you consider the fact that most attorneys have no clue when it comes to making money, managing it and keeping it.
Because, no one ever taught them how.
They all went to college... then graduated from law school and headed directly into a law firm to practice law. This seems pretty straightforward, doesn't it? I mean, it's kind of what you would expect them to do
The challenge is... that in those 7-years of advanced education (4 in college and 3 in law school) they were never taught how to look out for themselves financially. Instead they were learning how to help you and me. This is great for us...but in the process they short-changed themselves and their families.
Most lawyers are working long hours (55+ per week), often including weekends.
The reality of those high hourly rates they charge is this...very little of those rates trickle down to them- like maybe 10-15%. The majority goes to paying overhead. Which even is a tiny solo practice can be high when you include the costs of rent, malpractice insurance, phones, computers and software, advertising, secretarial, research library, paralegals, accounting, billing, and collections... and it goes on and on.
On top of all that, you can throw in clients who are completely unappreciative of their lawyer's work and then to add insult to injury...lawyers deal with clients don't pay their bills on time or at all. Just when you thought it couldn't get any worse to practice as a lawyer...you have to deal with the endless issue of cash flow or lack of it.
Is it any wonder that all lawyers don't end up dead broke?
If you think you may be headed down this road...Do Something about it today! It doesn't have to be this way.