Lawyers - Is Bright Lights Big Cities "Worth It," Financially?

 You get the offer, maybe way before you graduate law school, after interning at a law firm in a one of those Bright Lights, Big Cities areas. Yes, things are going your way.

Then you pack up and move into an a one-bedroom apartment in Manhattan. The average monthly nut is $4,875. Add on the expenses for taxes, transportation, dry cleaning and the meals the law firm doesn't pay for. Soon enough you're simpatico with the posters on Reddit Big Law and Fishbowl Big Law who kvetch that working in a Manhattan or a Los Angeles isn't "worth it" financially. 

The raw reality is that in a Manhattan, for example, large elite law firms such as Kirkland & Ellis and Paul Weiss pay lawyers in entry-level positions over $200k, with the possibility of a substantial bonus. 

That should be enough to live okay, start paying off student loan debt (at about $130k) and sock some away, right. But often it's at just a bit over the breakeven point. 

The elephant in the room is that with so many long hours and the fierce concentration that the tasks entail, it is difficult to do any smart financial management. There's no wiggle room to pull off frugal measures to cut down on standard expenses. Commute from New Jersey? That's no longer a real possibility. Northern NJ isn't that cheap anymore, at least not worth the commute time. The average cost of a one-bedroom in Jersey City, NJ is $3,092.

An option is to downsize the dream about the first job to a mid-sized law firm in a LCOL (low cost of living). Some lawyers I coach tell me in that kind of setting they have access to meaty assignments versus grunt assignments. Also, more direct client interaction. In addition to legal experience they refine client relations.

The money, although less, goes further. And, when they are financially secure, if they make a name for themselves and have a book of business, they can risk a lateral to the HCOL (high cost of living). Maybe even as a partner. 

In this article I published today in O'Dwyer's Public Relations, I lay out the pros and cons of deciding on the LCOL option. All this can also apply to equity partners who have been demoted or endured a haircut in compensation. The trend, which is growing, is called "de-equitization." Doing a LCOL can set in play a whole new start. What didn't work out at XYZ could at ABC. 

Affordable Career Coach Jane Genova provides end-to-end career services, ranging from diagnosis of the challenges and fix-it strategies to preparation of resume/cover letters/LinkedIn profiles and how to gain control of an interview. I specialize in over-50 work issues. My edge is a background in marketing communications. For a confidential complimentary consultation please text/phone 203-468-8579 or email janegenova374@gmail.com. Remote and in-person.