“People don’t feel they can ask for help”: Managing your personal finances as a junior lawyer

When I landed my first job in law as a newly-qualified corporate solicitor, I was earning more money than my father ever had.

I remember thinking I should feel successful. But when it came to the money side of things, I felt very othered, both at home and in the workplace.

Growing up, I saw my parents making cutbacks to make ends meet. I understood the idea of watching where your money went, but I hadn’t been exposed to the language of investing or anything beyond that.

I’ve come to realise that had a very profound impact on my financial behaviours. I didn't pay into my pension in the early stages of my career because I wasn’t auto-enrolled and I just thought, “Well, I need the money now”.

I also had significant student debt – roughly £60,000 after university and self-funding the legal practice course (LPC). I was living in my overdraft. People would never have seen this part of me at work. I would never have said that I was struggling.

As far as my family were concerned, I was a hyper-successful individual. I didn’t want to let them down, so I hid my money worries from them as much as I did from anyone in work.

It was a real moment for me when I finally got out of my overdraft and paid off my debt. It took me a long time; it was several years into my career.

It's difficult to picture yourself at 60 at the beginning of your career

I started my career 15 years ago, but I see these same patterns in young people entering the profession today. I think we have got to do better as an industry to address the financial skills gap.

Had someone given me some guidance, it would have massively reduced the feeling I had that somehow it was only happening to me – and there was something wrong with me for not knowing.

That’s what motivated me to start Wealthbrite. One of our programmes, Financial Management 101, provides online financial literacy training for people at the beginning of their legal careers to help them reduce stress and build their own plan and goals.

We know that people at the start of their career often aren’t thinking about long term financial planning. Research by academics at the Aston University’s Centre for Personal Financial Wellbeing, where I'm an associate member, has shown that people don’t necessarily think about pensions at the age of 20 or 30 because it’s difficult to picture ourselves at 60.

This leads to an unconscious ‘present bias’, where we’re much more focussed on our immediate needs and experiences. This plays out in our financial behaviours as we prioritise steps to establish financial security. But as the world changes with rising costs, more pressure on government spending and people living longer, talent needs to plan earlier in their career for their long-term future.

Damaging stereotypes

There are three issues in the legal profession that at Wealthbrite we believe compound a national lack of financial literacy. First, the stressful working environment means many prioritise work over other aspects of their lives.

Second, the value placed on lawyers’ expertise means that people don’t feel they can ask for help. They struggle silently.

Third, the perception of wealth. The social media activity of some firms and individuals sells a model of life in law that is very glamorous and expensive – yet in the UK only 4% of the population earn six-figures or more. A minority of people working in the legal sector earn that much.

In fact, the profession is a very broad church. Salaries can vary significantly.

In our 2024 financial wellbeing in law survey, 60% of those we surveyed said they feel pressure to spend beyond their means. What’s more 48% said they relied on credit for essentials at the end of the month. The correlation between those that relied on credit and those that didn’t have a regular practice of budgeting was 77%.

Financial management is an essential skill for practice in law and by starting with the basics of goal setting, budgeting and saving, you can start feeling a sense of control over your finances sooner than you think.

Building financial literacy

My top tips for lawyers who want to start building financial confidence and resilience are:

1. Get clarity on numbers

At the start of people's careers, sometimes there's a general unwillingness to look at the numbers. It may feel scary.

I don't just mean knowing your income. I mean clarity on the numbers that are important to you, like where is your money being deployed? How much do you want to have in savings? How much do you want to invest for a future event?

I have a monthly guilt-free spending amount, my ‘fun fund’. Numbers don't have to just be for the purposes of saying ‘no’ to yourself.

2. Prioritise your ‘safety buffer’

Having a ‘safety buffer’ means you must decide what counts as an emergency for you.

For some, it might be setting money aside in case the boiler breaks. Ask yourself, “Do I have the funds available for repair without relying on credit or borrowing?”

For someone else, it might be, “What if I decide to leave my job and it takes me three months to find a new one?"

I’ve lost count of the number of senior lawyers who’ve told me they feel trapped in their job because their lifestyle doesn't allow them to step off the treadmill.

3. Ask for help if you need it

Many law firms would tell you that they have financial wellbeing support to some degree. But many employees aren’t aware of it or using it.

If you don't feel comfortable talking to somebody at work, or a friend, pick up the phone to a free confidential helpline run by organisations like LawCare and The Solicitors’ Charity.

There are places you can go to learn and to get some guidance. What we've seen is that the real dangers to individuals and firms come when people don't speak up at the right time, and things get out of control.

4. Hold a mirror up to your money habits and behaviour

Changing people's behaviours is usually about changing people's beliefs around money.

Our actions follow our beliefs and behaviours. How are you currently talking about money? Do you talk about it in a restrictive way? Do you refer to yourself as “not a numbers person”?

You might be putting yourself down. We need to acknowledge the narratives to switch to a position of “I can learn, I can do it differently, and I will do it differently.”

I’d also encourage you to reflect on how many hours a week you spend working to earn money, versus the amount of time you spend looking after it.

5. Use existing tools to your advantage

You don’t have to engage in some super sexy, complex financial planning. Start by taking yourself on a 30-minute money date and ask, “where am I spending my money today?”

Are you using the predictive spending features on your banking app to track different behaviours? Do you use direct debits or standing charges to automate payments to a savings account?

Even if you are using budgeting and banking apps, you’ll need to ask yourself if you are comfortable with how you’re spending.

It’s only when you bring awareness to spending that you can identify problems such as ‘lifestyle creep’. I know from talking to lawyers who have been through our programmes that it can happen through spending money on really small things that compound over time, rather than big ticket items like the holiday or that new expensive work outfit you’ve been eyeing up for a while.

Achieving your financial goals is possible

I do feel that financial education is a pattern disrupter for those who grew up with less financial privilege – and without a network, knowledge or ‘bank of mum and dad’ to support them.

Regardless of your upbringing, clarity is the first step to being in control of your personal finances. That’s what ultimately gives you peace of mind, a sense of wellbeing and freedom.