The Interaction Between Work-Life Balance & Financial Wellness

Newer attorneys are asked “What area of law do you want to practice?” Some say, “I want to help people, so I want to be a Public Defender” or work in public interest law. Others are focused on making money and want to go into big law or personal injury.

New lawyers often do not know what area of law they want to practice, and ask their peers or mentors for advice. In a Facebook group for law student and established attorneys, law students post questions about grades and court-appropriate outfits. Other posts inquire about what areas of law and career paths pay the biggest salaries. Seasoned attorneys share advice from their experience in various practice areas and firm sizes. Attorneys often suggest picking an area that makes you happy over a specific salary goal, because you will be sacrificing many hours working on client matters.

Newer attorneys can find happiness by following their passions, which can range from social justice work to corporate work. Research has shown a jump in new attorneys pursuing public interest legal careers, from just over 8% in 2022 to almost 9% in 2023, according to the American Bar Association’s employment outcome data.[1] Public interest lawyers may not earn the big salaries of their private practice counterparts, but public interest work can offer benefits such as loan forgiveness, better work-life balance, or an opportunity to advocate for one’s social justice passions.

Newer attorneys are also practical, given their debt incurred from law school. The American Bar Association Young Lawyers Division (ABA YLD) published a Student Debt Survey Report in September 2024.[2] This report indicated that 75% of young attorneys who borrowed money reported that their debt altered the career plans they had when entering law school. Apart from a change in their career plans, 76% of the attorneys reported their debt had caused them to delay getting married or having children, while over half indicated their debt prevented them from reaching savings, investment and retirement goals.

With student debt having such a deep impact on the lives and careers of young attorneys, how are they to succeed?

Is Work-Life Balance Attainable?

The question for all attorneys is “Do you have a good work-life balance?” The Cambridge Dictionary defines work-life balance as “the amount of time you spend doing your job compared with the amount of time you spend with your family and doing things you enjoy.” Attorneys are known for their long hours and the consequential stress. Articles have been written about attorneys needing to create boundaries between their work and personal lives. The demands on attorneys vary depending on practice area, firm culture, and the professional and personal support they have.

While attainable, work-life balance looks different for every attorney. Some attorneys may prefer to work until 10 pm or work seven days a week. Other attorneys may prefer ending work at 5 pm or not working on weekends. Work-life balance is not a futuristic concept, but this balance is a process, not a goal.

Part of this process is recognizing how financial situations impact the feasibility of work-life balance. Can you financially handle not working too much or going out on the weekends? Are you constantly thinking about your debt? These are the often overlooked questions that should not be ignored.

The Impact of Understanding Finances

As a younger attorney going into my third year of practice, I have become increasingly aware of my finances. As we grow up, we are taught to be mindful of our budgets, to save, and to think of our future. But it is not until you start receiving your first bigger paychecks that you realize how you deal with your hard-earned money will affect you in different ways. Having a healthy relationship with our finances can also have lasting impacts on our daily decisions and mental health. While you may enjoy certain expenses in the moment, like spending $2,000 on concert tickets, you may regret them later on. You may take two years to pay off your credit card interest from the concert expense.

Part of having a healthy relationship with our finances includes understanding them. Everyone should understand their firm’s 401(k) plan, if available, how to save and build money, and how to reduce debt. New attorneys should take advantage of the resources at their disposal, including speaking with someone at your firm or a financial planner, reading books, or attending financial planning presentations. In July 2023, the Contra Costa County Bar Association held a presentation with a financial planner, James (“Jimmy”) Diehl of MassMutual, called “Your Financial Planning Overview: From Student Debt to Retirement.” Despite the general information presented, that event gave me the opportunity to connect with a trusted financial planner. After the presentation, I spoke with Jimmy and received great financial advice on managing and growing my finances, given my situation. I had previously read various library books on investing and watched multiple social media videos of “regular” people managing their finances through things like high yield savings accounts, but wanted more definitive answers. I was in my second year of practice and lucky enough to not be overburdened with work. Recognizing the importance of planning ahead, I was ready to make financial changes.

Working as an attorney is known to be one of the most stressful jobs. Not all areas of law have the same stress level, but the compound effect of stress from the job and stress from finances, can lead to several issues. In the ABA YLD’s 2024 Report, 68% of borrowers found that debt was a source of stress and anxiety and 67% of the young attorneys, with and without loans, reported feeling stressed about their finances. Additionally, about half of the respondents who owed $100,000 or more in student loans reported that debt makes them feel depressed or hopeless.[3]

New attorneys must remember that having a good work-life balance is possible, if you are intentional. Whether you are in the field of law you always wanted to be in, in a financially necessary field, or if you have debt, the key to your wellness is to keep learning and growing. Wellness is not simply about working hours. Learning about your finances and how your financial decisions impact your personal and professional life is a continuous process that can lead to big results.

[1] https://www.americanbar.org/content/dam/aba/administrative/legal_education_and_admissions_to_the_bar/statistics/2024/class-of-2023-online-table.pdf
[2] https://www.americanbar.org/content/dam/aba/administrative/young_lawyers/2024-student-loan-survey.pdf 2024-student-loan-survey.pdf
[3] https://dictionary.cambridge.org/us/dictionary/english/work-life-balance