How to Financially Plan for a Job Change

Joel Chouinard, founder of SharpEdge Financial, a boutique financial planning firm in Dallas, understands the goals and needs of big law attorneys, especially after his attorney wife moved away from big law. For big law attorneys considering job opportunities outside big law firms, he suggests taking practice steps and weighing the pros and cons.

Dive into your spending and make cuts where necessary.

Chouinard advises creating a budget and cutting unnecessary expenses. Not all attorneys live lavishly, but working sixty-hour work weeks extends itself to opting for conveniences such as hiring housecleaners, gardeners, pool cleaners, and ordering take out multiple times a week. Once you categories spending, divide expenses between essential, discretionary and convenience and determine where you can cut expenses.

Factor health benefits into your budget.

This could make a dent in your budget, especially if you elect to use COBRA or buy coverage in the individual marketplace. 

Cut back on retirement savings.

This strategy may give you some breathing room as you make the transition, at which point you can ramp up your retirement savings again. 

Build a sizable “transition” savings account.

While working for big law, set up a large chunk of savings in an account to help supplement your income. This account could give you a cushion and buy you some time while you adjust to your new salary.

Are you interested in learning more about planning for a job change? Read more in this article.

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