Category Archives: Financial Independence

Equity in a Law Firm Is Not Worth What You Think It Is

A few years ago, my firm got a phone call. A larger firm, based in the Midwest, wanted to buy us. We were told that they had noticed what we were doing and thought it was cool and wanted to talk about what opportunities there may be.

Our firm had a new equity partner.* She was really excited – since she had just come to have equity in the firm, visions of selling her equity stake and living on the beach danced in her head.

Sadly, that’s not really how it works. If you build a tech company and you sell it, you get money to buy a beach house or live the dream of financial independence. If you build a law firm and a larger law firm takes it over, you get a job as a partner in the larger firm.

Like so much of a lawyer’s money life, if you build a law firm, you aren’t building wealth, you’re building income. Income is great if you want to stay on the treadmill; wealth is better if you want to have money that lasts. Lawyers tend to choose income. Which is another reason to think that lawyers tend to be not very bright.

Continue reading Equity in a Law Firm Is Not Worth What You Think It Is

The Biggest Problem With Financial Independence for Lawyers

A few years ago I was at a turning point in my career. I had a job that was ok. I was working for the government in a job I really liked. I thought the work was important. The pay was relatively low, but the hours and stress were high.

But I could tell I was burning out. I had two young kids at home and I wanted to spend time with them. Even when I was with them, I was thinking about work. So, stuff was bad, and I needed to change jobs.

We make our own chains.

I did what people do when they’re looking for a new job – I called people and asked them what I could do. I asked them to introduce me to people they know who might be willing to talk to me about what to do.

A friend of a friend got me in touch with a lawyer whose career was on the rise. He was short on time, but gracious about talking to me.

At least until I told him I wanted a job where I could stay involved in my kids’ lives, and that being a good parent is a priority for me.

Continue reading The Biggest Problem With Financial Independence for Lawyers