Lawyer Finances: Principles and Practices for Personal and Professional Financial Success

Abstract

Too few lawyers know the financial principles and practices that make for personal and professional success. Lawyers are good at many things necessary for law practice. They know the law and have the skills and identity to put the law to good use for their clients. They sometimes overlook, though, that their personal and professional finances can determine how long and effectively they are able to serve those clients. Finances can determine the success and failure of lawyers and their firms. Personal finances can make and break individual lawyers. When lawyers discern and follow sound financial principles and practices, they gain rewarding and sustaining peace of mind, purpose, stability, and security. Finances can also make and break firms. When the managing members of firms agree on and follow sound professional financial principles and practices, they lay and build a foundation for sustainable practice.This book introduces principles of personal and professional finance for lawyers. For lawyers personally, the subjects include financial statements and budgeting, risk management and insurance planning, and investment and retirement planning. For law firm financial management, the subjects include legal and capital structures, annual financial plans, balance sheets, working capital, operating statements, ratio analyses, and financial targets.Lawyers and law students who read this book should find encouraging confirmation of core commitments that they and others whom they trust have made and followed around finances. The principles and practices this book promotes are not a get-rich-quick scheme. They instead help lawyers prepare, plan, and practice wisely using modern methods made sound with the wisdom of the ages.