Leaving Biglaw - How Much to Save Up?

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Anonymous User
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Leaving Biglaw - How Much to Save Up?

Postby Anonymous User » Sun Jun 14, 2015 9:02 pm

Two years into biglaw, and I'm quickly realizing that firm practice just isn't a fit for me. Still have about 1/2 my debt left, but I am lucky to have a positive net value of about $40K since my debt wasn't super high and I've always been good about saving. Looking to go a different route with my career (though still law-related), and am considering taking a job with $60K salary (though it should slowly but surely go up if I stick with it). Is 40K positive net value enough to make that kind of switch?

CanadianWolf
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Re: Leaving Biglaw - How Much to Save Up?

Postby CanadianWolf » Sun Jun 14, 2015 9:35 pm

You are asking for advice based on scant information. The only safe advice anyone can offer is to wait another year until your student debt is paid off. But, that is not real life. Biglaw sucks & you have a soul. Without more info., all I can say is to go with your heart & hope that your head is fine with that.

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Re: Leaving Biglaw - How Much to Save Up?

Postby Anonymous User » Sun Jun 14, 2015 9:48 pm

The debt is a loan from parents, and its without any interest. On top of that, they strongly urge me to pay back slowly so that I can continue building a safety net in the present. I have about 45K left to pay, and combined assets of about 85K, for the 40K net. Lack of interest, I would assume, makes it that much easier to make the switch I hope to make. But I'm still unsure whether 40K is enough to make the flip.

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minnbills
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Re: Leaving Biglaw - How Much to Save Up?

Postby minnbills » Sun Jun 14, 2015 9:52 pm

Can you survive on the 60k salary while still paying the loan back?

Anonymous User
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Re: Leaving Biglaw - How Much to Save Up?

Postby Anonymous User » Sun Jun 14, 2015 9:59 pm

^^^
My parents made it clear that I can pay it as fast or slow as I want without any issue. If I cut my salary 2/3, then I would likely cut my loan payments down 2/3. With no interest accruing, that wouldn't be an issue.

abl
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Re: Leaving Biglaw - How Much to Save Up?

Postby abl » Sun Jun 14, 2015 10:09 pm

The answer to this question 100% depends on what sort of life you're looking to have. If you're asking if you can stay finically solvent / above the poverty line / middle class with a $60k/year salary and $40k in net worth, the answer is absolutely yes. You'll be making around the U.S. median HOUSEHOLD income as a relatively young worker (with a positive net worth) with strong upwards potential for salary increases.

Presumably, though, you're asking because you're interested in living like you make >$60k while making $60k and want to know if your net worth is sufficient to allow this. It's impossible to answer this question without knowing how "rich" of a life you're looking to have, your area's COL, your other financial liabilities, etc.

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Re: Leaving Biglaw - How Much to Save Up?

Postby Anonymous User » Sun Jun 14, 2015 10:21 pm

abl wrote:The answer to this question 100% depends on what sort of life you're looking to have. If you're asking if you can stay finically solvent / above the poverty line / middle class with a $60k/year salary and $40k in net worth, the answer is absolutely yes. You'll be making around the U.S. median HOUSEHOLD income as a relatively young worker (with a positive net worth) with strong upwards potential for salary increases.

Presumably, though, you're asking because you're interested in living like you make >$60k while making $60k and want to know if your net worth is sufficient to allow this. It's impossible to answer this question without knowing how "rich" of a life you're looking to have, your area's COL, your other financial liabilities, etc.


1. No other financial liabilities luckily
2. My area's COL is high. Shooting to transition out of this area to a place with lower COL to make he lower salary go further
3. Obviously will have to lower expenses and change standard of living quite a bit. I'm frugal in most areas aside from rent. I don't buy many new clothes, don't eat out often, don't have expensive habits, etc. Rent is the only thing I can substantially cut down on, and its something I'd be willing to do in exchange for far higher life and career satisfaction.

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minnbills
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Re: Leaving Biglaw - How Much to Save Up?

Postby minnbills » Sun Jun 14, 2015 10:50 pm

Yeah if you can drop your rent substantially and don't have other large expenses then I'm sure you'll be fine.

FWIW I'm making 60k next year and have a pretty well developed budget. I am paying 1k a month toward loans and still have room for 500 in savings a month. Granted my rent is pretty low because I have an SO paying half but you get the idea.

If you've set up your budget and know that you can make it, then it's just a question of whether that's what you really want to do.

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chuckbass
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Re: Leaving Biglaw - How Much to Save Up?

Postby chuckbass » Sun Jun 14, 2015 10:53 pm

This seems like a decision that you should easily be able to make on your own

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sinfiery
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Re: Leaving Biglaw - How Much to Save Up?

Postby sinfiery » Sun Jun 14, 2015 11:24 pm

60k in america is higher than the average household income for people all throughout their careers, not just 2 years out of lawschool

if you don't have pressing debt concerns, this is a silly question -- and considering you offer no $ for debt + it's parental loan, we can't really comment.

You can absolutely leave, the question is if you personally prefer the money enough to stay longer

dixiecupdrinking
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Re: Leaving Biglaw - How Much to Save Up?

Postby dixiecupdrinking » Mon Jun 15, 2015 12:24 pm

The only way I can make sense of this question, really, is that you're looking for permission to leave. You have my permission. Go live your life.

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bruinfan10
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Re: Leaving Biglaw - How Much to Save Up?

Postby bruinfan10 » Tue Jun 16, 2015 11:15 am

dixiecupdrinking wrote:The only way I can make sense of this question, really, is that you're looking for permission to leave. You have my permission. Go live your life.

+1




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