Cashflow 101: Getting Out From Under the Lifestyle Trap

“Measure Cash flow by how much you keep not how much you earn,”  Lifehacker 09/08/2014

Lawyers have a notorious reputation for appreciating the finer things in life. High end cars, vacations, a beautiful home in a desirable location, designer clothing and other luxury items are often some of the perks lawyers associate with being successful in their profession.

Unfortunately many lawyers often do not realize what their lifestyle is costing them.  Very few track their spending to see if the money being spent is actually in line with their priorities. I encourage you to take a closer look at your spending in order to hone in on your values.  Ask yourself, does my spending reflect my priorities; am I spending most of the income I earn?  The truth is, if you do not have a sense of where your money is going, you are likely to spend more of it, even if your income continues to increase.  This leaves you vulnerable in getting caught in the lifestyle trap of always having to work to create income

As you become more successful and mature as a legal professional, the lifestyle trap means you could be earning a significant income,  have all the trappings of wealth, but no real wealth or savings to rely on in the future.

Jackie Porter (@askjackieporter)

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