Career planning – why money matters
LHL talks about why your money matters more now than it ever has amidst the turbulence of today’s legal industry, and why you should take responsible action to get it right!
Lawyers are one of the breeds of professionals that always strive to raise the bar of service for their client; while everything else in their busy lives is put to the side. Nothing is truer about this than their finances. Of course, the average legal professional works very hard is time-poor and doesn’t have a chance to think about anything else. This coupled with the fact that the lending landscape doesn’t make clear the packages that are out there, many professionals remain wholly in the dark to the advantages available to them. In this ever-changing world filled with disruption, it’s absolutely paramount to get your financial house in order.
The digital world order is well and truly upon us, and has ushered in a new employment paradigm for legal professionals. More lawyers are moving into non-traditional roles than ever before, as the legal industry goes through its most transformative phase yet.
There’s method in the madness for lawyers looking for more fulfilling, efficient ways of working, although there is some uncertainty in the move away from private practice into alternative paths. Laying the groundwork for a big career move or a step towards starting your own firm however needs business planning in regards to finance structure and financial planning.
Lawyers working PAYG, because of their elite standing, are of low-risk in the eyes of the banks, and thus receive a range of advantages around financing. These advantages include allowing you to unlock equity, improve cash flow, or simply buying the freedom and flexibility to pursue your dream career or business venture. Whilst lawyers are looking for more freedom, autonomy and control in their careers, there’s a certain amount of uncertainty around finances as a result. It’s paramount to make sure that you plan ahead, and there is a range of ways that you can ‘reinforce’ your financial house to have more peace of mind when you do decide to make a move. Legal Home Loans is a firm that specialises in working out exactly what lawyers need to make sure the appropriate steps have been executed financially to support your career ventures.
One of the things we stress to our clients at LHL is the importance of thinking ahead when it comes to career moves, and tapping into your finance at any stage in the future, especially before stepping away from full-time employment— being able to choose comfortably.
If you’re an employee lawyer working for a firm, in-house, the bar, or in government, it’s important to remember a few key points;
- Your low-risk profile in the eyes of banks and financial institutions is a huge advantage when seeking finance. Employee lawyers have options available to them with lower interest rates, lenders mortgage insurance exemptions, private and professional packages
- When you move away from an employee status into freelancing, moving to the bar, or starting your own firm, many of these benefits no longer apply and in fact might become impossible for a period of time— so forward planning is key; and
- Before making any major carer move away from employee status, you should do some planning to make sure you’ve got the best financing arrangements in place. This is especially true if you have equity you can tap into. This is true even if yours is a distant dream
This might mean looking to consolidate your loans, refinancing to free up some equity for your new venture, paying off credit cards, and even securing a loan approval for a home of an investment purchase.
Why is all this important? Know the landscape you’re stepping into. All of our clients who have considered various career moves in the past have benefited from our understanding of how work and life circumstances can change, and how adapting your pecuniary structure must happen alongside these changes for you to thrive.
So, how can you avoid the bank’s laborious credit process after starting your business? Let’s draw some comparisons to highlight. As an employed lawyer, two months of payslips at certain income levels will actually seem more secure than a year of income (irrespective of how successful you are!) as a self-employed legal professional. If you need to make any financial changes, you have to be set up properly by an advisor beforehand so you aren’t backed into a corner when it comes time to dip into the buffers you need. Your security risk profile that being an employed lawyer provides is a golden egg, and before you throw that away, you need to understand your options. For example as an employed lawyer, you could secure a 90% loan product with a lender’s mortgage insurance waiver, which on a $1m loan is a $20,000 saving. That is a huge perk of being a client of LHL.
Knowing the needs and understanding of the decision-making dynamics of lawyers is what sets us apart in terms of our approach. What we enjoy most is helping our clients plan for the future, and seeing them succeed in their careers or businesses—the only way to do this is by properly planning around your big career decisions and finances. Whether you’re a lawyer working in a firm or a law firm owner, you need a solution specifically tailored for your needs. It’s the key step towards reducing stress, ensuring you’re setup to pursue your goals, and amongst the tumult of the industry at large, having the freedom and volition to make big moves, with little turbulence. Have you given it a thought?
Legal Home Loans – The only financial services company in Australia that specialises in financing for lawyers.