By Hadley Leonard,
BARBRI Legal Education Advisor
Studies show most law school students won’t begin thinking about the bar exam until their last year. That might mean that you, on the verge of said final year, are feeling the creep of anxiety from the looming expenses: the fees for sitting for the exam, the balance on their bar review account, the living expenses during bar studying. Then the panic begins to set in – where is all this money going to come from?
Create a budget
Budgeting is maybe the least glamorous work in the English language. But it’s also one of the most effective and proven ways to manage financial challenges. No one has ever had fun sitting down in front of Excel and allocating out their income or financial reserves to food, rent and savings. Those who do, however, sleep better at night, in control of where their money is going, rather than their money being in control of where they are going.
Find areas to cut back
After looking at your budget, try to find where you can eliminate spending. I know we all feel like we can’t possibly do this, but really you can. The easiest areas are eating out and entertainment expenses. A good strategy for cutting back: plan to eat out one meal per week. And skip the specialty coffee pit-stops a few days a week. It all adds up.
Determine how much you need to save, how much you need to spend each month in necessities and find an equilibrium. Put it on paper and stick to it. Make sure you start saving as soon as possible; it’s never too late. Whatever your income, save a little each week.
If you were to save only $25 a week, over the course of three years of law school, you would have accumulated almost $4,000. $25 a week is not noticeable; the balance you accumulate (plus interest) is.
BUDGETING PUTS YOU IN CONTROL
This may have been the most un-fun post you’ve read all week (and probably sounds like a lot of things your grandpa used to tell you), but there’s a reason people keep shelling out this advice. It works. Taking control of your income and financial reserves puts you in the driver’s seat and frees you up to invest in what’s best for your future.