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When people are asked to name a career that promises wealth and financial stability, “doctor” and “lawyer” are often at the top of the list. These professions have long been associated with high earnings and social prestige.
If you prefer suits over scrubs and briefcases over bandages, a legal career might just be your tailored path to success.
In general, lawyers serve a fundamental role within the judicial system by providing legal interpretation of complex laws and regulations, offering counsel, and advocating for their clients during legal disputes. As a profession, it ranks among the highest-paying careers outside of the medical field, with a median annual wage of $145,760, as reported by the Bureau of Labor Statistics (BLS).
While the legal profession continues to be a popular career choice for many, it’s important to understand that the annual income for lawyers can vary significantly based on a variety of factors such as their area of specialization, years of experience, the type of law firm or organization they work for, the city where they practice, and their individual skills and reputation.
California has the highest average salary for lawyers, only being surpassed by the District of Columbia, where lawyers command an average annual salary of $226,510. This figure is approximately $138,000 more than the average salary of a lawyer in Wyoming, which is currently the lowest-paying state for lawyers.
In general, the five highest-paying states for lawyers are as follows:
In comparison, the five lowest-paying states for lawyers include:
In addition to the state where an attorney practices, their salary may also be influenced by the specific industry they choose to work in and their level of experience. For instance, lawyers employed in the public sector, such as government or nonprofit organizations, typically earn less than those working in the private sector.
Earnings within the private sector can also vary due to factors such as the size and reputation of the firm and the nature of the work. Working independently or being employed by a large law firm can also significantly impact these earnings, as well as other variables, such as the region and types of cases handled.
The type of law an attorney practices can also impact how much they make. Take, for instance, some of the highest-paying legal specialties:
Managing finances can be challenging for many attorneys. More specifically, having a career that often requires late nights at the office and weekend availability makes finding the time to strategically invest earnings and build a personal financial plan an afterthought, when it should be a priority.
New lawyers are particularly vulnerable to financial stress. Despite the potential for high earnings, new lawyers often start their careers at a financial disadvantage due to the expenses incurred during years of schooling and bar exam preparation, along with significant student loan debt.
In a recent episode of Modern Law Library, Darren Wurz, the managing partner at Wurz Financial Services, provides advice for attorneys at the beginning, middle, and end of their careers. He also discusses the seven most prominent money mistakes attorneys can make.
In the legal game, profitability isn’t always about grand slams— it’s about recruiting the best players.
In the Lawyerist podcast episode “Unlocking Profitability in Your Law Firm with Moneyball Tactics,” Jeff Krause, a Wisconsin attorney and founding partner of Solfecta, LLC, talks about how lawyers can apply the principles of Moneyball to increase profitability in their law firms.
During the episode, Krause explains how law firms can leverage data analysis to better understand the profitability of their attorneys and clients, using Billy Beane’s strategy. He also provides valuable insights into the steps lawyers can take to enhance their profits and follow in the footsteps of a legend.
If you’re interested in the legal profession or want to stay up to date with the latest legal news, add Legal Talk Network’s podcasts to your playlist.
Legal Talk Network is a podcast network for legal professionals with hosts from well-known organizations and brands in legal. Over 20 active podcasts cover important legal news and developments, including access to justice, law school, industry events, legal technology, and the future of law.
