I had an eye-opening conversation with a law firm owner recently that I think might resonate with you.
Meet David (name changed for privacy), a successful attorney who built his practice from the ground up. Like many firm owners I work with, he was doing everything "right" on paper – maxing out his 401(k), growing his practice revenue year over year, and even setting up a cash balance plan for additional tax benefits.
There was just one problem: he was miserable.
"I started my own firm so I could have more control over my time," he told me during our conversation. "I promised myself that once we hit certain revenue targets, I'd finally take that family vacation my kids keep asking about. But now that we're there, I feel more trapped than ever."
David's story might sound familiar. As law firm owners, you're trained to tackle problems head-on with clear, actionable solutions.
Need more retirement savings? Max out the 401(k).
Want more security? Generate more revenue.
Looking for tax benefits? Set up that cash balance plan.
But here's what I've learned after years of working with successful attorneys: jumping straight to financial solutions without first establishing your purpose is like trying to navigate without a destination in mind.
Sure, you're moving – but are you moving in the right direction?
The consequences of this "solutions-first" approach can be severe. I've seen too many prospective clients achieve their financial targets only to realize they've built a golden cage for themselves. Their investment accounts are growing, but their quality of life is shrinking.
They're making more money than ever, but feeling further from their actual goals.
For David, the breakthrough came when we took a step back from the numbers and asked some fundamental questions:
"Why is money important to you?"
"If you didn't need to work for money, how would you spend your time?"
His initial responses were what you might expect: "I want to provide a good life for my family." But when we dug deeper into what "a good life" actually meant to him, something interesting emerged.
It wasn't about having the biggest house or the most impressive investment portfolio – it was about being present for his children's soccer games and having dinner with his family more than twice a week.
This clarity led to some counterintuitive decisions. Instead of focusing on maximizing revenue, David invested in systems and staff that could handle cases without his constant involvement.
Yes, this meant higher expenses and lower short-term profits. But it also meant he could leave the office at 5 PM twice a week for his kids' activities – something that had seemed impossible before.
The key lesson? Your financial decisions should flow from your vision, not the other way around. Before you make another move with your finances, try asking yourself these questions:
- What does "success" really look like for you – beyond the numbers?
- How would you structure your practice if money weren't the primary driver?
- What would need to change in your current setup for you to feel truly satisfied?
Remember, your answers might challenge conventional wisdom about what successful law firm owners "should" do. That's okay.
The goal isn't to follow a universal template but to align your financial decisions with your personal vision of a fulfilling life.
Next week, I'll share specific exercises to help you uncover your financial purpose, along with real examples of how other firm owners have used this approach to transform their practices – and their lives.
Until then, take a moment to reflect on why you started your firm in the first place. The answer might surprise you – and it might just be the key to breaking free from the cycle of "more" that leaves so many of us feeling stuck.
Looking forward to continuing this conversation,
Dave
P.S. Stay tuned for next week's email, where we'll dive into practical exercises to help you discover your financial purpose and align your decisions accordingly.
