Please read and comment: I feel overwhelmed

**cschin4** · 09-16-2007, 05:05 AM

The time is now. Whatever you did in the past or "should have done" is water under the bridge. Forget about it. You are young and have lots of time. Personally, since you have a good paying job, you need to focus on keeping your nose to the grindstone. Go to work, don't buy things you can't pay cash for and stay out of the stores. Sounds like you are easily distracted and can get into money making schemes which are not going to pan out. The real secret to gaining wealth is steady plodding one day at a time. It is not fun or glamorous. In fact, it is often boring. There is no reason in the world why you shouldn't have money accumulated by the time you retire unless you chose to foolishly fritter your money away on JUNK. Yes, it is junk. How much of the stuff you spent on in the past now has any monetary value or even personal value where you still use and enjoy it? I bet most of the stuff has long since been tossed aside.
So, until you change your MINDSET about money, nothing will change. When you begin to value your financial peace of mind over stuff, the changes will occur. It really is not difficult. Don't spend more than you earn. Don't spend money you don't already have. Don't buy things on credit unless you can pay off the cc in full at the end of each and every month.

**kv968** · 09-16-2007, 05:36 AM

Originally posted by InDebtInDC View Post

Other than reducing debt and liquidating assets, I can't increase my income much more than what it currently is. I'm considering quitting my job and going to law school within a few years. I'll be in more debt, but I hope that my income will double or triple what it is now.

Please share your thoughts and comments. Thank you.

I'm not so sure law school will be an answer to your problems. Like you said, more debt and there's no guarantee at all that you'll double or triple your income. My brother is currently entering his last year in law school. He interned with a huge law firm in Philadelphia during the summer and they offered him a job when he gradutes. He'll be making about what you currently are if he accepts the job. Granted, he could possibly make a lot more in the coming years but it's not like you can go to law school and come out right away making double or triple what you are (or even what you currently are making for that matter). Competition in that field is extreme. He's ranked in the top 10 (top 10, not 10%) of his class and he's been turned down by many firms. Tack onto that ~30K/yr for three years of schooling and you might be better off just staying where you are and dealing with what you've got. I don't mean to dash your hopes of going into law if that's what you want, but don't think it's a cure all.

**kv968** · 09-16-2007, 05:42 AM

Let me just add though that just by you realizing you've made some mistakes and want to correct them, you're doing fine in my book. We've all made mistakes when it comes to handling money, but a lot of people never come to the realization that they have money problems and continue to flog along never taking care of it. You're young and have the time, the willingness and the means to do something about it and if you stick to it, you'll be ok.

**herm4** · 09-16-2007, 06:20 AM

You are only 27, and have realized you need to plan for the future. That's a great start. You could make lots of changes that would keep your spending in check. The problem with making more money is that you spend more money. The more you have, the more you spend. It's not necessary to make ton's of money to live really well. It's about managing the money you have. Put yourself on a budget and stick to it. Try it for a week, a month, whatever and see what planning and budgeting can do for you. You sound like a smart guy/girl (don't know which) I think you can change your ways without going back to school and incurring more debt via school loans.

**Staceyy** · 09-16-2007, 07:55 AM

I would not go to law school, you already have a good income. If you think you have troubles now, wait until you have no income, additional student loans and the fantastic job you thought you would land, doesn't pan out. Please don't make another bad decision trying to get to the "good life".

Before my layoff, I had a similar income to yours. I think the problem lies in the fact that when you have a certain income, you feel you should live the life you think that income affords. This lifestyle is generally highly inflated in your mind, as it is in others. This leads one to begin stretching their lifestyle through spending all available cash and credit. Those with much lower incomes are doing the same thing of course which makes for precarious positions for almost all.

Spending does not make one rich and neither does a high income. Saving steadily over a long period of time and making wise investments does. I am very familiar with the DC area, having lived there for many years myself. It is a highly competitive area with a growing population, lots of new construction, lots of trendy restaurants and stores. Its hard to stay focused and satisfied there as new things are always popping up to grab your attention. The area is very transient, and the people you are trying to impress today, will have moved to another area tomorrow and you'll constantly be trying to impress the new neighbors.

The people I know who have succeeded there, did it by getting jobs (usually government) moving steadily up in the ranks, paying themselves first, not getting into credit card debt, getting married, buying a condo, then a townhouse and then a single family home. Real estate appreciates phenomenally there. I observed this progression for 30 years from the time my friends got their first jobs to this year when most are eligible to retire.

**loanstar** · 09-16-2007, 09:06 AM

its a good thing you realise you have a problem.. However, i don't think quitting your job is a good idea, its a very good salary and going back to school will take another few years out of your plans to get rid of the debt.

**aurielle** · 09-16-2007, 09:22 AM

Originally posted by Staceyy View Post

I think the problem lies in the fact that when you have a certain income, you feel you should live the life you think that income affords. This lifestyle is generally highly inflated in your mind, as it is in others. This leads one to begin stretching their lifestyle through spending all available cash and credit. Those with much lower incomes are doing the same thing of course which makes for precarious positions for almost all.

Spot on.

**InDebtInDC** · 09-16-2007, 08:37 PM

Thanks for the support.

If anything, I can pinpoint the source of the problem to be my car. I spend too much money on it. I don't really shop or go out to expensive places, etc.

As for law school, it's something I've always wanted to do. I'm not really doing it for the money. It's more like an investment I want to make for my career.

My dream is to work as partner at firm for about 10 years and then retire, get my PhD, and teach.

I did the math and with my experience, background, and a law degree, I could be completely out of debt and have enough retirement money saved up in 10 years, PROVIDED I LIVE MODESTLY.

I think that last part is starting to sink in...

**Staceyy** · 09-16-2007, 10:05 PM

If your dream has always been to be a lawyer, why did you major in engineering and business? Then you want to get your PHD and teach? You'll have the best chance at success if you choose one line of work and stick with it throughout your career.

**herm4** · 09-17-2007, 03:15 AM

Probably, like alot of people, DC didn't figure out his dream, until he was already headed down a different path. Some people never figure it out....

**InDebtInDC** · 09-17-2007, 03:31 AM

Originally posted by Staceyy View Post

If your dream has always been to be a lawyer, why did you major in engineering and business? Then you want to get your PHD and teach? You'll have the best chance at success if you choose one line of work and stick with it throughout your career.

I've always done management consulting my entire career. Getting a legal degree just means I get paid more for the same work since they think lawyers are smarter.

In order to practise as an attorney in my area, you need to hold a BS in an engineering or science field. They're about to approve business majors but haven't yet so that's why I needed an engineering degree. Plus my degrees are directly applicable to my work.

You may bypass the degree requirements with 2-3 years of coursework in physics or "hard" sciences, or you may get your engineering license, but none of this was appealing to me.

That's why I am confident that I have more training and experience than the average law school grad who came straight from undergrad as a liberal art major, no disrespect to anyone who is a liberal art major. This is the point the poster above was alluding to when he said his top-10 law student was having difficulty seeking a job. It's a very competitive field.

I've reviewed some of the materials my friends learn in law school, and I'm confident I can teach some of the legal strategy courses just because I've been doing it for a while now. You can't learn that stuff out of a book.

The only difference now is I can't appear before a judge on a client's behalf. The job won't change that much, but the compensation will. So it's not that big of a change for me.

Overall I feel a little better today. Thanks for everybody's comments. I think I know what needs to be done now.

**boefixepa** · 09-17-2007, 08:50 AM

Hang in there!! Sounds like you have the making of a great plan...stick to it and live fugally, like you mentioned, over the LONG HAUL and you will be just fine. Be glad you woke up to your situation at 27 and not 47 or at all like some people. You have enough time to make it work!! Go for it!!

**Scanner** · 09-17-2007, 09:34 AM

Well, you asked us to read and comment. I'm going to be "in-your-face" on this.

I am going to go with the posters here trying to dissuade you from law school, mainly because how I read it on how you wrote it, you seem to be following the career as a "payoff" to lead a well-to-do life.

I think you don't realize the business aspects of practicing law.

It's not like LA Law where you are awarded a salaried job and you get to argue important, in-the-news cases week after week and then sleep with a hot blonde.

(if you want that, you should pursue politics, like I plan to someday

)

It's more like you have to struggle to keep your "billable hours" up by finding excuses for your clients needing legal research and preparation. Therefore, it's sales and then followed by a lot of bland, legalese writing.

I would imagine this is so even in a sub-speciality of law that's engineering technical. Follow that by a PhD, which means more tuition and probably a salary cut (academia almost always pays less than industry), you seem to be lusting for prestige and money.

And lust or greed is one of those 7 Deadly sins.

So what to do?

1. Try to divest the money from the career. It's more difficult than you think. Would you practice law or teach if it meant 40K/year?

2. Consider that we have all been sold a "bill of goods" in that more education leads to a better lifestyle. It does not. There was a great pair of articles at Yahoo Finance on that:

Here is the link to the second article:

Yahoo

http://finance.yahoo.com/expert/article/generationdebt/44474;_ylt=AiTXnL4Qmge3LHu9jXBGaY.7YWsA

It's audience is "Generation Debt", of which you seem to be a card-carrying member.

If I sound a little in-your-face, it's because I think I have made some of the mistakes I think you are about to.

Good luck with whatever you decide.

**herm4** · 09-17-2007, 09:40 AM

Interesting....Good points made from SCANNER. I love the insider information. I agree with you completely.

Please read and comment: I feel overwhelmed