IFA column: Financial wellbeing – a foundational step for a sustainable practice

When we think about financial planning in family law, it’s easy to focus entirely on supporting clients through wealth division, pensions, and long-term financial strategies. But what about our own financial wellbeing, particularly early in our careers, when balancing workload, training and personal life often feels like a juggling act?

For junior practitioners (paralegals, trainees, newly qualified solicitors, or early-career associates), financial wellbeing is not a “nice to have”. It’s a foundation for resilience, focus and ultimately a sustainable career. Worrying about personal finances (such as debts, irregular cash flow, or insufficient savings) can quietly erode confidence, distract from professional development and lead to stress or burnout.

In this article I’ll explore common financial challenges faced by junior family lawyers, practical steps to manage them, helpful resources, and why investing in your own financial health matters in the long run.

The financial realities for junior practitioners

Many junior family lawyers face a perfect storm of modest earnings, unpredictable costs and social pressure. Common challenges include:

• Modest or irregular income: Entry-level salaries in law can look respectable on paper, but high tax, student loan deductions and rising living costs quickly erode take-home pay.
• Up-front costs: Qualification, training, CPD and professional memberships all add up.
• Student debt: Often £50,000+ in loans, repaid via salary deductions.
• Lifestyle expectations: The unspoken cost of “looking the part” in client-facing roles.
• Time poverty: Long hours and high stress leave little time for financial self-care.

Practical steps and how to make them stick

1. Automate your budget, savings and investing

Automation is key. Setting up direct debits to savings or investment accounts means you “pay yourself first”. You’ll be less tempted to overspend if money is already routed to a separate savings or ISA account on payday.

Many banks now offer “round-up” features that automatically add a small amount to savings every time you make a purchase, which can be a helpful, low-effort way to grow your savings pot over time.

2. Understand and embrace compound interest

The earlier you save and invest, the more powerful the effect of compound interest. As for the famously misattributed quote to Einstein (there’s no evidence he ever said it), “Compound interest is the eighth wonder of the world.” Misquoted or not, the sentiment endures for good reason.
Here’s an example:

• Emma starts investing £200 per month at age 25, but only contributes for 10 years (total invested = £24,000).
• Liam starts later at age 35 and contributes the same £200 per month for 30 years (total invested = £72,000).
• Both achieve an average return of 6% per year after charges.
• By the time they each reach age 65, both investments will have grown to around £200,000.

Despite saving three times less, Emma ends up in roughly the same financial position, simply by starting ten years earlier. That’s the power of compound growth. It’s not just how much you invest, but when you start. The earlier you begin, the more work your money can do over time, even if your contributions are small.

3. Student loan vs investing: which should you prioritise?

Many junior lawyers feel pressured to clear their student loans quickly. But this isn’t always optimal.

For example, if your loan is under Plan 2, repayment is income-based and any balance is wiped after 30 years. If you’re earning £30,000–£40,000, overpayments may not be financially efficient, especially if you could invest instead.

Suppose you have £200 per month spare:

• Overpaying student loans may save 3–6% in interest.
• Investing the same amount in an ISA or pension could yield 5–7% annually.

Everyone’s situation varies, but it’s important to weigh opportunity cost, and not let debt become an emotional decision.

4. Build a buffer: emergency fund essentials

An emergency fund isn’t glamorous, but it’s foundational. Aim for 3–6 months of essential expenses. This reduces your reliance on credit and gives you breathing space if you face illness, redundancy or a career pivot.

Start with £500, then aim for £1,000, then 1–3 months’ rent or mortgage. Even saving £50 per month can make a difference.

5. Start your pension (even if it’s small)

If your employer offers a pension, it’s usually best practice to maximise the amount the employer will match. You’re turning down free money if you don’t.

Self-employed? Consider a SIPP. Contributions are tax-deductible, ie every £80 you contribute becomes £100, even before any growth. And with decades ahead, even modest contributions can grow significantly.

6. Review the benefits your firm offers

Don’t overlook what may be available through your workplace. Firms often provide a range of perks, from gym discounts, cashback schemes and health benefits to buy/sell holiday schemes, legal services and even financial advice referrals. These can ease day-to-day financial pressure or enhance your overall financial position, so it’s worth checking what’s on offer.

Tools to get you started

• Budgeting apps: Try tools like Emma or Snoop, which are UK-based and often free.
• Savings accounts & ISAs: Use high-interest deposit accounts for short-term goals and Stocks & Shares ISAs for longer-term investing.
• Government calculators: Visit MoneyHelper and gov.uk to understand pensions, loan repayments and tax.
• Professional advice: When your circumstances become more complex (for example, buying a home, investing beyond ISAs, marriage or children) speak to an Independent Financial Adviser. Many offer an initial meeting at no cost.

Long-term benefits of strong financial foundations 

1. Reduced stress = better performance: Worrying about money distracts from legal work. Calm finances allow better focus.
2. Career agility: Financial stability gives you the power to make career choices based on values, not desperation.
3. Burnout prevention: If finances force you to work overtime constantly, burnout becomes much more likely.
4. You become a better adviser: Understanding money personally makes you more empathetic and insightful when guiding clients through financial settlements or divorce outcomes.

Final word: start small, start now

Financial wellbeing isn’t about being perfect – it’s about being proactive and intentional. The biggest gains often come not from complex strategies, but from simple habits repeated consistently.

Time is your greatest financial asset early in your career. Decisions you make in your twenties or thirties can ripple forward for decades, compounding into financial security, freedom and peace of mind.

By taking care of your own financial health, you give yourself the best platform to grow professionally, support clients confidently, and make career choices on your terms, not your bank balance.

Financial wellbeing isn’t a luxury; it’s a form of self-care and professional sustainability. Start now. Your future self will thank you.

Quick wins for financial wellbeing

1. Track your spending – Know where your money goes to identify patterns and spot waste.
2. Build your buffer – Aim for 3–6 months of essential expenses in an accessible savings account.
3. Invest early, even modestly – Time in the market matters more than perfect timing.
4. Use tax wrappers – Maximise ISAs and pensions for tax-efficient growth.
5. Diversify investments – Don’t rely on one asset class; spread risk across shares, bonds, cash and more.
6. Keep an eye on charges – Investment and platform fees add up; opt for low-cost providers and investment solutions where appropriate.
7. Ignore the noise – Media headlines often push short-term fear or hype; stick to your plan.
8. Protect yourself – Consider income protection or life cover, especially if you have dependants.
9. Review regularly – Revisit your plan at least annually or after major life changes.
10. Get advice when needed – A good IFA can help you avoid mistakes and stay on track. 

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Daniel Gornall is a Chartered Financial Planner and Resolution Accredited Specialist in Divorce and Separation. Daniel is a committee member of Bristol’s Collaborative POD, Bristol Family Law Solutions, and a former National YRes Committee member.