Alternative source of income

The financial independence of a legal professional is key for any lawyer who desires to remain in litigation. The availability of money in the profession works in a funny way, you might have excess cash flowing into the firm or pocket this week and next week nothing comes in. This inconsistency in the steady flow of cash makes it paramount and necessary for a lawyer to have an alternative source of income.

It is now the norm for lawyers’ source of income to be restricted to monthly pay checks gotten from the law firm, if the employer is in plenty the employee is in plenty, if the firm is broke automatically the lawyer becomes broke. It is so bad that if a firm owes an employee three months’ salary, it shows in his demeanour, dressing and interaction with colleagues and the society at large.

Many lawyers across the diverse judicial divisions are finding it economically difficult because they have placed all their eggs in one basket - (litigation) and the clients are not coming as often as they used to. Truth to be told, it is a client that has eaten and taken care of his family that can afford the services of a lawyer. To be financially independent as a legal professional, do not focus only in litigation to earn income, but venture into other businesses that can generate funds to support the monthly pay check.

Nothing motivates an employee more than money, it then means that an employee’s motivation and dedication to legal practice would be low when the firm is in difficult times and high after payment of salary. However, a legal professional who has an alternative source of income would always be on top of his game whether an employer is financially capable to pay wages or not; he/she would be more concerned about getting the best out of every legal situation that presents itself and not any kobo he/she can lay his hands on.

This writer cannot tell a lawyer what kind of business to venture into for alternative income - that is for the lawyer to discover on his own. The question to ask is “what is that thing I can do, that would bring extra cash for me apart from my monthly salary?” And the answer you seek is within you.

Some legal professionals are engaged in law firms that finding time for any other business is close to impossible but not impossible. A lawyer who desires to earn alternative income need not be personally involved in the running of a business (the Rules of Professional conduct make it ethically wrong). He can however invest in a business of his choice, the idea is not who is in charge of the business but rather, whether the business would be productive or not?

Someone asked, is it from this meagre salary I earn monthly that I would invest in a business? And I say, yes, what other funds do you have to start investing? If you had another source of income, it means you already have an alternative income (this article is not meant for you). One must be financially prudent with the little he earns from the law firm, sow it and patiently wait to reap bountifully.

There are so many ways of making money as a lawyer apart from the monthly paychecks an employee gets from the firm; it takes careful study of the immediate environment to see where the opportunity lies. There must be something a lawyer can do in his society that would fetch him cash - we have placed too much reliance on practise that we do not see these opportunities lurking around.

If a lawyer finds it difficult to save money (like this writer), open a high interest deposit account that only allows quarterly withdrawal i.e once after every three months, no ATM, no cheques, no withdrawal slip, the only transaction allowed within the three months is deposit like the AXA Mansard savings account.

It is economically important that a lawyer diversifies. The shoe of litigation is getting tighter and tighter with the influx of lawyers year in, year out. A lawyer needs to find another means of income before we wakes up one fateful morning to the realization that litigation has eaten up all our shoes.

Godspeed!

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