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How I spent my $200k lawyer salary #shorts

How I Spent My $ 200k Lawyer Salary

When people hear that I made $ 200,000 in my first year as a lawyer, they often think it's a phenomenal sum of money. They might even imagine that it equates to around $ 16,000 per month in my bank account. However, the reality of my financial situation was quite different. After various deductions, I was left with approximately $ 1,500 each month. Here's a breakdown of how my salary was allocated throughout the year.

Breakdown of My Salary

  1. 401k Contributions

    • I contributed $ 5,400 pre-tax towards my 401k plan in that year.

  2. Taxes

    • After taxes, I was left with $ 132,000, which equates to roughly $ 11,000 per month.

  3. Student Loan Payments

    • My minimum student loan payment was $ 3,323 per month.
    • Additionally, to avoid accumulating too much interest (I had over $ 200,000 in student loans from law school), I made an extra $ 6,000 payment each month.

  4. Rent

    • Fortunately, rent was covered by the law firm as I had chosen an office located outside of the U.S., which was part of the firm’s benefits.

  5. Remaining Budget

    • This left me with about $ 1,500 each month for utilities, medical co-pays, food, transportation, and savings.

Keywords

  • Lawyer salary
  • Financial breakdown
  • 401k contributions
  • Taxes
  • Student loans
  • Rent benefits
  • Utility costs
  • Monthly budget

FAQ

Q: How much did you contribute to your 401k? A: I contributed $ 5,400 pre-tax to my 401k that year.

Q: What was your take-home pay after taxes? A: After taxes, I took home $ 132,000, which is about $ 11,000 per month.

Q: How much were your monthly student loan payments? A: My minimum student loan payment was $ 3,323 per month, and I also made additional payments of $ 6,000 each month.

Q: Was your rent covered? A: Yes, my rent was covered by the law firm as part of an office benefit for choosing a location outside of the U.S.

Q: How much money were you left with for other expenses? A: After all major expenses, I was left with about $ 1,500 each month for utilities, medical co-pays, food, transportation, and savings.

Q: Why did you make extra payments on your student loans? A: I made extra payments to prevent the interest from piling up, as I had over $ 200,000 in student loans from law school.

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