Patricia King: Many Lawyers Have Trouble Managing Money

We’ve all become well acquainted with “income inequality,” a trendy term that describes the gaping disparity between the large percentage of the national wealth that is held by a small percentage of upper-income Americans and the paltry percentage that dribbles down to the middle and lower classes. But have you heard about income inequality’s cousin: income volatility? It describes the experience that has long afflicted many who work at more than one part-time job, with unpredictable hours, and therefore have no guarantee that their incomes will be the same from one week to the next.

In this new economy, as more workers are unable to find steady, full-time employment, this concept attains greater recognition. Those workers affected by income volatility struggle to maintain financial equilibrium and are unable to contribute to the economy as the good consumers they should be. While the term is new, the reality is that income volatility has long plagued solo practitioners and law firms small and large. It causes stress and panic, taking its toll on the quality of life for many attorneys and their families.