Counterintuitive Ways to Save Money as Applied to Legal Services

TheStreet.com recently posted an article by Jeffrey Strain entitled 7 Counterintuitive Ways to Improve Finances, some of the advice in which applies, in the opinion of this blog's author, to something few people enjoy, but which can end up saving money in the long run; that is, spending money on legal fees:

Earnest attempts to save money here and there don't always add up to much. When traditional methods fail, it's time to consider a few counterintuitive options.

Spend Money

If you want to get the most for your money, you are going to have to spend. One of the biggest mistakes people make when they are trying to get their finances in order is to stop spending money alogether.

Not all spending is the same. You should limit unnecessary purchases, but spending on essential upkeep, preventive measures and items that will save money in the long run is vital for getting and keeping your finances in order. Scrimp now on items and services that can help prevent larger expenses in the long run--such as routine car maintenance and energy-saving bulbs--and you could pay for it later. . . .

Think estate planning for disability and death, forming a corporation or limited liability company for your business. Having proper Web site terms of use, privacy policies, and vendor and employment contracts in place before you are sued.

Don't Buy What Is Cheapest

"Cheap" rarely means "the best value." To get the most out of your hard-earned money, you must think value rather than price. A car that is inexpensive, but costs a lot to drive and needs frequent repairs has less value than a car with a higher price tag but costs less to run and maintain.

This concept of buying value over price can be applied to anything and will mean that you rarely buy items which are the least expensive. . . .

Think online "incorporation services", paralegal and document preparation services, as well as high-volume or newly-admitted-to-the-bar "discount" lawyers versus established, experienced, and more costly attorneys provided personal service.

See also:

Online incorporation services review;

The Top Ten Distinctions Between Millionaires and the Middle Classby Keith Cameron Smith (2007) (Millionaires think and plan long term; the middle class does not.); and

The Millionaire Next Doorby Thomas J. Stanley & William D. Danko (1998) (Millionaires think long term; willing to spend a lot on important, long terms, and preventative things and measures, but not much on the instant gratification of new cars, clothes, or jewelry.).

Beverly Hills Lawyer

I recently received an emailed new client inquiry. She indicated that she was seeking a book contract to write on some new information regarding a celebrity trial, which would thus in her opinion (which I did not disagree with) be quite marketable. Specifically, she wanted to know if I had connections to get the book sold. I indicated to her that New York rather than Los Angeles was the locus of attorneys servicing book authors, because that is still where the vast majority of book publishers are located, but that with a book such as the one she had in mind, any ethical, honest, and hardworking attorney ought to be able to assist her in making the sale. (I also should have noted that book sales are usually and probably best done by book agents where one can be obtained, and that negotiating and documenting the finer points of the contract would best be done by an attorney regularly dealing with literary agreements, and working in conjunction with the author's agent, rather than by a Los Angeles film/TV entertainment attorney such as myself.)

Ignorning at least the portion of my email indicating to her that I was not well connected in the book publishing world, her reply email began by again asking whether I had the necessary connections to make the sale for her. But in the more interesting portion of her reply, she stated that she indeed already had a "Beverly Hills lawyer - right on Wilshire" that was not getting the job done for her due to his apparent lack of connections. The implication was that a Beverly Hills attorney would be a very good attorney, the best of the best in Los Angeles, and thus if a Beverly Hills attorney without connections was not going to get the job done for her, no connection-less attorney would. Putting aside the issue of whether Beverly Hills lawyers are all ethical, honest, and hardworking - I'm sure most are and some are not - the comment reminded me of something an attorney friend of mine who does indeed have a Beverly Hills office - right on Wilshire(!) - had told me:

He noted that clients seemed more willing to pay for his small law firm's services ever since the firm relocated from a Los Angeles to a Beverly Hills address. He was a bit amused and a bit perplexed by the phenomenon, shrugging his shoulders as he pointed out to me that he was the same lawyer, and his colleagues the same attorneys, that they were before they moved into their Beverly Hills office building; nonetheless, his clients were now willing to pay more for the same legal services (part of which was no doubt needed to cover the firm's increased rent, the balance representing extra profit for the firm).

Nothing against Beverly Hills lawyers, on Wilshire Boulevard or off, but the city or street of a prospective lawyer is, in my arguably biased opinion, at best one of many factors a client should consider when choosing an attorney, and perhaps one best disregarded altogether.