256: Quick Tips -- Budgeting for the Bar Exam

Alison also runs The Girl’s Guide to Law School. If you enjoy the show, please leave a review on your favorite listening app, and check out our sister podcast, the Law School Toolbox podcast. If you have any questions, don’t hesitate to reach out to us. You can reach us via the contact form on BarExamToolbox.com, and we’d love to hear from you. And with that, let’s get started. Welcome back! I probably don’t need to tell you that studying for the bar exam can be a very stressful time.

But one thing many of us don’t think about is just how expensive preparing for the bar exam can be as well. Bar prep costs can be high, and there are often additional fees or costs that we forget to factor in, like laptop-use fees or the cost to travel to your testing site. With all this money pouring out and, for many, little coming back in, the financial burden of the bar exam can prove nearly as stressful as the exam itself. There is good news, though!

Much of the financial stress that comes along with taking the bar exam can be reduced with a just a little research and some careful planning. In today’s episode, we’re going to discuss just how much it can cost you to sit for the bar exam, some mitigation strategies to try to reduce some of those costs, and some of the options available to help cover any shortfalls. And remember, it is never too early to start planning.

So, if there are any 1Ls or 2Ls listening, this is one aspect of the bar exam that you can start planning for today. You’ll definitely thank yourself for doing so later! So, let’s get started. An important first step is to do some research to determine what costs and fees are required to register and take the bar exam in your state. What is your state’s application fee? Does your state charge an additional fee to use your laptop on the exam?

Are there any additional background check fees for the character and fitness requirement? The list could go on, but the main goal is to assemble an estimated total that you will need to pay in order to sit for the bar exam. These costs are set in stone. You can’t change them or cut them from your budget down the road. It is very important to know these costs up front and have them in mind when choosing your bar prep course and structuring the rest of your budget.

Let’s consider the realities for a hypothetical student, Student A, taking the Uniform Bar Exam in New York. To register for the UBE, Student A would need to pay a $250 application fee and an additional $100 technology fee to download the exam software to their laptop. Before applying for admission to the New York Bar, Student A would also need to take and pass the MPRE, which currently costs $160, and a state-specific exam, which costs $27 to register.

The initial attorney registration fee in New York is currently $375, which Student A would need to pay when they submit their character and fitness application. That’s a grand total of $912 just to sit for the bar exam! We haven’t even started to factor in the costs of bar prep or living expenses, and we’re already close to $1,000. So, you can see how important it is to plan for the bar exam in advance.

Now, we’re assuming in our hypothetical scenario that Student A lives near their testing center, but it is important to note that this is not always the case. Many students will need to travel to their testing site, which may require you to factor in the cost of a hotel room and transportation. It is also worth mentioning that some employers require you to be admitted to practice law in more than one state.

If that is something you know your employer will require of you in advance, you’ll need to be sure you are factoring in registering in each of those jurisdictions. Once you’ve estimated your total registration costs, the next thing you’ll want to determine is which bar prep course you’re going to take. Two big things to keep in mind here. One, the highest price tag does not necessarily equate to a higher chance of passing the bar.

Commercial bar prep courses can cost an upwards of $2,000 to $4,000. They offer a very structured format, which works well for many but not everyone. Everyone’s circumstances are unique, and some examinees might need more flexibility than a commercial bar prep course offers. Don’t hesitate to look at alternatives to commercial bar prep.

Here at Bar Exam Toolbox, there is a self-study pathway that may provide a more flexible option for a student who has additional responsibilities on top preparing for the bar exam, such as working fulltime or caring for kids. Everyone learns differently too, which brings us to our second point. When comparing bar prep courses, make sure to consider more than just the total cost. Cost is an important factor, but it shouldn’t be the only one.

You want to make sure you are investing in the best course to help propel you towards passing the bar your first time around. It is hard enough to budget to take the bar exam once; you don’t want to have to do so a second time if you can avoid it. So, compare outlines, lecture formats, how many essays they offer feedback on, etc. See what course offers the best options for you and which will give you the most bang for your buck. That isn’t going to be the same for everyone.

Most companies also offer free resources for 1Ls and 2Ls as well, so try out their different materials and get a feel for which you like best. Let’s go back to our hypothetical with Student A. We’ll say Student A signs up for the Themis Bar Prep course. The cost to sign up for Themis is currently $2,645, which would bring Student A’s total bar exam costs up to over $3,500 thus far. But we can’t stop there.

The cost of registering and preparing for the bar exam are likely not going to be your only expenses. You’re going to need to account for any living expenses you’ll have during that time as well. This is particularly important if you are not planning to work during bar prep. Now, I do want to make sure to point out here that this part of your budget is going to be highly dependent upon your particular situation. No two budgets will be the same.

Let’s look at the realities of Student A as an example. Student A lives with one roommate in New York and will be responsible for paying $2,800 in rent for the two months of bar prep. Their share of the utilities will cost them $180. We’ll also estimate that they’ll pay $80 a week in groceries, which will cost them $320 for the eight weeks.

That would bring Student A’s living expenses to $3,300, which combined with their registration fees and bar prep course would give them a grand total of nearly $7,000 that they would need to save up to take the bar exam. This is an extremely rough estimate. We’re only factoring in the bare necessities for Student A here.

It’s highly likely that you’ll have other essentials that will need to be accounted for depending on your individual circumstances, such as health insurance, car expenses, and other bills that cannot be avoided. If you have a family to support or a pet, you’ll want to make sure you are including their expenses in your total costs as well. You’ll also want to budget for some non-essentials, such as monthly streaming service costs or dining out with friends.

When all these expenses are factored in, it is easy to see how you may need $10,000+ in order to make it through bar prep. And, if you don’t plan on starting your post-graduate job immediately, you’ll need to factor in additional expenses for that limbo period as well. You may not be studying for the bar any longer, but you still won’t have that fulltime income coming in. So, that time period can add to your total costs as well. How is everyone doing so far?

It can be scary to see those numbers in black and white, but it is important that you don’t ignore them. The sooner you map out what the bar exam will cost you, the more time you have to save up what you’ll need to survive it. And the earlier you get started, the more options there will be to mitigate some of these costs. So, what are some of those mitigation strategies?

Well, for starters, many states offer early registration discounts if you apply for the bar exam before a certain deadline – similar to early admission at universities and law schools. It likely won’t be a huge savings, but every little bit helps. There are ways you can save on your bar pep course too. Many bar prep companies offer early sign-up discounts or public interest discounts for students who interned or plan to work in a public interest field.

For example, if Student A’s second-year internship was at a nonprofit, they would be eligible for Themis’s public interest discount which currently takes $1,100 off the total cost of their bar prep course. That would bring their total costs down from nearly $7,000 to about $5,900 – a pretty significant difference! Many bar prep companies will offer a free bar prep course to students in exchange for them working at their bar prep info tables on tabling days.

This usually entails talking to other students about the company’s course offerings and helping students who want to sign-up. It can be a low-commitment opportunity with the huge benefit of having your bar prep course paid in full. So, for example, if Student A had worked as a Themis representative during law school, their bar prep course would be covered and their total costs would be down to roughly $4,500. Still expensive, but a whole lot more manageable than $7,000!

Similarly, some employers will pay for their employee’s bar prep or provide a cost-of-living stipend for that time period. So, if you already have a post-graduate job lined up, it is worth checking with your employer and seeing if they offer any bar prep assistance. Like Student A, you could find yourself saving an upwards of $2,000-$3,000. Another way we can try to mitigate our total bar exam costs is to see if we can minimize our living expenses.

The best place to start is to track your regular expenses for several months. You’ll need to see the full picture before you can begin to determine where you can make cuts. Check your grocery receipts and see what your higher-priced items are. Take note of any splurges or impulse buys. Are you paying for any memberships or subscriptions that you don’t use? Keep track of these expenses, so you can establish your starting point.

From there, you want to evaluate your regular monthly expenses and categorize them as either essential or non-essential. Some expenses will be fairly obvious. Unless you’re able to live with family during this time, you’re likely going to have rent or a mortgage and utilities like Student A. Those will certainly be essential. Any other essentials you have will depend upon your individual circumstances. Everyone has different priorities.

What may be essential to you, may be a non-essential to someone else. Once you have your essentials and non-essentials categorized, you want to review each category and look for places where you can make cuts. Food is obviously essential, but are some of those higher priced grocery items you flagged essential? Are there comparable lower-cost options? Could you save by eating at home more versus getting take out?

Consider comparing grocery prices each week and available coupons to determine if you could save more money by shopping at a different store than you usually go to. Do you have a gym membership that you never use? Do you need all of your subscription services or could you cancel a few until bar prep is over? Take a look at each expense and see if you have any wiggle-room. It is important to note here that while you want to make cuts, you aren’t looking to cut everything that is non-essential.

Make concessions of course, but don’t be overly brutal on yourself. Bar prep is an incredibly stressful period of time. That’s why we are doing so much planning for it upfront. When forming your budget, don’t underestimate the value of a good Netflix show, a night out with your friends, or even some self-care activities. You will probably have to make some cuts in those areas, but you don’t want to eliminate them completely.

Maybe you cancel most of your subscription services, but keep your favorite one. Or maybe you and your friends cook at one of your apartments as opposed to going out. Have some form of entertainment and stress-relief factored into your budget; just try and do so in accordance with a plan that will have you spending less overall. Okay, so let’s say Student A has done everything possible to minimize their expenses.

There is no early registration savings in New York, so that $912 in registration fees is set in stone. They interned at a non-profit, so they’ve reduced their bar prep costs with Themis to about $1,500, and their living expenses are down to just the essentials. So, they’ve managed to cut that $7,000 down to about $5,900. But what happens if they are only able to save $2,000 before graduation? Or what if they started planning late and weren’t able to save at all?

How can they supplement their savings to cover their shortfall? For many bar students, working a part-time job during bar prep will be a necessity. Even if you’re in a fortunate enough position where you may be able to meet your prepared budget without working, you may want to consider how tight your budget is. Unexpected expenses can happen. If you’re operating on a really tight budget, working part-time during bar prep may still be something you need to consider.

There are pros and cons of working during bar prep. The obvious pro is that you will have income during your bar prep period. The con is it potentially leaves less time for studying. It is important to note, however, that it is possible to work while studying and still be successful on the bar exam. Many part-time jobs offer flexible hours. Be upfront with your boss about the time you need to devote to bar prep.

Consider asking if you can work a structured schedule with some off-days open for studying. If you’re a morning person, see if you can study in the morning and work later in the day. Or vice versa if you’re more of a night person. A little flexibility like that can go a long way toward having an income but also making sure that you’re getting your study time in. Bar prep can often feel like a fulltime job.

So, if working part-time isn’t going to be best for you, you may need to look into taking out a personal loan to cover the budget you’ve set for yourself. Some schools and companies offer bar prep scholarships, which may be worth a little research into before burdening yourself with additional loans. No matter how you decide to financially prepare for the bar exam, remember that you will ultimately be okay. There are ways to study for the bar exam on a budget.

The key is know what your expenses are and to create a budget and a financing plan that will work for you. I want to take a second to remind you to check out our blog at BarExamToolbox.com, which is full of helpful tips to help you prepare and stay sane as you study for the bar exam. You can also find information on our website about our courses, tools, and one-on-one tutoring programs to support you as you study for the UBE or California bar exam.

If you enjoyed this episode of the Bar Exam Toolbox podcast, please take a second to leave a review and rating on your favorite listening app. We’d really appreciate it. And be sure to subscribe so you don’t miss anything. If you are still in law school, you might also like to check out our popular Law School Toolbox podcast as well. If you have any questions, please don’t hesitate to reach out to Lee and Alison at [email protected] or [email protected].

Or you can always contact us via our website contact form at BarExamToolbox.com Thanks for listening, and we’ll talk soon!