The stats are out and shockingly, many of the elderly and experienced physicians are regretting wasting most of their early days at work financially. It is quite a rarity spotting a medical doctor engaging a financial analyst with regards to matters savings for retirement. Although it isn’t a norm, there’s much to worry owing to the latest report by AMA Insurance in which more than a half of these professionals know that they are still lagging behind.
If you are a young physician fresh into this wholly outstanding career, probably you won’t fancy cursing your first few days. There are countless tips out there that you and your fellow workers might find entirely satisfying, but I’m introducing the five of the core ones only.
Don’t Grow into your Pay
The first and perhaps the single most important trick is, do not grow into your income, it is detrimental and might slowly eat you.
“Never spend your money before you have it –Thomas Jefferson.”
Although you are arguably the most important employee in the society, perhaps earning a decent amount, all of this sum is utterly a waste if you aren’t saving anything. Nurture a culture of saving, even if it means as little as 5%, 10% or 15% of whatever is on your final paycheck. The earlier you begin dedicating a portion of that amount, the sooner you will get used to it, thereby a guarantee of a financially safe future.
Do you have a Plan?
Although a plan will appear nothing more than a petite piece of program, its power is surprisingly incredible. In other words, create a realistic budget to allow you spend on what’s worthwhile and shun the unimportant.
“Before you spend, earn. Before you invest, investigate. Before you retire, save. Before you die, donate – William A Ward.”
It has been shown that up to 67% of all physicians below 40 years do not even own an estate plan. A written plan helps you automate your income and your investments, lowering the chances of leading an undesirably sybaritic life. Remember, no one can dictate the future, but prior planning ensures a safe tomorrow.
Find a Reputable Financial Advisor
As a physician, you probably know a handful about finance, which limits how you make your money-based decisions. Thankfully, financial advisors are trained and experienced enough to offer, sober and unsolicited financial pieces of advice. Financial advisors are some resourceful partners, especially when you luckily share similar dreams. There are wise and trustworthy individuals out there, and the real deal is, they are literally full of better ideas.
Manage Your Debts Aptly
Many retired medical doctors are possibly the most resourceful persons to approach when looking for more of these nuggets. In her 70s, Dr. Barbara Schneidman seconds this, further urging the young, budding doctors to offset their credit card bill ahead of time.
“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. –Mark Twain.”
Medical Student Loans are possibly the most frightening matter amongst the fresh blood, and the reason is pretty apparent. However, using your intuition to offset it before the burden gets out of hand as well as trying out “Refinancing” is laudable. In fact, this technique is a no-brainer.
Do Not Skimp on Disability Insurance
According to Dr. McBryde, this tip is valid as one of the precious personal finance piece of advice as long as “the chances of becoming disabled than dying remains higher.” it might look another worthless idea, but wait until the reality is nigh. On the same note, shun worthless covers like phone insurance, instead choosing other worthy covers like financial catastrophes. If you don’t take your own health seriously, you might have to spend the rest of your life spending money on pain relief medications.
You don’t need an insurance cover for that lawnmower or TV as they will always be there. However, if in case you retire today, your dependents might suffer in your absence.
Being a physician can be a tough job, but the satisfaction of being a physician can only be achieved when all financial issues are eliminated. Not only will you start to become wealthier, but it will be much easier for you to achieve your career goals and this ultimately lead you to a much happier life.