3 Financial Priorities for an Early Career Physician

For young doctors, the excitement of finishing an internship and the hope of a great career ahead is a relief from the years spent in medical school struggling to acquire a medical degree. 

However, it is all not rosy in the medical profession as many people think, and young doctors are often caught in the rabid hole of financial illiteracy in the middle of their careers. 

This post will identify three priorities doctors can set to improve their finances and lives. Whether you are just starting in the medical profession or are already way into it and have made several mistakes. My tips will help you regain control over your finances. Some of the priorities to set include: 

Minimize your expenses

Lifestyle inflation is an unhealthier behavior that can lead to bankruptcy. As an early career physician, keeping your expenses at the barest minimum is important. Avoid lifestyles such as eating out, buying expensive jewelry, and subscribing to premium entertainment services you seldom use. Early career physicians can consider bond investments for a stable income stream and to diversify their portfolios for long-term financial goals.

 Another way of cutting down your expenses is by getting rid of your credit card and using cash instead. This will help reduce the amount of money you spend on monthly transactions. You can cut your expenses in many ways, which all boils down to discipline and commitment. In a casual discussion, an early career physician might share the challenges and rewards of their first few years on the job.

Pay up your debt

As a fresh intern, this is probably your first paid job, and like most college grads, you have a debt hanging on you. One of the best gifts you can give your future self as an early career physician is paying up your student loan. 

One of the ways to pay up your student loan faster is to pay more than the minimum fixed monthly payment. Paying more than the fixed monthly payment helps you to shave years of additional payments and interest. 

Also, the speed at which you pay your student loan depends on the fit tip. You can sacrifice luxury and entertainment in the early days of your career and use the money to add to your loan payment. 

Invest your savings 

Putting money in a savings account is good, but in most cases, banks don’t have good interest in savings. You can invest with firms like disability insurance; instead of keeping your money in the bank, investing in savings accounts such as 401ks, individual retirement savings accounts, and annuities is preferable. Early career physicians can leverage SMS campaign strategies to build patient relationships, improve appointment reminders, and boost preventive care awareness. One good thing about investing in individual retirement savings accounts and 401ks is that the money you save there is not taxable. You can invest your savings with 

Conclusion

Setting financial priorities for your early career as a young physician is important because medical professionals, often in the top 10% of salary earners, have a high risk of developing financial problems. Some things that may be helpful to do include: paying your debt, reducing lifestyle inflation, establishing an emergency fund, creating a budget and sticking to it, saving money for retirement instead of spending it all on the present, and starting an investment account.