Financial Planning Considerations for Early Career Physicians July 17, 2023
Written by MSDC Staff
While much of how your career and life goes is beyond your control, finances are surprisingly one area that does not have to be a problem. An important key is early planning. As an early career physician, time is on your side to make good, long-term financial decisions now.
Residency considerations - new career and new decisions
Going from medical student to resident involved many major life changes, many of them having long-term financial implications. Where will you live? How will you commute to your residency? How do you pay off any loans?
The AMA has five strategies to help new residents and fellows make smart financial decisions:
- Understand your income
- Create a budget
- Don't overpay your loans
- Make sacrifices
- Invest in your future
EMRA, the Emergency Medicine Residents' Association, recommends physicians-in-training focus on four areas: retirement planning; insurance; debt and cash flow management; and investment management. In an article, they recommend sub-strategies like:
- Start saving as early as possible
- Create a retirement projection
- Pay-off high interest debt
- Match investments with goals
New practice - protecting yourself and your office
Did you know nearly 9 in 10 young physicians felt somewhat or not at all protected in the event of a disability that would prevent them from practicing, according to the AMA 2015 Report on Young Physicians' Financial Preparedness? Regardless of your practice type, it is important to be as smart about your own money as you are about your practice's.
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Top 6 Financial Planning Mistakes Physicians Make
If you want to learn more about personal finance or speak to someone for a more personalized approach, contact MSDC's investment advisors Asset Strategy Consultants.