Having a good handle on personal finances is one of the most important elements that physicians can master in their personal lives. It can also make or break your practice. Physicians with out-of-control spending will create unnecessary stress and tension in their work lives. It is my experience that physicians tend to be great at treating complex diseases and operating on seriously ill patients but are not so good at running a medical office. One of the primary reasons is that many of us were not taught the basic steps in managing personal finances and planning for post-residency life. It does not have to be this way. If this does not apply to you and you are doing great financially then kudos. If you are struggling with over $100,000 in medical education debt, then you should continue reading.
Research has shown that there are basic principles that can be followed early on in a provider’s career that will almost guarantee success. The steps are geared to guiding you in paying down debt as soon as possible and saving for the future. Prerequisites include identifying all debt, creating a written/typed budget, having a living will in place, obtaining disability and life insurance policies, and partnering with the right professionals.
Just as you focused and accomplished the goals you set out in medical school and residency, you can do the same by following basic principles that many have followed and succeeded with. You will find that making financial decisions in your practice will become easier when you have a personal financial plan and are free of debt. You will also realize that you may not have to work as hard to make ends meet and be a positive influence on your patients. This will in turn make you a better healthcare provider.
Coach JPMD has teamed up with highly regarded personal finance professionals that have the heart of great teachers and understand the pitfalls of not having a sound personal financial plan. Our team consists of certified financial planners, accountants, attorneys, and financials coaches that will confidentially guide you on a path to success and financial freedom. With a great plan, you might even be able to retire in 20 years and maintain a great lifestyle.
To learn more listen to my interview with my financial coach Sonja Palomino on the Practice: Impossible podcast.