With the majority of physicians earning well into $500,000 or more annually, figuring out how to manage and save finances can be scary.
Over half of physicians have a net worth of over $1 million, but medical schools do not teach future physicians how to handle business, personal finance or investing, according to a Dec. 1 report from Medscape.
Here are eight wealth tips for physicians per Medscape's Dec. 1 report:
1. Do not treat money like a taboo subject. While many become physicians to care for patients, not amass wealth, thinking about personal finances does not make you a worse physician.
2. Educate yourself on personal finance. Several books, podcasts, blogs and courses exist to educate physicians on financial matters. Seek them out.
3. Do not undersave. Strive to save 20% of your income.
4. Avoid bad investment strategies. As high-income earners, physicians do not have to take high levels of risk on the stock market. Avoid sketchy and risky investments like cryptocurrency and angel investments.
5. Take debt, including student debt, seriously. Raise the amount of debt you pay off as your income grows.
6. Audit yourself in major areas to pay off debts, including loans and mortgages, faster. About 71% of physicians have not done anything to reduce major expenses.
7. Live like a resident, even if you have not been one for years. Do not get caught up in "living like a rockstar." Live frugally and spend money on what's important.
8. Find a financial planner who understands physicians, ideally an advisor who specializes in physicians. If someone hesitates to tell you about their fee structure or if it sounds like a lot, shop around and ask colleagues for recommendations.