As a new attending physician, you’re likely pretty excited about the financial prospects that lay before you.
With such a high-value skillset, you’re likely looking forward to a life of financial security and success—which is fantastic.
Congratulations! As a new attending physician, you’ll likely earn above-average wages and be a lot better equipped to create financial success for yourself.
With that being said, having a higher-than-average income isn’t always enough to guarantee financial success.
In truth, there’s a lot more to succeeding financially than just becoming a high earner.
It’s also important that you become truly financially literate.
So in this blog post, you’re going to learn some steps to help you accomplish this as you embark upon the journey of becoming a new attending physician.
Let’s dive into it.
(Note: if you’re trying to learn how to become an attending physician, check out this LeverageRX blog post to give you some guidance before getting started.)
1. Set Yourself A Budget
At the beginning of any financial success journey, it’s crucial to set a budget so that you can live within your means.
Contrary to what many people think, making more money doesn’t make you exempt from the problem of overspending.
In fact—earning more money can sometimes make your financial situation more complex, which can really throw a wrench into your planning process by making it more difficult to keep up with your income/output.
So to counter this, it’s crucial to figure out how much money you need to spend every month on expenses and your lifestyle, and then to create a spending plan where you account for every dollar.
Dave Ramsey is a great example of someone who’s really good at teaching people how to do this.
2. Buy A Home
As a new attending physician, you may be wondering:
“Should I rent a home, or should I buy one?”
Well, there are benefits to both.
But honestly, when you factor in the long-term investment, it’s usually better to go ahead and purchase a home—for several different reasons.
If you’re struggling to get a loan due to your new job as an attending physician, you can usually get a physician’s loan to close the gap.
Plus, this will allow you to build equity (instead of building it into a rental for someone else), and to hedge yourself against rising rent prices.
Rent prices tend to go up every year. So this alone can save you quite a bit of cash.
3. Start Setting Aside Money For Retirement
Even though you’re making awesome money as a new attending physician, you’ll still want to be putting aside some of your cash for retirement.
There are a number of ways to do this. But hopefully, you’ll be able to get a retirement matching plan as a benefit from your employer—which is a pretty awesome benefit.
Always try to make full use of your retirement matching account. This will empower you to earn more while setting yourself up for retirement at the end of your career.
4. Set Yourself Up With Some Awesome Benefits
It’s also important to protect yourself with amazing insurance benefits.
For example—make sure to get great health insurance, disability insurance, dental insurance, etc. to ensure that you won’t get ‘surprised’ by any unexpected life circumstances.
Hopefully, you won’t ever need to use them. But if you do, having insurance is a fantastic way to protect yourself from financial disaster.
Remember—you can either spend your cash on liabilities, or you can spend it on investments.
Obviously, buying a new car is nice. But what if you spent that money on stocks, bonds, or real estate instead?
Now, keep in mind, there’s always a risk to investing. There’s always a risk that you could lose all of the money you’re putting into it, and come out behind the curve.
But here’s the thing.
If you want to get truly ahead financially in this world, it’ll be crucial to set yourself up for greater financial success than what your attending physician’s wage will pay you.
And thankfully, you can accomplish this rather well by making some simple investments, and building a portfolio that you can use to hedge against potential calamity, inflation, and diminishing spending power later on.
There you have it.
The top 5 financial tips for new attending physicians.
Equipped with this information, you can now make better, more informed decisions to help you conquer your financial future.
You’ve got this.
Now get out there and make it happen.