Physician Finance Minute

I know you hear a lot of financial terms thrown at you on a regular basis. But what comes to mind when I mention the words “Lifestyle creep or lifestyle Inflation” to you? Does it conjure up images of shady people waiting in the alley, watching your every move? Hopefully not, because today I’m referring to the lifestyle creep with finances that physicians are especially prone to once they’re out of residency. 

As physicians, most people would assume you’d be the last group of people to ever need to take on a side hustle. But of course we know it’s not as simple when you factor in all the financial obligations you’re likely facing. Whether it’s massive student loan debt, a mortgage, high cost of living expenses, or a combination of all of these – you get the idea. So this brings me to the idea of a side hustle, and what a physician can do to bring in additional income if necessary.

If you haven’t yet, go to www.financialresidency.com/tip for more great tips on student loan paydown, physician mortgage loans, investing, insurance, and more!

If you’re in the market for a home loan, you need someone you trust in your corner. Check out one of our recommended lenders, Doug Crouse, at www.financialresidency.com/dc

At financial residency dot com, not only do we like to help physicians understand how to manage their money to reach their financial goals, but we also want to help you understand why you spend money the way you do. Knowing the motivation behind your actions can help identify areas you can improve or stop bad habits all together. For instance, when it comes to impulse spending, what do you think are the biggest causes of buying something on a whim?

What do you think the average amount of time it takes Americans to pay off their student loans these days is? One year? Five Years? Although the exact number is a little hard to nail down, we know tens of thousands of people in their fifties are still making monthly payments towards their student loans. When it comes to federal student loans, many income driven repayment plans have payments stretched out over 10 years, even 25 years in some cases.

If you’ve flown on an airplane from a major carrier recently, they probably tried to entice you with some unbelievable credit card offer. With as many points as they promise, it practically makes it a no-brainer to take them up on the offer. But are the points worth the hassle to maintain the credit card? For many people, including physicians, this seems like a chance to outsmart the credit card company and earn a free trip with bonus points.

Now with your improved paycheck, you can finally start to build your retirement fund. Even though you’re at the beginning of your medical career, now is the time you can make a substantial impact for the end of your career. Retirement may seem like the furthest distance right now, but instead of that luxury car you’ve been eyeing, consider the long term impact if you bought something less expensive but put additional money towards your retirement.

For more great resources on how to manage your finances better than you have, go to www.financialresidency.com/tip

Wish you knew of a knowledgeable mortgage broker? No worries! We’ve got your back. Check out Doug Crouse at: www.financialresidency.com/dc 

The first step is to sit down and develop a financial strategy or plan to help guide your finances through life’s biggest milestones. The second step is to make sure you’re maximizing your retirement accounts and tax benefits offered through your employer, even if you’re making the lean resident salary.