If you’re a medical practitioner, we are sure that you earn
well. But you also would be saddled with huge debts before receiving your first
paycheck.
Whether you are fresh out of the medical school, or a
residency, trying to figure out how to maintain financial security can be
tough. Immaculate planning is the only way to achieve long term securities and
a comfortable lifestyle, that helps you today as well as after retirement.
Though it may sound, it is not that difficult, provided that
you focus on these fundamental aspects of personal finance:
Start Saving Early
Retirement could be decades away, but you should start saving
for it at the earliest possible. It takes a significant nest egg to retire, and
time is your best partner in this concern. If you start saving and capitalizing
money now, there is more time for it to multiply through compounded growth. An
effectual retirement strategy starts by understanding how much you will
require, so outline your financial goals and explore the options that will help
you reach them. Eventually, make savings a practice.
Practice Budgeting
You will never be able to save money if you don’t know where
to spend it. Analyze your monthly expenses and set a budget for the basic
necessities and entertainment. This may include your expenses for food,
housing, debt repayments, personal and professional expenses as well as the
budget for your shopping and movies. Then budget your emergency and retirement
savings and stick to it. To help your nest egg keep pace with inflation, save
at least 25% of your earnings into IRA or other saving plans every month.
Plan Your Insurance
Along with malpractice insurance, you also need other kinds
of coverages for financial protection. Long term care and disability insurances
cost very little in comparison to the benefits they offer, particularly when
you consider the impact of the loss of earnings you will have on your life. If
you cannot afford insurance for your whole life, start with a term plan for
now. Hunt for plans with operative risk management options for medical practitioners,
like disability insurance with ‘own occupation’ features.
Manage Your Debt
Credit card debt, student loans and other financial onuses
pose a great threat to your economic goals. However, you can lessen this load
by keeping a track your expenses and creating a debt repayment strategy. Focus
on the high-interest loans first, and simplify your expenses wherever possible.
Monitoring cash flow can help you manage your earnings more meritoriously, along
with saving for your retirement. Always remember, you are investing in your
future when you are saving money.
Make Smart Investments
Making the right investments based on your goals is an
essential step towards the financial health. For instance, money market funds
and CDs are the best choices if you are planning to purchase property in the
next few years. However, the stock market offers better long term returns for your
retirement plans. With a self-focused IRA, you can allocate your retirement
funds wherever you want. Diversify your portfolio to make the most of the short
term and long term investments and balance the risk against the gains.
Ask for Assistance
If you are uncertain about the best way to manage your
expenses and savings, it is recommended to consult a professional for direction.
Try and find an advisor who advices you when you (or your business) needs it,
and not just when you ask for it.
You refer patients to a professional when required, so why
not follow the same rule for your money? As a medical practitioner, you cannot
be anticipated to be a financial planning expert as well!
We at Medvisors, are a
group of experienced finance advisors for medical practitioners
and help them manage every aspect of their money. Our USP is the one-on-one
relationship we establish with our clients and the tailor-made advice made for
their businesses. Over the time, we have also developed our traditional
auditing and accounting practices into innovative client focused services. Our
adaptability and flexibility ensure that we help our customers get the best
results. Visit our website here for more insights!
