You’re brand-new in professional practice and can’t wait to finally get your career started. You’ve spent way too many years studying hard at the expense of your social life and you’re ready to reward yourself for your achievements thus far.
But specialist medical accountant and financial planner Kym Nitschke warns that now is not the time to throw caution to the wind. As a young medical professional, it’s already time to start taking a serious look at your long-term financial plan.
Too many medical professionals wait until they’re more “settled” into their careers before they even consider financial planning. For most of them, that will be the biggest mistake they ever make.
Financial planning is not something you do only when you’re debt-free and living a life of comfort.
As a new professional in your field, you may be very interested in enjoying those huge paychecks to the full. But there are a few good ways you can put your money to better and smarter use.
Pay Off Your Debts .. As Soon As Possible!
Paying off your student debts is crucial, but you have to do it the right way.
Deal first with credit cards and loans that have high interest rates – these should take priority. If you don’t pay those off quickly, you’ll lose a lot of your hard-earned money to interest payments. Then in consultant with your medical accountant, systematically work through all of your debts, and you’ll be free before you know it!
Start Saving .. Right Away!
It doesn’t have to be for anything in particular. It’s just a good idea to start building a nest egg for future investments or emergencies. Make it a goal to set aside a portion of each pay check. This will ensure the funds are there in the event of a serious emergency or a golden opportunity.
Set a Budget
You may be sick of living on a budget after all those lean years of trying to afford textbooks and eating ramen for breakfast, lunch and dinner. You’re ready for nights out with friends, buying the car of your dreams and taking lavish holidays.
But living on a budget doesn’t mean you have to deny yourself those things. It simply means that you maintain a limit that protects you from financial harm. Budgeting means setting up boundaries that let you enjoy your earnings as you choose while ensuring an allotted amount goes towards your necessary expenses.
Budgeting is your key to paying off debt and successfully saving up.
Look at More Than the Salary
You’re eager to start working and excited about almost any job offer that comes your way. But you should still exercise caution and do your due diligence before signing any contracts.
Seek advice on any detailed job or even partnership offer. Try to understand as much as possible about insurance benefits and expense associated with a potential position. Ask more experienced professionals for their words of wisdom and look to an experienced medical financial adviser to help guide you.
Start Thinking About Retirement (Seriously 🙂 )
Retirement, already? But you’re just getting started!
As a young medical professional, the earlier you start planning for the end, the easier you’ll be able to afford a comfortable retirement.
It’s never too early to start planning for your retirement. If anything, you’re late to the game since you’ve spent several years of your young adult life just preparing to earn money. Talk to an experienced medical accountant and/or financial planner about retirement right away, and set a plan in-motion that will consider your investment strategy and mid to long term goals.
Financial Advice for the Young Medical Professional
Put simply, the best time to get started on building your wealth is a lot sooner than you think. You should have started already, in fact. So don’t put it off any longer.
Talk to the experienced medical accounting Nitschke Nancarrow team, who have spent years helping medical pros keep finances under control and successfully build wealth.
– Kym Nitschke
The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Nitschke Nancarrow’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Nitschke Nancarrow specialises in accounting, tax and financial advice for superannuation. Contact us now for a no obligations discussion about your needs.Tags: financial planner, investment, medical accountant, medical professional, Retirement, savings, young medical professionals