Doctors are busy people and if you’re a doctor reading this, then you probably think that’s an understatement!
You may struggle to strike a balance between your career or business, your family life and your own health and wellbeing. But earning a large pay packet doesn’t mean you can afford to be too busy to ignore your personal finances.
Here are some tips that will help you successfully manage manage your finances while meeting the demands of a busy doctor’s schedule.
Years of education likely gave you a late start in your career and your earning years are fewer than you think, so you need to a wealth strategy as soon as possible. This isn’t something you can put off until a quieter time in your life.
Write Down Your Financial Goals
Determine what your financial goals are and then put them down in writing. This makes them feel more concrete and helps you stay focused on them, even when you’re at your busiest. Make sure that your goals are realistic or else you’ll get discouraged when you don’t reach them. This is an important step to take if you’re a busy doctor – financial goals will help you approach your wealth in the confidence that you’re on the right track.
Stick to a Budget
Even high-earning professionals like doctors will only be financially successful if they live within their means.
Living on a budget isn’t just for people with very limited income. The truth is that just about everyone has income limitations, even if you earn much more than the average wage. A budget is a way you can keep track of your earning and spending so that you maintain control over your finances.
Work categories for savings, investing and retirement into your budget and prioritise setting aside those funds immediately after each pay check. And when your budget is in place, you’ll need to stick to it of course.
This is especially important when you’re busy – you won’t be rushed into costly mistakes, you won’t be stressed wondering what you can and can’t afford – the budget is your safety net and keeps you accountable.
Review Your Finances Weekly
If you tend to let financial details slip through the cracks, you’ll have to invest the time to re-focus and create some new financial habits. Simply taking out just a little bit of time each week to review your personal your budget and finances will help you stay on-track and avoid confusion and headache.
Let Software Do the Thinking for You
As a business-savvy individual and skilled clinician with little time for tracking your finances, you don’t have time to do all the calculations. The good news is that there are so many apps and programmes out there that can do the number crunching for you and help you spend your money wisely!
Here are just a few techy ideas you might want to try:
– Xero accounting software
– Mint personal finance tracking app
– Automatic transfer and deposit services offered by your banking institution
– Sign up for alerts so that you don’t miss a payment
– Sign up for emails or notifications for deals and discounts on products and services you often use
Consolidate Your Expenses
Simplify your bill paying by bundling services whenever you can. For example, purchase phone and internet in one package from one company. Do the same for your health, home and car insurance. It is easier and generally much cheaper.
Avoid Credit Card Debt
Spending can easily get out of control when doctors make a habit of purchasing on credit. Limit your credit card use and stick to spending with cash or your debit card as much as possible.
Work with an Expert Accounting and Financial Planning Team
As a busy doctor, the best thing you could do is partner with a medical accounting and financial planning team who can set you up with the right strategy, help you set and manage your budget, cover all of your insurances and set you up for retirement.
That’s a load off your mind!
The reality is, all medical professionals will need help managing finances. The more you earn, the more complex your finances will get.
Instead of going it alone, ask for help. A financial adviser who specialises in the medical industry can help you get on top of your finances and well on your way to building your wealth.
It pays to work with experts who understand the unique needs of medical professionals. We’re here to help.
Contact Nitschke Nancarrow, specialists in accounting, financial planning, loans and finance, investment and business for medical professionals. We operate in Adelaide, Sydney, Melbourne and throughout Australia. Managing partner Kym Nitschke is available for a free initial discussion about your situation. Call us on (08) 8379 9950 or send me an email.
– 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.