It may come as a surprise to hear that even doctors can have money problems.
It’s really no joke that some of the highest earning and most well-educated professionals in Australia also face some of the biggest financial traps.
Are you a doctor? Here are the five main financial issues that you and every other medical professional must learn to manage.
1. Being too busy to manage your finances
If you’re like most doctors, you’re likely worked to your limit. And if you own and run a medical practice, the work seems to just follow you home. It never stops. Add to your busy schedule the demands of caring for your home and family, and you might feel that you have zero time to sit down and draw up a financial strategy.
And while you might take home a big pay packet, if you can’t take out the time to properly manage your finances, you’ll never be in control of your money no matter how much you earn.
While time is a big challenge, you can remove the pressure by bringing in a trusted, experienced financial professional to help manage the load.
2. Waiting too long to start saving
Doctors start their professional careers with a significant disadvantage.
Although your education has given you a great financial advantage in terms of income, it’s also put you at a disadvantage in terms of time. Years of costly education and training ate up those years when others were saving and investing their money. By the time you’ve entered professional practice, you’re likely saddled with hundreds of thousands in student debt and potentially no real wealth to your name.
Most doctors don’t even consider starting up a nest egg or investing until they’ve paid off their university debts and are many years into their career. This leaves them with relatively little time to save up for a comfortable retirement and grow their wealth.
3. Caving to pressure to maintain a ‘doctor’s lifestyle’
You may hate being teased by friends, families and colleagues who wonder what you’re doing with all that money you earn. They can pressure you to take expensive holidays, buy a bigger house than you need and drive a more expensive vehicle than you should.
The temptation to ‘keep up with the Joneses’ is strong, but the pressure to spend lavishly can also come from within.
The problem, however, is that the pressure to spend with little regard for the consequences can leave you with no cash left over to save, pay your debts, kids school fees or cover for the more essential expenses in your life – now and into the future. No matter how large your salary, you still need to spend wisely if you want your wealth to work for you.
4. Falling prey to shady investment schemes
Doctors are at risk for agreeing to dodgy investment schemes. As professionals with large sums of money and without much time to do their own research, doctors are seen as sitting ducks. But sometimes it isn’t a shady investment opportunity that brings doctors unstuck – it is just a matter of it being not the right time, place or opportunity. You may not have the cash flow, you may not understand the market and you may not understand the true, ongoing investment costs. This is where getting advice is absolutely crucial.
5. Not seeking professional financial advice
You may be long done with medical school, but the learning journey as a medical professional is never done. Get savvy by working with medical accounting and financial planning experts, who understand your world. Working with a top financial professional will ensure you avoid common traps and prosper.
How to deal with the financial problems doctors face
Get started by booking an initial consultation with a medical accounting and financial planning expert.
It pays to work with professionals who understand the unique needs of doctors.
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.