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  • Writer's pictureAlex Kreis

6 Must-Do Financial Planning Tips for Medical Residents

Updated: Mar 28, 2023

As a medical resident, you barely have time to think about the financial aspect of your profession, as most of it goes behind your medical practice, education, and dealing with student loan debt. However, your income will increase significantly once you complete your residency and begin practicing as a fully-fledged physician.



Nevertheless, it's essential to set your financial priorities to safeguard your future and enjoy a life where you can take out time for your loved ones along with your work. With that in mind, here are 6 must-do financial planning tips for medical residents:

  1. Create a Budget: One of the primary to-dos for effectively managing your finance is to create a budget. This will help you understand where your money is going, and identify areas where you can cut back or spend smartly. However, make sure to include all of your expenses, including student loan payments, mortgage loans, rent, utilities, and entertainment.

  2. Start saving for Retirement: It may seem early to start thinking about retirement planning, but the earlier you start saving, the more time your money gets to grow itself. Consider setting up a 401(k) or other retirement accounts as soon as possible, and make sure to contribute enough to take full advantage of any employer-matching contributions.

  3. Get Insurance: In rare and unfortunate cases, if you met with an accident or illness that prevents you from working, insurance will make sure that you are protected in such circumstances. The same goes for when and if you’re in student loan debt - in case of any adversity or unexpected event that takes place, your loans will be paid off. Example: Life Insurance, Disability Insurance.

  4. Understand your taxes: This isn’t something you can avoid if you’re earning. Moreover, medical residents are often considered self-employed for tax purposes. While learning about your taxes can get a bit daunting, it is important to understand your its’ obligations and take advantage of any deductions or credits available to you.

  5. Invest in Financial Education: You have the opportunity to invest your time or money in your education and professional development. Check out Podcasts, grab a book or two on finance, attend workshops or webinars, or join relevant communities on Quora and Reddit. Not only will this help you improve your skills, but it may also lead to better job opportunities and higher earning potential in the future.

  6. Seek professional advice: You may not have a lot of experience with personal finance and investing. Consider seeking out a financial advisor for medical residents. Take their help to develop a financial strategy that is tailored to your specific needs and goals.


Conclusion

Financial planning for medical residents can be challenging, but by following these six tips, you can set yourself up for financial success in the long run. Remember to be patient and consistent with your financial planning, and you will be well on your way to achieving your financial goals.


If you’re a medical resident and need help with managing your finances in a way that lets you carry out the lifestyle of your dreams, check out PRIME Financial Services. Our team of financial experts provides personalized help and works with you to create a financial strategy that’ll benefit you in the long run.



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