If you have just started your career as a young physician, it is quite likely for you to look for financial freedom after a couple of decades so that you are free to make amendments in your career. It is best if you could start taking financial-measure from now only. Here are some important steps for you to consider, making sure that freedom would eventually be yours.
Save, Save, & Save
You must always try and save a hefty proportion of your salary every month. Often you would be finding that some of your colleagues end up using 20%, 40%, or 60% of their total income in paying down debts, purchasing income-generating assets, and saving for college education and retirement. If you are aspiring to retire at the standard retirement age, you would be required to go on saving a minimum of 15 percent to almost 20 percent of what you are earning throughout your medical career. If you are in the habit of spending almost everything you earn, you would require some restraint otherwise your retirement is not going to be a tension-free comfortable affair.
Carry on Living Like Residents Do
Even after completion of residency, if you could lead a simple life it would be to your advantage. In the initial few years of your career, you are still not used to getting a high salary and so would not be missing it. You may continue to lead a frugal lifestyle as during residency and divert all your savings toward repayment of student loans and creating retirement account.
High-tension-oriented job, disruptive patients, long hours, frequent calls, late night work, and even bureaucratic issues could take its toll on your mental peace and adversely impact your willingness to continue working very hard even after 45 years of age.
You would love to gradually slow down as with time your work becomes even more demanding. You would feel like working less but maintaining the same lifestyle and spending more. If you wisely save some money at the beginning of your career, you could enjoy reaping the rewards during the later years of your life. You must seek professional assistance from experts handling retirement planning for physicians.
Conclusion: Come Up with an Effective Plan
Written plans have amazing power. Create a precise plan or a budget. In this context, you must know that for a qualified physician, the budget must not seem restraining but it should feel rather freeing. It would be allowing you to divert your funds toward what you feel is most precious to you as everyone has a restricted income. You simply cannot go on stretching your expenses as you would soon fall short of funds. You must ask for an official and written investment plan for automating your investments to the maximum extent possible. You must stay calm and be well-behaved even though your investments are bringing in poor returns. Your goal is long-term financial security and your investments will eventually bring positive results. A smart financial plan for a physician is the key to success.
Jonathan Andrews is a qualified physician specializing in orthopedics. He is a passionate blogger who posts regularly on his blog. He writes about effective tips, tricks, and resources such as Beamalife.com/. His blog posts are highly informative and appreciated by everyone.
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