Here are the three financial stages.
1. Post-residency. Coming out of residency, many encounter large amounts of debt or other expenses. Saving all you can may seem obvious, but is a valuable lesson to ensure you have ample savings as you move onto the next phase of life. Allot a certain amount of your budget to cover groceries, dining out and entertainment. However, budgeting is essential in this phase of your career.
Some key ways for residents to save include:
• Enroll in the Public Service Loan Forgiveness program if you work for a nonprofit.
• Put $300 each month into an account you don’t touch.
• Pay for your next car in cash.
2. Joining a practice. As you begin at a practice, you are likely to assume more financial responsiblity. The key when beginning this phase is to not purchase a house. If you purchase a home, a significant portion of your paycheck will go toward a house. To ensure you spend your money wisely, consider hiring a financial advisor who specializes in working with physicians. Do all you can to ensure you live debt-free.
3. Financial accumulation. When you are between 35 and 60, you may soon be facing retirement. This phase is highly focused on financial accumulation. Max out your retirement plan for a tax reduction and clear you student loans. Work with an advisor on a solid financial plan for retirement.
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At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.