For young doctors who have labored through overnight shifts during residency, the promise of a lucrative career as a doctor looms large. But given all the medical education debt--with interest likely accruing since graduation--it's best to live well within your means, according to a recent Medscape article.
Instead of financing a new car or rushing off to secure a mortgage, it's better to live the lifestyle of a resident for two to five years into your career, James H. Dahle, M.D., a Utah emergency medicine doctor and author of "The White Coat Investor," tells Medscape.
Other tips for young doctors who want to keep an eye on their financial future include:
With salary negotiations, don't settle for less than you're worth. Don't say "yes" to just any offer you get from a potential employer. If take-home pay is the most important variable, a higher base salary and a more generous sign-on bonus should be a part of your package, says Eileen Michaels, of the physician search firm Harris Brand Recruiting in Albany, New York,
Pay off student loan debt. This should be a top priority for young doctors, according to the article. The Public Service Loan Forgiveness Program--which requires 120 payments, even the small income-driven payments during residency and fellowship--is an option for young doctors practicing at nonprofit healthcare organizations.
Refinancing to achieve a lower finance rate on medical school loans also is an option.
With investing, go with your head and not your heart. Consult a financial adviser to develop a long-term investment plan that incorporates your goals, risk tolerance and time horizon. What's important is having a "well-diversified" investment portfolio, according to the publication.
To learn more:
- read the article