We all have our fair share of challenges and doctors are no exception. While most doctors are really smart, medical intelligence does not necessarily translate to financial acumen. With a busy professional life, paying attention to financial matters is sometimes not given enough focus. If you are one of these medical practitioners trapped in the busy-ness of life, here are some essential financial tips to help set you up to be financially secure later in your life.
1. Make sure you have your own medical insurance. Just because you are a doctor, it doesn't mean you won't need health insurance. Before you can take good care of others, you need to ensure you take care of your most important asset, your health - the last thing you need is to be caught off guard by unforeseen illnesses.
2. Avoid getting into the black hole of debt. If you have debt from medical school, credit cards or a mortgage, pay them off as early as possible. Paying interest for longer than necessary is like throwing away your hard earned money for nothing.
3. Save money as much as you can. Your future depends on what you do today. Consider setting up an automatic payment regularly into your savings account or retirement plan to start saving. As elderly people often say, saving and investing is not pure science but rather a habit that needs nurturing to build a solid foundation for the future.
4. Live within your means. Do not take out a loan unless it is for an investment. Living decently doesn't mean everyday splurges or lucrative expenses. Each time you are tempted to buy something you don't need, think of your patients who saved money to cover their medical expenses. Always remember that spending wisely is part of making intelligent choices in life.
5. Take out personal insurances. Aside from medical insurance, securing personal insurances such as for your house, income protection and life insurance is important to cover unexpected circumstances like catastrophic events or accidents. Again, being prepared for anything particularly unexpected events, can save you from inconvenient expenses.
6. Engage a Chartered Accountant. A Chartered Accountant can help you with all aspects of the financial management of your medical practice including setting up cloud accounting systems like Xero, preparing you accounts, tax returns and management reports, running your payroll and giving advice on your business strategy. Make sure you engage a Chartered Accountant as they uphold high standards and are governed by a professional body.
If you need some advice on where or how to start planning for a secure financial future, please call us on (09) 576 4166 or request an appointment online.