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June 17th, 2014
When it comes to professions, being a doctor has got to be one of the best– even in Victoria’s most populous city, you can easily stand out amongst those being well-paid for what they do. However, being high up on the career ladder also means that you are prone to spending more than you should. For the sake of your financial wealth, here are a few helpful money tips that you might want to keep in mind:
Hire an Accountant
Although buying services might, on the outset, be counterintuitive to saving money, consulting firms that offer accountants for doctors from Melbourne like MEDIQ Financial can actually help you spend, save, and invest your money properly in the long run. With an accountant in check, you can efficiently manage things like your business activity statements, tax returns, and more.
Learn to Budget
At first, this will take a lot of trial-and-error, but if you’re really serious about actually keeping what you earn instead of spending it all, you should allot a budget for your monthly and annual earnings. For most people, two-thirds of their income (after taxes) often go to major costs like food and transportation, and the remaining third can either go to savings or to an investment.
Take Care of Yourself
A sick doctor isn’t just ironic— it’s bad for business. Physician and blogger Davis Liu, MD writes in KevinMD.com about the inevitability of illness:
“If you get hurt or ill and you cannot work, all of that training and ability to earn a living is delayed. Yes, you are likely young in your late 20s or early 30s. It is likely you have no major medical problems. You might even have good healthy habits with few responsibilities aside from a significant other or a pet. Yet, as part of your training, you know bad things can happen. Unexpected accidents. Unforeseen illnesses.”
Of course, this boils down to the need for health insurance to protect you and your finances from the dangers of a costly path back to health. Nevertheless, you should also consider other forms of insurance that you can invest in, such as liability insurance (against lawsuits) and car insurance (property damage and injury benefits).
In a nutshell, efficient budgeting, saving and investing in services like reliable accountants for doctors or channels like health insurance is the doctor’s key to a healthy wallet— one that doesn’t spill as much as it takes in. While savings might not be of immediate concern to a starting practitioner such as yourself, you’ll surely thank yourself in the future should you choose to start early.
(Source: Financial advice for brand new doctors, KevinMD, September 1, 2013)