Starting your medical career is exciting but can also be overwhelming. With long hours, student loan debt, and new responsibilities, financial planning might seem like something you can put off. However, the truth is that the earlier you start, the better positioned you'll be to make confident, informed decisions for your future.
At Spaugh Dameron Tenny, we help physicians like you remove the guesswork from financial planning and build a foundation for lifelong financial well-being.
The sooner you begin applying intent to your financial planning, the easier it becomes to build healthy financial habits. As a new physician entering residency or fellowship, your income might be limited, and you probably face significant student loan debt. Managing that, along with daily expenses and career demands, can be overwhelming.
That’s where financial planning comes into play. It helps you take control of your finances – even if you’re starting out.
Financial planning is most effective when it’s centered around your life. That begins with identifying your goals and priorities. Ask yourself:
Even small steps now can lead to achieving success later. Setting clear, realistic goals – whether personal or professional – helps in creating a financial strategy that matches the life you want.
Pro Tip: Consider using the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) to structure your financial goals.
Your debt repayment plan should prioritize:
Given the current legal uncertainty surrounding newer repayment programs, many borrowers rely on older plans, such as Income-Based Repayment (IBR) or Pay As You Earn (PAYE), if eligible. These plans have specific rules regarding income, family size, and eligibility for forgiveness, so it’s essential to choose wisely.
Thinking about PSLF? Be sure to certify your employment annually, confirm that your loans are Direct Loans, and enroll in a qualifying repayment plan.
Student loan programs are facing legal challenges and regulatory shifts. A trusted financial professional can help you evaluate the best options for your situation, taking into account the current rules.
One of the primary reasons to start saving and investing early is the power of compound interest. This occurs when the interest you earn is reinvested, generating additional earnings and allowing your money to grow on its own.
*Example: If you invest $5,000 each year starting at age 30 with a 7% return, you could have over $500,000 by age 60. Wait until age 40, and that amount is nearly cut in half.
Whenever possible, aim to:
It’s easy to get distracted by immediate pressures, but your future also deserves attention. Here are a few key habits that can make a lasting impact:
Build an Emergency Fund
Even while paying down debt, pay yourself first by setting aside money for unexpected expenses, like car repairs, medical bills, or home issues. A lack of emergency savings is a leading cause of long-term financial setbacks.
Did You Know? 57% of Americans can't cover a $1,000 emergency expense without going into debt. [Source: Bankrate, 2024]
Start Saving for Retirement
Student loan repayment shouldn't prevent you from saving for your future. If you start setting aside even a little each month, you’ll benefit from more years of compounding and face fewer financial obligations early in your career.
Protect Your Income with Disability Insurance
Your most valuable asset is your ability to work. Disability insurance helps protect a portion of your income if an illness or injury keeps you from working. Most policies replace 60–65% of your earnings and can prevent a health crisis from becoming a financial one.
Understand Your Employment Contract
Review your contract carefully. While some terms may be non-negotiable, it's worth speaking with a senior physician or a healthcare contract attorney to understand key details, like call responsibilities, non-compete clauses, and termination provisions.
If you're a physician in the first third of your career, you might already be juggling these financial questions. Between medical school debt, a busy schedule, and major life changes, it’s easy to fall behind.
But you don’t have to handle it alone.
A financial planner who specializes in working with physicians can assist you in:
Working with someone who understands the unique financial challenges faced by medical professionals can provide the clarity and confidence you need to move forward.
Physicians often start saving and building wealth later than their peers in other industries. However, with intentional planning and professional guidance, it's entirely possible to catch up and succeed financially.
At Spaugh Dameron Tenny, we specialize in creating personalized financial plans for physicians and dentists that take into account your entire financial situation, not just one aspect of it. We’re here to provide clarity, perspective, and long-term support.
Download our free checklist to take the first step toward organizing your finances. It’s a small action that can have a long-lasting impact on your future.
*This hypothetical example is for illustrative purposes only. This is not a prediction or guarantee of actual results. This example is not intended to represent the value or performance of any specific product.
CRN202807-9050250
Jordan Bilodeau, CFP®, CEPA, is the Director of Planning & Strategy at Spaugh Dameron Tenny, where he leads firmwide planning initiatives and helps clients navigate complex financial decisions. With experience in portfolio design, tax strategies, and business succession planning, Jordan works with executives, physicians, dentists, and successful retirees to coordinate every aspect of their financial lives. He holds both the CERTIFIED FINANCIAL PLANNER® and Certified Exit Planning Advisor designations and has a Master’s degree in Wealth and Trust Management, providing tailored guidance for clients.
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