financial priorities
Most people think that doctors have it made. A career that garners respect, an excellent salary, and the knowledge and skills to diagnose and heal the sick and wounded.
Understand the implications of your peer group on your finances. There is a bit of a paradox in that those who appear to be doing really well financially may not be, and those who appear to be less fortunate may simply be banking a much higher percentage of their income as opposed to spending it.
Start by taking inventory of how much you owe, to whom, and for what. There are different approaches to debt paydown that equate debt to snow-related objects for some reason, and I prefer the “debt avalanche.”
Use half of your takehome pay to pay down debt and invest, living on the other half. Do that, and paid work will be optional in about 15 years from the day your net worth is zero.
Paying cash for a truck, trip, tritoon, or townhome not only keeps you from taking on additional debt, but it might also restrict your budget a bit. People tend to spend less when they’re not spending other people’s money, and that’s a good thing.
When you’re well on your way to financial independence, you can cut back on your coverage or drop your coverage completely, but when your net worth is in the five or six figures, long-term disability insurance is vital. Buy from an independent agent that will shop around on your behalf.
Early in your career, the most important thing to understand is what types of accounts you have available to you and how much you can invest in them each year.