The truth is that for most physicians most of what you need to know to avoid the real pitfalls in personal finance is encapsulated in a single phrase: One House, One Spouse, One Job.
This is when you change houses every few years. Buying and selling a home involves some serious transaction costs. A good general rule of thumb is 5% to buy and 10% to sell.
The vacation home. It might be a beach house, a mountain house, a lake house, or simply another house. A second home generally doubles all your housing-related expenses: Mortgage, taxes, maintenance, upgrades, furnishings, utilities, and etc.
Divorce is personally and financially devastating. Whatever expense may be required to maintain your marriage should be considered as pennies compared to the cost of divorce. The truism, “It’s cheaper to keep her” really applies here.
Changing jobs is often financially devastating too. The new job may require a move, which brings in the multiple house issue. More significantly, if you are in private practice, it will take time and money to build your practice back up in the new location.