Graduating from residency is a momentous occasion for every new doctor. You’ve spent over a decade of your life studying, working hard, and meeting every challenge you’ve faced to get to this level.
But what most newly minted doctors tend to overlook is budgeting. Now is the time to consider the financial freedom that you have worked for years to achieve.
As you step foot on the road to earning a substantial income, now is the time to develop a plan that works!
Here are your first six steps toward financial freedom.
The key is to put away that money early. Here’s why: If you save 20% of your income at an early age, you’ll reap the benefit of compounding – earning interest on your money and on the interest you earn over the years.
The 1% rule requires two separate budgets or sets of books. One covers all of life’s needs, and there’s no upper limit. The other covers life’s wants, and you’re limited to a max spend of 1% of your net worth.
You’ll have your own goals, and you can adjust your savings and budgeting to meet them. Setting your financial goals will help you attain whatever you want.