There is no shortage of financial advice out there. You are undoubtedly exposed to a wide range of money headlines and adages that may or may not be helpful.
They can be found in books, magazines, newspapers, social media, news feeds, and blogs. If you’re more of an audiovisual person, television, podcasts, and Youtube will also tell you what you should be doing with your money.
Some of these recommendations are excellent and more or less universal. “Spend less than you earn.”Other advice is generally good, but may not apply to everyone. “Invest in real estate.”
Why has there been a proliferation of financial advice aimed specifically at physicians?One sad truth is that we need it. Stanley and Danko singled out physicians as notorious under-accumulators of wealth based on their research for The Millionaire Next Door.
That’s not the primary reason, though. That fact indicates that we doctors need to improve our financial knowledge and implementation of sound strategies.More importantly, physicians have a fairly unique career and compensation trajectory.
When our friends are getting promotions and bumps in pay, we’re busting butt in residency and fellowship for little more than minimum wage when you factor in the long, long hours.
– At 25 years old — you should have 1/2 of your yearly salary saved– At 30 years old — you should have 1x your yearly salary saved– At 35 years old — you should have 2x your yearly salary saved– At 40 years old — you should have 3x your yearly salary saved