Physician Lifestyle Inflation After The First Big Paycheck Story

Physician Lifestyle Inflation After The First Big Paycheck

Every year, I give a talk to my residents entitled “Investing 101.” They likely expect to sit down and learn the difference between stocks and bonds. Or maybe how to define a putt, call, or mutual fund.

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When the rubber meets the road, investing talks aren’t very helpful if there is no money to invest. See, doctors don’t have an investing problem, they have a spending problem and a lifestyle inflation problem. This is the big dilemma: lifestyle inflation.

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Physician Lifestyle Inflation After The First Big Paycheck

One of the “hooks” I use to help my residents understand this problem is to first show them my last resident paycheck, where my monthly take home pay was around $3,500.

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I then show them my first attending paycheck, which resulted in a monthly take home of about $16,500. The eye start to come out as the residents wrap their mind around that number, which actually ends up being higher once I meet the social security wage base each year.

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The Big Dilemma: Lifestyle Inflation

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Here is a common example that I use. If they want to have $4 million dollars for retirement by age 60, which allows for about $160,000 in annual spending in retirement based on the 4% rule, then they need to be saving about $4,500 per month.

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How much do I need to save?

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2. Then, determine how much you would like to be able to spend in retirement annually. If you are debt free, spending in retirement should only account for travel, food, leisure, utilities, taxes, health care, etc.

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3 Ways Real Estate Investors Can Benefit From Inflation

[{"selector":"#anim-339a23b7-5a33-4db8-a348-a2f245555029","keyframes":{"opacity":[0,1]},"delay":0,"duration":4000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3964a783-a57a-4c04-a093-368b71499eaf","keyframes":{"transform":["translate3d(-125%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8750bc0d-734d-4548-9b06-59a51c5da884","keyframes":{"opacity":[0,1]},"delay":0,"duration":4000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7a2c81aa-576d-465e-946c-a9047d42b748","keyframes":{"transform":["translate3d(-125%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Inflation in 2022, the Rule of 72, and What to Do

Physician Lifestyle Inflation After The First Big Paycheck

Every year, I give a talk to my residents entitled “Investing 101.” They likely expect to sit down and learn the difference between stocks and bonds. Or maybe how to define a putt, call, or mutual fund.

When the rubber meets the road, investing talks aren’t very helpful if there is no money to invest. See, doctors don’t have an investing problem, they have a spending problem and a lifestyle inflation problem. This is the big dilemma: lifestyle inflation.

Physician Lifestyle Inflation After The First Big Paycheck

One of the “hooks” I use to help my residents understand this problem is to first show them my last resident paycheck, where my monthly take home pay was around $3,500.

My Last Resident Paycheck & First Attending Paycheck

I then show them my first attending paycheck, which resulted in a monthly take home of about $16,500. The eye start to come out as the residents wrap their mind around that number, which actually ends up being higher once I meet the social security wage base each year.

The Big Dilemma: Lifestyle Inflation

Here is a common example that I use. If they want to have $4 million dollars for retirement by age 60, which allows for about $160,000 in annual spending in retirement based on the 4% rule, then they need to be saving about $4,500 per month.

How much do I need to save?

2. Then, determine how much you would like to be able to spend in retirement annually. If you are debt free, spending in retirement should only account for travel, food, leisure, utilities, taxes, health care, etc.

SWIPE UP NOW TO READ MORE

3 Ways Real Estate Investors Can Benefit From Inflation

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