People hear the term doctor and automatically think you have a lot of money. You probably make a good living, but the average doctor is between $150,000 and $200,000 in debt with student loans. With proper planning, you can make your money work for you and pay down loans while living a comfortable life.

Not all medical professionals are on a high income. Take control of your finances with these 5 important personal finance tips for medical professionals.

  1. Don’t Live Up to Your Income

You should continue living like a resident even after you graduate.

Take a significant percentage of your higher gross income and put right to your student loans, retirement accounts, or purchase assets. You should do this with at least 20-40 percent of your income, and you should still have some extra money to splurge on a few things you avoided while being a resident.

  1. Set Goals

Think about your goals and major expenses in the next 5-10 years.

These don’t have to be set in stone, but you need a plan to get you where you want to be. For example, if you want to purchase a home in 3 years figure out how much you need to save for a down payment and research home loans for doctors.

Figure out how much you want to spend, and set a plan for saving to reach this milestone. Having your goals written down helps you to stay organized and achieve goals like paying off debt, buying a home, traveling, or anything else.

  1. Create a Budget

This may seem overwhelming to plan a budget, but you have several resources to make it easy. Take time to analyze your bills, income, and spending to get your finances in order from the start. 

Check out apps like Personal Capital, Mint, or EveryDollar to help you create this budget. When you examine your spending, you can see areas you want to cut back. You can find ways to save and put that money towards savings, loans, or retirement plans, which will help you create more wealth in time.

  1. Have an Emergency Fund

55 million people said they do not have an emergency fund. Life happens, and you never know when an emergency happens like an unexpected house or car repair. Most experts suggest you have a fund of at least 3 to 6 months worth of living expenses.

An immediate emergency fund is critical to financial success. This way you don’t have to charge for a repair or dip into your retirement savings, which you shouldn’t touch until you retire.

  1. Work with an Adviser

You should start working with a financial professional as soon as possible, and it doesn’t matter your income. Together you can create a retirement plan to help you reach your goals. Start saving for retirement immediately because that money will only earn interest in that time.

You can always update your plan with your financial adviser. You shouldn’t wait until you retire to find a financial adviser.

Looking for Other Personal Finance Tips?

As you can see, the most important money advice is to have a plan and start saving immediately. You should work with a professional to help you reach all your retirement goals.

If you are looking for additional personal finance tips, check out our website for articles like five ways to save money.

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