More than half of young medical professionals feel they do not have adequate knowledge and discipline on financial planning. Almost 9 in every 10 have a feeling that they are somewhat or totally not protected in case a disability would stop them from practicing. This is according to a report done in 2015 on Young Medical Professionals Financial Preparedness. What then must you know as a young medical professional as far as financial planning is concerned? This article shares strategies for building a strong financial foundation.
Pay yourself first
This is one of the principal keys of personal finance.
Nonetheless, many find this statement bewildering. This statement doesn’t mean how you earn money but how to save your money.
When you receive your paycheck, pay your own savings and investment accounts first before attending to other needs that are on standby ready to pounce on your money.
A recommended way to go about this is by saving 20 percent of your monthly salary into a savings account right from day 1. Savings shield you from landing in financial crisis that may be caused by unanticipated crisis.
Come up with a budge
A budget is a good tool that will help you track your expenses. This will help you prioritize your expenditure.
Operating without a budget sets a stage for spending without tracking your expenditure. This is injurious to your finaces.
Understand the financial aspects of your employment contract
It is important that you familiarize yourself with skills such as contract negotiation. You can consider reaching out to older medical professionals who are experienced in such skills for mentorship and guidance.
Raise your sight beyond salary to things such as life and disability insurance, office expenses, and retirement funds.
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Prepare for the unexpected
Do you have an updated will and medical directives?
It is everybody’s wish that things go as they plan, but it is also prudent to have a standby plan in the event that the unplanned happens. Make sure you have this financial cushion in place because it will protect your family.
Consult a professional financial advisor
Health professionals who employ services of a financial adviser make sober and smarter investment decisions, have more savings and are confident in making the right choices for their families.
Bank on recommendation and interviews to shop for an adviser that is right for you. Assuming financial matters will take care of themselves once you have an income is a grave mistake that you wouldn’t want to make.
I hope this article has added value to you on how you can build a strong financial foundation. Please consider sharing it with your friends. Thank you.
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