Doctors earn a lot but typically huge expenses come with it. There’s also ‘lifestyle inflation’ – you have a type of life you want to live, and when you work so hard, scrimping and saving doesn’t cut it.
So, here’s some tips on how you can have the best of both worlds.
Reduce the basic costs of living
When you look at your everyday activities, you may not actually have to change your lifestyle at all, but just be a bit smarter in how you go about it. It goes down to the very basics, like energy efficiency and water consumption. Are you using your heating when you could put on an extra layer? Can you make your lunch and coffee more times during the week for work rather than eating out?
This also applies for finding the best priced services and deals. Searching for the most valuable bargain isn’t about being ‘thrifty’ or ‘stingy’ – it’s just being a savvy consumer. Especially if you’re venturing further into telehealth and remote work, assessing what phone and internet plan you’re on could save you thousands in the long run.
It’s also worth looking at your home, car and life insurances, and reviewing whether you’re unnecessarily paying a premium price.
Track and automate
The same saving principles can still apply even without being stringent. Firstly, tracking your spending will help you establish a budget which allows for your lifestyle. Through this budget, you can then begin to automate your savings to ensure a portion of your income is still regularly being put aside and you’re not overspending. This process will also allow you to set short-term and long-term saving goals and work towards them.
Avoid debts and credit cards
Try to live your dream lifestyle without taking out big loans and using multiple credit cards, which often come with hidden fees and interest you’ll be paying back for years. If you already have big debts hanging over your head, look at how you can quickly reduce them, such as through refinancing your mortgage.
Find a second income
There are plenty of ways to gain an additional income or side hustle to boost your savings. Given doctors’ major commitments, one of the best options is to generate a passive income through investing in property or shares. Alternatively, doctors could venture into mentoring or lecturing at educational institutions.
Keep on top of spending with children
It’s only natural for parents to want to provide everything possible for their children, which is why doctors may fall into the trap of overspending on their kids simply because they have the means. However, remember it’s okay to say no and show restraint.
Have the right mindset
There’s nothing wrong with spending on the luxuries in life, but spend because you want to, not because you feel it’s expected of you. Doctors may feel pressured into living a certain lifestyle because of their income, profession and fellow colleagues. However, this shouldn’t be the case.
Team up with an expert medical accountant who can provide you with all the tips and strategies to living your ideal lifestyle while also building your wealth.
Contact DocWealth, specialists in accounting, financial planning, investment and finance, investment and business for medical professionals. We operate in Adelaide, Sydney, Melbourne and throughout Australia. Managing partner Kym Nitschke is available for a free initial discussion about your situation. Call us on (08) 8379 9950 or send me an email.
– Kym Nitschke
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