Schooling to become a physician is COSTLY. Many physicians have thousands of dollars in student loans as they start their residency training and plan to get their first "real" paycheck. Many resident physicians are behind their peers in terms of saving money and investing in their future. Today's post is from Bonnie Mangold, JD, a financial advisor who is sharing 3 CRITICAL pieces of financial planning for residents, fellows and new attendings.
There are 3 critical pieces of financial planning that I frequently recommend to residents, fellows and new attendings in my financial planning practice:
(1) build an emergency fund
(2) have disability planning in place and
(3) open a Roth IRA.
An emergency fund is a critical component of being and feeling financially secure. No matter how carefully you plan your finances, there will always be unexpected expenses. And yet research show that 39% of Americans couldn’t cover an unexpected $400 expense without using a credit card or borrowing the money – which can cost even more money in interest. TIP: Aim to hold three to six months of living expenses in an account you can access easily, like a high-yield savings account.