Young physicians coming out of medical school are excited to begin their practice, but many make financial mistakes that could hinder their futures.
A Medscape report outlines the top financial mistakes for young physicians:
1. Don't spend too much at once. The report recommends young physicians live within their means, despite the sacrifice of training and desire to change self-perception by spending more lavishly.
2. Not investing their money. Physicians are smart to invest, but invest knowledgably. Consider each opportunity and whether it's a good investment for the future. The smartest young physicians have a diverse, tax-efficient portfolio with tax-deferred products, tax-free accounts and real estate investment trusts.
3. Taking the first job offer without negotiation. The article recommends negotiating respectfully for what you want to make sure you're not leaving money on the table. Make sure to consider the most important values — whether it's the paycheck, autonomy or flexibility to spend more time at home — for the negotiations.
4. Don't invest in the stock market based on emotions. Inexperienced and young investors might think they can "beat the market" by buying and selling based on their expertise. Trying to make quick money can be disastrous, and young physicians can protect themselves by developing a plan and sticking to it.