Having the ability to control finances is of utmost importance when it comes to advancing in life. The same holds true for any living, breathing human, and that includes physicians. To do this, one must be able to manage money matters and organize expenses in a way that does not deplete their bank account. Following are five bits of advice that would help physicians (or just about anybody for that matter) identify a lean path to financial planning.
- Cut Unnecessary Expenses – Most people weigh themselves down with expenses that do not really serve any purpose. Being well into the age of auto-debit arrangements, there may be payments heading out to monthly services that you no longer need. Take a careful look at the records of your expenses and identify any payments that are unnecessary. If you are paying credit card bills, then make sure you stay updated on payments so that you avoid generating extra expenses in the form of interest or penalties. You may be surprised how much extra money you free up from monthly payments you may have overlooked.
- Be On Top of Financial Files & Documentation – Managing finances has always involved the keeping of records and documents that contain valuable information related to a person’s income and expenses. If one is unorganized with these files, then there is a chance that they may be misplaced or lost – which can be incredibly stressful under the wrong circumstances. Make sure you are vigilant about your financial documentation and ensure that you at least have a general idea of where to look when searching for them.
- Maintain A Fund for Emergencies – If the Covid-19 pandemic is not a good reminder to always maintain an emergency fund, then nothing is. Life is unpredictable – anything can happen anytime, and if you are not financially prepared then the situation can turn from bad to desperate. If you do not yet have one, then start putting aside money every month that is intended to be used only on emergencies. First, secure yourself in the case of immediate needs by building up a fund of at least one thousand dollars – but the end goal should be to expand it large enough to sustain your daily needs for at least three to six months. Having an emergency budget that large should help ease any life changing transitions, avoiding the need to expose you and your family to times of great uncertainty and distress.
- Work Off of a Budget – Many people skip on taking the time out to come up with a plan for finances – and it is easily one of the worst mistakes that can be made when dealing with money. Measure your financial moves by identifying how much you make, then creating a plan for expenses that allows for the saving of cash every month. It is not easy and requires plenty of consistent effort, but if you don’t do it, who will? It is never a good idea to just “go with the wind” when it comes to money so if you are one of these people that has yet to work off of a planned budget then now is the best time to start.
- Prioritize – It is not always possible to live by your budget. There will be times that you must know how to prioritize expenses due to a lack of funding to pay for everything. If you have credit card debt yet also need to buy milk for your baby, most people expect you to go for the milk and just deal with the ramifications of late credit card payments at a later time. Your credit rating is important, but I do not think anybody can live with not being able to feed their children so that you could avoid extra payments to your bank. Life is full of difficult decisions but knowing how to prioritize will help you find your way to better times.
If you are a qualified medical evaluator (QME), or a doctor in California interested in becoming one, you are in the right place. Click here to bring up the TukkoMed contact form and send us a message – find out why partnering with us is your best move.