- Do you need financial knowledge? You may be earning a sizable income as a doctor, but you’re not comfortable managing your finances.
- Financial education among physicians (especially those in leadership positions) begins with a few key questions.
- To improve your financial education, you can take a structured approach. Start with what you know and identify the gaps in your knowledge.
According to an article published by Harvard.edufinancial education among physicians (especially those in leadership positions) begins with a few questions, the first being: Where does my knowledge on this topic begin?
Regarding interactions with financial managers, another important question is: How much of these conversations do I understand? Assess what works and what doesn’t, and identify the parts you lack experience with to close the gaps in your financial knowledge.
This process may feel uncomfortable, but it will ultimately increase your competition financial.
A final question doctors can ask themselves as they seek to hone their financial skills is this: How do I ask meaningful, high-level questions? When talking to financial experts, asking good questions is essential to broaden your knowledge.
Also, you can remove any antagonism and get what you need.
4 Tips to Develop Financial Literacy
Know your cash flow. Gather your financial records. Evaluate income taxes and record your current expenses. While potentially painful, this will help you gain a better understanding of your financial habits.
Cut unnecessary expenses. We tend to spend most of our money “side by side” or throughout the day. This is especially true for those who work in offices and on Zoom. After a long day, sometimes it’s easier to ditch the (cheaper) home-cooked food for dinner. A cash flow sheet will highlight the money you spend on things you can do without, making it easier to save.
Commit to saving. How often do you deposit money into a savings account? If the answer is “I’m not sure”, try this: Schedule a regular time to save. Whether it’s weekly, bi-monthly, or some other schedule, committed savings will grow your assets faster than you expect.
Work with a trusted advisor. You don’t have to navigate the complicated world of finance alone. Ask your friends or family if they have an advisor they trust. The economic fallout from the COVID-19 pandemic is still being felt, complicating financial planning.