If you are a physician, you have probably spent over a decade studying to get to where you are now. You have pursued the career you always wanted and are reaping the financial rewards of your hard work and efforts.
If you have been practicing for some time, you will be used to having a certain amount of household income each month. That is why financial protection in the event of something unexpected occurring and rending you unable to work is crucial.
Like most of us, you will also have financial responsibilities to take care of, not only in respect of your home but with family commitments too. If you are the main income earner or sole breadwinner in your household, a future financial plan is even more essential.
Here are 3 ways physicians can plan and protect their financial future.
Student debt
During the length of your studies, you may have accumulated a fair amount of student debt. Once you reach a certain level of earnings, you will have to start paying it off.
If you haven’t already done so, find out the repayment terms and put together a plan of action. It is a wise decision to live as frugally as you can until it’s paid off. Granted, that isn’t ideal but if you want to start saving and planning your future, clearing debt should be the first thing that you contend with.
Disability Insurance
From short to long term protection, disability insurance comes in many different forms. It will provide you with a peace of mind that your financial responsibilities can be taken care of should you be unable to work. A premium is payable each month and will vary depending upon the type of cover and the level of financial protection you require.
If you are unable to practice due to a disability, the effects on you and your family can be life-changing. Insurance will alleviate some of these concerns, so it’s worth looking into. Click here to learn more about the various options available. In exchange for an affordable monthly premium, you will be protecting your family from future financial hardship.
Mortgage
If you have a mortgage, it’s a good idea to pay it off as soon as you can. Similar to any other debt, it’s a financial burden that you could probably do without and an important way for physicians to plan and protect their future.
Owning your home outright can make a huge difference to future financial planning and provides you with choices and a freedom you wouldn’t otherwise have. Why not look into remortgaging and switch to a better rate or even reducing your loan term?
If you reduce the term, you will be paying more every month but will pay off the loan far quicker, potentially saving you thousands in interest. Switching to a better rate will reduce your monthly payments, freeing up more money each month.
Once you are mortgage-free, you will have more disposable income each month. This money can be invested in stocks, shares, or pensions, which will all help to bring you one step closer to achieving your future financial goals.
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