Starting Out
After years of studying, testing, and running on very little sleep, your body is adjusting from the intensive 80-hour work week of residency to your new schedule. Your graduate and postgraduate diplomas are framed and on the wall of your new office. You have secured your first job in your medical profession. Getting settled into your new and differently paced life means learning not only the politics of the office but also the diverse personalities. Along with all of this, you now have a personal bank account with a significant influx of income, and you’re also getting adjusted to the challenge of running and financing a small business. The balancing act of income and debt for both your personal and business bank account is just that, a balancing act. The need for financial literacy on the part of health care practitioners is real and, unfortunately, not often something that is taught in medical school.
Financial Literacy
Financial literacy is a matter of necessity and urgency. Physicians have the intellectual capacity to gain the knowledge but finding the time to comprehensively and objectively read, absorb, and implement a plan takes time and energy. It is common for people, physicians included, to make financial decisions reactively instead of proactively. Think about your medical practice today and five years from now. The best way to achieve your goals is to make a futuristic roadmap.
Checklist for Reaching Financial Literacy
- Identify who should be on your team, including a trusted financial advisor/banker, accountant, and an attorney
- Form a business plan for yourself
- Understand what to look for when hiring and managing staff, managers, and consultant
- Know the right time to secure real estate (See Practice Buy-Ins—Don’t Ignore the Real Estate)
- Know your technology needs (Visit the Understanding Health IT section of the website)
- Determine what billing solutions are available
- Educate yourself on fraud and embezzlement prevention (See our Checklist: Embezzlement Prevention 101
- Envision what retirement looks like… age, income, standard of living
Stay tuned for more blogs that I hope will help you reach your goals as you go from residency to managing and growing your medical practice.
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