Q. In medicine, it is best to learn from the mistakes of others, as evidenced by morbidity and mortality conferences. What are the big mistakes doctors make when it comes to their finances?
A. Physicians earn relatively high incomes, but that doesn’t make them immune to financial missteps. Avoid these 10 errors:
1. Financial Illiteracy
The biggest mistake doctors make is simply not paying sufficient attention to their finances. In our 401(k) world, we each have a second job as a pension fund manager, whether we like it or not and whether we’ve been trained to do it or not. You (together with your partner) are your family’s chief financial officer(s). Your family is like a business, with various sources of income and various expenditures. If you manage it well, it will be profitable and will support you long after you’ve stopped working. If you do a poor job, you will reap the consequences. The cavalry isn’t coming. It’s up to you.