Becoming a doctor is one of the most rewarding professions, but the financial journey it entails is often overlooked. Many medicos, myself included, enter the field with little understanding of how to navigate its unique financial challenges. If I could go back and give my younger self advice, here’s what I’d say about money management as a medico.
1. Start Financial Planning Early
One of the biggest misconceptions is that financial planning can wait until you’re earning a decent income. The truth? The earlier you start, the more you benefit from compounding.
Lesson Learned:
- Even small savings during medical school or residency can grow significantly over time.
- Start with whatever you can—₹500 or ₹1,000 a month is better than nothing.
- Automate your savings to make it consistent and effortless.
2. Budgeting Is Essential (Even If You’re Not Earning Much)
During medical school, I barely thought about budgeting because I wasn’t earning a regular income. That was a mistake. Tracking expenses and learning to live within a budget is a crucial skill, regardless of your income level.
Lesson Learned:
- Use simple tools like budgeting apps or even a notebook to track where your money is going.
- Categorize expenses: essentials (rent, food), discretionary (entertainment), and savings.
- This habit pays off immensely when you start earning more during residency or practice.
3. Loans Can Be Managed Better
Medical education often comes with hefty loans, and for many medicos, this debt feels overwhelming. I wish I had understood how to manage it better.
Lesson Learned:
- Understand the terms of your student loan: interest rates, repayment schedules, and penalties.
- Focus on paying off high-interest loans first.
- Avoid lifestyle inflation—don’t upgrade your living standards until your loans are under control.
4. Insurance Isn’t Optional
Like many medicos, I didn’t think about health or life insurance early in my career. I thought I was young and healthy—why would I need it? Unfortunately, I learned the hard way that unexpected events can derail even the best-laid plans.
Lesson Learned:
- Get health insurance as early as possible, especially when you’re young and premiums are lower.
- Professional indemnity insurance is essential to protect against malpractice claims.
- Term life insurance ensures your family is financially secure in case of an untimely event.
5. Investing Is Simpler Than It Seems
For years, I avoided investing because I thought it was too complicated and risky. I kept all my money in savings accounts, missing out on opportunities to grow my wealth.
Lesson Learned:
- Start small with safe investment options like fixed deposits, recurring deposits, or index mutual funds.
- Learn about the power of equity investments for long-term goals.
- Understand that time in the market beats timing the market—investing early is key.
6. Build an Emergency Fund
An emergency fund is like a financial safety net, and I regret not prioritizing this earlier. As a medico, life is unpredictable—anything from sudden expenses to economic slowdowns can arise.
Lesson Learned:
- Save at least 3–6 months’ worth of essential expenses in an easily accessible account.
- Avoid touching this fund unless it’s truly an emergency.
7. Don’t Neglect Passive Income
Medicos often rely solely on active income—earning by working long hours. But I wish I had started thinking about passive income sources earlier.
Lesson Learned:
- Explore ways to generate income beyond your practice, like tutoring, writing, or investing in dividend-paying stocks.
- Passive income provides financial freedom and reduces reliance on long working hours.
8. Financial Literacy Is a Lifelong Skill
Perhaps the most important lesson is that financial literacy isn’t a one-time effort—it’s a lifelong journey. The more you learn about money management, the better equipped you are to handle life’s uncertainties.
Lesson Learned:
- Read books, attend workshops, or follow trusted financial educators.
- Regularly review your financial goals and adjust your strategies as needed.
Conclusion
If I had known these things earlier, my financial journey as a medico would have been far less stressful. But it’s never too late to start—whether you’re in medical school, residency, or already practicing, taking control of your finances is one of the best investments you can make.
Remember, financial freedom isn’t about earning more; it’s about making smarter choices with what you have.
