Financial Planning For Physicians in 3 Easy Steps

money piggybank

While moving forward in your career as a physician, knowing how to go about financial planning is deeply imperative. The American Medical Association documents the relevance that money management and more can have on physicians’ financial planning journeys. 

As you embark on financial planning, you should also be aware of other related details, such as obtaining the right physician contract review lawyer and being prepared for unexpected expenses. Thankfully, there are three clear steps physicians can take to make financial planning a success. 

Be Clear on Your Physician’s Employment Contract

A physician’s employment contract is quite lengthy, amounting to 100 pages in many cases.

It also covers information pertaining to your duties, salary, benefits, insurance conditions, and requirements for leaving the job. Having a clear understanding of this information can spare you from running into legal problems or fines later down the line.

Due to the serious nature of physician’s employment contracts, many physicians retain lawyers to go over this information. Some great ways to find a lawyer for help with your contract are by looking at relevant online appraisals or seeking referrals from those in the medical field.  

With the services of a good lawyer, you can help protect your wages from inflation, in addition to negotiating certain details of your contract and ensuring all relevant provisions are included. 

Have Emergency Savings and Get Out of Debt

Being prepared for emergencies and making smart financial choices can go a long way for any physician. Emergency savings that cover between three to six months of living expenses help ensure that physicians are prepared for unexpected costs or setbacks. 

Similarly, steering clear of bad debt (such as credit card interest fees) is a great strategy for physicians to take their finances to the next level. 

According to the American Academy of Family Physicians, more loan forgiveness programs are emerging that can help physicians get out of debt from medical school. However, even these programs will have limited impacts on physicians who are saddled with debt that’s not related to higher education. 

Building emergency savings takes time, as does getting out of debt. However, the sooner you begin saving money and chipping away at debt, the sooner you can begin to elevate your financial status.

Establish a Budget That Fits a Physician’s Lifestyle

As a physician, the right budget for you may very well differ from the budget of someone else in a different industry. 

When putting together your budget, taking the following components into account is advisable: 

  • Retirement funds
  • Everyday living costs
  • Insurance dues
  • Taxes
  • Employer deductions

Throughout your journey as a physician, your budget may change with your income and expenses. Nevertheless, having the right budget that works for you is a critical financial planning step that makes life less stressful. 


In the beginning, the ins and outs of financial planning are not always the most enjoyable experiences. Sitting down with a lawyer and going over technicalities may seem tedious. 

Though, in the long run, this work can provide security and peace of mind to you, as a physician, when it matters most.