It is a complete myth that high-earners don't need to worry as much about budgeting and crafting a savings plan as lower-income earners. In fact, many times they have to think about it more.
With more wealth comes more complexity, making it important to build a plan that balances debts, current expenses, and future goals. Because of this added complexity, it’s extremely important to be deliberate about your budget.
Today our team wanted to tackle a topic we talk about a lot—how to budget for high-income earners. Physicians have a lot of moving pieces in their financial plan, which makes proper budgeting integral for financial success.
What makes a strong physician’s budget?
Let’s find out.
High-earners still need a budget
Deliberate planning allows you to maximize the potential of your earning power. But beyond enhancing your dollars, it also protects you. Without a budget, you run the risk of missing opportunities and creating financial problems that are much more difficult to correct than they are to avoid in the first place, like runaway debt.
You spent a lot of money and a lot of time earning your medical credentials. When you enter your career, it's only natural to want to reward yourself for all your hard work. It’s okay to enjoy your money, but do it in small doses.
We have met dozens of high-income doctors who didn't have a dime to their name because they became too accustomed to earning (and spending) their higher-income out of the gates.
Again, a simple but deliberate budget can help you tremendously here.
The difference in a physician's budget
To some degree, a budget is a budget.