Becoming a doctor means risking the trap of golden handcuffs: medicine can be an incredibly lucrative field, but it can also be an extremely expensive one. You might have astronomical student loan debts that make it impossible to secure a home with a conventional mortgage or even feel like you have the choice to walk away from a toxic job because of looming bills. But by focusing on financial independence and several of the actionable physician burnout solutions that make up the FI philosophy, you can control your personal finances and ward off the feelings of financial entrapment, debt you can't escape, and burnout.
Acknowledge the Pain
For many physicians and high-income medical professionals, there's overwhelming pressure to succeed. For example, you may not feel like switching professions or even taking the risk of opening an independent practice is an option due to lingering debt. Conversely, you might feel like your personal finances are preventing you from reaching key milestones like homeownership or preparing for your eventual retirement.
Ignoring these feelings can be dangerous, causing the problems to magnify and pushing you toward burnout. But acknowledging the pain and taking steps to treat financial woes and uncertainties can help you develop a plan.
The Diagnosis
The second step in physician burnout solutions is addressing the underlying problem. Are you on the verge of burnout? Do you see other doctors or residents feeling burnt out or overly stressed by their finances? If that's the case, dig deeper to see what could trigger burnout for you, including:
Lack of autonomy and control over personal finances
The administrative burden of classes, work, and handling bills and other personal administrative tasks
The "gold handcuffs" trap of a high-income job that doesn't fully offset debt and expenses
Understanding which of these or other sources of stress and anxiety can be the first step in resolving them.
The Treatment Plan
The individual treatment plan that's right for you depends on your financial situation, your goals, and your unique stressors. Here are some different treatments to consider:
Achieve financial independence (FI). This personal finance philosophy is all about reducing expenses and saving money, accumulating money until you reach a financial independence number of approximately 25 times your annual spending. Why 25 times? At a conservative 4% withdrawal rate (which accounts for inflation), this amount of savings can theoretically last indefinitely, or at least multiple decades.
Focus on tax-advantaged retirement accounts that let your dollars do more work. For example, 401(k)s and traditional IRAs let you invest pre-tax dollars so the money can grow for decades. HSAs allow you to save even more money tax-free. As a high-income earner, you might even consider Backdoor Roths, a strategic mechanism that lets you invest in a Roth IRA even if your income level would typically reduce or eliminate your ability to contribute.
You can combine these approaches for financial independence for physicians by focusing on the highest-interest debts you hold first, talking to financial advisors or lenders about mortgage loans specifically for doctors and dentists, or choosing own-occupation disability insurance to protect your future against risks. All of these approaches give you more control over your finances, and that independent control can make you feel happier, less trapped, and ultimately more nimble at avoiding burnout in medicine.
Contact Us at HEFCU to Learn More About Our Financial Planning Services
Doctors face unique financial strain, and it can leave you feeling stressed or burnt out. At HEFCU, our team of financial professionals can help you with physician burnout solutions by diagnosing underlying money worries and putting together a personalized care plan that makes your finances stronger. Reach out today to schedule an appointment for physician wellness and access our doctor's financial planning services.
Image credit: // Shutterstock // SNeG17
