Moving from residency or fellowship to an attending role changes almost every part of a physician's life, especially when it comes to income. Suddenly earning three to five times more brings new opportunities and new risks. Decisions about spending, saving, and who to trust with your money can have long-term effects. Final-year residents and fellows often face strong temptations and pushy financial advice, which can lead to mistakes early on. Managing your finances as a new attending means knowing where your money goes, staying flexible, and making choices that support your career and personal goals.
The Golden Rule: Don't Change Anything (Yet)
Before you start making big changes, stick to one rule: keep living like a resident for at least 6 to 12 more months. Hold off on upgrading your apartment, buying a luxury car, or making other big lifestyle changes. This break gives you time to understand your new income, real expenses, and what matters most to you. It also helps you avoid making permanent decisions during a stressful time. Being disciplined with your money now gives you more control and flexibility, and lowers the chance of expensive mistakes.
Immediate Action Plan for New Attending Physicians
The first few months as an attending have a big impact on your finances. Early decisions affect your cash flow, risk, and future options. The following steps help you protect your income, keep enough cash on hand, and control your spending before your lifestyle changes for good.
Step 1: Get Disability and Term Life Insurance
Your ability to earn money is your most important asset, so getting disability and term life insurance should be a top priority. Disability insurance designed for your specialty protects your career and finances if you get sick or injured. Term life insurance protects anyone who relies on your income. Get these protections in place before you start investing, buying property, or upgrading your lifestyle.
Step 2: Build a Doctor-Sized Emergency Fund
As an attending, your financial responsibilities increase, so try to save enough to cover three to six months of expenses. This emergency fund protects you if you face job changes, contract problems, or health issues. It acts as a cushion, helping you avoid turning short-term setbacks into long-term debt or stress.
Step 3: Make a Written Plan for Every Dollar
If your income jumps and you don't have a plan, things can get out of control fast. Make sure you know where every dollar goes. Focus on paying off debt, using tax-advantaged accounts, and saving for big goals. Building these habits early helps you avoid losing money to small, unnecessary upgrades.
The Big Pitfalls to Avoid Early On
A big jump in salary can bring new problems. Here are some common ones to watch out for and avoid:
Lifestyle Inflation Disguised as "Deserved"
After years of hard work, you deserve some comfort, but taking on expensive commitments can be risky. Buying a house that's too large, leasing a luxury car, or upgrading everything at once can lock you into high costs before you're financially ready. Avoiding lifestyle inflation now keeps your options open for the future.
Hiring the Wrong Financial Help
New attendings are often targeted by advisors who just want to sell products. If someone tries to sell you something before learning about your goals, consider it a warning sign.
Good financial advice for new doctors should focus on teaching and being open, not on pressuring you.
Behavioral Coaching: The Fastest Path to Financial Freedom
A sudden jump in income can lead to habits that hurt your finances before you even notice. Behavioral coaching helps new attendings spot these impulses, make thoughtful choices, and match their spending to long-term goals. Learning to live like a resident is a skill that makes your decisions stronger and helps you build financial freedom. Practicing these habits early gives you more control over your money and helps every dollar go further.
Turning Early Decisions into Long-Term Security
It's easy to feel pressure to keep up with a certain lifestyle, but waiting to upgrade your life now gives you more choices later. Living like a resident while your income grows helps you stay in control of your money. Building good habits in your first 100 days, like protecting your income, keeping enough cash on hand, and giving every dollar a purpose, can lead to long-term financial freedom. Healthcare Employees Federal Credit Union (HEFCU) offers new attending physicians personal financial counseling, helpful budgeting and planning tools, competitive banking products, and low-rate loans to help manage debt and grow savings. Reach out to us for advice on how to make the most of your new attending salary.
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