Financial Fitness for Physicians: Avoid These 5 Costly Mistakes

The following includes a synopsis of Becoming An Attending Podcast

Becoming a physician is like training for an Ironman—an intense, years-long commitment that pushes you to your limits. (And trust me, I haven't even attempted an Ironman yet—I’m still building my stamina for a half-marathon!) But just like endurance races, the road to becoming a doctor comes with challenges that go beyond just skill and determination. After grinding through medical school and residency, many doctors cross the finish line only to realize they’ve accumulated hundreds of thousands in student debt—with little to no training in financial health.

That’s exactly why we launched Becoming An Attending—a brand-new podcast spun off from The Money Script Podcast by demand of dozens of listeners who wanted deeper, physician-focused financial insights.

In the first episode, I sit down with Andrew McFadden, founder of Panoramic Financial, to uncover the five biggest financial mistakes doctors make—and how to sidestep them. Whether it's managing student loans, investing wisely, or setting up long-term financial security, we break it all down so you can build a strong financial foundation just like you built your medical career.

Why Physicians Struggle with Finances

Many assume that once a doctor starts earning a six-figure income, their financial problems are solved. However, high income does not guarantee wealth. Without proper planning, physicians can fall into financial traps that delay wealth-building, cause unnecessary stress, and limit career options.

Some of the biggest challenges physicians face include:

✅ Late start to earning – Unlike other professions, most doctors don’t start making real money until their mid-30s, leaving less time to build wealth before retirement.
✅ Crushing student debt – The average medical school graduate leaves with over $200,000 in loans, making debt management essential.
✅ Lifestyle inflation – After years of living on a residency salary, new attendings are tempted to spend beyond their means.
✅ Lack of financial education – Medical school doesn’t teach personal finance, making it easy to fall victim to poor financial advice.

The 5 Biggest Financial Mistakes Physicians Make

1. Not Getting Financially Educated

Medical school teaches how to save lives, but it doesn’t teach how to manage money. Many physicians avoid learning about personal finance, assuming they’ll figure it out later. However, delaying financial literacy leads to costly mistakes.

💡 What to do instead:

• Start reading personal finance books tailored to physicians. A great starting point is The White Coat Investor by Dr. Jim Dahle.
• Follow financial podcasts and YouTube channels to learn investment strategies, tax planning, and debt management.
• Work with a fiduciary financial advisor who specializes in physicians’ finances.

2. Ignoring Budgeting & Spending Beyond Means

New attending physicians often fall into the trap of "lifestyle inflation." After years of living on a resident’s salary (~$60K), it’s tempting to upgrade houses, buy luxury cars, and take expensive vacations.

However, spending too much too soon can create financial stress, making it harder to pay off debt, invest, or save for retirement.

💡 What to do instead:

• Use budgeting apps like YNAB, eMoney, or Personal Capital to track expenses.
• Follow the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings & investments.
• Delay major purchases until debt is under control and an emergency fund is built.

3. Failing to Protect Income with Disability Insurance

Physicians' most valuable asset is their ability to earn a high salary. However, injury or illness can end a medical career overnight.

Disability insurance helps protect against this risk, yet many physicians delay or overlook it.

💡 What to do instead:

• Get own-occupation disability insurance—this ensures you receive benefits even if you can’t work in your specialty.
• Purchase term life insurance to protect dependents if anything happens.
• Work with an advisor to ensure you have adequate coverage.

4. Neglecting Student Loan Planning

Physicians often delay making a loan repayment plan. However, ignoring student loans can cost tens of thousands of extra dollars in interest.

💡 What to do instead:

• Explore Public Service Loan Forgiveness (PSLF) if working for a nonprofit hospital*
• Consider income-driven repayment (IDR) plans during residency*
• Avoid forbearance unless absolutely necessary—interest will continue accumulating.

5. Not Investing & Planning for Retirement Early

Many physicians delay investing because they assume they’ll "catch up" later. However, starting early is crucial due to the power of compound interest.

💡 What to do instead:

• Consider maxing out 401(k)/403(b) contributions and take advantage of employer matching.
• Invest in a Roth IRA early when in a lower tax bracket.
• Work with an advisor to diversify investments beyond hospital retirement plans.

Final Thoughts: Building Wealth as a Physician

Financial success as a physician isn’t just about earning a high salary—it’s about making smart financial decisions early. By avoiding these five common mistakes, physicians can pay off debt faster, invest strategically, and create long-term financial security.

If you found this episode helpful, subscribe to Becoming An Attending Podcast for more physician finance tips!

*Due to current administrative changes, certain loan forgiveness and payment plans may not be available. It is highly recommended you consult a knowledgeable advisor to review your options.