How Physicians Can Build a Healthy Financial Mindset

The journey to becoming a physician is filled with delayed gratification, financial stress, and immense responsibility. After years of training, doctors transition from low-income residency salaries to high-earning attending roles, often with six-figure student debt and pressure to maintain a certain lifestyle.

But does a higher salary guarantee financial success? Not necessarily. Without the right financial mindset, it’s easy to fall into overspending, comparison traps, and emotional decision-making.

In this episode of Becoming An Attending, I speak with Dr. Daniel Crosby, a leading behavioral finance expert and author of The Soul of Wealth. We discuss how doctors can develop a healthy relationship with money, avoid common financial mistakes, and build lasting wealth.

The Psychological Traps of Wealth

While medical professionals are among the highest earners, financial success isn't just about income—it’s about mindset. Dr. Crosby explains that people often think wealth will bring happiness, but material wealth alone doesn’t guarantee life satisfaction.

Some of the most common psychological traps that high earners—especially physicians—fall into include:

1. The “I Deserve It” Mentality

After years of medical school, residency, and financial sacrifice, many new doctors experience pent-up financial stress. The moment they get their first big paycheck, they feel entitled to reward themselves—whether that’s buying a luxury car, upgrading their home, or taking extravagant vacations.

💡 How to avoid it:

• Small, mindful splurges provide more happiness than major lifestyle upgrades.
• Rent experiences before committing (e.g., renting a luxury car for a weekend instead of buying one).
• Keep lifestyle inflation in check for the first few years of attending life.

2. The Comparison Trap (Keeping Up with the Joneses—or Kardashians!)

It’s easy to compare your success to other doctors. You see colleagues driving expensive cars, living in high-end homes, and vacationing in exotic locations. But material possessions don’t equal wealth.

📉 The truth:

• Many high-income earners are trapped in debt due to overspending.
• Financial independence is about wealth accumulation, not luxury spending.
• Studies show that materialism leads to lower happiness and higher stress.

💡 How to avoid it:

• Run your own race—focus on your goals, not someone else’s spending habits.
• Choose experiences over possessions—memories last, but luxury cars depreciate.
• Follow your budget, not peer pressure.

3. Delayed Gratification: The Ultimate Life Hack

Doctors already understand delayed gratification—they spend years in training before reaping the financial rewards. But once they start earning, many struggle to continue practicing patience with money.

💡 How to build wealth through patience:

• Invest early and consistently—compounding interest is your best friend.
• Resist immediate luxury purchases—instead, set long-term financial goals.
• Understand habituation—the new car or house won’t bring lasting joy after the initial excitement fades.

📖 Key insight from The Soul of Wealth:
Studies show that people who practice delayed gratification are wealthier, healthier, and happier.

Aligning Money with Your Values

In The Soul of Wealth, Dr. Crosby emphasizes that financial success is more than numbers—it’s about aligning money with personal values.

💡 How to ensure your spending reflects your values:

1. Track your spending for 3 months. Where is your money actually going?
2. List your core values. (Family, education, travel, generosity, etc.)
3. Compare spending vs. values. Do they align? If not, adjust.

💰 Every dollar you spend is a vote for the world you want to live in.

Final Thoughts: Run Your Own Financial Race

Physicians don’t have to fall into financial traps—by understanding behavioral finance and developing the right mindset, they can build true wealth and financial freedom.

✅ Key takeaways from this episode:

• Avoid lifestyle inflation—small luxuries are better than big, unnecessary purchases.
• Don’t compare yourself to others—wealth is about financial security, not appearances.
• Practice delayed gratification—invest early and let your money grow.
• Align spending with values—make sure your money reflects what truly matters.

For more physician finance tips, subscribe to Becoming An Attending podcast!