#FinanceTip: Here’s Why Doctors Are Financially Depressed
Doctors, like anyone else, face normal challenges that life throws at them. Additionally, they carry a huge weight on their shoulders as they go through rigorous training, are trained to put patients first, and are expected to increase production continuously. There is also a common misconception that doctors make tons of money and live lavish lives.

Let’s dive into the causes of physicians’ financial stress.

1. Low financial literacy

Physicians have so much to learn that finances aren't a priority. Fear of the unknown can add stress and/or cause people to ignore a problem and let it get worse. Bad spending habits and increasing debt can spiral out of control if someone decides to ignore their situation because of fear or lack of financial literacy.

2. Organizational dissonance

For doctors who decide to manage their own practice, they go in with little knowledge of how to manage accounting and finance for the practice. Managing business finances on their own or picking the right or wrong advisors to guide your practice can make or break a medical practice.

3. Lifestyle creep skyrockets

Most physicians jump into the '1 percent' income bracket overnight transitioning from a resident's salary to that of a practicing clinician. Society holds physicians up to a certain wealth standard and expectation that can be unrealistic to maintain. If not careful, physicians can quickly find themselves living a glamorous, expensive lifestyle.

4. Behind their peers’ careers

While physicians do typically have a high salary when they finally begin their careers, they often feel behind. “Money problems are surprisingly prevalent among physicians. We may have high incomes, but we’re so far behind our peers who may be ten years into their careers by the time we start ours. While we’re trying to climb out of debt, we see high school and college friends becoming VPs in business and partners in law firms. That can be depressing,” said a Physician.

5. Six-figure debt burden

Along with a delayed career start, repaying student debt adds to the struggle. When the grace period ends after graduate school, doctors must decide — start paying off their student loans or choose forbearance during residency. With an intern salary, they are often forced to delay repayment. Though it may make the most sense to delay at that time, they accrue more interest on their loans every day.

6. Enduring misery

About half of physicians are burned out. Doctors have dedicated so much time and money to become a doctor, which can be a detriment if they can no longer use the skills they honed for so long.

Source:
https://www.kevinmd.com/blog/2020/03/heres-why-doctors-are-financially-depressed.html
Dr. T●●●●z H●●●●●●i and 11 others like this9 shares
Like
Comment
Share