Life can be tough as a junior doctor. It is fantastic to get started with your career and to start making a positive difference to the world, but it can also be hard when you first get started, particularly financially. This is because junior doctors are technically classified as self-employed, plus it can be hard to manage your finances when you are so focused and busy with your work. With this in mind, read on for a few financial tips for junior doctors that will hopefully prove useful and help you worry less about money so that you can fully concentrate on your new role.
Build Up An Emergency Fund
One of the most important steps to take as a junior doctor is to build up an emergency fund. You have a bright financial future ahead of you, but you also do not have permanent employment contracts, and these will change as your training rotates. This is why you should set some money aside for emergencies and if you find yourself out of work for one reason or another.
Control Spending With A Household Budget
You also need to try and control your spending by using a household budget. First, you need to divide your total household income into different spending categories, such as essential spending, non-essential spending, and debt payments/savings. Then, as your income will fluctuate as your contracts change, you can use percentages to divide up the income – the 50/30/20 rule is a good option to start with.
Get A Doctor’s Mortgage
You might be in for a nasty surprise if you try to get a mortgage as a junior doctor. Despite the bright financial future that you have, it can be incredibly difficult to get approved for a mortgage during your training as it is hard for lenders to judge your earnings correctly. Fortunately, you can go to a specialist for a mortgage for junior doctor that will help you to get approved and get your foot on the property ladder.
Keep Spending Down
Many junior doctors struggle with spending, particularly because the lifestyle can take some time to adjust to, which can be stressful. However, you do not want to be worrying about money when you are at such an important moment in your career, so you need to try and keep spending down where possible. Small things like preparing food at home to take to work and shopping at cheaper supermarkets can make a big difference over the long term.
Build For The Future
Junior doctors have a bright financial future ahead of them, but you should still start building from the start of your career to get into good money habits and so that you can create an enjoyable lifestyle for yourself. Once you have an emergency fund, you should look for ways to grow your wealth, such as investing, passive income streams, and high-interest savings accounts.
Hopefully, these financial tips will be useful for any junior doctor and help you manage during this critical time in your career.
