As a physician, you’re no stranger to medical myths. Whether it’s the classic “cracking your knuckles will give you arthritis” or the movie trope of someone flatlining and suddenly coming back to life with a single defibrillator shock, you’ve seen it all. But what about the myths surrounding doctors and money? From the outside, everyone assumes doctors are financial wizards living the high life, but the reality can be far from that. Just like medical myths, financial myths about physicians can lead to poor decisions, unnecessary stress, or unrealistic expectations. Let’s bust some of the most common "doctor money myths" and arm you with the truth about financial wellness.
People assume that since you have an MD or DO after your name, you’re rolling in cash from day one. Fancy cars, luxury vacations, and a big house? They think it’s all part of the package.
While doctors can earn high incomes, it takes time to fully realize that earning potential. After years of medical school and residency (where you’re earning less than minimum wage for the hours worked), most new physicians are saddled with massive student loan debt. According to the Association of American Medical Colleges (AAMC), the average medical school graduate in 2023 had $200,000+ in student loans. Add in the high costs of living, malpractice insurance, and lifestyle inflation (we’ll get to that), and you realize wealth doesn’t happen overnight, even for doctors. True financial success requires patience, planning, and disciplined saving.
You’re smart enough to handle medical school and save lives, so obviously, you can handle your own finances. Why would a doctor need a financial advisor?
Being great at medicine doesn’t automatically make you great at money management. In fact, many doctors struggle with personal finance because they’re so focused on their demanding careers that they don’t have time to learn about investing, tax planning, or debt management. Financial planning is especially important for physicians because your unique career path comes with some major challenges:
High student loan debt
Delayed earning potential
Complex tax situations
The need for income protection (e.g., disability insurance)
Seeking professional financial advice doesn’t mean you’re bad with money - it means you’re smart enough to prioritize your long-term goals.
Doctors have high incomes, so if you have money problems, you can just work more shifts or wait until your paycheck grows.
While it’s true that doctors have the potential to earn high salaries, relying on your income alone is a dangerous game. Without proper budgeting and planning, even a high income can be eaten up by taxes, debt, and poor spending habits. Don’t forget: life happens. Unexpected events like illness, accidents, or job changes can disrupt your earnings. The key to financial security isn’t just earning more—it’s saving, investing, and protecting your income with tools like disability insurance.
Doctors make so much money that saving for retirement will just happen naturally. Right?
Doctors often start saving for retirement later than other professionals due to extended years in school and training. By the time you finish residency and begin earning a full attending salary, you’re already behind on retirement savings compared to your peers in other fields. To catch up, it’s crucial to:
Maximize your contributions to tax-advantaged accounts like a 401(k), 403(b), or Roth IRA.
Avoid lifestyle inflation that eats into your savings potential.
Invest early and consistently to take advantage of compound interest.
Remember, retirement planning isn’t something to put off, even for doctors.
You’ve worked hard to become a doctor, so you deserve to reward yourself with a big house in the suburbs and a luxury car. After all, it’s what people expect!
This is the classic trap of lifestyle inflation—spending more as your income increases. While it’s tempting to upgrade your lifestyle as soon as you start earning a full salary, doing so too early can delay your financial goals, like paying off debt or building wealth. The truth is, living below your means (even for just a few years after residency) can set you up for long-term financial freedom. Instead of splurging right away, consider:
Paying down high-interest debt (like student loans).
Building an emergency fund.
Investing in your future through retirement accounts or other wealth-building strategies.
Once your financial foundation is solid, you can enjoy those rewards guilt-free.
You’re young, healthy, and a doctor - what could possibly go wrong? Disability insurance is just an unnecessary expense.
Your ability to earn an income is your most valuable asset, especially as a physician. What would happen if an illness or injury prevented you from working? Without adequate disability insurance, your entire financial future could be at risk. Employer-provided plans often don’t offer the “own-occupation” coverage that’s critical for doctors. This type of policy ensures you’ll receive benefits if you can’t perform the duties of your medical specialty, even if you’re able to work in another field. Protecting your income is non-negotiable, it’s one of the smartest investments you can make.
Just like in medicine, believing in myths when it comes to your finances can lead to poor outcomes. The truth is, financial wellness as a physician isn’t about out-earning problems or hoping for the best—it’s about taking proactive steps to manage your money, protect your income, and plan for the future. Start by busting these myths for yourself:
Focus on building a solid financial foundation.
Seek guidance from trusted professionals.
Remember that wealth isn’t built overnight. It’s a marathon, not a sprint.
By taking control of your finances now, you’ll be setting yourself up for a future that’s just as rewarding as your medical career.
Ready to take charge of your financial wellness? Start by evaluating your student loan repayment plan, securing disability insurance, or speaking to a financial advisor who understands the unique challenges physicians face. Your future self will thank you!
Disclaimer: The information provided in this blog is for educational purposes only and should not be considered as financial advice. While we strive to provide accurate and up-to-date content, we encourage you to consult with a qualified financial advisor before making any financial decisions. Your financial situation is unique, and professional guidance is essential to ensure that you achieve your financial goals responsibly.