Why Financial Planning is Important For Doctors?
Manikaran Singal
CFP, SEBI RIA
Financial Planning Puts your Money in Process and thus keeps your behavior in check so you focus and give your time to the other important areas in your life.
Are Doctors Different?
Doctors in general start earning in the late 20s. Unlike other professions such as engineering, or CAs, doctors start earning late. Acquiring doctor’s degree is the result of years of hard work in academics, many years of training and spending huge sum of money.
MBBS, post graduation, specialization etc. all this takes quite a time of their youth, and initial money-compounding years.
This is not all, in this ever changing scenario they need to stay relevant and updated by attending conferences, participating and reading the researchers and all these further demands their time and money.
After basic studies, the next decision comes in front of them is to join a job or start own practice. In the initial years, most doctors prefer to work in some hospital, as starting own practice has its own demands in terms of money and time unless they have the running practice of their parents and some of the infrastructures are already in place.
Focus on What is More Important
Doing your Own Research is time consuming, especially for those who are not from Finance field. Its wise to delegate that work to the professionals, so you get more time to Focus on the Other Important areas of life - Family, Health and Profession.
Why Do Doctors need
Financial Planners?
Doctors and Financial Planners
01 Medical Schools don't teach Managing Personal Finances
You learn it the hard way, sometimes after burning your fingers. A good financial planner, particularly one who likes to educate their clients, can tell you everything you need to know exactly when you need to know it, which saves you time and headaches.
02 You Behave like your Patients when comes to Money Management
Just like your patients coming to you after the problem has got serious and needs immediate medical attention, Due to time constraints and Comfortable income flow you also tend to keep ignoring your Financial Problem and consult a professional only when things are about to go out of hand. Timely and Regular consultation with a good financial planner will keep your Financial Health in Check.
03 You Value a Process Oriented Approach
You understand the Importance of Procedure, Process, Protocols. You follow the same diligently while treating your Patients. A Registered and Certified Financial Planner follow the strict process and don't prescribe without diagnosis. Monitors as per checklist and Do Timely Review of Vitals
04 You need a Doctor to Treat You
A Chemist is not a Doctor, who knows this better than you. Still patients go to Chemists to avoid Doctors Fees and also to get easy solutions. But ultimately it is the doctor who cures them fully. You also have to understand this and talk to financial doctors (Planners) for your financial health
05 You are different
Yes You are different from your colleagues. your needs and requirements are different than your Friends, your story is different. You just can't copy them. One size does not fit all in Financial planning. A good financial Planner will Understand your requirements, your risk profile, your goals, your family profile and needs, Short medium and long term goals and then only advice you on the action steps.