The Medical Practitioner’s guide to personal financial wellness – The start-up

We have written many articles on how Medical Practitioners, most of whom are, like any other entrepreneurial professional, running a business, can keep their business from failing and even make it prosper.

But what about the Doctor, Physician, specialist or Nurse that has worked so hard to be qualified? – what about their personal wealth? We at MFI also have a division that deals with financial planning and in the hopes of always giving our clients astute advice from every angle, we would like to look at also advising on personal financial wellness.

The next few articles will be dedicated to the Medical Practitioner’s guide to personal financial wellness as it is a big subject. This particular one looks at the practitioner who is just starting up in business.

Where’s the reward?

No matter what area of practice you decided on, you’ll be coming out of a long period of study and internship when you finally get to start your business. As soon as you start to earn some real money (and for some it can be quite substantial) the temptation will be to go on a bit of a spending spree. After all – you’ve done all that work so where’s the reward?

This can potentially be the first mistake, as if even buying that first sports car or ‘digs’ in the city you start encountering debt, this is not the best way to build wealth in the long term. Debt puts a noose around your head and potentially that of the business that you may never get out of!

Many medical practitioners start in business still owing on their student loans. The most astute thing to do would be to make plans to pay these as soon as possible, as opposed to compounding debt.

A few golden rules

As a start-up Medical Practitioner may we suggest you try to adhere to a few golden financial wellness rules? These would be….

Have a budget

Just as your business will need to keep track of your income and outcome and budget for supplies, staff etc. ensure you have a personal budget that allows, right from day one, a certain amount to pay off any existing debt and immediately starts a savings plan for your future.

Don’t overspend

A well-kept budget will immediately show if you are overspending and just as your astute Medical Practice Financial Manager will know if your business is exceeding budget and warn you to correct it – you need to correct any personal overspending right away.

Never take money from the business to support you!

You are not your business and your business is not you. If your personal spending gets inflated, don’t make the mistake of even ‘borrowing’ from the business, as this will create a cash flow problem – something your business may never be able to correct!

Protect the goose that lays the Golden egg

Make sure at the outset that the finances of the business are well handled by professionals. We at MFI with our Medical practice Management service do exactly that, ensuring a seamless tripartite alignment between Medical Aid, the practice and its clients.

We can also give advice, planning and management to create personal wealth, as we are doing with this Medical Practitioner’s guide to personal financial wellness.

Just as your clients trust you to manage their physical wellness, Contact us to find out more and trust your financial future to the professionals that manage your business and personal financial wellness!