“Having healthy kids, a loving spouse, vehicles that run, a roof over our head, and a stable job is about as good as life can get,” says oncologist Matthew Cassell, M.D.
“Having healthy kids, a loving spouse, vehicles that run, a roof over our head, and a stable job is about as good as life can get,” says oncologist Matthew Cassell, M.D.

CV prep

Forget the Joneses: Seven reasons to go frugal

Table of Contents

Forget the Joneses: Seven reasons to go frugalOne of the biggest sources of struggle for new physicians is the social construct that a doctor can afford anything—that the title of M.D. should instantly grant a millionaire’s lifestyle. Unfortunately, this is simply not the case. In light of exorbitant student loans, higher taxes and the social expectation to spend, spend, spend, physicians need to be free from the pressure of the Joneses next door and know when to rein in their spending.

Learning to embrace frugality

It’s easy to believe that your happiness level will increase exponentially with your paycheck, but studies show this to be untrue. In fact, researchers have found that the maximum amount of income related to happiness is $75,000 per year, far below the average physician salary.

“Having healthy kids, a loving spouse, vehicles that run, a roof over our head, and a stable job is about as good as life can get,” says oncologist Matthew Cassell, M.D. “The size of my house and the symbol on the front of my vehicle have no influence on my happiness. It’s a matter of contentment.”

Seven reasons to go frugal

  1. Expensive medical school loans leave physicians with hundreds of thousands of dollars in debt when they complete residency.
  2. Physicians are experiencing a less-than-certain financial future because of increasing costs of compliance, the move to an employee model, some patients’ inability to pay their bills and many other factors.
  3. Saving for retirement should begin as soon as a physician completes residency, especially considering physicians have fewer working years because they complete training at a later age.
  4. Life insurance and disability insurance are particularly expensive for doctors, and the higher your cost of living, the higher your insurance.
  5. The progressive income tax code requires high-earners like physicians to pay out a higher percentage of their income.
  6. The fact that society expects doctors to spend lavishly doesn’t mean they should; in fact, this is a good opportunity to buck the stereotype.
  7. Your own personal, financial and professional goals should be about freedom, and it’s prudence—not excess—that will get you there.

By embracing frugality, you’ll manage to maintain a healthier—and happier—lifestyle while working in the medical profession.


Ready to find your next practice? Search our Job Bank of more than 17,000 positions nationwide and apply to promising openings immediately.

user-image

PracticeLink

Easy to Register >> Control your visibility >> 100% free

Take control of your Job Search

Recommended PracticeLink Magazine Articles

Virtaul Add 2022 Virtaul Add 2022
Where does the money go?
PracticeLink MagazineJanuary 3, 2011
PracticeLink StaffPracticeLink Staff
Determine if you qualify for medical student loan forgiveness Determine if you qualify for medical student loan forgiveness
Is it time for a financial ...
PracticeLink MagazineMay 31, 2016
James McNaughton, CFPJames McNaughton, CFP
GettyImages 1163982506 GettyImages 1163982506
What does it take to grow r...
PracticeLink MagazineDecember 8, 2013
Brian Luster and Steven AbernathyBrian Luster and Steven Abernathy

Latest PracticeLink Issue