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6 Wealth-building habits for young medical professionals

Writer's picture: Robert AllamonRobert Allamon

Updated: Apr 18, 2024



Set Goals.


Goal setting, which is the art of beginning with the end in mind, is vital to pursuing and achieving financial success. Goals are like a target at which we aim, like a destination at which we intend to arrive, or like an object that we pursue. Goals can trigger new behaviors,

encourage focused efforts, and create and sustain necessary momentum. Goal setting is the

method we use to point ourselves in a particular direction, make choices regarding available

options, and press through difficult challenges.


Understand your cash flow.


Cash flow is the money you have access to for funding life. Getting your cash in a position to support your financial priorities may involve two steps. The first is to determine the amount of cash flow you have available to use. You can do this by evaluating current income streams, reviewing current spending patterns, analyzing the impact of debt, and measuring cash reserves and liquidity. Leaning into your finances in this way is hard work but doing so may create a clear picture of your financial resources. The second step is to assign available cash flow to support your goals. Priorities surfaced and settled on in the process should now give direction to choices like when to invest, where to invest, what to invest and how to invest. Being intentional with your cash flow helps create a feeling of ownership and control over the money you make and spend. It reduces uncertainty and worry, and results in the potential to improve your financial decisions and the outlook that you have on life.

Make systematic saving a priority.

Simply put, systematic saving is the process of automatically setting aside a specific amount of your income at regular intervals, whether weekly, biweekly, or monthly rather than putting away money whenever you have some extra cash or saving whatever is left after paying your monthly expenses. Systematic saving is a way of paying yourself first to build a personal cash reserve. Consistency is an important key to this type of saving. Habits are hard to establish but once in place they are hard to break. Automation is another key. When the funding of your personal cash reserve happens automatically through a bank transfer, the chances of diverting from the goal is lessened. Finally, this type of saving should be targeted. Building a cash reserve is essential. From there funds can be built to support other goals.

Fully fund Employer matching contributions plans.

It is amazing how many young medical professionals do not fully fund their employer matching contribution plan. The best kind of money is free money and that is exactly what an employer matching plan provides. There are investment limitations in some plans that might make them less desirable as a solution for your entire investment needs. In those cases, you should consider investing up to the match then making use of stronger investment options outside the plan for the rest.


Avoid credit card debt. Consider several principles. First, if you can’t afford something without a credit card, don’t buy it. Avoid living under the illusion that you can afford things you don’t have the resources to buy. A good rule of thumb is, “if you can’t afford it with cash, you can’t afford it with a card.” Have a personal cash reserve. This may help regulate the use of credit cards. Unexpected expenses are unavoidable but having an emergency fund of 3-6 months’

worth of living expenses can help cover unexpected expenses when they arise. Another

principle is to pay off balances in full at the end of each month. Keeping short accounts on the card helps to avoid excessive interest charges. Finally, limit the number of cards you

have.  Multiple credit cards means multiple payments and multiple cases of tacked on interest.


Keep investments simple. Young medical professionals should follow a basic set of investment principles. Doing so will help keep things simple. First, having a plan that you can stick to through all market conditions is important. Secondly, attempting to time the market can be exciting but not very productive. Time in the market is better than timing of the market. Thirdly, diversification across the markets helps mitigate against risk and gives you broad exposure.

Finally, having specific goals in mind will help guide your investment choices. The purpose of money should determine where you put it.

At R&R Financial Advisors, we are assisting young medical professionals in building wealth from the ground up. _________________________________________________________________

Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor.  BWA and Brookstone Capital Management, LLC are affiliated companies. BWA and R&R Financial Advisors, LLC are independent of each other.   Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

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Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC. BWA and R&R Financial Advisors, LLC are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

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