Navigating the financial landscape as a physician can be daunting, especially with student loans, mortgages, and competing priorities. The pressure to make the “right” financial decisions early in your career is immense, and well-meaning advice can sometimes lead you astray.

This week, Lucens member Matthew Brink, MD shares hard-earned insights from his own experiences with financial missteps. He reflects on the importance of tailoring financial strategies to your specific situation and why the best advice often comes from the right professionals—not from your peers.

Question:

I feel overwhelmed by financial decisions—there’s so much advice out there, and I’m not sure who or what to trust. What are the biggest financial mistakes you’ve seen physicians make, and how can I avoid them?
—A.S., New York

Matt:

When I started out in my career, I heard so much financial advice—some good, but a lot of it misguided. The challenge with advice in our profession is that it’s often too generalized. Financial decisions, especially for physicians, require nuance, but that nuance is often overlooked in favor of oversimplified rules.

One of the biggest mistakes I’ve seen (and nearly made myself) is refinancing government-backed student loans too early. I was told to refinance with a private lender to get a lower interest rate, but here’s the catch: government loans come with protections that private loans don’t. During COVID-19, those protections saved me from paying interest and allowed for payment pauses, which made a massive difference. If I had taken the refinancing advice, I’d have been locked into higher payments and no flexibility. It’s these types of oversights that can cost you thousands—if not more.

Another financial regret I’ve seen is focusing on the wrong priorities.

Financial decisions are influenced by your personal and professional goals. For me, one of my main priorities was owning a home. By not paying off all my student debt right away I was able to have enough cash flow to buy a home. But that might look differently for you.

Be strategic. Don’t take advice from peers who mean well but don’t have the full picture. Doctors are brilliant at saving lives but often lack the expertise to navigate complex financial systems. Always consult with a professional financial advisor, preferably one with experience working with physicians. The right guidance will save you time, stress, and money.

The Bottom Line

Matt’s story underscores the importance of approaching financial decisions with care and nuance. Blindly following well-meaning advice can lead to costly mistakes, especially with complex issues like student loans and long-term investments.

Before making major financial moves, consult a professional financial advisor who understands the unique challenges physicians face. By focusing on strategies that align with your long-term goals, you’ll set yourself up for greater financial security and peace of mind.

Have questions about navigating the challenges of your career? Submit them here.

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