Financial Wellness

Original Editor - Matt Huey

Top Contributors - Matt Huey  

Definition

Financial wellness is when someone has the ability to meet their financial needs currently and in the future. When a person has financial security, there is less stress about money and can enjoy life more comfortability.

Causes of Financial Stress in Medical Professionals

Student loan debt

The cost of schooling for many medical professionals is very high. Not only are the courses costly, but there are additional costs as well, such as paying for commuting to placements, attended events such as conference to improve their resume, and exams (or multiple exams). This can significantly affect professionals from low income backgrounds due to these costs. Many professionals must take out loans to cover these costs which will be paid back over many years.

Long Training periods

Professionals seeking training in terms of residency or fellowships are often making below market pay for their positions. Additionally, they may have additional costs such as travel and housing during this period of training

Operating costs

Professionals who open their own practice can face a variety of operating costs. From overhead costs such as rent/lease of property, utility services, staff salaries, and equipment to the costs of malpractice insurance, these can create challenges in ensuring these costs are covered

Disability/Illness

Dealing with a form of disability or illness can prevent or limit a professional's ability to work. They can still be expected to cover any expenses or bills despite their limitations. They can also experience difficulty in accessing financial support to assist in covering expenses.

Lifestyle creep

Lifestyle creep is when someone increases their expenditures as their standard of living improves. Purchasing more luxurious goods can be viewed as a right to have due to the work and effort they have put in to achieve their status. The downside is that the income needs to continue to come in at the same level or more to maintain this lifestyle.

Side effects of financial stress

Mental health. With financial stress, professionals can experience affects to their mental health, including:

• Anxiety
• Depression
• Anger/Irritability
• Diminished self worth

Physical symptoms can manifest as well including:

• Difficulty sleeping
• Changes in weight
• High blood pressure
• Fatigue/Lack of energy
• Digestive issues
• Headaches/migraines

Behavioral symptoms can occur as well.

• Avoidance such as not opening bills or neglecting financial responsibilities
• Impulse buying as a way to give a temporary enjoyment
• Uses of or increases in use of alcohol or drugs as an escape
• Arguments over money
• Neglect in self care

There can be changes in how the professional operates their business or interacts with patients.

• Indecisiveness, they are not able to make decisions because they feel overwhelmed
• Difficulty in concentration, they cannot focus on patient care due to their financial worries
• Forgetfulness, they can overlook things

Ways to Improve Financial Wellness

There are some ways to help improve your financial wellbeing. Keep in mind this is not financial advice and everyone's situation and needs are different.

• Know where your money goes. Keeping track of how much money is coming into your account and going out can help you understand what is going on with your finances.
• Cut expenses where you can. There may be additional things that you are spending money on that could be reduced. This is individual to each person's situation.
• Save a portion of your income. This can help with any unexpected expenses that may come up. This will again depend on a person's situation.
• Prioritize paying off debt. Debts often come with an interest charge that is additional money that is going out of your bank account. The elimination of debt(s) can allow you to have more money in your account
• Set financial goals. This gives you somethings to focus on and can help you direct your money to what is more important to you.
• Find a financial advisor. Many countries have licensed or certified financial advisors. They can help you prioritize your money to pay off debts, invest into your retirement, and manage your money. Please do your research into what makes a trusted professional in your area and find someone you trust.