Too often money is considered the end-all-be-all as if it’s the centerpiece of life and sole barometer of success. Many doctors live to work and spend all of their time chasing and making money that they forget to live their lives. 

We want to help physicians write a different story. Money is an incredible tool that can facilitate your journey to reach your goals like retiring early, buying a vacation house, putting your kids through college, and so much more. 

Today, our team will equip you with the tools to re-think the role money plays in your life and harness your resources to start living your one best life today. 

1. Get Past “Enough” To Enjoy Your Life Today.

When asked ‘how much money is enough,” many doctors answer “more.” Doctors are programmed achievers, always searching for what’s next. After all, that innovative and resolute spirit is what it takes to become a doctor in the first place. 

While this drive and determination helped you get where you are in your career, it can be a blind spot when it comes to making the most of your resources today. It’s vital to strike a balance between saving for your future and living your life today.

How To Balance Saving for Tomorrow and Living for Today

How can you find the balance between these seemingly competing ideas? Crystallize what’s important to you both now and in the future i.e spending time with your loved ones, taking an annual vacation to your favorite spot, retiring on a beach, starting a family foundation, etc., and use your money as a tool to help you get there.

Think about this concept of money as a tool like a car on a road. Your goal isn’t simply to drive in the car (though that would be nice too) rather it’s to reach your destination. The destination is the goal, your car is simply the vehicle you use to get there. 

It’s our job at Vestia to help you see those important distinctions and reveal unique opportunities along the way. We want to help you establish systems and processes that give you the tools and resources to reach your goals, and use any excess funds to enrich your present-day life. 

2. Conduct a Money Mind Exercise.

Money is far more than dollars and cents just like the body is more than bones and blood—it’s an interconnected system. In personal finance, a significant component of financial wellness is understanding your relationship with your money, similarly to the idea that maintaining physical fitness is connected to your relationship with your body. 

At Vestia, we use FinLife, which provides deeper insight into our client’s financial life stories. All of our new clients undergo a Money Mind exercise to illuminate the way they make money decisions. This exercise yields three results:

• Commitment
• Protection
• Happiness

These overarching categories demonstrate the way doctors approach financial decisions, tapping into their “quick brain” when it comes to money matters. While important for any person, the Money Mind exercise is particularly effective for doctors and their spouses to get a clearer sense of how each partner’s philosophy impacts their decisions and the unique ways they function together. 

We often find that spouses have different money minds, and simply knowing how both people view their finances can drastically improve communication, which leads to making the best choices for the household.

How A Physician Couple Found Financial Harmony: A Case Study

Long time clients of ours, a physician couple, found that they were often at odds with one another because one person wanted to save more whereas the other wanted to spend more. When we conducted the Money Mind exercise, we actually found that both partners fell into the Commitment and Protection categories. 

Talking through these results exposed that the couple held very similar ideas about their core goals and values for the future. Each was committed to the way they wanted to fund their goals, so the true differentiator for them came in how to handle the excess funds. 

This exercise confirmed the value of the planning process and kept them on the same page about base financial decisions while providing more room to embrace the surplus.

We know that no two families are the same. While some people may look similar on paper, their plans may be wildly different because of the things that are important to them. Our focus is on those unique qualities. Every financial plan we create is truly customized because we believe in helping every family live their best financial life.  

3. Ready To Use Your Money Better? Shift Focus To Your Goals.

We like to think about this section as a glorified version of “would you rather,” the game that asks you to choose between two options, like would you rather order takeout or cook your favorite dish? 

But instead of figuring out the dinner menu, we look at finances. Any physician has a set amount of money to use. Our goal is to help you determine the best way to use your money to further your goals, accomplish your priorities, and enhance your life. At some point, it might not be possible to achieve every line item on your list. In that case, we help you visualize alternatives. Let’s look at a few examples to bring this idea to life. 

The Trade-off Conversation With Newer Doctors.

Doctors will experience different financial and personal needs throughout their careers. For those just starting out, we usually talk about how much they should spend on a house and different ways to balance that goal against long-term ones like buy-in for their medical practice, retirement, and kids’ education.

For some people, springing for the dream house upfront and ramping up long-term savings later makes the most sense, whereas, for others, the forever home comes after they make partner or free up some cash flow. 

The Trade-off Conversation With Seasoned Doctors.

Many experienced physicians have their base goals funded and on track, but there is often an “excess” they want to put to work. 

What we recommend with the excess depends on the doctor, their situation, goals, and objectives. For some, we might suggest they fund a dream like a beach house or vacation home, but more often than not we suggest that doctors turn to private equity.

We give doctors the opportunity to invest in the latest medical technology, which is often a good fit once they know they have “enough.”

The Bottom Line

It’s easy to lose sight of the true role money plays in your life. Instead of being the thing you work toward, approach it as a vehicle to help you live a fulfilling, meaningful life. 

Our team at Vestia seeks to help you optimize your financial life and see money for what it really is—a tool to fund your dreams. If you’re ready to enhance the way you approach your finances, schedule a call with a team member today.

Investment advisory services offered through Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, and Vestia Advisors, LLC. Securities offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Rd, Davenport, IA. 52807 (563)326-2064. Member FINRA/SIPC. Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, Vestia Advisors, LLC, and Ausdal Financial Partners, Inc. are independently owned and operated.

This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.  This information is not an offer or a solicitation to buy or sell securities.  The information contained may have been compiled from third-party sources and is believed to be reliable.