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Welcome to the latest episode of the Physician Cents Podcast, where we explore complex financial topics tailored specifically for physicians. Whether you're a medical student, resident, fellow, or attending physician, you're going to find valuable insights that can help you increase your financial IQ, further your financial journey, and improve your overall well-being. Hosted by Chad Chubb and Tyler Olson, let’s dive in!
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Let's face it, doctors are smart. Really smart. You spend years studying, training, and perfecting your craft. And many physicians assume that once the income stabilizes and savings plans are in place, peace of mind will follow. But what happens when that peace never arrives? What if, despite doing everything "right," you still feel anxious, distracted, or perpetually behind? If you're nodding your head, you're not alone. This blog post is going to dive into the emotional side of money for Physicians. We'll explore why doctors who have solid financial plans can still feel stressed and anxious about their finances. And, most importantly, we'll provide actionable steps to manage financial anxiety and regain control of your financial well-being.
What exactly is "financial noise?" Think of it as that constant buzzing in the background – the endless stream of news, social media updates, and opinions about the economy, investments, and personal finance. It's like trying to concentrate in a room full of chattering voices, each one vying for your attention.
This noise can affect even financially secure physicians. You've got your investments, you're paying down debt, and you're saving for retirement. But still, there's this nagging feeling of "always being behind," despite doing everything "right." The core problem? It's often a lack of mental margin, not necessarily a lack of money. It's about the constant worry and the mental energy spent trying to keep up with it all.
There's a common assumption that financial stability equals peace of mind. Makes sense, right? But this isn't always the case, especially for high-achieving professionals like doctors. You face unique pressures: high student loan debt, demanding careers, and constant exposure to financial information (whether you want it or not!).
Money is just a tool. It's what we do with it and how we shape our behavior around it that really matters. You can have all the money in the world, but if you're constantly stressed and anxious about it, are you really "wealthy?"
Let's look at some real-world examples. We're talking about clients who have solid financial plans, but still experience anxiety. What triggers it?
These are just a few examples, but they highlight the disconnect between their actual financial situation and their emotional response. As Chad put it in the podcast, "You're in a meeting with one of your clients, and they've got a bunch of money, and they're going to be fine, but they don't feel fine."
It's easy to internalize fear and stress from inaccurate or irrelevant information. You see a headline about a potential market crash, and suddenly you're questioning all your investment decisions. Even though, in reality, your portfolio is well-diversified and aligned with your long-term goals.
Social media amplifies financial noise. How?
It's tempting to constantly check investment accounts or compare oneself to others online. "Is my portfolio performing as well as theirs?" "Am I saving enough?" "Should I be investing in this new cryptocurrency everyone's talking about?"
This behavior is anxiety-inducing. Tyler admitted, "I'm on Twitter, and I've got a, you know, I do a lot of financial education there, but it is a social media platform, and I'm on TikTok and Blue Sky as well, and, um, there's good things to do, but you have to be very disciplined about regulating what you see and how often you're on there."
Social media isn't inherently bad, but it requires disciplined regulation and critical evaluation.
Let's talk about "boring investing." What is it? It's a long-term investment strategy based on diversification, asset allocation, and consistent contributions, rather than trying to predict market fluctuations. Think of it as planting a tree and patiently watching it grow, rather than constantly digging it up to see if the roots are developing fast enough.
Trying to time the market is fraught with pitfalls:
Have a financial plan and stick to it, regardless of market fluctuations. If you have a plan for automatically investing into your retirement plans at work, and you systematically do backdoor Roth contributions annually, or you have a monthly contribution of some amount to your taxable brokerage account, then whatever those are within the confines of your cash flow plan and your overall financial plan, there is nothing that you should change. Just keep doing it.
Some people advocate for active investment management. They think they can beat the market by picking the right stocks at the right time. But the evidence suggests that this is a losing game for most investors.
Elections often trigger financial anxiety, regardless of political affiliation. If your candidate doesn't win, it's easy to fear that the "world is going to burn down." You start to worry about the impact on your investments, your taxes, and the economy as a whole.
But the market has historically performed well under both Republican and Democratic presidents. It's important to separate your political beliefs from your financial decisions. Market cycles are a natural part of the economy, and long-term investing is about weathering those cycles.
Remember the COVID-19 pandemic? That was a major event that triggered widespread financial anxiety. There was fear and uncertainty. People were worried about their jobs, their health, and the future of the economy.
Those who stayed calm and stuck to their financial plans generally fared better in the long run. The pandemic reinforced the importance of having a long-term perspective and avoiding panic-selling during market downturns.
Here's a more recent example: the PSLF panic of Super Bowl Sunday. A seemingly innocuous URL link breakage led to widespread panic and misinformation.
It started with a post on Blue Sky that the federal U.S. website pslf.gov had been newly deleted. This took off and had over 220 reposts. People thought they were taking away PSLF.
This wasn't the case. It was just a website issue where pslf.gov redirects to StudentAid.gov.
This event caused unnecessary stress and anxiety for many people, even those with stable financial situations. It's a clear example of the real-world impact of financial noise. It also shows the importance of verifying information from multiple sources before reacting. StudentAid.gov is the official website for Federal Student Aid where you can verify information.
Ever heard the expression "sleep on it?" It's a great strategy for managing financial anxiety. Big financial decisions shouldn't be made impulsively, especially in response to news or social media.
Take a step back, gather more information, and consider the long-term implications before acting. Wait 24-48 hours before making any major financial changes. And discuss your concerns with a trusted financial advisor.
Think of it like this: Don't go buy the shiny toy yet. Let's think about it.
How do you manage exposure to financial news and social media? Here are some actionable strategies:
Be intentional about what information you consume. Protect your mental well-being.
A financial advisor provides value beyond just investment management. They offer emotional support and guidance during times of financial stress.
Advisors can help clients:
Shift your focus from what you can't control to what you can control.
Take proactive steps to improve your financial situation. This will reduce stress and improve your overall well-being.
Think of it as building a shield to protect yourself from financial stress.
The Shield Components:
Build your own "physician's shield" to protect yourself from financial stress.
Consider a weekend social media detox. Phil Pearlman suggests limiting social media use to reduce anxiety.
Try a weekend detox to see if it improves your mental well-being. Disconnect from the constant stream of information and reconnect with yourself.
There's hope that AI could help filter financial noise in the future.
AI could be used to:
AI is still evolving and may not be a perfect solution, but it has the potential to improve the way we consume financial information.
Here's a summary of the actionable steps you can take to protect your mental margin:
Implement these steps to reduce financial anxiety and improve your overall well-being.
Financial planning is a long-term endeavor. Short-term market fluctuations are less important than long-term goals. Focus on your long-term vision and avoid getting caught up in day-to-day noise.
Physicians have specific concerns about issues like CMS cuts and the changing healthcare landscape. Focus on what you can control:
Dwelling on uncontrollable factors can be detrimental to your health and well-being.
Rumination is repetitive thinking about negative thoughts or feelings.
Rumination can lead to:
Break the cycle of rumination by:
Advocate for simplicity in financial planning. Simplifying your finances can reduce stress and improve clarity.
Try strategies like:
Seek second opinions on financial matters. This can help avoid echo chambers and ensure that you're getting unbiased advice. Talk to multiple financial advisors, CPAs, or attorneys before making major decisions.
There's a connection between financial stress and physical health. Prioritize self-care activities like:
Continue learning about personal finance.
Check out resources like:
Financial literacy can empower you to make informed decisions and reduce anxiety.
So, what's the bottom line? Even smart physicians can struggle with financial stress, even when they're financially secure. But by understanding the sources of that stress and taking proactive steps to manage it, you can regain control of your financial well-being and live a more fulfilling life. Remember, it's not just about the money. It's about your peace of mind.
The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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