On the long list of skills that an ophthalmology trainee or new practitioner works to master, financial wellness may understandably fall toward the bottom. However, certain steps can pay dividends in managing debt and planning for a secure professional and personal life.

Blake Williamson, MD, MPH; Caroline Watson, MD; Rupa Wong, MD; and financial advisor Victoria Consoles, CFP, EA recently discussed how to make smart choices with debt and investments. This article features a synopsis of that discussion.

Panel Discussion | Led by Dr. Williamson

When asked, “What advice would you give students, residents, and fellows to set themselves up financially?” panelists weighed in with the following pointers.

1. Become financially literate. Learn the basic vocabulary and tools you can leverage to use every paycheck wisely. If you intend to someday own your own practice, you’ll need to understand the difference between liabilities and assets.
2. Pay off student loans as quickly as possible.
3. Pay off credit cards each month and automate your investments and savings.
4. In the first year of practice, establish an automated deduction to save $1,000 each month in a 401(k) plan. “You won’t notice it’s missing, and it will get you into the habit of saving,” said Dr. Wong.
5. Find a trustworthy CPA to help alleviate financial stress.
6. Find a trustworthy financial mentor, just as you find mentors for your education.

Financial Responsibility During Training | Dr. Watson

“It’s important to find a financial mentor whom you trust.”

Raising three young children during early medical training was challenging for Dr. Watson and her husband. In her last year of medical school, she supplemented her income by starting a business that supported her family through her training process.

When Dr. Watson and her family moved to a new area so she could start practicing, she used her new network to find a wealth management advisor to help her organize their finances. Dr. Watson suggests setting up a 401K and/or Roth IRA during residency in order to be in a good position once in practice.

Debt Management for the Working Professional | Ms. Consoles

“In general, educating yourself about investing is so important. Whether it’s a low-cost mutual fund or an ETF, the key is to understand how to diversify your portfolio and learn about compounding interest.”

There is no “one size fits all” when it comes to financial planning, but creating a list of your financial goals (eg, saving for a house, saving for retirement, saving to buy a medical practice) is a good exercise for everyone, Ms. Consoles said. She advised determining what is important to you and spending money on what you value while you work toward your savings goals.

Ms. Consoles also recommends tracking your expenses to see where your money goes each month. She noted that, on your taxes, you can deduct student loan interest payments up to a max of $2,500/year. Additionally, consider loan consolidation, but understand the caveats. Remember: It is not how much you make but how much you keep, she concluded.

Financing It All: Family, Career, and Side Hustle | Dr. Wong

“When you look for a business mentor in your community, choose someone who understands the economics of where you live and practice.”

Dr. Wong finished her fellowship in 2007; her husband finished his fellowship 1 year later. Neither of them had school loans when they graduated, and they worked to support themselves through school. Upon graduating, Dr. Wong and her husband decided to get married and purchase their practice in Hawaii. They had nothing for collateral and used $100,000 of their savings to pay for their wedding and a down payment for their business loan.

Dr. Wong advises trying smaller community banks for a better chance of loan approval. She wrote a business plan, which the community bank approved. (The physician selling his practice also financed the remaining balance on the purchase price at a 7% interest rate.)

Hawaii has the highest cost of living in the country—this is something to consider when you’re deciding where to live. Drs. Wong got a second loan from the same bank for a 5% down payment on their house, which they paid back in 3 years.

Dr. Wong wanted to create supplemental income that did not take additional time; she built a social media presence that drove business to her practice. She also receives ad revenue through YouTube.