Leverage Your Income Carefully Today for Wealth Tomorrow

By Mark Germain via Iris.xyz

For physicians, particularly younger ones, the path to laying a strong financial foundation to build future wealth is anything but intuitive. When earnings begin to rise to substantial levels after many years of limited income while undergoing advanced medical training, hazardous temptations arise.

Pent-up demand for costly assets like a nice home and new high-end car, can lead to neglecting savings and purchases that are far more vital in the long run.

But the same self-discipline and effort that got you into, through and beyond medical school, must be applied to getting the building blocks of financial security in place before acquiring such things. You can do this.

The first step is to recognize the crucial difference between gross and after-tax income. When you “graduate” into the ranks of people whose earnings are well into the six-digit range, you are also joining the high tax bracket crowd. (It’s a mixed blessing.)

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