We, time and in the daily crushing of

We, the health professionals are fond of giving instructions to
our patients as doctors or dentists, but when it comes to finance, we ourselves
have to follow a few do’s and don’ts or saying it other way, a taste of our own
medicine in matters of finance. We have to follow a few cardinal rules to
ensure that our finances remain in a healthy condition (similar to what we
expect in our patients). Some of the mistakes commonly made by us are:

 

1.     The temptation to splurge
should be curbed big time once we start earning the big bucks. This urge
basically stems from the so called ‘exile’ period we have spent in our so many
spent years as a junior student first, then as a senior student and then career
struggling etc. when we feel, we missed out on opportunities to have fun as we
started to earn well much later in life than our school, college or other
friends. The urge spills on to fancy vacations, new cars, eating out every
alternate day etc. This juncture is very important to keep a check on our
expenditure and concentrate on savings and investments. This doesn’t mean that
we totally limit ourselves to the above, but drawing a decent line somewhere
down the line does help a lot.

2.     Busy schedule and time constraint makes us more
vulnerable since we are one of the most hard pressed professions for
time and in the daily crushing of things, we tend to take a back seat in
managing our finances usually leading us to either invest in a very
unstructured and impromptu manner or the decision making is handed over to a
non-expert.

3.     Prime importance is to be
given to have good amount of life cover and disability insurance cover so that
financial needs of family and profession are taken care of in case of unforeseen
and unfortunate events.

4.     Wrongly made heavy
investments in Real estate is not a good idea for us as real estate is just an
asset class and totally investing in it might not be better for overall
returns.

5.    
In this era of ‘consumer is king’, when there is a patient
knocking on the doors of consumer court every minute, a good indemnity cover is
also a must. 

6.     Usually
our improper investments for tax planning because of our pre-conceived notions
that the
objective of tax planning is to minimize the taxes and ending up investing in
places which are not in our best interest. This blinkered vision often results
in unwanted loans, real estate investment sector and insurance in an unorganized
manner.

7.     For most of us, our
private practice is our biggest investment, so we have to know to nurture,
grow, save & ring fence the same.

8.     We all have a very busy
schedule and we work manyatimes post our fixed hours as well to attend to
various emergencies. On top of that, we have our family, health and social
engagements etc. also to look forward to. A healthy life wise fitness schedule
is a must for each one of us. We have to eat just the right and ado a regular exercise
to remain in a good physical shape. We have to be associated with some passion
which can be a game, a brain challenging activity which makes us switch off
from our work for some time and pursue the same so that we continually get a
kick in our life to stay mentally fit as well and this is important for our sound
financial health also.

9.     We have to understand
that once settled we are not going to face major recessions in our industry
(ignoring the smaller ones), hence we can afford to take higher risks in our
investment assortment portfolio, but being unaware of this or being misguided
by non-experts, we tend to over invest in low risk low return products.

10.   Our financial plan has to
be firm and proper after a thorough and proper research with primary and
secondary financial goals listed and it should be deftly executed to achieve
those goals. If there is no time to research and make a plan, outsource the
same by hiring the services of a good financial planner who should have a proper
investment plan investing in a variety of assets including equity, mutual funds and debt so that the investment
portfolio is diversified and the returns are optimum and are appreciated long-term
capital wise. It’s high time that we understand the importance of such
financial professionals. The loans and debts should not go beyond our ways and means. 

11.   We should pay off our education
loans first and only then go for home loan or loans for buying property to set
up our own clinic. We should ensure that we understand the investments and
performance of the investments rather than blindly following the advice of the
financial planner. We should revisit our financial plan regularly and tweak it
as per changes in our life situations and macro and micro economic conditions.

12.   We also have to invest in
ourselves by upgrading our skills, learning about new research and
developments, newer products, materials via conferences, convocations,
seminars, etc. and that too requires some investment and some savings and that
too regularly.

13.   We lead busy lives but it
is important for us to focus on our finances so that we can grow our wealth,
manage our taxes and lead a healthy and secure financial life. Mental security
is very important for us to have a long career in our professional field as
well.