Money Meets Medicine Podcast
MMM #22: Lions & Tigers & Emergency Funds – Oh My!
In Maslow’s Hierarchy of Needs, personal security and safety is second only to truly essential needs like food and water. There is a reason for that. We all crave security personally, professionally, and – maybe most of all – financially. That’s what an emergency fund helps us to accomplish on our way to financial freedom.
Yet, I find far too often that doctors are far too unfamiliar with the what, why, and how of emergency funds. Ignoring this basic financial essential is a great way to experience financial pain. After you listen to today’s episode, though, you’ll be well on your way to the financial security you need.
P.S. If you are looking for more financial security, don’t miss out on your chance to sign up for the online course Medical Degree to Financially Free. Doors close on June 10th, and likely won’t open for another 6 to 12 months. Click here to check out the course that 100% of Beta Members recommended and called a “Game changer” that would save them tens of thousands.
What You’ll Learn:
In this weeks episode of Money Meets Medicine, “Lions & Tigers & Emergency Funds – Oh My!,” you’ll learn:
- Yes, you definitely need an emergency fund.
- There’s a lot of bad advice for doctors out there.
- Why you need AT LEAST three months of an emergency fund!
- Why multiple savings accounts for non-emergencies is important too.
- And more!
Quotes to Remember:
“You need three to six months of an emergency fund, plus whatever it costs to cover your tail if you want to leave your job.”
“There’s 24 hours in a day. If I’m going to spend my time doing something, it’s going to be worthwhile.”
“An emergency fund is truly for emergencies. This doesn’t mean you don’t have other savings accounts for other things.”
Resources from the Episode:
Medical Degree to Financial Free
This Episode’s Sponsor
This episode was brought to you by the course launch for Medical Degree to Financially Free. It is the only 5-week course built to help doctors create positive cash flow so that you can pay down your debt, invest for your individual goals, and find the financial freedom that you deserve. For more information, visit my affiliate link at financialresidency.com/MDFree. And, remember, doors close on June 10th. So, if you catch this episode after that time, you might have to wait another 6 to 12 months before the doors open again. Go to financialresidency.com/MDFree for more information.
Listener Question of the Week:
Today’s listener question comes from Navin:
I have been listening to the MMM podcast and I enjoy hearing you guys discuss different topics. I had a follow up question on the joint accounts episode. Is it possible to make retirement accounts joint or does this have to be individual?
Each episode, we are going to start including listener questions as they are provided to us. So, if you have a specific question you’d like answered on the podcast reach out to us! Email [email protected] or [email protected]
TPP
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Understanding our own behavior when it comes to finance is essential because it helps us mitigate wrong-for-us decision making around money. Unless you know these roadblocks exist, you can’t do much to stop them from derailing your financial goals.
Last week, we shared why human behavior matters for our financial lives by taking a look at the first 5 out of 10 psychological phenomena that can (and do) affect your personal finance goals: greed, fear, ego/overconfidence, loss aversion, and analysis paralysis.
This week, we’re diving back into behavioral finance (one of our favorite topics) to share five more types of unchecked human behavior that can sabotage your journey to building the wealth you want.
Greed, FOMO, and Bad Investments
Despite our best intentions, certain emotions can keep us from building wealth. After many years arming physicians with the information they need to achieve financial wellness, I had a significant realization.
Information is one thing – behavior is another.
As the saying goes, money is 80% behavior and only 20% math.
Not only do I want to share important information about personal finance, I also want to help you recognize how certain behaviors can (and do) affect your finances.
Drawing from one of the classic books about investing, let’s go over five common behaviors that could be keeping you from achieving your financial goals.
How Doctors Can Get Good Financial Advice
Many doctors and high-income professionals hire financial advisors for any number of reasons. Either they’re too busy to handle their finances themselves, they don’t really know how to invest, or they want an expert on their side to make sure they’re on the right track.
So allow me to say from the start: I’m not against financial advisors, but I am against doctors (or anyone, really) being overcharged for bad advice.
There’s no shame in asking for help – you just want to get the help you need at a fair price.
You should be equipped enough to vet and evaluate your financial advisor so you’ll know whether they’re working well on your behalf. How can you be as confident as possible they’re acting in your best interest? This episode will help you find out.
Are you ready to live a life you love?
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I am a big proponent of a big emergency fund that gets bigger over the course of one’s career.
I am also a big proponent of Ally for a savings account. It is consistently among the highest rates, easy to deal with, and easy to access. I have banked with them for 10 years. (I also have a local banking relationship.)
Makes sense. Nice to use cash when the market is down for sure. Provides a good buffer.