Feeling burned out is often a function of financial fragility. How is that possible when most doctors earn incomes in the top 1 percent?

I am both a physician and involved in finance. As physicians, we often start our careers under significant debt, start our careers at an older age, and start with less savings than many of our friends who are professionals in other industries. Starting our careers at this reference point often sets off a cycle that contributes to physician burnout.

The long hours, regulatory changes, and the weight of patient care have contributed to a burnout epidemic that affects not only our well-being but also the quality of care we provide. While we explore many ways to address this critical issue, one solution that deserves more attention is our financial wellness. Many of these burdens are compounded when we feel trapped by financial obligations, the inability to reduce work hours, and no exit plan in sight.

On the flip side, a better plan for saving and investing does allow us to feel more secure and satisfied that our work is producing tangible financial stability. It is this stability that has the power to reduce the demands we feel as clinicians.

There are several strategies we can take to improve our financial wellness. The earlier in our careers we start, the more power we will have later when many of us start to feel we want to reduce hours or change careers altogether.

The power of an emergency fund

To alleviate financial stress, one of the first steps we can take is to establish an emergency fund. Life is full of unexpected events, and having a financial cushion can make a significant difference during times of crisis. Knowing that we have a safety net in place provides peace of mind and allows us to focus better on our work and patient care without the constant worry of unforeseen circumstances.

Consider this like an insurance policy, pay every month into it, and hope to never use it. But knowing it is there helps reduce a lot of stress when unexpected monthly expenses arise.

Budgeting for long-term goals

Doctors like setting goals and working towards them with precision. The same approach can be applied to our financial well-being. However, we are often under pressure from peers, friends, and society to demonstrate that we are doctors and have a high income. Resist this urge. Developing a well-thought-out budget that allocates a portion of our income towards savings and investments helps us plan for the future. By having clear long-term financial goals, we gain control over our finances and reduce the financial stress associated with fluctuating reimbursements and market dynamics in our practice areas that are often out of our control.

Investing in retirement

We often get caught up in the daily demands of our profession, making it challenging to envision a life beyond medicine. However, investing in retirement plans like 401(k)s, IRAs, or other suitable options can provide us with the financial security needed to embrace life outside of medicine. Early in our careers, we can’t even imagine retirement, but as many mid-career physicians will acknowledge it really comes fast, and there is no worse feeling than not being in a position to exit the profession on your terms. Early and consistent investing is key. For example, putting just 20,500 into a tax-deferred account at age 30, and an 8 percent return would generate $993,700 at age 50 and approximately 2 million by age 60. Most physicians have no pension, and the equity in physician-owned groups is only declining, making your own investments the primary source of your retirement income.

Seeking professional financial advice

As experts in the medical field, we know the value of seeking guidance from specialists when dealing with complex medical issues. Similarly, engaging the expertise of qualified financial advisors can prove invaluable in navigating our financial journey. Professional advice tailored to our unique circumstances can help us make informed decisions about saving and investing, ensuring that we are on the right path to financial stability.

Many of us make critical mistakes because we are smart and an expert in medicine, and thus think with a little reading we are also an expert in financial planning. This is rarely the case without additional training or experience.

The factors that contribute to physician burnout are often out of our control. Creating a well-structured savings and investment plan is within our control and can at least partially provide us with an exit plan of our choosing and alleviate some of the feelings related to physician burnout.

Amarish Dave is a board-certified neurologist with over 20 years of experience in both neurology and active stock investing. In addition to his medical career, he holds a background in business from the University of Michigan and has successfully passed the SIE exam administered by FINRA. Dr. Dave is founder, FiscalhealthMD.com, a website dedicated to educating doctors at all stages of their careers, ranging from residents to retirement, about financial planning.