Why Healthcare Workers Struggle With Money Management
Let’s talk about a hard truth: healthcare workers—yes, even those with “high-paying” jobs like physicians—are often bad with money. It’s a frustrating paradox. We dedicate years of our lives to education and training, only to find ourselves struggling financially, often for decades.
Here’s why this happens, and what we can do to fix it.
Why We’re Bad With Money
1. Massive Debt (and Little Financial Literacy)
Most of us start our careers buried under a mountain of debt. The average medical student graduates with over $300,000 in student loans, often at high interest rates that make repayment feel impossible. These loans are usually signed when we’re barely 20 years old, with no real understanding of how compound interest works or what a lifetime of repayment looks like.
Worse, financial literacy is not taught in medical school. We learn how to calculate drug doses and manage ventilators, but not how to budget, invest, or navigate loans. Once, a business told me, “You doctors are the worst business people”.
2. Delayed Earnings
Unlike most professions, healthcare workers don’t start earning until our 30s, after years of expensive training. By the time we do start earning, we’re already playing catch-up compared to our peers who’ve been building wealth since their early 20s.
3. The “Immorality” of Money
Many of us enter healthcare with altruistic goals—we want to help people. Somewhere along the way, we internalize the idea that wanting financial security is somehow wrong. Accepting money for our work feels at odds with the noble ideals of medicine.
But here’s the thing: we deserve to be compensated fairly for the value we provide. Being financially stable isn’t selfish; it’s necessary.
4. Declining Salaries and Reimbursements
The financial landscape for healthcare workers is only getting tougher. Physician salaries and insurance reimbursements have been declining, even as hospital revenues climb.
During training, our hourly pay is abysmal when you factor in 80-hour weeks. And even as attendings, many of us feel the pinch. I once worked at an institution where the EMR showed how much revenue I was generating for the hospital—millions of dollars annually. My salary? A tiny fraction of that.
Physician salaries account for only 2-3% of total healthcare costs, according to my friends in healthcare administration. That’s right—we’re not the problem. Yet we’re often left scrambling to maintain a decent quality of life.
How to Turn It Around
If you’re tired of feeling behind financially, here are some steps to take control of your money:
1. Get Educated About Money
Financial literacy is key. Start with books like The White Coat Investor or Rich Dad Poor Dad. Follow financial blogs and podcasts tailored for healthcare professionals.
2. Spend Money to Make Money
It’s tempting to scrimp and save, but sometimes spending strategically can pay off.
Hire a financial advisor to help you create a plan.
Invest in tools or courses that will boost your earning potential (e.g., advanced certifications, side gigs).
3. Invest Early and Consistently
Start putting money into investment accounts as soon as possible. Compound interest is your best friend, even if you’re starting late.
Open a 401(k) or 403(b) and contribute as much as possible.
Use Roth IRAs or backdoor Roths to maximize tax advantages.
Consider taxable brokerage accounts for additional savings.
4. Build Assets, Not Liabilities
Focus on acquiring things that appreciate in value.
Real Estate: Whether it’s a home or investment properties, real estate can be a solid wealth builder.
Business Ventures: Use your expertise to create additional income streams (consulting, writing, speaking).
5. Track Your Progress
Use apps to monitor your spending and savings. Knowing where your money goes helps you redirect it toward your goals.
6. Advocate for Yourself
Negotiate your contracts and salary. Know your worth and don’t be afraid to ask for what you deserve.
As healthcare workers, we’re not just saving lives—we’re creating immense value for the entire system. It’s time we started valuing ourselves, too. Financial freedom isn’t about greed; it’s about security, stability, and the ability to live the life you’ve worked so hard to build.
If you feel like you’re always behind, you’re not alone. But with the right tools and mindset, you can turn things around. The sooner you start, the better your future will look.
Let’s break the cycle and take control of our finances. What steps are you taking—or will you take—to improve your financial health?
Here’s to building the life you deserve,
Santoshi