Why residents suck at money management (and what it means for financial independence)

A recent Medscape article, “Top Financial Mistakes of Young Doctors,”  lists four major mistakes that young physicians tend to make. This article makes some really great points, and I think they warrant further discussion to really dissect why residents often suck at money management.

Mistake #1 is spending too much too soon. The article quotes the ever-helpful White Coat Investor, Dr. James Dahle, who mentions that residents tend to spend their future income before they even earn it. And what would lead such intelligent and highly-educated young people to do such a thing? The same things I’ve noticed in my own self, namely:

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