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: