![]() ![]() Once you have all the categories in place, you need to compare the money you’re spending in each and how that category is aligned with your goals. ![]() Having clearly defined categories will help you ensure that every penny is accounted for. Avoid leaving out things that you’re unsure of. Once you have this in place, group your expenses into different categories such as bills, EMIs, salary, rent, entertainment, and more. Focus on getting all the information down so that you can review real-time data when you sit down to plan your budget. To do this, you can use an app, software, or a simple and straightforward spreadsheet. Also, keep a record of all the money that you’re making–be it from your primary business or from a side income. Keep a track of all your expenses and spend as you would on a normal day without holding back. This involves writing down all the items you spend money on–from your daily Starbucks to your monthly subscriptions. Review your expensesīefore you put any restrictions, first understand where you stand. Here’s what you do once you have your goals in place. For example, within six months of starting my medical practice, I will redecorate the waiting area. It entirely depends on your aspirations but make sure that you make your goals as specific as possible. When it comes to setting goals, there is no right or wrong. How you set your goals is entirely up to you but knowing what you’re working for can be a great motivator. These are goals that you know won’t happen overnight and will require some planning. This could be paying off a loan, being able to take a sabbatical and go galavanting around the world, prepare a retirement fund so you can retire early. These goals take time and can go up to 2 to 5 years. It could also be as simple as taking home a little more than you usually would. For example, clearing a loan, paying off any personal debts or bills, buying a piece of expensive equipment, or maybe hiring more staff. These are goals that are limited to 6 months to a year. There are two ways of deciding your goals: Short-term Goals Most physicians often skip this step but it’s crucial that you know what it is that you want to achieve and when, to make a good budget. 5 Steps To Creating A Great Budget Step 1: Decide your Goalsīefore you start making any plan, you need to have clear, specific, and time-bound goals in place. It will give you enough room for modifications as you go by the year both personally and professionally. This article highlights five simple steps to create a budget that is made specifically for you and your needs as a physician. This is where not having a clear road map (a budget in this case) can make it extremely difficult for you to manage your finances. Taxes are also significant expenses and smaller expenses such as telephone bills can mount up to great expenses over time. There is a lot of money being earned and spent that you often miss out on accommodating your personal expenses. You may have a good income coming in but you’ll also have big expenses to cater to such as loans. When you start your career, cash flow gets a lot more interesting. What makes budgeting for a physician so different? Such budgets miss the point of why you’re working so hard. The reason is that most of the traditional budgeting lessons and methods lack the freedom to adjust things and they often don’t have space to fit in your personal aspirations and goals. ![]() It’s one of those areas that most physicians struggle with. Chances are that word brings more cringe than a positive, reassuring feeling.Ĭreating a budget brings up more questions than answers. Close your eyes, take a deep breath, and think about the word “budget”. ![]()
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