Why financial goal setting matters
Your intern year is an exciting and often overwhelming time. Between long shifts, learning new skills and settling into life as a doctor, financial planning can easily fall to the bottom of the priority list.
However, developing good financial habits early can make a significant difference to your long-term financial wellbeing. The reality is that the sooner you start setting goals and putting a plan in place, the easier it can be to achieve the things that matter most to you.
The first step is understanding that everyone's financial goals are different. What is important to one intern may not be important to another. Some people may want to save for travel, while others may be focused on buying a home, paying off debt or building financial security for the future.
Setting goals that matter to you
Your goals can be as simple as saving for an Intern Schoolies trip with your medical friends in January, or as significant as saving for a deposit on your first home. Neither goal is more important than the other. The key is identifying what you want to achieve and creating a realistic plan to get there.
A useful way to think about your goals is to divide them into short, medium and long-term objectives. Short-term goals might include a holiday, a new car or building an emergency fund. Medium-term goals could include further study, overseas travel or a property deposit. Long-term goals often focus on building wealth, financial independence and planning for retirement.
Turning goals into action
Once you have identified your goals, the next step is to break them down into manageable actions. For example, if your goal is to save $3,000 for that holiday, calculate how many pay cycles you have between now and your departure date. From there, work out how much you need to save from each pay to reach your target. Suddenly, a large goal becomes a series of smaller, achievable steps.
The same principle applies to larger goals such as purchasing a home. Understanding how much a bank may be prepared to lend you can help establish realistic savings targets for expenses such as a deposit, stamp duty and other upfront costs. It can also provide valuable insight into what your future loan repayments may look like, helping you make informed decisions and avoid surprises.
The importance of accountability
One of the most important aspects of financial goal setting is accountability. While it is easy to create goals, it can be much harder to stay on track when life becomes busy. As doctors, you are likely to spend your early career focused on patients, training and career progression, which can leave little time to review your own financial position.
This is where a financial adviser can add significant value. A financial adviser can help you identify and prioritise your goals, develop strategies to achieve them and provide ongoing guidance along the way. Perhaps most importantly, they can help keep you accountable and focused on the outcomes you want to achieve. Having someone to regularly review your progress with can often be the difference between a goal remaining a good idea and becoming a reality.
Financial goal setting does not need to be complicated. By identifying your objectives, creating a plan and seeking the right advice, you can build a strong financial foundation and set yourself up for success throughout your medical career. Small steps taken today can have a lasting impact on your future, helping you achieve the lifestyle and financial security you want in the years ahead.
As this general advice has been prepared without taking account of your objectives, financial situation or needs, you should consider the appropriateness of this advice before acting on it. If this general advice relates to acquiring a financial product, you should obtain a Product Disclosure Statement before deciding to acquire the product.
Matthew Homewood
Consultant and Head of Doctors in Training Team
Bongiorno Group
