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7 financial resolutions every doctor must make in 2018

  • Highlights

  • Consolidate existing debt

  • Develop an emergency fund

  • Maintain your credit score

  • Anticipate the needfor extra finance

Practising financial planning and management is a must. Setting resolutions for yourself and incorporating them in your daily life as a doctor and entrepreneur will help you maximise your earnings and savings.As a result, thiswill help you better the future of your business while also helping you provide a better life for your family.
Here are 7 financial resolutions you need to make this 2018 to financially secure your personal and professional life.

1. Take care of existing debt

Start your list of resolutions by identifying how you are going to tackle existing debts. If you have availed loans for the education of your children, buying office space or to tend to personal requirements, you may find that these debts are adding up and putting strain on your monthly income. To clear your debts in a targeted manner, consolidate them with an affordable loan, such as a personal loan. This will help you make a single payment to clear your loans, making them easier to manage. An excellent Personal Loan for Doctors is

one offered by Bajaj Finserv. It offers a high loan amount, flexi loan facility, affordable rate of interest and long tenor. These features make it an ideal loan to opt for if loan consolidation is on your agenda.

2.Plan for the future

It is essential to take time out of your schedule to plan for your future. This will ensure better financial growth for your business, and meet your personal and family responsibilities too. Not only will planning help you organise your finances, you will also be able to plan for expenses in advance and anticipate areas where you need to plan in more detail. Creating a financial plan will also highlight scope for expansion and diversification of your medical practice, so that you can make the most of growth opportunities that come your way.

3. Build an emergency fund

Don’t overlook building an emergency fund. This will ensure that you are able to take care of every uncertain or unexpected expense that comes your way. For example, if your CT scanner breaks down, you can rely on your emergency fund to get the necessary repairs in a timely manner, without using funds from your monthly income and disrupting your financial plan.This will also help you on the personal front. For example, will be able to address needs such as urgent car maintenanceor rain proofingfor your home without a second thought.

4. Save 15% of your income

Put aside 15% of your income on a monthly basis to start a healthy saving habit.To ensure that you save month on month, you can instruct your bank to transferthis amount automatically to a savings account. You can then investthis sum for your personal and professionallife and create a diverse portfolio. If you have more than one source of income, don’t restrict yourself to saving 15% income from one source. Instead, apply the 15% rule to yourtotal income to promote better savings.

How doctors can take their practice to the next level

Eligibility for a Personal Loan for Doctors

5.Maintain your credit score

Your credit score showcases your creditworthiness and so, it is an important part of your financial profile, especially when it comes to taking a loan. It shows that you are responsible with borrowing and repaying funds and holds you in good stead when loan providers vet your candidature. While you may not need a loan immediately, your credit score is a cumulative representation of your entire credit history, which is why you must work towards maintaining a good score..

This credit score is affected by applications for credit, existing loans, unpaid debts and rejected loans. So, to boost your credit score, avoid too many loan applications, reduce chances of rejection by checking loans’ eligibility criteria and avoid using too many credit cards.
If you need finances for your clinic or money to fund personal requirements like your child’s education or wedding, look to the customised Loans for Doctors by Bajaj Finserv, which have simple eligibility criteria and quick approval along with a minimal interest on both secured and unsecured loans.

6.Plan your taxes

Don’t leave tax planning to the last minute, no matter how busy your schedule. Planning in advance will help you make use of the deductions and exemptions available to you and so, it will lower your taxable income. For example, the machinery and equipment you buy for your clinic may be eligible for tax savings in the form of depreciation. Smart investments will also allow you to make the most of tax deductions. As a result, you will be able to save a greater portion of your income.

7. Anticipate a shortfall in finance

Keeping a close watch on your finances will allow you to forecast a shortfall in finance. This way, whether it is in your personal or professional life, you will be able to arrange for finances to meet the gap in a timely manner. Analysing your income and expenses will help you arrive at the extent of the gap more accurately, so that you can apply for a loan, or turn to other sources of income, such as interest earnings from investments. Doing this will minimise financial strain and allow you to keep your personal and professional life on track.
So, if you want to ensure that your year is worry-free, especially when it comes to financial matters, rely on these 7 resolutions to sail through.

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