5 Financial Pitfalls for Physicians to Avoid in 2025
By Michael Jerkins, MD, M. Ed., President and Co-founder of Panacea Financial
A new year means new goals, and if one of your goals is to get your finances in order, we have a few tips to help! Here are five common pitfalls to watch out for in 2025:
- Remaining Financially Untrained
Medical school and residency rarely include financial education, leaving many doctors unprepared for complex money management. Take time to learn the basics—budgeting, investing, and debt management—to avoid costly mistakes.
- Falling Victim to Lifestyle Creep
As your income grows so does the temptation to spend on luxuries. Sticking to a budget can help you prioritize savings, debt reduction, and retirement to ensure financial stability.
- Having No Student Loan Repayment Strategy
Many physicians take on significant student debt to finance their education, but don’t have a plan as they begin repayment. Evaluate repayment options, such as income-driven repayment plans or refinancing, to minimize interest paid and achieve your financial goals.
- Failing to Plan Ahead
An emergency fund with 3-6 months of expenses can protect from unexpected costs like medical bills or job transitions that otherwise would derail your financial progress.
- Trusting the Wrong Financial Advice
A healthy amount of skepticism is a good thing when it comes to your personal finances. Avoid stock-picking trends or high-fee investments. Instead, find a trusted advisor who specializes in serving doctors and prioritizes your best interests.
Find more financial tips, tools, and resources, plus AMS-exclusive discounts on financial products, from Panacea Financial.
Panacea Financial is a division of Primis Bank. Member FDIC.
Michael is the President and Co-founder of Panacea Financial and is also a practicing physician in Little Rock, AR. After earning his BBA in Economics he deferred his medical school acceptance to teach middle school science in the Phoenix, AZ area while also earning his Masters in Education from Arizona State University. He then completed medical school at the University of Tennessee Health Science Center before finishing his residency at University of Cincinnati Medical Center and Cincinnati Children’s Hospital. With a faculty position and board certifications in both Internal Medicine and Pediatrics, Michael is able to treat patients of all ages and teach medical trainees in both inpatient and outpatient settings.