Many doctors’ and dentists’ finances will be hit hard by the Covid-19 Crisis, so I wanted to share some simple tips on how to get back on track.
You may have deferred your mortgage and are now facing an even bigger mountain of debt. With interest rates at unimaginable lows, now is the time to start chipping away at your loans. Increase your repayments where possible, as simply putting funds in your offset account may lead to future temptations to spend.
Make sure your home loan has a competitive rate – seek advice from a mortgage broker.
Your superannuation has probably taken a hit. With markets being low, now is the time to be making contributions and save with a long-term outlook.
If you are self-employed, your super contributions may be tax deductible, so make sure you seek tax and financial advice to make the most of this opportunity.
In lockdown you probably found that you spent a lot less money. Resist the temptation to go out and splurge when restrictions are lifted. Retain some of that austerity and start paying more attention to how you spend/what you spend money on, and how much you save. Set yourself a monthly savings goals and make that your first priority, then see how much you can afford to spend, not the other way around.
I am getting lots of enquiries from young doctors and dentists wanting to invest. It’s obviously better to buy low as opposed to when the market is high, even though timing it absolutely right is almost impossible. If you are afraid to jump in, you can use a dollar-cost-averaging strategy to minimise your market timing risk.
If you need any help with bringing your finances back to life, please contact me directly on 0432 885 295 or Yves@affluenceprivate.com.au