Beyond the Checking Balance

Ever felt like your bank account hits single digits before your next paycheck? 

You’re not alone—especially if you’re in residency or just starting your attending job. Many of us gauge our financial “health” by the number staring back at us in our checking account.

I want you to know that the number staring back at you isn’t the whole picture.

This week, we talk about net worth.

Not in the Instagram influencer sense, but in terms of having a real, big-picture view of where you stand financially.

Why Focus on Net Worth?

Components of Net Worth

Understanding Assets and Liabilities

• Assets aren’t just cash in your pocket; they include investments (stocks, index funds), property (if you own or plan to own your home), and retirement accounts (like your 403(b) or IRA).

• Liabilities encompass everything you owe—student loans, mortgages, car payments, credit card debt.

Tangible and Intangible Assets

• Tangible Assets: Think about your laptop, car, or other valuable items. They may depreciate or appreciate, but they’re part of the math.

• Intangible Assets: Your expertise, reputation, and future earning power. As an MD, your potential to earn can be quite high—so keep that in mind when you feel behind on finances.

Balancing Immediate Needs with Long-Term Growth

• Liquid Savings: Yes, you do need a cushion for emergencies. Aim for at least a small buffer of 3-6 months in savings—enough to handle that last-minute course fee or unexpected car repair. We recommend a high yield savings account (HYSA) that earns interest.

• Long-Term Investments: Whether it’s your 403(b) match, Roth IRA, or that index fund you’ve been eyeing, these will likely grow faster than the cash in your checking account. Time is on your side—especially in your 20s or 30s—so put compound interest to work.

Building and Tracking Wealth

Financial Tools to Track Wealth

Apps and financial software can help track spending, savings, and investment contributions, providing a clear picture of your financial habits and net worth trajectory.

It’s worth combining your accounts into one system like this so that you have a holistic picture of your financial health.

Think of it like Epic for your finances—except with fewer clicks and less chart-chasing.

Most of these tools have feature parity, so choosing one will come down to which ones keep you engaged in the journey. Some are just straight up prettier than others, too.

I’ll leave it up to you for what tool/app works best.

• You Need a Budget (YNAB): Very granular, hands-on approach. Great if you want to assign every dollar a job.

• Rocket Money: Known for tracking subscriptions and giving a top-level view of your net worth.

• Monarch Money, Mint, Personal Capital: Each has its own spin on budgeting, net worth tracking, and investment oversight.

• Excel/Google Sheets: What’s not to love about a spreadsheet?

Retirement Plans to Build Wealth

Yes, we’re talking 403(b) again. Without getting into specifics of your situation, a suggested allocation would be something like:

1. 403(b) Match: Free money alert! Contribute at least enough to get your employer’s match. “Match” refers to a specified percentage of your salary. For example, if they offer a 100% match up to 4% of your salary and you contribute 4%, they will also chip in 4%. This is often the first and easiest step in growing your net worth.

2. Roth IRA: In 2025, the most you can allocated here is $7,000. This will take some setup, including creating an account and actually picking stocks to invest in, but you’ll be glad you did this now when you’re 59½ and sipping lemonade on a beach.

3. Beyond the Match: If you still have extra investment funds to allocate after maximizing your Roth IRA, circle back to your 403(b) up to its annual max of $23,500 (2025). If you still have money left over, well, you’re crushing it.

Overcoming Challenges Unique to You

Everyone has a different set of circumstances. However, there are common patterns with early-career physicians that are worth understanding.

Managing Student Loans

• Look into Public Service Loan Forgiveness (PSLF) if you’re working at a qualifying hospital or clinic.

• If PSLF isn’t an option, consider refinancing at lower rates once your credit and income improve.

Managing Burnout

• Last week, we talked about how moonlighting is an awesome perk, but needs to be carefully managed with your workload and life admin.

• Sometimes scaling down can improve your overall well-being, and ironically, boost your long-term income potential by keeping you in the game longer.

• Small treats (like that well-earned fancy latte) may cost a few bucks, but if it wards off bigger burnout issues, it can be worth every penny.

Negative Net Worth

• Many physicians start with negative net worth. This is normal. The point is to track your progress from negative to positive over time.

• What’s measured gets managed.

Conclusion

Net worth isn’t just for millionaires. It’s for you—the early-career doc who’s juggling patients, schedules, and yes, finances.

If you remember anything from this post it’s this: Your financial health is much more than the digits in your checking account.

Action Items

1. Calculate Your Net Worth: Include everything—checking, savings, retirement accounts, debts, student loans, the works.

2. Pick a Tracking Tool: Whether it’s YNAB, Rocket Money, or an Excel spreadsheet, commit to updating it at least quarterly.

3. Measure and Manage: Look at your biggest expenses; can you redirect a little more to savings? Are you saving for a specific goal—vacation or other?

4. Reflect on Burnout: Is there a small “splurge” that might keep you balanced? (Dinner with friends, a weekend hike, new scrubs that don’t feel like sandpaper?)

By seeing the bigger picture (assets, debts, and opportunities), you set the stage for real financial stability. And that stability can help you make better career decisions, avoid burnout, and plan for a future where you’re not always checking your…checking account. See what we did there?

Meme of the Week

Best,

M&H