Spender or saver?
About three-quarters of psychiatrists continued to spend as usual in 2020. About one-quarter took significant steps to lower their expenses, such as refinancing their home or moving to a less costly home.
In line with prior Medscape surveys, about half of psychiatrists have a general idea of how much they spend and on what, but they do not track or formalize it.
According to a recent survey by Intuit, only 35% of Americans say they know how much they spent last month. Viewed by age, 27% of millennials, 34% of Gen Xers, and 46% of baby boomers knew how much they spent.
Many psychiatrists have a higher-than-average number of credit cards; 42% have at least five. By comparison, the average American has four.
Savings was mixed for psychiatrists this past year; 61% put in the same amount or more each month into their 401(k) plans, but 33% put in less money, compared with last year.
For taxable savings accounts, half of psychiatrists put the same amount or more into after-tax accounts – but 22% put in less money, compared with last year. Another one-quarter did not use these savings accounts at all.
The percentage of psychiatrists who experienced losses because of practice problems rose from 6% to 9% in the past year. Much of that was likely because of COVID. However, about the same percentage reported no financial losses this year (76%), compared with last year (75%).
The vast majority of psychiatrists report living within or below their means; only 5% live above their means.
“There are certainly folks who believe that, as long as they pay off their credit card each month and contribute to their 401(k) enough to get their employer match, they’re doing okay,” Dr. Greenwald said.
However, “living within one’s means is having a 3-6 months’ emergency fund; saving at least 20% of gross income toward retirement; adequately funding 529 college accounts; and, for younger docs, paying down high-interest-rate debt at a good clip,” he added.
A version of this article first appeared on Medscape.com.