https://physiciansrs.com/wp-content/uploads/2025/02/Medical-professional-doing-taxes.jpg 1250 2000 AbstraktMarketing /wp-content/uploads/2022/03/prs-logo-color.png AbstraktMarketing2025-02-19 13:57:282025-03-25 15:32:06Essential Tax Documents Physicians Need to Review for Tax SeasonHow To Cut Costs During Inflation
Inflation reached 8.5% in March 2022, representing the largest year-over-year increase since the 1980s. Inflation often occurs when there’s an imbalance in supply or demand. Due to COVID, the economy is dealing with pressure from both the supply and demand sides. Supply chains suffer from bottlenecks and slowdowns in production and shipping, and customer demand has reached an all-time high in the post-pandemic climate. In many ways, the market is unprecedented, and few Americans have the experience to hedge against inflation successfully.
Inflation is unpredictable. The best way to protect against the long-term effects of a strained economy is to evaluate your financial plans and make adjustments where needed. This may mean sacrifices. Consider delaying a home improvement project or putting off traveling plans. You may also need to reconsider how you save your money, as savings accounts may not reach as far.
Inflation is unlikely to let up soon. Consider these tips when you structure your financial plan:
Smart Money Managing Tips
Establish an Emergency Fund
Set aside money to help you address sudden expenses. While paying off debt may be a priority, an emergency fund ensures you can remain focused on those goals even when medical bills or another life event occurs. Maintaining financial mobility may be challenging during inflation, but a rainy-day account can keep you steady even through the most trying times.
Pay Off Credit Card Debt
Variable debt can restrict your cash flow and impact your funds with high interest rates. When you’re free from debt, you can save more money and reinforce your long-term financial strategy. Pay more than the minimum and work diligently to settle the account. If you’re worried about sticking with your plan, set up an autopayment amount to divert funds without manual input.
Building a strategy to navigate the economy is time-consuming for medical professionals. Physician’s Resource Services saves you stress by providing you with high-quality tools and resources designed to help fortify your financial standing and prepare for the future.
Evaluate Your Budget
It’s challenging for medical professionals to set aside the time to establish and implement a monthly budget. But when you need to contend with student loans, credit debt, a mortgage, and other responsibilities, finding that time is more than suggested—it’s critical. Review your spending, from needs and wants to financial obligations. Cut out unnecessary goods and services and invest money in a savings account.
Your budget for a savings account depends on your total income, dependents, and mid-term and long-term financial goals. If you can’t follow the 50/30/20 rule (50% of income to needs, 30 to wants, and 20 to savings), then strive to cut out expenses and contribute a comfortable amount of money to your savings account at the beginning of every month.
Investing During Inflation
Growing your purchasing power through wise investments is a reliable way to keep your short-term goals intact and hedge against inflation. Opportunities like I bonds are designed to protect the value of your money from inflation. The interest rate for I bonds is 6.89% through April 2023, and they are adjusted regularly to account for shifting prices. When inflation rises, you’re paid more. Maintaining a healthy set of contributions helps ensure your financial growth and enhance your adaptability.
Navigate Inflation With Physician’s Resource Services
Medical professionals were stretched thin even before inflation. Between professional obligations, student debt, and taxes, many physicians struggle to address their financial situation with the attention it deserves. PRS gives time back to you by helping you gain visibility of your scenario. We help make tax prep and securing coverage manageable and strategic.
Ready to review your financial standing? Reach out today.
*This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
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