Episode 74: Top 3 Financial Planning Tips for Early-Career Pharmacists

In this episode of the "Stuff About Money" podcast, co-hosts Erik Garcia, CFP®, BFA™, ChFC® and Xavier Angel, CFP®, ChFC®, CLTC discuss key financial planning strategies for pharmacists at the start of their careers. They explore how to effectively manage income and expenses, set meaningful financial goals, and create a balanced budget to ensure a secure financial future.  Erik and Xavier also discuss the challenges of managing student debt and the importance of making informed financial decisions. With practical insights and tips, this episode is packed with valuable advice to help pharmacists build a strong financial foundation. Episode Highlights: Xavier explains how he began working with pharmacists, including the story of how he met his wife in a pharmacy. (03:00) Xavier emphasizes the importance of understanding your income and expenses as the foundation for building wealth. (07:00) Erik discusses the challenge of managing variable expenses and how they can derail financial goals. (16:00) Xavier explains student loan repayment strategies, including prioritizing high-interest loans or using the “snowball method”. (18:30) Erik discusses the importance of making smart financial decisions early in your career and avoiding the temptation to accumulate too much too fast. (22:30) Xavier shares how to evaluate benefits packages when choosing a job, especially retirement plans and matching contributions. (25:00) Xavier explains the importance of disability insurance and the role of short-term and long-term coverage for pharmacists. (28:30) Erik mentions the importance of knowing where your money is and understanding how benefits like insurance and retirement plans contribute to financial security. (31:00) Erik wraps up with final thoughts on laying a strong financial foundation through careful cash flow management, debt repayment, and understanding benefits. (33:00) Key Quotes: “Cash flow management gives us an opportunity to really sit down and start understanding what your income is and what your expenses are.” - Xavier Angel, CFP®, ChFC, CLTC “If I didn’t know where I was going, then it didn’t matter where I spent my money or where I saved my money. But if I have a direction, if I have an objective, then it matters.” - Erik Garcia, CFP®, BFA™ “Benefits represent money. It might not be cash money that you have to spend, but health insurance, it’s money. Disability insurance, man, if you have a triggering event where you’re disabled and you can’t work, you want to make sure you understand what you’ve got coming in the door.” - Erik Garcia, CFP®, BFA™ Resources Mentioned: Erik Garcia, CFP®, BFA Xavier Angel, CFP®, ChFC, CLTC Plan Wisely Wealth Advisors