It is only money.

One of the most significant daily concerns for working veterinarians and veterinary technicians is money.  Our client’s money influences how we can treat our patients.  Our practice’s money influences the equipment that we use or the drugs that we have at our disposal.  Our personal finances determine our lifestyle and our families’ future.

Our beliefs about money and our discipline around it will determine the abundance that we are able to create.  Money thoughts can certainly give us anxiety unless we learn how to manage our mind around our situation and change our habits when it comes to our personal finances. 

According to a study by the American Veterinary Medical Association, the average debt load for veterinary school graduates was $167,534.89 and over 20% of those graduates have over $200,000 and up to $300,000 in debt.  Those numbers will truly give you nightmares.  A recent poll of college students with loans found that 30% of those students used student loan money to pay for spring break vacations and other lavish lifestyle enhancements.  What were they thinking?

When I got my first job as a veterinarian fresh out of school, I bought a new car. In fact I have a photo of myself standing by my new red Ford Escort ready to drive to my first day as a veterinarian.  My mom took that photo, just like she took photos of me when I was going off to my first day of school.  When I think about that picture and the fact that I had serious student loan debt at the time, I can’t believe how stupid I was.  Why didn’t I just drive the beater car that I was driving in veterinary school until my debt was paid off?  What was I thinking?

Now that I am older and have learned from my many silly mistakes with money, I want to encourage you to do things differently.   Smarter decisions will put you well ahead of your peers and move you toward financial security and even millionaire status if you practice some simple money managing principles. 

First, bag the new car!  If you have debt, the last thing you need is a car payment.  The average car payment in America is over $450.00.  That is insane!  Buy something cheap with cash. You drove a beater in college and it got you where you needed to go, so continue to drive the paid for beater and put that car payment towards your student loan.  Once you have your debt paid off you can buy yourself a new car with cash.

Make a monthly budget.  Write down your spending every month so you can teach yourself to behave with money.  If you have a plan before you start passing out the cash, you will learn where you spend and where you can cut corners to get rid of the debt faster.  Bring your lunch to work, make your own coffee, skip the latest fashion trends and don’t spend money on vacations that you can’t afford. 

Do not use credit cards to buy things.  It is much easier to overspend with plastic than with cash.  Cash leaving your hand causes much more pain than the plastic card.  

Take advantage of your hospital’s 401K or IRA plan.  Many hospitals match the contribution that you make, so once you have your debt paid off, max out the allowed contributions to get the free money match.  Who would be so stupid as to refuse free money?  You would be surprised how many people do.

There are many programs, podcasts and budgeting tools that are free to the consumer to help you manage your money.  I am a big fan of Dave Ramsey and Suze Orman but you can study anyone with financial common sense.  Talk to a parent or relative that is winning with money and follow their advice. Think about every dollar that leaves your hand as a step towards your financial freedom and future generosity.  Work to change your mind around money and financial success will follow.

Over the years when I expressed worry about my financial situation to my Dad, an accountant, he would always say, “It is only money.”  I think that he was teaching me that if I applied common sense and controlled my spending, that money is just simple math.  

I think I finally got it.

Dr. Julie Cappel