The 10 Financial Traps That Keep Doctors Stuck — Part 1 (Traps 1 & 2)

Hi,

When I finished training and finally started earning properly, I thought I’d “made it.”
But compared to my university friends, I felt years behind.

They were moving up in their careers, investing, running businesses.
I was still climbing out from under exam fees, visa costs, and student debt.

That’s when I realised something:

Doctors don’t fall behind because we’re bad with money.
We fall behind because the system sets us up with traps.

Here are the first two.

1️⃣ Trap One: We Start Earning Late, But Debt Starts Early

Most professionals start earning in their early 20s.
Doctors? Not so much.

• UK-trained doctors graduate with £80,000–£100,000 in student loans.

• International doctors may avoid that, but swap it for visa fees, PLAB exams, relocation costs.

By the time we earn a decent salary, our non-medical friends have a five-year head start.

🚪 The Escape Route

• Understand your student loan → For Plan 2 (post-2012), you pay 9% above £27,295. After 30 years, it’s wiped. Don’t rush to overpay — it rarely makes sense.

• Invest early, even if small → £50/month in a Stocks & Shares ISA builds real wealth over time. Compound interest doesn’t care about debt; it cares about time in the market.

• Debt-free advantage → If you don’t have loans, don’t inflate your lifestyle. Use the head start to invest, save, or buy property earlier.

2️⃣ Trap Two: We Were Never Taught How to Handle Money

Medical school prepares you for everything except… money.

For my first five years in the NHS, I didn’t even know you could claim tax back on GMC, BMA, and MDU fees. That mistake cost me thousands.

I didn’t know how to read my payslips either. I was just happy I was getting paid — only checking that little bottom-right box with the take-home pay.

And I wasn’t alone. Most colleagues were in the same boat.

🚪 The Escape Route

• Learn the basics → You don’t need 10 finance classics. Just pick one book or podcast and start. My first was a simple eBook (Personal Finance. Simplified). It wasn’t flashy, but it got me moving.

• Automate good habits → Set up standing orders for investments and claim your tax refunds every year. Small, boring systems win.

• Change your circle → The people you spend time with shape your money habits. For me, joining finance and investing groups online was more valuable than hours on Facebook or Instagram. Different perspectives = different results.

✅ Final Thoughts

Doctors fall into these first two traps almost by default:

• Trap 1: Starting late with debt already stacked against us.

• Trap 2: Not being taught the basics of money management.

But the good news? Both traps are escapable. By learning the rules of the game early and taking small, consistent steps, you can turn things around faster than you think.

This is just the beginning. In two weeks, I’ll share Traps 3 & 4 — where we’ll dig into two more hidden pitfalls that quietly drain doctors’ wealth.