The 10 Financial Traps That Keep Doctors Stuck — Part 3

Lifestyle inflation is one of the most common — and most dangerous — traps doctors fall into. You work brutal hours, sacrifice your 20s, and finally start earning more. Naturally, it feels right to think:

But that’s how it begins. Your spending quietly grows with your income — and before you know it, your bank balance looks the same, despite your pay rise.

💸 My £370/Month Wake-Up Call

When I was a medical registrar in Cornwall, I financed an Audi for £370/month. It felt justifiable:

And I could — technically. But here’s what I didn’t realise:

• That’s £4,440 a year spent on a depreciating asset

• Money that could have been invested or compounded

• A payment that kept me in the rat race instead of freeing me from it

Later, I met a GP trainee leasing a Tesla for £400/month. Same logic, same trap. That’s when it clicked: it’s not about the car — it’s about mindset.

⚙️ How Lifestyle Inflation Works

You get a pay rise → you upgrade → you adjust to the new normal → and spend everything again.
You’re earning more — but not keeping more.

For doctors, it often shows up as:

• The “Upgrade” Mentality: from Toyota to BMW, flat to house, economy to business class.

• Peer Comparison: keeping up with colleagues’ lifestyles.

• “I Deserve It” Spending: rewarding burnout with retail therapy.

🧠 My COVID Reset

During COVID, I was classified as high-risk and couldn’t pick up extra shifts. My take-home dropped to ~£2,500/month — yet my wife (she wasn’t working at the time) and I still saved and invested over £800/month (32%).

That experience changed everything. If we could save a third of our income on less, there was no excuse when earning more. It’s not about income — it’s about discipline and decision-making.

💡 The Pay Rise Rule: A Simple Framework

Every time your income increases, divide the rise like this:

This balance lets you enjoy progress without sabotaging your financial future. Half goes to building wealth, a third improves quality of life, and the rest rewards your hard work — guilt-free.

🧩 The Takeaway

Avoiding lifestyle inflation isn’t about deprivation — it’s about intentional upgrades.
Build wealth first. Upgrade later.

Wealth isn’t about what you own. It’s about what you keep — and how much freedom it buys you.

✍️ Book Update

I’m currently working on my book Beyond the Stethoscope: Smart Finance for Junior Doctors — a practical, no-fluff guide to help doctors build financial confidence and long-term wealth.

I’d love your input.
👉 Click here to share what you’d like included in the book — your ideas, topics, or real-life challenges.

Your feedback genuinely shapes how this book develops — thank you for being part of it.