Finance Tips for Young Doctors

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Starting a career as a young doctor in the United States can be both exciting and daunting. While the medical profession offers lucrative earning potential, young doctors face unique financial challenges such as student loan debt, varying earning potential based on location and specialty, and gender pay disparities. Therefore, understanding the financial landscape and making informed decisions is crucial for young doctors to achieve financial success and security.

Overall Earnings Picture for Young Doctors

The earnings of young doctors in the US vary greatly depending on factors such as practice setting, specialty, experience, and location. According to data from the Medscape Physician Compensation Report 2021, the average annual salary for physicians in the US is $389,000 (1). However, this figure can vary significantly based on the factors mentioned above.

Earnings for Young Doctors: Comparison by Specialty

Different medical specialties offer different earning potentials for young doctors. For example, specialists such as orthopedists, plastic surgeons, and radiologists tend to have higher earning potential than primary care physicians, such as pediatricians or family medicine doctors (2). According to the Medscape report, in 2020, the highest-paid specialties for physicians were orthopedics ($511,000), plastic surgery ($479,000), and cardiology ($455,000), while the lowest-paid specialties were public health and preventive medicine ($234,000), diabetes and endocrinology ($236,000), and HIV/infectious disease ($237,000).

Earnings for Young Doctors: Comparison by Location

Location is another crucial factor that impacts a young doctor’s earnings. Earnings can vary significantly from one state to another due to factors such as cost of living, demand for physicians, and reimbursement rates. For example, states like New York, California, and Massachusetts tend to have higher earning potential for physicians due to the higher cost of living and demand for medical services. By contrast, states like Mississippi, Arkansas, and Oklahoma tend to have lower earning potential due to lower costs of living and lower demand for medical services.

What’s more, working in private practice or as a partner in a medical group may offer higher earning potential compared to working in an academic institution or a government agency. Still, it may also come with higher overhead costs and financial responsibilities. So let’s examine how the salaries of young doctors differ by location in the US:

  • High-earning states: States like New York, California, and Massachusetts tend to have higher earning potential for physicians, with an average annual salary of $443,000.
  • Low-earning states: On the other hand, states like Mississippi, Arkansas, and Oklahoma tend to have lower earning potential for physicians. For example, in Mississippi, the average annual salary for physicians is $295,000, significantly lower than the national average. Arkansas and Oklahoma also have lower earning potential for physicians, with average annual salaries of $325,000 and $339,000, respectively.

It’s important to note that other factors such as cost of living, lifestyle preferences, job market, and quality of life should also be considered when deciding where to practice as a young doctor.

Earnings for Young Doctors: Comparison by Gender

Gender pay disparities continue to be a significant issue in the medical profession, including for young doctors in the US. Despite progress in recent years, female physicians still earn less than their male counterparts on average.

According to the Medscape report, in 2020, male physicians earned an average annual salary of $419,000, while female physicians earned an average of $330,000, a gender pay gap of 27% (3). This pay gap can be attributed to various factors, including differences in specialties chosen, practice settings, experience levels, and negotiation skills. For example, female doctors tend to choose less lucrative specialties, such as pediatrics or family medicine, compared to male doctors, who often choose higher-paying specialties like orthopedics or cardiology. Female doctors also tend to work fewer hours on average due to factors such as family responsibilities or work-life balance considerations, which can impact their overall earnings. Additionally, research has shown that female physicians negotiate their salaries less aggressively than male physicians, which can result in lower compensation (4).

It’s essential for young doctors, regardless of gender, to be aware of these disparities and advocate for fair and equitable compensation. Negotiating job offers, seeking mentorship and guidance, and being proactive in discussing compensation with employers can help bridge the gender pay gap and ensure that young doctors, regardless of their gender, are compensated fairly for their work.

Dealing with Debt as a Young Doctor

Student loan debt is a significant financial burden for many young doctors in the US. Medical education is expensive, and most young doctors graduate with substantial student loan debt that can take years or even decades to repay. Therefore, managing student loan debt effectively is crucial for young doctors to achieve financial stability and success.

According to the Association of American Medical Colleges (AAMC), the median education debt for medical school graduates in 2020 was $200,000 (5). This debt can impact a young doctor’s ability to save, invest, and achieve other financial goals. Here are some strategies for young doctors to effectively manage their student loan debt:

  1. Create a budget: Start by creating a budget that outlines your monthly income, expenses, and debt payments. A clear understanding of your financial situation will help you make informed decisions about your spending and saving habits.
  2. Explore loan repayment options: There are various loan repayment options available for medical school graduates, such as income-driven repayment plans, loan forgiveness programs, and loan refinancing. Research and understand the options available to you and choose the one that best fits your financial situation and long-term goals.
  3. Build an emergency fund: An emergency fund with three to six months’ worth of living expenses can provide a financial safety net and protect you from unexpected expenses or emergencies. It will ensure that you have a financial buffer at all times.
  4. Save for retirement: Despite having student loan debt, it’s important to start saving for retirement early. Take advantage of retirement savings options such as employer-sponsored 401(k) plans or individual retirement accounts (IRAs). Saving for retirement early allows for the power of compound interest to work in your favor and can help you build a substantial nest egg for your retirement years.
  5. Seek professional financial advice: If you need help managing your student loan debt or other financial matters effectively, consider seeking the help of a financial advisor.


Young doctors in the U.S. face unique financial challenges, including varying earnings based on location, gender pay disparities, and significant student loan debt. However, by taking proactive steps toward financial planning and management, young doctors can secure their financial future and enjoy a fulfilling career in medicine without being overwhelmed by financial stress. It’s never too early to start building a solid financial foundation and taking control of your future as a young doctor in the U.S.


  1. (2021). Medscape: Medscape Access. [online] Available at:
  2. Medscape (n.d.). Medscape Physician Compensation Report: Salaries Continue to Rise as Gender Gap Narrows; Largest Difference for Women Seen in Primary Care. [online] Available at: [Accessed 23 Apr. 2023].
  3. Medscape. (n.d.). Female Docs Continue to Earn Less Than Male Peers: Survey. [online] Available at: [Accessed 23 Apr. 2023].
  4. Jagsi, R., Griffith, K.A., Stewart, A., Sambuco, D., DeCastro, R. and Ubel, P.A. (2012). Gender Differences in the Salaries of Physician Researchers. JAMA, [online] 307(22). doi:
  5. Physician Education Debt and the Cost to Attend Medical School: 2020 Update. [online] Available at:
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