Author: Josh Lumbley, MD, MBA
Many doctors learned about applying SMART goals in medical school. A vision board provides a great tool for such a disciplined, strategic approach to personal finances.
Managing personal finances as a doctor can be complex, especially with factors like high student loan debt, demanding work hours, and a desire to manage work/life balance. One creative yet powerful way to take control of your financial future is by using a financial vision board.
A financial vision board not only helps clarify your financial goals but also serves as a motivational resource to keep you on track. When combined with the SMART goals framework, it becomes a strategic roadmap to financial success.
Here’s how you can use a financial vision board to create and achieve SMART financial goals.
What is a Financial Vision Board?
A financial vision board is a visual representation of your financial aspirations and priorities. Think of it as a collage of images, words, and figures that reflect where you want to be financially in the short and long term. This tool helps you focus on your goals by keeping them front and center in your daily life. You can create a physical or digital vision board.
For example, if you want to pay off your student loans, an image of a debt-free notification or a loan balance at zero could represent that goal. If you’re saving for a vacation home, a picture of your dream house could go on the board.
What are SMART Financial Goals?
SMART goals are goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. This framework helps ensure your goals are clear, actionable, and attainable within a specific timeframe. For doctors who face unique financial pressures, SMART goals make it easier to stay focused and make progress toward objectives like paying off debt, saving for retirement, or investing in a practice.
Here’s how to apply SMART principles:
- Specific: Clearly define the financial goal. Instead of saying “I want to save money,” say, “I want to save $20,000 for a down payment on a house.”
- Measurable: Quantify the goal so that you can track progress. For instance, “I will save $500 per month for the next 40 months.”
- Achievable: Ensure the goal is realistic, given your income and other financial obligations. Don’t set goals that would cause you undue financial stress.
- Relevant: Your goals should align with your broader financial plan, whether that’s becoming debt-free, buying a home, or saving for retirement.
- Time-bound: Set a clear deadline. For example, “I will pay off my student loan by December 2028.”
How to Use a Financial Vision Board with SMART Goals
1. Identify Key Financial Goals
Start by identifying the financial areas you want to improve. These could be paying off debt, saving for a specific goal (house, car, or vacation), investing in retirement, or building an emergency fund. Use the SMART framework to break each goal down into actionable steps.
For example:
- Specific: “Pay off $50,000 in student loan debt.”
- Measurable: “Make monthly payments of $1,200.”
- Achievable: “My monthly income allows for this payment without sacrificing other priorities.”
- Relevant: “Paying off debt aligns with my goal of financial independence.”
- Time-bound: “Achieve this by June 2026.”
2. Create Your Vision Board
Gather visual representations of these goals. For paying off student loans, you might include an image of a zero balance statement. If your goal is to retire early, use images that symbolize financial freedom or relaxing in your dream retirement location. For saving for a large purchase, like a house or a practice investment, include images that reflect those aspirations.
3. Place SMART Goals Next to Visuals
Attach your SMART goals next to each image. If your board includes a picture of a retirement home, next to it you can write, “Save $1,000 per month for the next 10 years to buy a vacation home by 2035.”
4. Track Progress and Adjust as Needed
As you make progress, update your board to reflect milestones. If you pay off a portion of your debt, mark it on your board. If you hit a savings goal, celebrate by updating the image to reflect the next step. You can adjust timelines and goals as necessary, based on your changing financial situation.
Why a Financial Vision Board Works for Doctors
A financial vision board helps busy professionals, like doctors, stay focused on long-term goals. The medical profession often comes with financial complexities, including high-income potential but also substantial debt and delayed wealth-building due to the many years spent in training. The visual nature of a vision board keeps your financial priorities clear and top of mind, despite the hectic demands of your career.
Additionally, pairing the vision board with SMART goals ensures that your ambitions are not just dreams but also actionable, trackable plans.
10-Year Financial Goals for Doctors: A Life Stage Approach
Every stage of a doctor’s career comes with unique financial challenges and opportunities. Setting clear, achievable 10-year financial goals based on your current stage can help you effectively manage debt, build wealth, and plan for long-term success. Here’s how doctors at different career stages can use SMART financial goals to take control of their personal finances over the next decade.
Early Career/Residency/Fellowship (Years 1–10)
In the early stages of your career, the focus is often on managing debt and setting the foundation for long-term financial stability. As a resident or newly practicing physician, you may be grappling with substantial student loans, lower starting incomes, and the desire to achieve other financial milestones.
10-Year Financial Goals:
- Manage Debt: Focus on aggressively paying off student loans while taking advantage of income-driven repayment plans. Set a goal to pay off a portion of your loans by the end of the decade.
SMART Goal: “Pay off $50,000 of student loan debt in the next 10 years by allocating $500 per month.” - Build Investments: Start contributing to a retirement fund, such as a 401(k) or IRA, even with small amounts. Compound interest over time will significantly impact your financial future. SMART Goal: “Contribute 10% of my income to a retirement account each year, aiming for $100,000 in savings by year 10.”
- Buy a House: Begin saving for a down payment on a home if homeownership is a goal. Set a realistic savings plan based on your current income. SMART Goal: “Save $30,000 over 5 years to use towards a down payment on a home by setting aside $500 per month.”
Mid-Career (Years 11–20)
By mid-career, your income has likely increased significantly, allowing you to take on more advanced financial goals like starting a business, growing investments, and saving for retirement. This is a pivotal time for building wealth and solidifying your financial future.
10-Year Financial Goals:
- Retire Comfortably: Maximize retirement contributions, especially if you’ve delayed building a retirement nest egg during your early years. SMART Goal: “Contribute $20,000 annually to my retirement account, aiming for $500,000 in retirement savings by the end of 10 years.”
- Start a Business: Many mid-career doctors look to start a private practice or invest in a partnership. Use this stage to secure funding and grow your business. SMART Goal: “Secure $100,000 in business financing within 3 years and generate $200,000 in annual revenue by year 5.”
- Build Investments: Diversify your portfolio by investing in stocks, bonds, or real estate. This is also an excellent time to make significant strides in wealth-building. SMART Goal: “Invest $50,000 in a diversified portfolio over the next 5 years, aiming for a 7% annual return.”
- Support Family: Begin planning for major family expenses, such as college tuition for children or supporting aging parents. SMART Goal: “Save $80,000 in a college fund for my child over the next 10 years.”
Late Career (Years 21–30)
As you approach the later stages of your career, you’ll likely be focused on maximizing your wealth, reducing liabilities, and ensuring you have enough to retire comfortably. At this stage, it’s essential to secure your financial future while also preparing to leave a legacy.
10-Year Financial Goals:
- Create a Legacy: Plan your estate to ensure that your wealth is passed on according to your wishes. This may involve setting up trusts, creating a will, and organizing your assets. SMART Goal: “Establish a trust and estate plan to allocate $1 million to my heirs and charitable organizations within 10 years.”
- Retire Comfortably: Transition to retirement (or partial retirement) by increasing contributions to retirement accounts and reducing spending. Determine the exact amount needed to maintain your lifestyle in retirement. SMART Goal: “Save an additional $300,000 for retirement within the next 10 years by increasing annual contributions and reducing unnecessary expenses.”
- Give to Others: With more financial security, you may choose to focus on giving back through charitable donations, supporting your community, or setting up a scholarship fund. SMART Goal: “Donate $50,000 to charitable causes over the next 10 years by allocating a portion of my income annually.”
- Pay Off Remaining Debts: Aim to eliminate any remaining debt, including mortgages or business loans, so you can enter retirement debt-free. SMART Goal: “Pay off the remaining $150,000 mortgage on my home within 8 years by making extra payments of $1,500 monthly.”
Retirement (Years 31 and Beyond)
In retirement, the focus shifts to maintaining financial security, enjoying your savings, and potentially giving back or creating a long-lasting legacy. This is the time to ensure that your wealth can sustain your lifestyle while also achieving your long-term goals.
10-Year Financial Goals:
- Live Comfortably in Retirement: Monitor and manage your savings and investments to ensure that your retirement funds last for the long term. SMART Goal: “Withdraw no more than 4% annually from my retirement accounts, ensuring $1 million lasts for 25+ years.”
- Support Family: Help younger generations, such as your children or grandchildren, with financial support or educational opportunities. SMART Goal: “Provide $100,000 for my grandchildren’s education over the next 10 years.”
- Create a Legacy: Establish endowments or significant charitable contributions to causes that matter to you, ensuring your values are upheld even after retirement. SMART Goal: “Establish a $500,000 endowment for medical research or education within the next 5 years.”
- Enjoy Retirement: Now is the time to enjoy the fruits of your hard work. Whether that means traveling, pursuing hobbies, or living in your dream home, make sure to set financial goals that allow you to live your best life in retirement. SMART Goal: “Allocate $50,000 over the next 10 years for travel, with a budget of $5,000 per year for vacations.”
By aligning your 10-year financial goals with your life stage, you can set yourself up for long-term success and financial security. Whether you’re just starting your medical career or entering retirement, these goals will help guide you toward building wealth, supporting your family, and creating a legacy that lasts.
