By Jane Smith, Guest Writer

I like to lace up my sneakers and go for a run to mentally clear my head from the stressors of clinical work and to exert my aliveness. I’m motivated to avoid obesity, the cardiac cath lab, and the Grim Reaper. Socializing with friends and rocking out to some tunes helps the miles fly by more easily and enjoyably. My spouse didn’t run much during fellowship or his first 12 years as an attending physician unless it was to the next consult or the ICU to scope a GI bleeder. Now, he runs to improve his health too, having come to it on his own accord. He, too, is aiming to avoid premature morbidity or mortality. Similarly to how my spouse found running as a means to improve his health, I discovered on my own accord at WCICON25 that being thrifty is cool but that financial literacy is critically necessary to improve my financial health.

My spouse has been financially literate since 2008, motivated by the Great Recession. I was busy planning our wedding and didn’t have much interest then or since. Thankfully, thriftiness has been part of our family culture for nearly 20 years. While we were never profligate spenders prior to marrying, we had spending habits that were less than admirable, i.e., spending WAY too much on frivolous shopping with a 2003 RN salary of $18.54 per hour or buying an impractical muscle car during residency along with plenty of takeout. But hey, we were naive and in our 20s. Thankfully, we have since matured considerably.

So, how’d we go from that to financial independence?

 

How We Earn, Save, Invest, and Live Like Residents

We are a dual-income family, both full-time healthcare workers (he’s an MD; I’m an NP). We save diligently and live a comfortable, albeit low-maintenance lifestyle. We max out employer-sponsored 403(b)s and maximally contribute to HSAs. My spouse opened a 457 with his first specialist attending job in 2011. We kept a high-yield savings account until it wasn’t high-yield anymore. We started a 529 after the birth of our only child and opened a taxable account, contributing an average of 40+% of our income in a mix of index funds (both domestic and international), balanced index funds, bond index funds, and a money market fund for quick cash if needed. Rather than speculating in investments beyond our investing skill set, we’ve accepted market returns in these low-cost index funds.

I was along for the ride, but truth be told, my spouse did all of the financial management. My only contribution was my twice-monthly paycheck. Learning about financial matters didn’t interest me, but I had no problem living a frugal lifestyle.

I enjoy shopping at thrift stores when I need clothing or household items. Why buy brand-name sneakers for work at the hospital when there’s a high likelihood of getting any variety of bodily fluids and/or drug-resistant organisms on them? This concept of reuse and recycle applies to both adults and kids. At the rate of our pre-teen’s growth, it only makes sense to buy used and then donate the item again when it’s been outgrown. We selectively choose the thrift stores adjacent to the “fancy” neighborhoods and find plenty of brand-name items that meet everyone’s style needs—from T-shirts to exercise clothes, from athletic shoes to winter boots. Many lovely, thoughtful, and designer gifts have been purchased from the thrift store, some even new with tags.

We buy in bulk, and we freeze whatever perishable items we can (pretty much everything) in our deep freezers. Yes, plural on the freezers. We shop at Costco like it’s our job, searching for the dopamine rush of the deal and then literally cashing out on the cash-back deals from our frequent use of the Costco credit card. My husband’s entire wardrobe consists of clothing from this store. While not flashy, he’s very comfortable in his discount dress pants, athletic shorts, and undies.

For our work clothes, we get our (free) scrubs from the hospital, which we’ll return when we’re no longer working. We also frequent the public library, taking advantage of our portion of state and local taxes to use some great resources.

We DIY a lot, including home maintenance and self-care. While many people outsource car and hair care, yardwork, cooking, and cleaning, we’ve been changing our own oil and cutting our own hair (and our child’s) for years. It’s an underappreciated real-life skill to know how to use a broom, vacuum, clean a toilet, and launder your own clothes. I can’t deprive my child of these important lessons he’ll need later in life, so he helps too, albeit begrudgingly. Lawn care gets us and our child outside, qualifies as an exercise equivalent, and gives us pride in our home for having the best lawn on the block. We enjoy cooking together, exploring new healthy recipes with simple foods. We splurge only for the occasional footlong sandwiches a few times per month for the kiddo. Some DIY projects are off limits, so roofing and electrical work are hired out.

We’re pretty square middle-agers (9pm bedtime, so no clubbing or pricey cocktails for us), and we drive non-luxury cars: a 14-year-old midsize Toyota SUV and a 2-year-old Camry. We paid cash for both. Our prior car was a 19-year-old Honda Accord, which my high-earning MD husband proudly parked next to the Porches, BMWs, Teslas, and Audis in the doctors’ lot—despite the nonfunctional radio, missing interior roof liner, and scattered rust spots. When it was no longer reliable, we sold it for $1,800 with only 120,000 miles on it. We have paid off our mortgage and student loans, and our child attends public school. We live in what is generally considered to be an affluent suburb of a major metropolitan with an average cost of living.

If we want it, we just get it, but our wants are simple—things like new running shoes, tools for DIY projects, and some experiences such as an NBA game or a trip to Disney World (done the frugal way, of course). We’re homebodies and “vacation” by visiting family, so it only costs us a few tanks of gas or a cheap flight to the desert in the Southwest. Our entertainment is bicycling and hiking in the nature of the Upper Midwest or the Southwest.

It’s a simple life, but we value our time together and we’re happy. That is, until tax time since we make enough combined to be firmly planted in the 37% marginal tax bracket for MFJ for nearly a decade.

More information here:

When Is It Time to Stop Being Cheap?

I Match Your Home Haircuts, and I Raise You the Sofa We Found on the Sidewalk

4 Frugal Things I’ve Done Lately

 

My Top 3 Motivations to Become Financially Literate

 

Motivator #3: I’m Thrifty, Bordering on Cheapskate Status

As you can see from my above paragraphs, we don’t spend much money. But was that enough to get me to become financially literate?

 

Motivator #2: I’m Competitive, and I Like to Be Prepared

I was a casual reader of the WCI blog, and at some point, my husband encouraged me (er, challenged me?) to attend WCICON 2025. So . . . I prepared, and then I went. I’d tried reading some very dry financial education books over the years but remained uninspired and unengaged. I’d read the original White Coat Investor book several years ago, and I was fully on board with living like a resident. But it didn’t go beyond that.

WCICON was not cheap, but it was worth every single penny . . . of my CME funds! But here’s the thing—not knowing too much about financial literacy, I didn’t want to squander my time or CME funds by making a fool of myself attending a conference and being a clueless attendee. Like any good student, I crammed before the test.

For months before the conference, I found and read financial books that were appropriate for my learning level and held my interest. We discussed the daily WCI blog post over breakfast. There were oral quizzes and furious note-taking, just so that I could better understand the content at WCICON and make the most of the opportunity. Once I was at the conference (I was so nervous for the opening reception that I prepared multiple questions in advance to ask more seasoned attendees!), I was relieved to find others who were also new to financial literacy along with other non-physicians. I counted five advanced practice providers, including myself. But hey, 5 > 0!

It was a safe place to learn new material, and it reinforced what I’d already learned before the conference and reassured me that we are, in fact, on the right path. The real game-changer of WCICON was when I finally realized that my family was already financially independent. It took the perspective I got at WCICON to connect the dots with the Vanguard balance sheet. It was also really cool to meet Dr. Jim Dahle and have him sign my copy of the WCI book. The talks were informative, interesting, and inspiring; the swag bag was awesome; and it was fun meeting new people at the interactive sessions, wellness activities, and the FEW (Financially Empowered Women) happy hour. I promise there is no conflict of interest with this endorsement of WCICON; it was just a really pivotal point in my financial literacy journey.

 

Looking to learn from and build relationships with other physicians and financial experts to accelerate your path to financial independence? WCICON26 is the answer. You’ll also get some much-needed rest and relaxation at the fabulous JW Marriott Las Vegas Resort & Spa from March 25-28. This conference has sold out multiple times in the past, so make sure to sign up today. You are worth the investment!

 

Motivator #1: What If My Spouse Dies Young and I Don’t Know How to Manage Our Assets?

One concept discussed at WCICON was about dying young, rich, or broke. The take-home message was that one is more likely to be dead or rich than broke. This theme has been rehashed in several books I’ve read since the conference. Also, working in hospital medicine provides plenty of reality checks that “time waits for no one,” life circumstances can change in an instant, and nothing is guaranteed. I fear either of us dying young, and I need to be prepared. I simply don’t want to be the widow of a deceased rich person and have no idea what to do with the funds, where to go for help, or what questions to ask. I don’t want to risk disrespecting all of my spouse’s hard work by losing our money.

It’s a frightening thought that all of our long hours at work, away from our family, and the time spent optimizing our investments would be wasted if it were managed improperly. Wow, nothing like death, money, and the fear of losing both to motivate a girl to hop on the train of financial literacy!

My husband tells me that in the months since returning from WCICON, I’ve become a different person. I’ve read multiple financial books since and have taken a much more active role in our financial management. Our financial dates have increased in frequency and meaning, and I have more substantial input to contribute. I know where to go for help and what questions to ask. I’ve also taken a more active role in filing the taxes, deciding how to allocate the investments, and participating in tax-loss harvesting and Backdoor Roth conversions. Together, we’re slowly plodding through completion of our estate plan (DIY style, of course).

It’s been nearly a 20-year journey to get me to this point of being financially interested. Though I’m not yet fully financially savvy, I know a lot more than I used to and could (mostly) manage our financial affairs should the need arise.

Thankfully/interestingly/not surprisingly, FI and my financial literacy awakening haven’t changed us or our spending habits. We used to watch Suze Orman and loved the segment, “Can I afford it?” Well, now we probably can afford it, but rather than buying a boat or a Lamborghini, we’re planning on buying some new high-end bicycles. We fully anticipate our expenses will increase when we get to the RE part of FIRE. We’ve discussed getting a small casita in the desert and traveling to National Parks and famous hiking trails. We also will likely spend a bunch on healthcare premiums so we can quit working long before we’re Medicare eligible.

Frugal is just who we are.

It’s consistent with our life and family values, and we embrace our different-ness. We’re not suffering, and we are happy and comfortable that we’re nearing “enough.” We plan to give any unused funds to our family, institutions, organizations, and charities that have shaped us and in whom we believe.

 

The How-To: Keep It Simple

For others struggling with motivation about getting on board with financial literacy, don’t let fear stop you. Let it drive you. It’s not as hard as it seems. If you can make it through medical or dental school or any graduate-level APP training program, you, too, can do this. It involves learning some new vocabulary words and a few basics (Roth IRA, 401(k)/403(b), HSA, index funds, bonds, etc.). Then, you have to be brave, take a risk, and know that WCICON is a safe place to learn and grow—whether you’re a newbie at financial management or already financially savvy and FI.

Read a few books that are easily digestible and think about what you fear most, whether dying young and rich or old and broke and whether you can manage your own assets without losing half of your money in the process. Any of these and more can be the fire that sets you on a path toward financial literacy and/or FIRE.

More information here:

How PAs and NPs Can Make Doctor Money

Life and Financial Lessons from a ‘Bad Ass’ Nurse

 

What’s Next: How I’ll Keep the Ball Rolling and You Can, Too

Keep learning. WCICON taught me that just as continuing medical education is required, so too is continuing financial education. I have a big stack of financially themed books lined up to read, including Die with Zero (I was halfway through, but it was usurped by The Psychology of Money), The Purpose Code, Nudge, The Upside of Irrationality, and Predictably Irrational. I’m also crunching the numbers to see if I can squeeze the WCICON26 registration fee out of this year’s CME funds. If you’ve never attended, I promise it’s worth your time and effort for this 3-for-1 deal of CME, financial education, and wellness activities. It’s also way more fun than a clinically focused conference.

I’ll continue reading the WCI blog over breakfast, but you can listen to the podcast on your commute or read the blog between procedures, clinic patients, or OR cases.

I enjoy perusing the Boglehead forum to learn from other like-minded folks. I like seeing how early retirees get healthcare. For us, it’s reason enough to consider continuing to work at least part-time—for the benefits and the maintenance of our clinical skills. There’s something for everyone there, including “what frugal thing did you do today?“—a perennial favorite in our family.

Now that I’ve upped my financial literacy game, my spouse and I have new topics to discuss. We’re both truly excited and working jointly toward the same goals, and I’m pretty sure we’ll have legacy money for our child when we’re gone. I think we’ve done well at the earning, saving, and investing money activities. We’ll live off of our investments, plotting our next moves about dialing back our clinical work so we can work on the spending and giving activities of our money, which are far more difficult for us.

Just as we each have our own backstory of how we became interested in a healthcare career and/or our respective specialties, we also each have our own motivation for how we got to or are becoming financially literate.

How did you or your partner become and/or maintain an interest in financial matters? What motivates you and/or your partner to grow your financial knowledge base?

[EDITOR’S NOTE: Jane Smith is an acute care nurse practitioner practicing hospital medicine in the Upper Midwest. This article was submitted and approved according to our Guest Post Policy. We have no financial relationship.]