How To Manage Finances As A PT New Grad.

A few days ago I asked my Insta Fam about what are the common struggles they face as a PT. Many of you replied with various challenges you face as a PT. So, through my #SmartPT series, I am trying to explore possible solutions to some of our problems. One of the responses I received was a struggle with finances. So in this article today let’s explore how to manage finances as a PT New Grad. 

Before starting, I would like to state that I am not a financial expert and this is not financial advice. This is my opinion based on my experiences and knowledge about how to manage finances as a PT new grad. 

Embracing growth mindset

The very first thing to embrace when achieving financial freedom is the concept of a growth mindset. Carol Dweck writes in-depth about Fixed Vs Growth Mindset in her book “Mindset”. 

Having a fixed mindset means believing your abilities, circumstances, and talents can not change. Having a fixed mindset leads to people achieving success within the boundaries of their limiting beliefs. 

On the other hand, a growth mindset believes that your abilities, circumstances, and talents can be improved. But most importantly it is knowing that you can do something about that. In a nutshell, a growth mindset is what Marie Forleo famously says, “everything is figureoutable.” 

So when you hear a negative trend in business next time, try and assure yourself that it doesn’t have to be true for you. The most important belief to nurture right now is “I can figure it out!” 

Generating multiple streams of income

I wish I worked on creating multiple streams of income right when I was in college. I think it is crucial for us to let go of the idea of a good old paycheck, the fixed income that you get on a monthly basis. Instead, we can look up ideas to create multiple resources that will generate monthly revenue for us. 

When asked about the importance of having multiple sources of income, Anjali Narayan, the Senior Ergonomic Consultant at Synergo Consulting Pvt Ltd, mentions “The basic reason would be to have financial stability. Creating a strong network hold takes quite a while in our field of physical therapy.

Additionally with an increasing number of requirements of resources and having the need to maintain a decent lifestyle is almost impossible to maintain just one fixed salary. Hence, earning additional remuneration through social media, stocks/shares, having private patients, etc. are wonderful ways to have a continuous flow of income and not keep waiting for the end of the month for the same.”

I personally do not use the term ‘passive sources of income’ because I believe there are no free lunches in life. You have to put in effort in order to generate income. Hence I use the term ‘Secondary sources of income.’ 

When you treat a patient and charge your fees, you are trading your time in order to make money. A secondary source of income means that you are not constantly trading your time for money. Examples of secondary sources of income include income from youtube channel, podcasts, selling digital products like apps, selling a course, etc. 

(I highly recommend this youtube video on passive income ideas by Ali Abdal)

So start thinking of ways how you can generate secondary sources of income for yourself. Please remember that building anything requires time and consistency. So be sure to be in the game for a long haul. 

Viewing your time as a valuable resource 

When we think of wealth, we often think about money. Money is definitely a limited resource but so is your time. If you think about it, you get just 24 hours a day. So along with money start seeing your time as a valuable resource. 

Check for me right now, what was your screen time for this week? If you cut it down just by 20 minutes a day, you can free up 10 hours every month! The time you could be using towards more meaningful projects, towards generating secondary sources of income! So make sure you invest your time on projects that matter to you long-term.

In your early twenties, you have the advantage of time. By that I mean when you start early, you can get the advantage of the compound effect. When you put in daily consistent work, you can achieve massive results over a period of time. And this is true for all your investments! i.e money, time, and energy. If you wisely and consistently invest your money, time and energy you are bound to see significant results over the period of time. 

Getting financially literate

Financial literacy means honing and using different financial skills such as budgeting, investing, and personal finance management. I wish I started learning about this sooner. When you become financially literate you manage your money with confidence. 

Nitin Dhar, Founder of Ergoworks Healthcare shared, “Physio in India as they finish Bachelors and enter their jobs they should study of Mutual Funds and stock market ! In today’s world you should learn saving as young physio to plan your goals in life whether it is buying a car home travel and every your retirement plan. Our generation is smart enough to learn and earn“

As mentioned earlier, I am not a financial expert by any means and I have a long way to go. When I got started I found videos by Yadnya Investment Academy to be helpful. Reading books and talking to financial experts always add value. 

Some of the things I learned are imporatnce of building emergency funds, retirement funds, and the difference between saving Vs. Investing. Learning about personal finance management provides a strong foundation for financial decision-making. 

So, start by reading a book on personal finance management, talk to friend who know more about this. Additionally there are tons of youtube channels to get you started. Be sure that you are consuming the information from a credible resource. Do not follow any financial advise blindly!

Seeking unconventional PT career paths

The most common career paths we know as PT students are working in the clinic or working at the hospital. While that is what we are trained to do, many times, working for the hospital or working at someone else’s clinic does not pay well, at least in the beginning. 

After starting PT career paths, I realized there is so much more that we can do apart from those two options. You can learn about various possibilities in the ‘PT in Spotlight’ Series. Here are some other articles to help you understand other career paths: 

• Work from home job ideas for PTs. 
• Clinical Career Options after PT.
• Offbeat clinical career options after physiotherapy.

For both of the articles mentioned above, your PT education is more than enough to get you started. There are so many options you can explore without abandoning your whole physiotherapy education and without needing a brand new management degree.  

So here you have it, some of the tips I find useful when it comes to finances. You will need to do more research for yourself in order to get hold of your finances. 

Meanwhile, if you need more guidance when navigating your PT career please feel free to reach out. I am happy to help. I wish you all the best.