Career and Life Planning Guidebook for Medical Residents

G O A L S Reflection + Activity When your employer calculates your take-home pay, it will withhold money for federal income taxes, Social Security/Medicare [FICA] and state income tax, if applicable. The amount withheld from each of your paychecks to cover these federal expenses will depend on several factors, including your income, allowances and filing status. To estimate your take-home income, follow the directions below. Calculate your Net Income [Gross Salary (-) Taxes] Line 1: Estimated Salary: ___________ Line 2: Estimated Federal Taxes (___________) Line 3: Estimated State Taxes (___________) Line 4: Estimated FICA Taxes: (___________) [7.65% of income up to $132,900] Line 5: Calculate Net Income: ___________ [Line 1 minus (Line 2 + Line 3 + Line 4)] You’ve got a huge advantage over many of the millionaires profiled in The Millionaire Next Door who managed to get rich on a middle-class income of $50,000 to $100,000 a year. Don’t blow it! It is potentially easier for you to become more financially sound than for them, but it still requires you to do a few things right; the most important one is to not just live below your means but to live far below your means. An upper middle-class income combined with a middle-class lifestyle is a sure route to financial freedom. So is a “top 1%” income combined with an upper middle-class lifestyle. Financial Life Planning 353 WWW.PHYSICIANCAREERPLANNING.COM