We just paid off our student loans. What should we focus on now? That was the question from a dual physician couple in their late thirties—both earning in the mid $300Ks, carrying a large mortgage, and finally free of student debt. Like many high-income professionals, they were ready to move from debt payoff to long-term planning—but unsure where to begin.
Celebrate the Milestone
First, don’t skip the celebration. Paying off six figures of student loans is a major win. Many physicians delay building wealth to prioritize education and debt, so reaching this point deserves recognition.
Shift from Debt Reduction to Wealth Building
The next phase is all about momentum. Much of what was going toward debt can now go toward savings and investment. That transition should begin with clear targets:
- Maximize your workplace accounts: 401(k), 403(b), 457(b), and backdoor Roth IRAs.
- Set a concrete savings goal for your taxable brokerage account—since there’s no limit, it’s easy to lose track or feel perpetually behind.
- Create a second brokerage account for short-term goals: renovations, vacations, or other personal spending.
By separating your long-term and lifestyle savings, you gain clarity and reduce the guilt around enjoying your wealth.
Avoid the Lifestyle Creep Trap
Tempting as it may be to reward yourself with a new car or house, try not to inflate your lifestyle too fast. A balanced approach to spending and saving is key—and it starts with defining what you really want your money to do.
Consider Mortgage Paydown and Risk Planning
If your savings goals are on track and you have extra cash, paying down your mortgage can be emotionally satisfying and financially beneficial—especially at high interest rates. It’s also time to review insurance, estate planning, and risk management strategies that often get overlooked.
Build In Room for Joy
Many high earners can also fall into “savings creep”—always putting more away, but never quite giving themselves permission to enjoy it. Don’t forget to use your wealth to enhance your life today. Once your systems are in place, spend guilt-free on what matters most.
For more insights on navigating the shift from debt payoff to wealth building, listen to the full podcast episode here.