Most of the time in my work as a financial planner, my job is to help fellow physicians think long-game so they can craft a sustainable career and life they love. Today is different. We are going to focus on the short game and introduce a financial concept I call the “Courage Fund.” If you are hoping to create a more flexible career, and you cannot wait years to develop complete financial independence from earned income, this post is for you.
The “Courage Fund” is simple: a short-term reserve of cash equivalents (like a high-yield savings account or money market fund) whose sole purpose is to decrease short-term reliance on your employer. The idea is to literally buy you time to create career flexibility in your life. Here is how the math works: months of flexibility = Courage Fund ÷ monthly expenses.
Example: Your household spends $10,000 every month, and you build a $20,000 Courage Fund. Your Courage Fund buys you two months of career flexibility. In other words, you could go part-time, take unpaid leave, or even a sabbatical during those two months without affecting your family’s quality of life.
If you’re familiar with financial planning concepts, this might remind you of an emergency fund, which is a similar short-term reserve. The difference is intent. An emergency fund’s role is short-term defense. It prevents an unexpected setback from forcing you to cut back on other spending or go into more debt.
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A Courage Fund’s intent is short-term offense. It allows you to take on more risk, negotiate from a stronger position, and if necessary, leave a toxic or unsustainable work environment with time to figure things out.
As physicians, we are often naturally risk-averse and conditioned to follow a very clearly defined career path. Very few of us are willing to step off the moving walkway of a traditional medical career without some guarantee of stability on the other side, especially when others depend on us financially. The Courage Fund counterbalances that risk by providing the short-term stability. It does so privately and quietly, while also giving you invaluable leverage during a career or contract negotiation because you have the power to walk away.
The right Courage Fund amount will depend on your individual circumstances. If you have relatively low monthly expenses, multiple income sources, or strong job opportunities in your specialty or geographic area, a smaller Courage Fund may be sufficient. On the other hand, if you are bound by a non-compete clause, practice in a limited job market, or are the sole income earner in your household, it may take a larger Courage Fund to safely create a more flexible career.
A Courage Fund can be the catalyst for a far more satisfying career that provides flexibility and autonomy. But it is just one part of a broader financial plan that accounts for debt management, short-term financial needs, and long-term financial goals. The ultimate objective is to not just create career flexibility but to sustain it.
I’ve written about my own journey of using a Courage Fund to ride out a non-compete clause, leave an unsustainable career, and eventually practice medicine on my own terms. Every physician should have the power to serve their patients, families, and communities on their own terms. For many physicians, building a Courage Fund can be an important first step toward that freedom. If this is something you’ve been thinking about in your own career, now may be the right time to begin putting a plan in place.
This article is discussed on The Podcast by KevinMD: Burnout isn’t only about autonomy, it’s about your bank account.
Stanley Liu is the only prominent practicing cardiologist who also practices as a 100 percent fiduciary, fee-only financial planner in the United States. He is the founder and principal financial planner at DocEmpowered, LLC, a financial planning firm dedicated solely to physician financial wellness.
His career pivot into the financial side of physician wellness began with a choice between walking away from his career as a beloved academic cardiologist and telling his young son he could never walk him to the school bus stop in the morning. Liu chose to walk away, creating his own financial plan to ride out an 18-month, 20-mile noncompete with his family and emerging on the other side with autonomy he once only dreamed of. Today, he practices medicine sustainably and with purpose as a self-employed cardiologist. He eats breakfast and dinner with his kids every day, salsa dances with his wife, and is a dedicated volunteer, advocate, and philanthropist for his community.
Liu also became a licensed financial planner, earned a Certificate in Financial Planning from Emory University, and passed the CFP examination, one of the most highly respected accomplishments in the financial planning profession. As a financial planner, he has helped physician clients across the United States reclaim autonomy in their lives and careers while staying true to their highest values.
Liu is a highly sought-after speaker for his expertise in financial planning and his unique ability to apply it to the physician community as a trusted peer. His insights have been featured in Medscape and PracticeLink Magazine, and he has been an invited speaker for multiple medical societies, including the American College of Cardiology, the American College of Physicians, and the Society of Cardiovascular Computed Tomography. He brings his audiences a rare perspective on the underrated connection between physician wellness and financial planning.
His mission is simple: Give every physician the financial power to serve their patients, families, and communities on their own terms. He shares more on his DocEmpowered blog, LinkedIn, Facebook, and X.
