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.

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.

Stanley Liu is a self-employed cardiologist and a flat-fee-only, 100 percent fiduciary financial planner who has passed the CFP examination. He is the founder of DocEmpowered, LLC, a financial planning firm dedicated to helping physicians gain the financial power to serve their patients, families, and communities on their own terms.

Dr. Liu combines his clinical and financial expertise to help fellow doctors pursue greater wellness, autonomy, and alignment in their personal and professional lives. Clinically, he practices in locum tenens and value-based care settings on his own terms. He also serves as advocacy chair of the Maryland chapter of the American College of Cardiology and is an award-winning medical educator.

Drawing on both personal experience as a physician and professional training in financial planning, Dr. Liu helps other physicians build careers and lives that prioritize health, marriage, family, patients, and community. He shares more at DocEmpowered, LinkedIn, Facebook, and X.