Physicians writing on KevinMD about their own money and the business of practice: student loans and forgiveness, disability and life insurance, index funds and retirement accounts, whether to hire an advisor, financial independence and retiring early, side income and real estate, contracts and negotiation, selling a practice to private equity, and leaving insurance for direct primary care. Three maintained records draw on this archive: Physician personal finance: what physicians say about their own money, in their own words, Private equity and corporate medicine: what physicians say, in their own words, and Direct primary care: what physicians say, in their own words.
As resident physicians, we work a ton! Fortunately, it’s not all in vain. Unlike our life as medical students, we finally get paid! Before we spend all the money from our first checks and start treating ourselves to overpriced dinners, let’s set some financial goals and create a spending plan.
Since everyone’s priorities may differ, it’s important to tailor your spending plan to your own individual needs. As you start getting …
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Financial priorities to set on a resident salary
Adrian Peterson (AP) made news lately. And it’s not because he is breaking records. In fact, he is breaking in a completely different way. The news that “broke” is that AP is, well, broke. Despite being one of the most prolific running backs to ever play the game, Adrian Peterson’s money problems are impressive. The story outlines how they feel that AP landed in such a bad spot, …
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5 financial lessons physicians can learn from Adrian Peterson
Many physicians have a poor understanding of personal finance. Since personal finance isn’t a required course in high school, college or medical school, physicians are often unprepared to handle their high income when they become an attending. Sometimes the results of this lack of education are not pretty. Other times it’s a downright disaster. Yet some of us are able to figure out this thing called money.
I was thinking about …
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Are you using this benchmark for physician personal finance?
If you’ve ever delved into the world of personal finance, you might have heard of the phrase “pay yourself first.” In fact, many investment gurus mention this approach as one of the keys to getting your finances on track and building your net worth.
This concept can seem confusing initially, so let me break it down. Paying yourself first simply means making yourself a priority. It’s actively choosing to …
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How to get ahead in your finances: Pay yourself first
One of my coworkers who grew up in India told me that their teachers in grade school would post everyone’s scores in the hallway after every exam. This comparison of grades and objective testing further extended to cities and even regions in the country. There are people going through the hierarchical ranks with “gold medals” in science or engineering. Throughout this process, it was relatively transparent who the smartest or …
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Should hospital systems post physician salaries?
Every July, we have some time to think about our independence and freedom. We also celebrate and spend time to be grateful for those that helped us achieve that.
Everyone reading this certainly has a lot to be grateful for. But I also know that there are those that might feel a bit trapped in their current life situation.
Some might hear the term “financial freedom” and think it’s …
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3 myths about financial freedom
Back in 2006, I settled into my career as an emergency room physician. It was then when I started working in multiple hospital groups in several cities in Arizona and Texas to maximize my earning potential.
The strategy worked. I was able to make enough money to service my medical school debt as well as dabble in commercial real estate, buying some duplexes in Central Texas then single-family homes and larger …
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Haven’t thought about investing in group homes? You should.
Here are some specific ways for medical trainees to save on their move.
Timing is everything
When is the exact timing of your move? Are you flexible? Think about your situation: you graduate medical school, pack up, and then move for residency. Right?
Most moving companies are busiest (read: most expensive) between May and September when they know you are likely to move. With Match Day in mid-to-late March, getting an early start …
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How to save money when moving for residency
When our kids were in the 5 to 9 age range, we used to buy each of them a souvenir on our vacations. They always wanted the most expensive item in the store, a great big teddy bear that cost $400. We would tell them no, they needed to pick something less expensive. They weren’t happy about not getting their first choice. It was then that we decided that we …
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How a surgeon taught his kids the value of money
Each spring, thousands of students and residents will relocate for their next career stages facing the same question: How am I supposed to move my stuff? The answer is varied and can be surprisingly complex.
Relocation is part of any industry, but medical trainees, in particular, relocate during a narrow time frame often without any employer reimbursement.
How does your move fit in with other major life events such as a wedding …
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Pro tips for residency or fellowship relocation
When I first started working on this blog post, the working title was “Different Ways to Make $1 Million in Real Estate.”
However, I realized that if you’re reading this, you’re likely looking for a similar type of life that I’m interested in: a life of financial freedom where I’m also able to make huge contributions to society as well.
Unfortunately, $1 million may not be enough these days to make that …
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How to make $5 million from investing in real estate
I would have thought that all doctors are on the same page about being overworked and underpaid, but I was surprised to read on a recent physician forum that some doctors claim that our profession overall is compensated adequately. Complacency tends to kill innovation, but hey, to each her own. Online forums certainly leave a lot of variables on the table — we’ve all seen trolls or even just people …
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No doctor should have to side hustle to make a good living
As a young professional with many competing expenses, it is paramount for me to prioritize my spending. However, adhering to a strict budget can seem a bit daunting and restrictive. To get over this anxiety, I started out with a spending plan that mirrors the “50-30-20 rule” by allocating money into three different buckets: things I have to buy, things I want to buy, and things I should buy. Let …
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My residency spending plan: a new way to think about budgeting
Something I’ve been thinking about lately is the path that we’ve all been somewhat conditioned to take. And that is working really hard now so we can reap the rewards later. If you don’t work really hard now, you risk not being able to enjoy life when “later” finally comes.
Does that sound familiar to you? Well, it should, because that’s the exact path we took to become successful in our careers. …
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Work hard now, enjoy later. Is it time to rethink that?
Money and death. Sounds kind of morbid, right? But, that’s exactly what we are concerned within the financial independence community. We like to talk about the former and avoid the latter. Make no mistake, however, that all of our conversations have subtly interlaced the topic of mortality. Our time on this earth is limited.
No matter what your specific why of financial independence, we all want to find identity, …
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Financial independence should be peaceful
Whether you are starting a new job, like me, or extending the contract at your current one, part of the process may involve signing up for retirement accounts. Most people have heard of a 401(k), but you may have other options available to you such as a 403(b) and Roth IRA. Let me breakdown the pros and cons of each account, so you can better determine which one is best …
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Which retirement account is best for physicians?
Each of us has limited time, resources, knowledge, and experience. As physicians, the majority of our time, along with our resources, has been devoted to our medical education and clinical practice.
Real estate syndications can be an attractive investment vehicle for busy professionals who do not have the time or experience to actively manage real estate. As an investor in a syndication, you can put your capital to work for you. …
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The benefits of passive over active investing for busy professionals
Locum tenens is a great way to make a living or earn some extra income. But frankly, there are some groups of physicians who should not even consider doing locums work. When you pair the right person with the right job, you can get employment bliss. But when the wrong person takes a job, both the employer and the employee are often unhappy.
I believe everyone should enjoy the work they …
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Considering locum tenens? Think about these factors first.
“Someday Syndrome” is prevalent in many walks of life, but it is particularly bad in medicine. You know what I am talking about. “Someday, when I have graduated medical school …” or perhaps the more common phrase is, “Someday, when I am an attending …” Phrases that start with this sort of expression imply that today is not good enough. And I am here to tell you that if …
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Physicians, do you suffer from “Someday Syndrome”?
