“Smart Money, MD” is an ophthalmologist who blogs at the self-titled site, Smart Money MD.
As a child, I remember watching superstar athletes like Wayne Gretzky glide so effortlessly on the ice and dreaming about how easy life would be to be blessed with innate talent. “Talent would make my life so easy,” so I thought. I had no clue how much work had to be invested to make talent look seamless. A little later in life, I remember hearing the quip coined by Thomas …
I remember reading a post recently on a Facebook physician group that involved a cardiologist who asked for help on how to manage her finances after a divorce.
The pertinent aspects of this situation involves the physician being left with essentially nothing in retirement savings. She is mid-career with children and wants an option to reduce her schedule eventually to spend time with her children during the weeks she has custody. …
Populous cities are populous, well, because people want to live there. Whether the appeal comes from greater career opportunities or simply being closer to family, these places have continuously grown over the last few decades.
The growth is seemingly self-sustaining — certain industries and businesses exist because there is a population that desires these services. In return, these businesses require workers, so they attract people to the region. Add nice weather …
Two of the biggest hitters in the physician finance online world are both anesthesiologists (Physician on Fire and Passive Income MD). Both of them are masters of side income by approaching money in completely different directions. Is it sheer randomness that out of dozens of possible medical fields, both of these successful …
The business of medicine is unlike any other type of standard “business” in that health insurance and hospitals confound what would appear to be a simple exchange of services for a set price. You know that the confusion is bad when neither doctors nor the patients fully understand how the insurance system works. I have seen patients going into surgery for a lap chole being quoted a price that ended …
When I finished my training, I wish that I had known all of the options I could practice medicine. Most of us categorized our options as either “academic” practice or “private practice,” but in reality, these two options only cover the tip of the iceberg. Was my limited understanding a shortcoming of my medical training? Perhaps. I doubt that many medical schools back then actually had seminars on practicing medicine. …
It’s OK to make mistakes in life. That’s the only way to learn. Hopefully, the major mistakes get made earlier in life so that we have less to lose and more time to “make up” for faltering. But hey, life wouldn’t be interesting if challenges aren’t presented to us. Let’s look at ten of the common doctor financial blunders that have either happened to me or my coworkers:
1. Borrowing too …
Health care is big business, with medical practices vying for contracts, hospitals undergoing facelifts in order to cater to patient experiences, and insurance companies making deals with pharmacies. Some of these arrangements are negotiated in the name of reducing health care spending, but there has to be some skepticism when for-profit entities are implicated. Physician salaries aren’t exactly growing with inflation—some fields have had massive cuts in spending over the …
The transition from medical school to internship is both an exciting and traumatic period for doctors. As a fully anointed “MD” (or DO), the new doctor has a well-deserved and distinguished title to her name. No more “student doctor” anymore. Most orders won’t have to be cosigned anymore. Want to place an order for 100 mg of Lasix? Prime those kidneys, and have at it. On the flip side, being …
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 …
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 …
Two incomes are better than one, right? As we all know, the answer isn’t clear cut. If we have to actively “work” to generate income, we have to balance exchanging time for money. Nothing comes for free. When you throw in a tax system to convolute matters, certain households are actually punished for going into the workforce. There is a delicate balance between each income-earning member and what each profession …
A large percentage of doctors end up switching jobs within the first five years of practice. This really isn’t surprising given that the medical training experience doesn’t necessarily correlate with the medical practice experience. Many doctors work hard throughout their entire training only to realize that their expectations do not necessarily align with reality. Is it our fault that we don’t really know what we got ourselves into?
Perhaps taking q3 …
The Hippocratic Oath says nothing about taking out a bank loan to outfit your own office to start your practice, nor does it include investing in real estate to diversify your income. Of course, most doctors didn’t opt to enter medicine with the intention of building an empire of medical care (although some end up doing so anyway). Large hospitals, insurance-run medical groups, and entities that operate with high revenue …
Wealth accumulation can follow many trajectories, depending on discipline and external factors like stock market health or economic fluctuations. With a proper financial plan, doctors can stick to a game plan that should allow them to reach financial milestones rather predictably. The adage that wealth begets wealth certainly does hold true most of the time, but it doesn’t necessarily guarantee financial victory. One of the issues with wealth accumulation is …
Geographical arbitrage is a huge component to being able to build wealth in a timely manner. For doctors, the formula for rapid wealth accumulation calls for geographical arbitrage even more strongly as our salaries do not have wide ranges across the country. A doctor in Texas will probably command a similar salary in Arizona (maybe slightly less). A doctor in the midwest might earn more, spend less, and work less …
Apart from a minority number of academic physicians, nearly all of the physicians openly discussing finance matters online are either retired or in private practice. The data might be skewed since most practicing physicians don’t work in academia anyway. What might be interesting is to compare the percentage of financially literate academic physicians to that of those outside of academia. I would venture to surmise that academic physicians might be more financially …
Thanks to the internet, collaboration has never been so easy. If you need to learn about how to install a new irrigation system in your lawn, the resources are a few clicks away. You just need the time and motivation to make happen. On the medicine front, there has never been a time in the recent past (aside from a failed managed care push in the 1990s) that doctors have …
There was a recent news brief stating that the average internist generates about $2.4 million annually for the hospitals that they work for. While it’s no surprise that doctors help others make money, seeing a figure to your worth hammers home how much we sustain the health care system, often at our own expense.
This means that a hospitalist making $240,000 …
We all have either experienced the fears of starting our first job or will eventually do so at some point in our careers. It only happens once for everyone. Those of us who are in the market for a job change will end up reliving some of the challenges in job hunting; hopefully, we all have learned from our past mistakes. As I am advising upcoming graduates during their job …
Get free updates delivered free to your inbox.
