Money Meets Medicine Podcast
MMM #43: How to Build a Non-Clinical Business
Have you thought about the various routes to financial independence? Of course there’s making a lot of money with your physician income and then saving a lot of that money. But there’s another option as well. Have you thought of having a non-clinical business? Your options are unlimited and the pay is great. Keep on reading so you can know how you can set yourself up for success!
What You’ll Learn:
In today’s episode of Money Meets Medicine, “How to Build a Non-Clinical Business,” you’re going to learn:
- The hybrid method to reach financial independence.
- What you need to know to build your non-clinical business from scratch.
- The magic of making money that’s not related to your physician job.
- Keep in mind that money is not the answer to your problems!
- Learning contentment no matter where you are in your career and business.
- And more!
Quotes To Remember
“You can save enough money, where then you can have a safe withdrawal rate and draw down from that nest egg that you’ve saved up over the years to be able to be retired. That’s one form of financial independence. The other is to have enough non-clinical sources of income.”
“No matter what it is, the reason is that you want more freedom in your life and you think that doing this would provide that. So I’ll let you know that if you have an interest right now… let’s just go ahead and have that out there, because that is ultimately what it’s all about.”
“I’m going to tell you right now, having gone through this, having multiple six figure sources of income in my business over the last three years, that they are not the answer to your happiness, my friend.”
Listener Question of the Week:
This week’s questions comes from Dr. Patterson and Keith:
Dr. Patterson emailed…
While listening to your episode from February (“recovering from financial mistakes”) I noted that you typically get a new iPhone every year or so. First, great show! I am sincerely appreciative of the work you and Jimmy are doing with the show. Second, would you be willing to sell me your old iPhone next time you cycle through to a new one? Thanks for considering the offer and thank you even more for your educational efforts.
Keith emailed in…
Thank you for all the hard work you do to improve the financial literacy of medical professionals, your work has been incredibly valuable for our family as I’m sure it has been for many others.
I know that you cannot provide specific advice but I have a question that I hope you might be able to provide some guidance on and that may be of interest to your audience.
I am nearing the end of my fellowship training and am working on our family’s written financial plan as we prepare for this upcoming career milestone. When I was much younger and knew far less about personal finance, I opened a traditional IRA with an advisor that my parents used. For several years, I contributed money made while working summers and during college to this IRA and it has been sitting there since then (over 10 years now) invested in three different domestic and international growth funds. Now I’m trying to figure out what to do with this account as part of our overall financial plan but am not sure how to think about this. As part of our long-term financial plan, I would like to utilize the Backdoor Roth IRA option when we have enough income to do so but I understand this is not possible with a traditional IRA carrying a balance due to the pro-rata rule. What are my options here and what should I be thinking about as I try to make the best plan?
Each episode, we are going to start including listener questions as they are provided to us. So, if you have a specific question you’d like answered on the podcast reach out to us! Email [email protected] or [email protected]
TPP
You might also be interested in…
Show Me the Money (In the Financial Industry)
The personal finance industry is meant to help you manage your assets, but particularly for doctors, many questions remain around what that kind of support actually means.
Does your financial advisor have your best interest at heart? Do you know how they get paid? Are they transparent in their disclosures about how their company actually works? Where are the conflicts of interest?
Because you can rest assured there are conflicts of interest. It’s just a matter of how they show up. And once you can say “Show me the money” and find them, that’s when you can make intentional, informed decisions regarding your personal finance.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Charitable Giving for Physicians
Does tithing or charitable giving play a part in your personal finances? Should it? As usual, we’re not shying away from taking a deep dive into a very personal topic. Personal finance is personal, maybe never more so than when it comes to deciding how you want to give back.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Making the Most of Your Paycheck
You’ve done it – your training is complete and now you’re finally getting a paycheck fit for an attending physician. You think, “I’ve arrived! I’m going to start making so much more money.”
Famous last words. If you’re not prepared, that is.
Seemingly unassuming, everyday expenses still have the potential to wreck your new paycheck and your budget. I’ve seen it many times over the years: you try to be careful, but you (understandably) want to enjoy your hard-earned money. Costs creep up on you, things snowball. Suddenly, your post-tax paycheck is no different than it was in residency.
You thought you knew how to spend money wisely, but now you wonder, “What was the point of all my hard work to get here?”
Don’t worry. You can still enjoy the money you make while being aware of five main money traps that a high-income earner like you could be susceptible to if you’re not paying attention.
Are you ready to live a life you love?
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