There is a saying that goes ‘you need to spend money to make money. There is definitely some truth in this, also for doctors.
In this article we will look at 5 key areas where you as a doctor can make beneficial investments.
1) Education and training
It goes without saying that as doctors specialise in a particular area, your income increases. However, rather than just focusing on clinical training and education, it also pays to educate yourself in other, non-medical areas, such as financial literacy and business skills for example.
Far too many doctors make costly investment mistakes or waste precious time due to a lack of basic financial knowledge.
If you are interested in pursuing this type of financial education, please contact me in relation to Medico CFO, which offers online personal financial and business education packages for doctors. You may even be awarded CPD points in the process, depending on your College.
If you are in private practice, you should have a reasonable marketing budget. The more you need to grow your practice, the bigger your investment will need to be. However, it is not a case of just blindly throwing money at different marketing strategies.
As part of your business plan you need to consider what strategies will be most effective for you and then measure the return on investment. In other words, which strategies are a good investment and are driving growth?
As a doctor, your time is immensely precious. You therefore have a tremendous opportunity cost – for every hour in the day that you cannot see or treat patients by outsourcing non-essential tasks, you are leaving money on the table.
It is simple: you need to outsource as much as you can – this goes both for your business life (i.e. hiring staff) and also your personal life (e.g. cleaning, etc.).
4) Hire experts
I have stressed the importance and benefits of engaging a team of advisers in previous articles (read HERE). Sure, working with professional advisers requires an investment, but think of it as outsourcing important issues that have a significant opportunity cost for you, in areas that you are not appropriately skilled in. What would be the true cost of getting it wrong yourself?
It really pays to surround yourself with people who are more experienced/skilled than you, but choose wisely. Contact me if you would like to receive an ebook on how to select a financial adviser.
5) Protect yourself
Whilst you may see insurance as a cost, in the long term it will almost certainly save you money and unnecessary stress, particularly in the event of an emergency or other unforeseen circumstances.
The main areas for protection are business insurance, personal insurance (mainly income protection) and asset protection (medical indemnity, legal advice). It is essential to perform a cost-benefit analysis though, particularly for insurance, as costs go up over time.
If you would like to discuss your personal circumstances, please contact me on 08 6160 5918 or email@example.com
Note: These ideas were sourced from Vicki Rackner MD and her book The Myth Of The Rich Doctor.
As I understand your time is extremely valuable and scarce, I am able to offer flexible meetings times, including outside business hours and during the weekend. I can even come and meet you somewhere convenient, or talk via videoconference on Skype.
My first consultation is free. I allocate up to 90 minutes to discuss your personal circumstances and to establish how I may best assist you. Where you already have an existing adviser, I would be happy to offer a second opinion. I always quote a fixed dollar fee before we start working together.
Please contact me on firstname.lastname@example.org or call me direct on 0432 885 295. You can follow me on Twitter @YvesSchoof or connect with me on LinkedIn to receive new articles.
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The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.
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