Show Me the Money Honey
Is Everything About Money?
No, everything isn’t about money – but in my opinion, work is!
I think work isn’t your life, but instead, funds your life. Which doesn’t mean you should do something you hate -at least for not too long. I’m not one to talk, since I made a major career change twice but I did have a plan and didn’t just jump off the bridge to nothing.
Our Relationship with Money
Everyone has a relationship with money, whether we like it or not. It came from how we grew up, and then whether we do the same thing as our parents did or the complete opposite or somewhere in between.
Money has a lot of meaning to people. Some people think money is evil and the pursuit of it is terrible. Some people think having money is desirable. I don’t think money is everything but I do think it generally makes your life easier and more pleasant and most of us want that.
During the last week, I’ve talked to three doctors who were all out of school about the same amount of time – around 8 to 10 years.
Dr. Payment. I saw Dr. Payment in the Mercedes dealership in Newport Beach as I was strolling around deciding if I need that new GLE. I don’t know him well at all, but starting talking. Every car he saw he asked the salesperson, “What’s the Payment?” It wasn’t even always the same model or same year of car. But the questions continued: “What’s the Payment?’
I think if you have to ask the payment, you can’t afford the car.
I also think if you ignore me and still worry about the payment, at least negotiate the price of the car and don’t just accept whatever price gets you the payment you want.
When do I think you can afford an expensive care, you might ask? Well, I think you can afford an expensive car when you have no consumer debt, have a fully funded retirement plan, and can write a check for that car. If you aren’t there, keep your car purchase minimal!
Dr. Small Practice
I talked to another doctor on the phone, who was considering selling his small practice in Orange County. He’d owned it about 5 years.
When I asked him how much he took home from it, he said about $20,000 a year. I thought we must have a bad connection. HOW MUCH – I asked again? Yep, $20,000 a year was the answer. And, he had to work somewhere else 4 days a week to support himself and support that practice.
General Rule: If you can make more working at <INSERT ANY FAST FOOD PLACE>, then get rid of the practice- at pretty much any price. Don’t let it suck your time, money and energy out of you any longer!
I think almost no doctor should buy a very small practice or a leasehold unless they have a very clear and concrete plan on why such a purchase makes sense. It is extremely difficult to grow a practice in a heavily populated area. Why make things harder for yourself than they need to be?
Dr. Smarty Pants
Dr. Smarty Pants proudly contacted me and told me he’s saved $100,000 already and had paid off half his student loans. I couldn’t be more happy for him. He was now considering buying a practice and wanted to make sure he could make at least as much as he was making as an associate from day one on the practice he was considering buying.
I asked him how he did it. His answer was simple. He said he just kept on living like he’d been living in school. Brilliant!
This is a doctor who will be successful and end up rich. He was saving, eliminating debt, and asking good questions so he could make good decisions for himself.
It is your choice how you live your life, what you spend your money on – and it totally affects your future. Think about it and decide what kind of life you want!