Physicians are known for having big incomes. They’re also known for being big spenders. The combination of these two “facts” means most physicians end up having to work longer hours and retire later in order to support their spending habits. There has often been a pressure on physicians to “look the part” of being a high status doctor with large houses, expensive vacations and nice cars but their financial security has been the unfortunate victim.
It doesn’t have to be this way.
By controlling expenses, maximizing income, and investing left-over income, doctors have an opportunity to improve their financial situation, and achieve financial independence (FI).
Financial independence is when non-work income supports your living expenses and you no longer have to trade your time for money.
After achieving FI, some physicians may choose to retire early (“I’m sick of government cuts and longer hours!”); while others will continue to work (“I love my job and it is a calling for me”). The power of FI is that you have control about how you choose to use your only non-limited resource: time.
Non-work income is most commonly through stocks or bonds, but for some people it is through real estate, businesses, or online income. For doctors, because of time constraints, most will invest into stocks and bonds, with the occasional foray into real estate investment. Though there are certainly exceptions.
Achieving FI, whether done early or at age 65, is important for physicians because the vast majority of us will not have any form of pension. This means after retiring, our income will depend entirely upon what we have set aside during our working years.
I believe that there are unique opportunities and challenges for physicians to achieve FI, and in particular for Canadian physicians. There are excellent general Canadian websites on achieving FI (Million Dollar Journey, Canadian Dream, Millennial Revolution) and there are excellent websites for American physicians on achieving FI (Physician on FIRE, White Coat Investor). However, there are no websites that can guide Canadian physicians on achieving FI.
Therefore, the goal of this website will be to help fill that gap and help Canadian physicians, and anyone else who stops by, to achieve FI.
In the comments, tell me what you are interested in learning about in upcoming posts.