#Team YOLO or #TeamInvest? Which side are you on when it comes to money?

Each year I try to read several books that will not only teach me something I didn’t know but will also challenge my views on a variety of topics, especially money. One of the books I just finished reading is “Die with Zero” by Bill Perkins. I have to say, this book has made me reevaluate my entire life.

As many of you know, I’m a planner. I’m also a frugal person who tries not to spend too much money, especially on material things. One of my life goals is to amass a great deal of wealth that I can use to retire early, give to my friends and family, travel the world, and donate to companies and organizations that make the world a better place. In order to do that, my initial plan was to work a lot over the next 10 years, get paid a high salary, and invest a large percentage of that money to increase my net worth. To put it simply, I was going to work a lot, make a lot, and invest a lot so that I could build wealth as soon as possible.

Bill Perkins in his book “Die with Zero” made me rethink that entire plan.

I still plan to amass wealth but the way I do that has definitely changed.

One of my biggest takeaways from the book was that instead of structuring my life to maximize my wealth, I should instead structure my life to maximize fulfillment. That means discovering what makes me happy and creating a life that allows me to have more of the experiences I enjoy. It means realizing that some experiences like international travel, late-night outings, or active outdoor activities are better had at certain points in my life (ie. When I am young and healthy). While this may sound basic, it caused me to rethink my life plan. Through this book I learned that I shouldn’t use my youth delaying gratification and sacrificing for my older self (at last not as much as I had planned). Instead, I can be fiscally responsible, but I should also try to enjoy life more along the way. In other words, I need to make sure I’m not delaying gratification too much.  Some experiences are best had when I am young and healthy so if I keep delaying, I may never get to have them (at least not in the way I desire).

Let me give you an example. One of the things I’ve wanted to do is go to China to climb the Great Wall. I keep telling myself I’ll go eventually, but I’m about to turn 32 and I still haven’t done it. This book has helped me see that if I keep delaying going to China, I may eventually be too busy to go (once I have kids) or too to enjoy the experience the way I imagined (if I delay the trip until late middle age or retirement). A trip to China wasn’t the only thing I was delaying. There were also experiences I kept putting off. One of them is going to Coachella with my friends. This book made me realize that If I keep delaying it then I may soon miss out on the ability to do this. Why? Because at some point I will get married and have children so leaving my newborn at home to spend all day at a festival in the desert won’t be as appealing. My point? Some experiences are better had when I’m young so delaying them may cause me to miss out on the experience entirely. 

And this brings me to the balance question.

What is the right amount to work vs play? What is the right amount to spend vs save? Yes, we should all try to live in the moment and maximize happiness with incredible experiences but shouldn’t we also save for the future and for a rainy day and invest for retirement? What is the right amount to allocate to each side and how do you know when you’ve gone too far in one direction vs another?

I have friends who spend almost everything they get, fail to save anything, and rack up tons of debt that they may never be able to repay. I have other friends who save so much of what they earn that they deprive themselves of incredibly meaningful experiences they may never be able to have again.

One friend accrued over $10,000 in credit card by buying designer bags and living in fancy apartments she couldn’t afford. Another friend missed out on his best friend’s wedding because he was too busy at his job to take the time off work.

Neither is ideal.

So when I think about this phase of my life (and you think about this phase of your life), we are all left wondering about the right balance. We don’t want to squander our youth and good health working way too much to amass more money than we truly need. But we also don’t want to spend too much too soon and fail to have the money we need to take care of our families, pay our bills, and invest for the future. What should we do?

The optimal balance may vary from person to person. It may also differ for each of us during certain phases of our lives. Perhaps when I’m younger I can invest a little less to have more money to travel and enjoy life before kids. Maybe when I start having kids, I travel a little less and spend more time/money investing for their future and spend more quality time at home. Then when my kids get older, I cut back on investing once more to have more memorable family vacations and gatherings with friends.

My point? It’s quite possible that our savings/investing rate may fluctuate throughout our lives. It’s also likely that the balance of work life and personal life may change as well. Our job right now is to start thinking about what that optimal balance looks like during the next year or two. For me, this will probably mean working part-time and making a little less money than I could in order to travel more, spend quality time with my aging parents, and cross some things off my bucket list. It may also mean that instead of investing a large portion of my income, I instead invest a reasonable amount (15% to 20%) and give myself the freedom and flexibility to enjoy the rest of the money in ways that maximize my overall life fulfillment.

Tell me, what is your optimal balance of work and play? How do you determine what amount to spend vs save? Is there anything you’d like to change over the next year?

My 2023 Goals

I know, I know. It has been a minute since I’ve sent a blog or a podcast to your emails. I’ve been a little swamped pursuing some awesome opportunities that have come my way, but rest assured all is well.

Before the end of 2022, I sat down and thought about some of my goals for 2023. It was around 9am on Dec 31st when I grabbed one of the notebooks I had lying around, picked up a pen and began to write. I ended up with 20+ goals, but I’ve listed 8 of them below, grouped into 4 main categories: Financial Goals, Personal Goals, Career Goals, and Health Goals.

Money Goals:

1. Save/Invest more money

2. Increase my giving

As someone who loves personal finance, I had to set some new money goals for 2023. From the time I was a young child my father ingrained in me the importance of doing 3 things with money before I spend it: saving for a rainy day, investing for the future, and giving to causes and organizations that make the world a better place. I’d like to continue that in 2023. Last year I made sure to invest 10% of my income and give 10%. This year, I’d like to increase both of those amounts.

My goal is to invest 15% of my income and give beyond that 10% amount (probably another 5% to family and friends as gifts, experiences, or business support). Along with giving and investing, I also want to save more. In 2022, I focused so much on investing that I didn’t have as much saved in cash as I needed. This became a problem when I moved across the country and had several expenses come my way that I didn’t expect. In 2023, I want to keep a little more in cash so that I can cover some of these unexpected expenses with less stress.

Personal Goals:

 3. Move back to Atlanta and spend more time with family and friends

4. Take 2 or 3 vacations

Last year, I moved away from my family and friends in Georgia to purse an incredible career opportunity for 1 year in California. I have no regrets and I am so glad I didn’t let fear stop me from having one of the most rewarding experiences of my life. Despite this awesome career move, I’ve been reminded of the importance of family and how much joy they can bring to even the simplest of experiences. In 2023, I want to carve out more time for my family. I have a new niece and nephew and my parents are getting older. Being able to maximize the time I spend with them is of utmost importance to me. One of my goals is to move back to Atlanta.

Another goal of mine is to carve out time to refresh and recharge. As a physician-in-training who has been in some sort of school or training program for most of my life, there has always been something new to strive for, study for, and prepare for. While following this trajectory has been beneficial to my career, I also need to make sure I build in breaks and find fulfilling ways to enjoy my life outside of work. I’d like to go to Hawaii (ideally this spring) and my father wants to do a family vacation to Alaska in the summer. I’d also love to go to Lake Tahoe while it’s still ski season and visit New York City in the winter. Perhaps in 2024 when I’m not planning a cross-country move, I can do some international vacations like Greece, South Africa, and Paris/Italy.

Career Goals:

5. Finish fellowship and pass my sports medicine boards

6. Get an awesome sports medicine job with a flexible schedule and good pay

As many of you know, this is my last year of physician training. Thank God! After I finish this training, I will take (and hopefully pass) the test to become a board-certified primary care sports medicine physician. My goal is not only to get that certification, but to also secure a primary care sports medicine job that allows me to use the skills I’ve learned to treat a young adult population in a supportive environment. But that’s not all. I want to pursue opportunities in the world of physician finance. I’d also like a flexible work schedule with adequate compensation that allows me to have the personal life and fulfillment I desire.

Health Goals:

7. Eat healthier and exercise consistently

8. Drink more water and less alcohol

Although I’m still young and in decent shape, I’m getting older. I can no longer eat junk and consume endless mimosas at brunch without feeling the effects on my mood, my energy level, and my sleep. This year, I plan to make better choices. For me, that means making sure I eat 3 to 5 servings of fruits/vegetables daily. It means decreasing my consumption of processed foods and simple carbs by eating healthier snacks and cooking more meals at home. As a lover of wine and someone who used to drink a glass each night, I’m now cutting back on that too. I gave up alcohol for the month of January and plan to only drink a few nights per week going forward. My goal is to enjoy the experience without feeling like it’s something I need to have to enjoy my night.

Tell me, what goals have you set for 2023 to make your life better? Are you on track to meet them?  

8 Questions to Ask Before You Join a New Practice

The following article is tailored for medical doctors but certain aspects may be applicable for young professionals in other fields.

Starting a new job can be nerve-wrecking and exciting. Along with negotiating salary and benefits, you should also ask about a few other factors to make sure you know what you are getting into. Here are 8 questions to ask before you join a new medical practice.

1. Why are you hiring? Some practices are hiring because they are growing. Other practices are hiring because people are quitting. What is the case at this location? Are people getting promoted which creates new openings? Or, have multiple people decided to leave the practice for one reason or another? Don’t just take their word for it. Ask to speak to a couple of the physicians at that practice. Find out what they like about the place they work and also ask what they would like changed. Speaking to other physicians will help you get an idea of what working there would be like. You want to go into your new job with your eyes wide open.  

2. What is the turnover rate of staff? Reliable support staff is key for a good work environment and quality of life. Find out what it is like at this practice. Have most doctors had their support staff for years or is there frequent turnover? How many medical assistants and nurses are there per doctor? Is there someone to assist with portal messages, medication refills, and patient forms? Many doctors get burned out due to lack of support and increasing administrative tasks so be sure that you understand the workload and have reliable support needed to get it done. The recruiter may not know this information offhand so reach out to the nurse manager or clinic manager, if needed.

3. Am I expected to supervise or work alongside mid-level providers? There has been an influx of physician assistants and nurse practitioners in the medical field. Are they hired at your hospital or clinic? If so, what is their role? Some practices have the mid-level discuss every patient with the physician. At other places, the mid-levels seem to practice independently. Find out how they are utilized where you are. Also find out if you are expected to supervise them. If you are, realize that you are now taking on more medical liability. Is the practice compensating you more for this risk? If you are expected to review their charts, are you given more admin time to accomplish this goal? Make sure you clarify this BEFORE you sign the contract.

4. What happens if I leave? No one goes into a marriage, expecting to get divorced. Nevertheless, break ups happen, especially when it comes to jobs. It is much easier to discuss terms ahead of time so make sure you ask. Inquire about the notification policy. Who do you need to tell and how far in advance must this be done? Also clarify if there is any money you will have to repay if you leave before a certain time frame? Are you expected to payback the full sign-on bonus or just a part of it? Also ask about malpractice and health insurance coverage. How does malpractice work if you leave? How long do you keep your health benefits? Lastly, clarify any rules or stipulations. Is there a non-compete or are you able to take a job nearby if you desire? Make sure you have all of these terms in writing in a place that is easily accessible.

5. Am I able to work part-time? Not every practice or healthcare system has kept up with the times or is structured in a way to handle part-time workers. Make sure you ask. Just because you plan to work full-time now, does not mean you won’t want to cut back to part time at some point in the future. Will this practice accommodate that? If so, what would be the pay difference? If you work part time are you still eligible for health insurance benefits? Will you have to repay part of your sign on bonus? Will you be given a different productivity threshold to reach? Understand the rules in place for part time workers and get a sense for how accommodating they will or won’t be with this schedule change if you were to desire it in the future.

6. What is the patient panel and insurance payer mix? Patient panel and insurance mix can drastically impact the revenue of the practice and your own personal satisfaction so be sure to ask about it. What are the patient demographics? Do you serve a diverse group of patients (in terms of gender, race/ethnicity, economic status, etc)? What percent of billing does the practice get paid for on average? Is this practice located in an underserved community with lots of Medicaid patients? Or, does the practice serve a more affluent population that tends to have private insurance? The type of insurance patients’ have will impact clinic reimbursements and your overall pay.

7. What are the clinic policies? Get a feel for the operations and interworking’s of your clinic. Is there a late policy for patients? Who handles forms like FMLA, prior authorizations, and work/school clearances? Also, understand how holidays work. Is your clinic open or closed for certain ones? Is there a chance you could be on-call? Make sure you understand how time-off works. Do you have to ask for it months in advance? Do you have to take it in 1-week chunks or can you request each day as needed? These are some of the intangible factors that can heavily influence your qualify of life.

8. How are bonuses structured? You deserve to be paid well for the work you do and rewarded for the efficiency you provide. Be sure to understand how bonuses work and clarify which milestones are required. For example, if you get a sign-on bonus find out if you get all the money up front when you sign the contract or if you have to wait until you start working. Also clarify if it is given in a lump sum or dispersed evenly over time? Along with the sign-on bonus, ask about productivity bonuses. Usually this is extra money you get for hitting a certain RVU target. Figure out what that RVU target is and whether or not it is feasible for you to reach. Healthcare systems may even have additional bonuses based on the practice revenue or patient satisfaction scores so ask about those as well. Lastly, inquire about a longevity bonus or a reward for staying with the same organization for a certain length of time. Is there some sort of reward for your loyalty in terms of an increased retirement match, a higher bonus, tuition reimbursement for your kids, a partnership promotion, or a cost of living adjustment? Their answer may be “no,” but it certainly doesn’t hurt to ask or negotiate something like that into your contract.

5 Things To Do Before The New Year

1. Show gratitude for good health in the midst of this pandemic. Whether you’ve made a full recovery from coronavirus or have been one of the lucky few to have never gotten infected, you’ve made it to the close of another year. Show gratitude. We are alive and healthy enough to make a living, be in our right mind, and make it through the Christmas holidays. That is a blessing. Good health is one of the things many people take for granted while they are young and spend a fortune trying to maintain when they are older. Be different. Part of showing gratitude for good health means making a commitment to take care of your body and preserve that health for as long as you can. Enjoy the holidays but make a commitment to exercise, eat healthy, and maintain a good mental state going into the new year.

2. Practice good self-care to become a better version of yourself. It’s not enough to just have good health habits. You also have to put in the work needed to become a better version of yourself. You are too smart and have too much potential to stay stagnant. You have to grow. And in order for you to grow, you have to practice good self-care and commit to getting better. That means doing what it takes to improve mentally, emotionally, physically, intellectually, and financially. You may have to hire a personal trainer, see a dietician, get a therapist, take a few courses, read some new books, and surround yourself with a social circle who will motivate you to strive for more.

3. Get optimistic about next year and refuse to stress about the unknown. You’re a young professional with a promising career, good health, and a sound mind. There’s nothing you can’t do. Instead of worrying about your job, your bills, or other things that used to cause you stress, adopt a new mindset. Before this year ends, make a commitment to write down some goals for next year. And dream big. Think of what you plan to accomplish, the money you plan to invest, the places you intend to travel, the people you hope to impact. Then visualize it. Picture yourself doing all these things and think about how it would make you feel.

4. Reaffirm your commitment to invest money and grow your net worth. If you’re like most people you desire to live a life of significance and get paid to do work that you enjoy. Perhaps you also want to travel the world, spend time with family, and live in a nice home. Your ability to do these things will be much improved if you build your net worth. The more money you have, the less dependent you will be on your job and the more options you will have to live life on your own terms. Make investments now to give yourself that chance. Set aside 10-20% of your income for building wealth and use that money to invest, pay down debt, and save for large purchases. One of the best things money can buy is control over your time. Do what it takes now and make the necessary investments to build your net worth so you can live the life you desire.

5. Never forget the importance of faith and family. Maya Angelou once said, “People will forget what you said, people will forget what you did, but they will never forget how you made them feel.” So do your best to let your family know how much they mean to you. Regardless of how much money you have, regardless of the type of career you build, or the kind of possessions you acquire, it’s vital that you remember what’s important in life. The love and support of your family/friends along with your faith and positive belief that you are here for a purpose and can do anything you put your mind to is vital. Take the time to tell people how much you love and care for them this holiday season and renew your faith in God who has allowed you to make it to this moment and all the future moments to come. Finish 2021 off with a bang and head into 2022 with a plan for this to be your best year yet.

Healthy Ways to Lower Stress During Match Season

Trying to match into residency or fellowship can be stressful. I’ve gone through the match once for residency and I’m currently going through it a second time for fellowship so if you are going through it too, I understand your plight. There are many variables that are out of our control and as much as we may desire to match in our desired specialty at our desired location and this uncertainty can lead to anxiety which has the potential to worsen our mental and physical health. Here are some things we can do to decrease our anxiety during this time. 

Lean on the support of others. While we are all pretty good at handling difficulty situations in medicine, we don’t have to do everything alone. Not when it comes to this. Although it can be tempting to keep this process to yourself in an effort to avoid the reactions from others in case things don’t go as well as you’d hoped, I’d caution you against that. You may not have to tell the world your plans, but leaning on the support of family and friends around you can help more than you know. Our loved ones help remind us that we are more than our careers and that we will have their support and well wishes no matter what happens. Being reminded of their unwavering support can help remove some of the pressure we place on ourselves and make the process much less stressful. 

Recognize that some things are beyond your control. As medical students or residents, we got to this point in our lives by being smart and completing the necessary steps to get through training. We are good at doing what needs to be done to achieve our desired goal. The match process is a totally different beast. Once you submit your application, you are then waiting for programs to review it, hoping they send you an interview invitation and praying they rank you high enough to match. As you go through this process it’s important to remember that what happens after we submit the application is beyond our control. Worrying about what will or won’t happen will not affect what happens so we must fight against the anxiousness we may feel. I often find that the process is much easier to manage when I transition from worrying about nonideal outcomes to instead hoping for pleasant ones.

Practice mindfulness with prayer, meditation, and therapy. It is entirely possible that you can try to think positively and know things are not in your control but still have moments of anxiety. During these times it’s imperative that you practice mindfulness. If you’re religious, try praying. If you don’t identify with a particular religion, you can also consider meditation. There are plenty of apps and YouTube videos that can help you learn techniques to quiet your mind and bring you a sense of peace. Many people, such as myself, find therapy helpful. Contrary to popular belief, you don’t have to have a mental health disorder to attend therapy. It can instead be used as exercise for the mind that helps you process things in a productive way, better understand your behaviors, and improve your thought patterns. Whether it’s prayer, medication, therapy, or a combination of all 3, practicing mindfulness can decrease anxiety and bring us more peace.

Find healthy ways to de-stress. Along with practicing mindfulness, it can also help to find active ways to de-stress. Consuming unhealthy amounts of alcohol, caffeine, or comfort food may make us happy in the moment but can have a negative impact on our overall health. To avoid this, consider other ways to destress that align with your sources of happiness. Are you someone who likes to workout? Do you enjoy yoga? Do you like to cook? Are you an avid reader? Is binging mindless tv at home your happy place? If you’re not exactly sure, explore a few ideas and figure out which ones you like. The key is to find ways to de-stress by engaging in activities that take your mind off of the process.

Be optimistic about the future. One of the best things we can do for our mental health during this period of uncertainty is remain optimistic. Being optimistic doesn’t mean you ignore reality or become naïve. It is the belief that most of the time, most things will work out for most people. It is realizing that although things are uncertain, the odds are in your favor. Adopting this mindset can put you more at ease. It can help you to worry less and hope more. During this time, healthy doses of optimism can go a long way.

Your priorities affect your lifestyle and net worth

When it comes to making money and living well, we all have different priorities. Some people choose to spend a great deal of money on their family while others choose to live a fancier lifestyle as a single person or invest for their future. Since you can’t rely a huge raise at your job or a large influx of cash overnight, you have to prioritize spending money on the things that are most important to you. The choices you make have a huge impact on your lifestyle and net worth. For example:

If you prioritize living by yourself in the city… realize that this simple desire is considered a luxury. Many people want to live in the city close to various entertainment options and nice restaurants. They value having their own personal space and want the freedom to come and go as they please. Since this desire is so common, the demand for one-bedroom apartments in the city is high. Because demand is high, the prices are high. In my current city of Atlanta, a modern one-bedroom apartment in the city can cost around $1500 a month, if not more. Paying $1500 a month in rent may require a big sacrifice. It likely means that you cannot save or invest as much money as you otherwise would each month.

If you prioritize investing money for retirement… realize that doing so means the paycheck deposited into your account each month will be lower than it otherwise would. For a person making around $60,000 per year, who plans to allocate at least 10% of their income for retirement and building wealth, their monthly take-home pay will decrease by about $500 per month.  For people who are already on a tight budget, getting $500 less each month may be a little too much to handle. For other people, the $500 per month is doable and they like knowing they are building their net worth and will be able to retire with enough money in the bank when they please. Investing money in retirement accounts is vital since it allows you to build wealth in a tax-efficient way but doing so may require you to live below your means. You may have to decrease monthly bills by opting to live with a roommate, travel less, or drive a more affordable care.

If you prioritize living a nice lifestyle (with fancy cars, good food, and lots of spare cash to spend) … realize this costs a lot of money. Choosing to live in a nice apartment or home will increase your monthly mortgage (or rent) each month. Choosing to lease or purchase a luxury vehicle may cause you to have a car payment that is well over $500 per month. Having spare cash to spend on concert tickets, frequent restaurant outings, and weekend bars can cost you hundreds of extra dollars per month as well. Although you have the freedom to live that lifestyle, understand that doing so may prevent you from being able to invest money for retirement. It may also preclude you from saving money in an emergency fund or being able to go on vacations without getting into debt.

If you prioritize giving money away… realize this may require you to make a sacrifice in another area of your life. As a Christian, I tithe. This means I give away 10% of my income each month. Because I give away 10%, I have 10% less money to invest, spend on housing, or use to save for a future vacation or wedding. To make up for this “loss,” I lived way below my means and shared an apartment with a roommate for 2 years until I was able to increase my income. Giving away money may be an important religious tenant for you as well. If so, think about how you can fit this financial priority into your current lifestyle. 

If you prioritize saving money (for a nice vacation, future wedding, or house down payment) … realize this may require you to live in a cheaper apartment, invest a little less towards retirement, or be more frugal in your disposable spending. Perhaps you have a goal of saving $5,000 a year to finance a large international vacation and build up your emergency fund? This may require you to save an extra $400 a month. This may require you to turn down a few happy hour invites or forgo a few music concerts. If that doesn’t work and you can’t figure out where to get the extra $400, you may have to get a side hustle or part-time job that can net you the extra money you need. 

If you prioritize having a family (with children) … realize that although having a family with children can bring you joy, it may also add to your monthly expenses. With more people, you may need more space which means getting a larger apartment or house. Because there are more people, you will also have to spend more money on food. If you have small children, you may have to allot a certain amount to daycare. All of these added expenses can amount to thousands of dollars per month causing you live a more frugal lifestyle and decreasing the amount of money you can allot to other things like travel, entertainment, and investing.

My point? You may have to pick and choose what to spend money on. Until you increase your income, you won’t be able to do it all. Part of being a fiscally responsible young professional means that you have to prioritize your desires and figure out what’s most important to you.

• Would you rather build wealth as quickly as possible by investing a large chunk of money for retirement or do you want your own personal space via a luxury one-bedroom apartment?

• Would you rather avoid going into debt by saving up for a fancy vacation and unexpected expenses ahead of time or do you want to spend your disposable income right now by consuming expensive food, nice cars, and city entertainment?

Part of being an adult means you have the freedom to make your own decisions and spend money how you see fit. However, you can’t have it all, and neither can I. What are your priorities? What will you choose?