Table of Content
Why Should A Doctor Consider Passive Income? Is He Not Paid Very Well?
Why Should Doctors Focus on Passive Income?
List Of Passive Income Ideas For Doctors
Introduction
So, why should anybody begin to think about passive income? Well, passive income is the key that unlocks the door of financial breakthrough. Every one wants to be financially able to provide him/herself. Once you’re financially free, you won’t swap your time for money. You’re not a slave to money, you’ll be able to go wherever you want, any time any day. While asleep or even out of labor, you’ll still be able to earn. Some even go ahead to maintain their streams of passive income as their full time job, and build them to be able to generate massive wealth.
Passive income md is known to have said “anybody who wish to have financially freedom, can do it.” People are achieving it all over the globe just reading about success stories of other people. Actually with the stream of passive income, some people are becoming millionaires. Imagine having the freedom to travel around the globe. Visit the places that interest you and have money to spend too. You can be able to achieve this once you start earning passive income for yourself! And yes, it’s too sensible to be true.
Who is Dr Peter Kim?
Passive Income MD! Who is this Dr Peter Kim?
Dr Peter Kim grew up in East Coast. Presently, he is an anesthesiologist living in Los Angeles, California. In order to be able to fulfill his California dream, he followed his wonderful wife to the city. He has an amazing family, which consist of his wife, kids, and his dogs. According to him, he tries as much as possible to balance his time with his family and his job as a physician. While being supported financially by streams of passive income.
He started his practice as an anesthesiologist about few years ago. As the saying goes that life is full of uncertainties. A few things took place at his place of work – politically. He came to the point where he then realized he couldn’t really rely on his job completely, at least for income, to live the life that he so much desired, both for himself and his family. This prompted him to start looking outside his profession a way to figure out what else people are doing to gain financial freedom, and that landed him to real estate.
His blog
He started to put it up on a blog by writing about it. He shared his experiences, talked about his mistakes, his failures, some of the good stuff that was going on, and the next thing people started to come around organically.
Peter owns and runs his own blog “Passive Income MD” where he shares his knowledge with his readers, on how he’s putting his money to work via real estate investing. While still working as a doctor. To know more about Dr Kim, read his interview on how he became a passive income md and also of his journey on ways to earn passive income.
What is Passive Income?
The term “passive income” always get to be thrown around of late. Every on-line guru will claim to know the key of creating millions in your sleep. However, the fact remains, “passive income” isn’t that simple to realize and is really a reasonably loosely-defined pop phrase. There’s been a bit of discussion recently on a lot of forums about what opportunities, that await those who seek for passive income.
Other definitions
“Passive income is earnings that’s derived from a rental property, limited partnership or other enterprise in which you is not actively involved.” – Investopedia
“It’s all about you working hard now so you can be able to reap the benefits later.” – Pat Flynn, Smartpassiveincome.com
“Passive income is an income that you received on a regular basis, with little or no effort required to be able to maintain it.” – Wikipedia
Understand that the key here is little or no effort which many people often forget.
Many, if not all kinds of passive income requires an upfront investment of time and/or money to get it set up and running. You then might need some time in order to maintain it. However, the rewards should much more be able to outweigh the time or money you put into it. Read more on passive income here
Why Should A Doctor Consider Passive Income? Is He Not Paid Very Well?
For a few strange reasons, historically, society over time has encouraged us to depend largely on only one stream of income, meaning one job. When the money you are earning from that job isn’t enough, the logic is that you should do one of the following:
- Request for more higher salary
- Work more to do extra hours in your current job
- Get an extra job
The last two options, as we all understand, are a one way ticket to be burnout and other horrible things. Requesting a higher salary might also lead to burnout when you end up taking more responsibility in your current role.
Passive income is perfect to improve the level of financial security of a physician. There are a lot of reasons why a doctor might be unable to work or even return to work. This could include the following: disability, illness, job loss, suspension, needing to care for dependents, bankruptcy and many more.
More insight
If you work as a doctor in the NHS, you basically get told what you will earn according to your seniority (banding). Unless you’re starting as a Consultant, there’s basically no scope for you to negotiate.
In the private sector, there’s basically more scope for negotiation. In general, physicians are always advised on how to manage their money or reduce their expenses so they don’t need more money.
Yes, they’re highly encouraged to save, and even have a pension etc. But they’re not really told on the importance of having more than one stream of income which does not in any way mean having more than one job. More insight on how to teach your way to wealth.
Why Should Doctors Focus on Passive Income?
The decision that you as a doctor will make on what passive income you pursue strictly depend on your knowledge, interests, time capacity, how creative you are and your financial goals too.
As you can imagine, there are a lot of countless ways to generate passive income. However, there are very few genuinely straightforward and easy ways to do so sustainably.
The reasons why some doctors seek ways on how to generate passive income;
- Looking to earn extra cash.
- Learn something new.
- Cover your debts.
- Save to buy something big.
- Want a better financial security.
- Replace your income entirely so you could stop to work when you really want.
Whatever the reason is, it’s very important to be aware of the big WHY so you could choose your strategy carefully. You may need to try different things to reach their goals.
Doctors should focus on passive income to satisfy the following:
- Fits in with your own lifestyle (NOT the other way round!)
- Once set up, it will up 0-10% of your time per week
- Not in any way conflicting with any aspect of your clinical practice
- Do requires minimal to no outsourcing (e.g. paying other people to do some of it unless this far outweighs your returns)
- Does not in any way require you to be registered with a medical regulatory body (e.g. GMC)
- You can comfortably monitor and manage from any part of the world
- Depends largely on automated management processes
- Digitally run
The rationale behind these is that you will feel that for income to be truly passive. You will need to be investing in something that is generally with lower risk and is not dependent on you continuing to do your clinical work.
List Of Passive Income Ideas For Doctors
Passive Income MD, Dr Peter Kim asked this question: “wouldn’t life be much better if we had some additional, consistent streams of income?” He continued this by saying “more money is great, but the real value here is that it would take away some of the pressure off. It will free up some of our time. Even better, it would probably help us to enjoy our day jobs more.”
Some Passive Income Ideas for Doctors To Become Wealthy
When it comes to building wealth, generating of passive income is important. Many doctors only generate income via their salaries or even business revenues. However, there’s a world of passive income generation ideas for doctors that may make them rich without requiring any effort from them. Sounds interesting?
How to do they get started?
It is difficult to only select four or five passive income ideas to get you started since people’s choices, financial situations and goals differs. However if you face any difficulty in choosing from the list provided in this post, just pick one option and give it a try. Actually, growing a passive income stream, you will need time and patience. So you can get versed with one option before you move to another. Pick an idea, study the idea, and then dedicate yourself towards making it work until that income stream comes to fruition. You may also take some advice from Wealthface’s financial advisors in this regard.
Generate income
Passive income is an idea that you deploy your time and/or money and receive income with no additional work again. As a doctor there is need for you to do something to generate passive income up front, and then use it to generate even more income over time.
Examples of streams of passive income
Investing is a perfect example of passive income. Investing money in a company stock, and then receive a dividend payment and appreciation on the investment. Another popular instance is real estate. Whenever you buy a property or a piece of real estate, its rent will serve as a source of passive income. Even a general appreciation in the property’s value will serve as a type of passive income.
Most popular ideas
There are many popular passive income ideas, many of them fall in the alternative investment category. The most popular ones include the following: invest in the stock market, own real estate, invest in a business, and even simply keep your money in a high-yield savings account. All of these approaches will generate passive income, but they require up front capital to be effective. What then will you do when you want to generate passive income without really having much capital up front? Don’t worry, you might still generate passive income by investing your time.
High Yield Savings Account
This one might seem simple, but that’s only because it is. If you were to move your savings from a traditional, brick-and-mortar bank with a low-interest rate and into a high-yield savings account online, over time you will make a surprising amount of extra cash.
Invest in REITs (Real Estate Investment Trusts)
This is like a mutual fund that will hold different real estate projects. Perfect for someone who needs exposure to the real estate market, but needs the investment to be totally passive. They basically pay higher dividends than stocks, however, transparency and liquidity are lacking.
CDs (Certificate of Deposits)
These are like a savings account that you need to keep in place for a certain amount of time, for a guaranteed return. Again, simple, but a great place to park some cash that you might need in a particular amount of time and don’t need immediate access to.
Own Rental Property
This one is fairly straightforward on the surface – just buy a property, find a tenant, and get some cash flow as your income exceeds your expenses. The initial capital needed can be steep, and might require a larger time commitment than other things on the list, however, the payoff can be huge and last for many years. Read How I Bought My First Apartment Building.
Others include passive income ideas include the following;
- Write an e-book
- Affiliate marketing
- Use Cashback Apps When You Shop
- Start micro investing done by female doctors
Doctors On Fire
Doctors on fire are those amazing doctors generating passive income for themselves through the investment they have done. One may liken them to Dr. Peter Kim, the passive income md.
Read more on entrepreneurial spirit.
Dr. Amy Shah
She was continuously intrigued by nutrition and felt that it wasn’t incorporated enough into her medical curriculum and her everyday study as she had hoped.
Her passion for the subject led her to start writing articles on the topic, that became thus well-liked that she was inspired to get a website. That junction rectifier her to form a whole as a well-being professional for busy professionals.
Dr. Buck Parker
He is known for taking the advantage of the early days of the internet to sell P90x online with Google Ads. Actually, he got himself cast on the NBC and Bear Grylls Reality TV Series “The Island” while starting off his early years as a physician.
Dr. Michael Kim
He is a well known brand creator. After he learned behind the scenes of a large supplement company as their Medical Director of Research & Development for years. With this knowledge, he started his own company, AthletesRx, a sports nutrition company that focuses on giving a portion of their profits back to the community.
Dr. Eric Tait
With his passion for real estate, Dr Eric Tait created Vernonville Asset Management. A boutique private investment firm that’s focused on alternative investment methods. It gave him the opportunity to cut back on his practice of medicine dramatically and created the ideal work-life balance.
Dr. Saya Nagori
She was obsess with the idea of bringing the world of eye care into telemedicine. This prompted her to create a telemedicine company called SimpleContacts. This made the process of renewing a prescription and buying contacts online easy and painless.
Dr. Edna Ma
She is an entrepreneur known for creating a product called BareEase. A prep kit that helps to numb the skin of the bikini area before waxing or laser treatment in order to reduce pain. A Brazilian bikini wax got her brain thinking on how to improve the process.
She never had any experience with business or manufacturing, but she made up for it in her efforts and eventually made it onto Shark Tank. This led her to gain an investor’s interest who put the product on autopilot.
Conclusion
This article has gotten your entrepreneurial juices flowing. However, it is very important for you to find something that will suit your skills and dreams. If any one of these ideas seems to interest you. We recommend and encourage you to study more on passive income, read the stories of doctors on fire and know how you may be able to follow in their footsteps.
Have in mind that you might not succeed on the first investment. Don’t give up, get back on track and keep working with more research until you succeed. Be patient and find something worth the time you are giving.
Not all opportunities will be entirely passive so it is very important to state your end goals and what kind of life you’re trying to create. Make it happen.