Being a doctor requires a very busy schedule and little time to earn money elsewhere. But, it’s no secret that most doctors have student loans. Even for doctors who attended school in their state of residence and received grants, 10 to 14 years of higher education takes a lot of money. In fact, the median medical school debt was $200,000 in 2019.1 Today, it’s likely even higher. So, many doctors choose to have multiple streams of income. In this article, we’re going to discuss some ways to earn some additional income to help you pay off your loans more quickly, or to just have some extra spending money each month.
Why Not Have Multiple Streams of Income?
It’s no secret that being a doctor can be stressful. Whether you are a family medicine doctor or a brain surgeon, you have your own stressors at work. Not to mention, many doctors who work in hospitals have to be on-call or are assigned the night or weekend shift. This leaves minimal time to focus on another job, let alone your other responsibilities. So, having multiple streams of income may not sound desirable to you, despite the money.
However, there are many potential options for doctors to earn some extra money. Thankfully, there are side-jobs and passive income opportunities for doctors that can take as little as a few hours a week to manage.
Side Jobs For Doctors
If you are itching to get your hands into another project to keep you busy or earn some extra income, a side job may be for you. Some side jobs just take a few hours per week to work on or manage.
Publish a Book or an e-Book
Doctors are some of the most highly respected individuals in society. The level of education and their understanding of the human anatomy is generally considered unmatched. So, many doctors choose to write a book or an e-book covering a topic they’re passionate about. This can be about any health, fitness, or nutrition topic they are passionate about. People love to hear from educated and respected individuals, so you already have the upper hand.
Now, the earnings from both types of books can turn into passive income. However, it can take several hours per day to write these books, so we put them under side-jobs. But, keep in mind you won’t be writing your book forever, and it can turn into a profitable side-job with the right marketing.
Invest in Rental Properties
Another stream of income you can opt for is investing in rental properties. Today, there are many property management companies that can manage your property holdings. All you have to do is buy the home, hire the management company, and make sure your tenants are happy. It can take a considerable amount of time to find a great home that tenants will love. Additionally, it can take a lot of work to deal with a bank for a new home loan. However, once you complete this process, you may be able to earn several hundred dollars in profits each month off of one rental home.
If you have a specialty that does allow you a considerable amount of free time, you may want to consider fixing up homes. This strategy has been known to turn into thousands of dollars in profits in just a few months, but could also result in a loss. Buying a home in a great neighborhood, fixing up some cosmetic issues, and then selling it for more money than it took to fix it up and purchase it can be profitable.
The downside of fixing up homes is that it takes a lot of time to do by yourself and could potentially be problematic, depending on your specialty. So, you may want to ask your spouse to help you, or you can hire contractors to do the work for you. Hiring a contractor will result in less profit, but this will make your side-job mostly passive income. You also need a reliable inspector to make sure you don’t buy a money pit that takes more money to fix than it’s worth.
Passive Income Ideas For Doctors
Passive income may be the best way to create another stream of income for a doctor. With their busy schedules, it’s very difficult to manage another job. So, passive income may be the most appropriate way to generate potential additional income. Let’s go over some ways to create passive income as a doctor.
Invest in Long-Term Stocks
There are many stock options that allow you to invest long-term. For example, investing in the S&P 500 has proven to be a trustworthy investment according to historical figures.2 Other stocks of companies that focus on long-term gains can also be an appropriate investment.
There is a misbelief that stocks have to create short-term gains, which require a great deal of attention. The truth is, you have the potential to earn money under both strategies if you invest properly. Warren Buffet, the business tycoon and CEO of Berkshire Hathaway, invests for the long-term, rather than the short-term. He has some stocks in his portfolio that he has held for over 30 years.3 So, we’re confident in saying that investing in some stocks that have proven to be profitable long-term investments and require little maintenance can be an appropriate investing strategy for busy doctors. Always remember, when investing, past performance is not a guarantee of future results.
Purchase Government Bonds
Many people have stocks and bonds under the same category in their brains. However, they are quite different. A government bond, specifically, is a type of loan you can issue to a government entity to help them with their spending. Most people choose bonds issued by the national government because they have a lower risk than local governments. You earn money from these bonds by collecting interest, which can be fixed rates or variable rates.
Hiring a Financial Planner
A financial planner can help you make informed investments with your salary. They can provide you with insight into how much to save versus how much to invest. Not to mention, they can provide you with strategies designed to potentially help you save thousands of dollars per year. Some financial planners, such as the ones at Dayton and Sydney, also help you with ways to structure your investment portfolio. No matter if you have been a doctor for just one year, or are planning on retiring soon, a financial planner can be a great way to help you choose a reliable method of passive income or a side job.
1 “7 ways to reduce medical school debt” Ken Budd, AAMCNews, Oct 14, 2020
2 “Historical data for S&P stock” Anonymous, Yahoo Finance, Apr 20, 2020
3 “15 Best Long-Term Stocks To Buy Now” Siraj Sarwar, Yahoo Finance, Dec 6, 2020