One way to improve your odds of long-term success and stability is to stay on top of your finances. In addition to the importance of clarity and wisdom in managing money, for most folks financial success is based on just a few simple ideas: How to acquire money, how to save it, and how best to spend it.
The feel-good story of the Chilean miners rescue has wider significance to the financial world. Not just in the relative fortune the 33 miners will rake in from book and film offers, but in the way the blossoming of human opportunity can lead to financial success.
There are an endless number of financial myths -- adages people widely believe, even though they are dead wrong. Here I've identified five money myths that struck me in some way as useful to dispel. (You tell me if I pegged it about right.)
It used to be that doctors waived or reduced fees for patients facing financial hardship simply out of compassion -- now the act requires a second thought. Something as simple as waiving a co-pay is prohibited today by a thicket of federal and state laws. Before you give in to the urge to do the right thing, consider this.
In pop-culture, golf, doctors and money often go together. In reality, I've never met a doctor who takes the mythic Wednesday afternoon off to play golf. For those of you interested in getting started, or just interested in having a dialog about this endlessly fascinating pursuit, let me review a few basics based upon my experience.
I've been told that the classic journalism story is a dog bite piece. So did you realize that dog bites are responsible for 1/3 of the liability freight on your homeowner policy? Nibble on this and a few more interesting facts.
The long-lasting recession has had one not-too-surprising upshot: More individuals put away the credit cards and embraced a cash-only lifestyle. Studies show people who do so spend less and save more. That's the good news -- but there are definitely downsides to ditching the plastic.
With home prices tanking and foreclosures soaring, there's been a rush to rent over the last few years. But for those who have the financial ability and credit-worthiness to purchase a home in this market, the decision to buy vs. rent is not so cut and dry.
Even in this era of economic hardship, the term "frugality" is rarely used. Nor do you hear much of its cousin, "thrifty." Perhaps the reason is because we haven't suffered long enough -- it's only when scarcity prevails over generations that thrift becomes part of the culture.
We all know, and will begrudgingly admit, that taxes have to exist to pay for key services that only some arm of government can provide. Police? Check. Fire? Check. Roads? Check. Military? Check. And so on, ad infinitum. But it is the ad infinitum that encompasses most of the conflicts. Where does the spending, and the taxing, or the indebtedness stop, and at what cost point?
A refrigerator on the fritz and a relocating neighbor teach our blogger that there's potentially hundreds of dollars a year that can be saved, and a more orderly environment and clearer conscience to be had, by giving up our all-consuming habits.
Periodically, I like to digress and recycle factoids and crumbs for thought financial. It is with this plan in mind that I humbly submit today's offerings.
For a plausible explanation of how the nation's economy melted down in 2008, read "The Big Short" by Michael Lewis. The book not only boasts solid writing, but it's peppered with wisdom and insight into the workings of Wall Street.
The median family practitioner retires with a net worth of $2.5 million and the average cardiologist has $5.2 million. Although these numbers may qualify doctors as being "rich" among some people's perceptions, most physicians would say they sure don't feel or act rich.
More doctors, including yours truly, are avoiding Medicare patients, not just because of pay cuts but because you need to be a master coder to get fully reimbursed. And a crucial factor that isn't often mentioned in the debate over doctor pay is that senior patients take far more time per visit -- time that is not money.
Doctors need to start thinking seriously about insurance company ratings and rankings, as our incomes and status will increasingly become hostage to them. History shows that attempting to bring incentives to bear on physicians to reduce costs or improve care often carries a high risk of backfiring.
Although the negotiating aspect of selling a used car hasn't changed, the actual process is a whole different ballgame. It's worth exploring how to approach a used-car sale, because those of you who figure the benefits of a dealer trade-in outweigh the hassles of selling a car yourself are paying dearly for the privilege.
Non-profit organizations often need money, marketing advice and managerial shoring up, but what they really require is more advice and training at the board level. Being a non-profit board member is a unique position -- and one many physicians should consider.
This week, the doctor mulls the many intersections of money, credit, debt, consumerism, the lending industry, stock prices, real-estate values, hedge funds, healthcare and horses. Buckle up.
What in the world does "macroeconomics" have to do with personal finance? Well, it turns out quite a bit. Many people believe we have no control over the big picture, just our response to it. But by understanding larger forces better, we can increase our control over the bits within our individual grasp.
Travel in Europe is still very expensive -- though it has little to do with the rate of exchange. The dollar has strengthened against the euro in recent months, but money-exchange costs, credit-card fees, and the American urge to shop often wipe out any financial gain.
Many people use debt for immediate gratification, or to plug a leak in a sudden financial hole. But used properly, debt can be a strategic financial-planning tool. Dr. Brown offers up two examples of how his own financial advisor saved him money by helping him to use credit wisely.
In medicine, efforts, results, and knowledge are not equal. Further, society values and incentivizes us differently. Is it "fair?" That's probably unanswerable, and we need to realize that and just grow up.
For docs to consider changing their career was unthinkable just a few short years ago, but gender equality, increasing cultural and racial diversity, the recent switch from majority private practice to majority salaried practices, and a sea change in attitudes and expectations among young docs have put many old assumptions about doctors' careers to the question.
Call them what you will, I've built up a collection over the years of certain gems of practice and financial wisdom that can really be helpful. I have spared no expense in sifting through the clutter, I mean, valuable files that I have assembled over time to bring this precious collection to you.
When some 900,000 Americans die from easily preventable causes, are we really practicing "health" care? Let's drop the euphemism and call it what it really is.
Charitable giving can weigh heavily on both your conscience and wallet if you don't have an effective strategy for donating. The targeted giving will make your donations much more effective.
When an office manager says, "Don't worry, I'll take care of everything," it's all too easy to punt the ball away and never look back. It's the path of least resistance for you...as well as those that want to take from you.
We had a seat at the healthcare reform table, but we were window dressing, not leaders. Now we must recognize, not only that life will go on, but that this bill is written in pencil. We must now assume our proper roles as the primary advocates for rational, efficient, and encompassing maximization of our patients', and the nation's, health.
In these recessionary times, with revenues falling in all jurisdictions, governmental bodies have been scrambling to find income where they can. And with T-A-X being a 4 letter word, they have been creative in coming up with euphemistic alternatives for the same thing.
