The Cost of Financial Independence
The Cost of Financial Independence
It is easy to look at someone’s net worth and ooh and ahh. The response from my monthly income reports is fairly telling. People see the numbers and wonder how I accumulated so much. They peruse the Rockstar Finance Net Worth tracker and daydream. To capture these dreams, there are countless blog posts about how to become a millionaire. If you just follow these three simple steps! The headlines are alluring and the answers are often straightforward and simplistic. I have even been guilty of such writing. But the truth is, the cost of financial independence can be steep. I’m not talking dollars and cents here.
Every decision we make is a tradeoff. Every hustle, side hustle, side gig, and entrepreneurial venture requires a certain input of time and life energy. When talking of personal finance, we sometimes are pollyanna about reaching our goal without giving due recognition to what we have given up.
I feel lucky to be financially independent and have the privilege of writing these words for you to read. To achieve this freedom, however, required a metaphorical pound of flesh. Was it worth it?
Let’s see what you think.
Doc Around The Clock
The fast track to financial independence, for me, started with maximizing my W2 income. I morphed from an employed physician, to a private practitioner, to a concierge practice business owner. With each step, I was able to multiply my earnings. So much so, that in my most fruitful year, our combined family income was over a million dollars.
This sounds great. And it was. But the cost of financial independence was real. Being the owner of my own concierge practice, and taking care of the sickest of the sick at the nursing home, required constant 24/7 attention. When I tried to have other doctors cover me, I received numerous complaints from patients and nursing homes.
The choice was clear. Either be present and available always, or lose the value of my brand in the community.
I decided to be present. I couldn’t have built the business any other way. As a result, I haven’t had a single day off in the last ten years. Even if out of town or visiting another country. My phone is always on. I take calls every day of the year, and many nights. My mobile is constantly interrupting me.
When we go to the movies as a family, I have to sit by an exit and usually miss a few minutes. Going swimming is difficult too. Any activity that requires quiet, or loss of proximity to a phone, is all but impossible.
Travel also falls to the wayside. Although I schedule seven day blocks of vacation, taking more than a week at a time is often hard. Over the last few decades my wife has travelled to Moscow, Quebec, Italy, and Spain, all without me.
Weekend Warrior
Weekends are prime side hustle time. And while the rest of the world sleeps, it is not uncommon to find my wife or I speeding down the highway to one of our rental properties. There may be a broken toilet or a faulty dishwasher. Something is always coming up.
Not to mention when one of the units is on the rental market. There often is yet another potential renter to show the property to. Realtors call at inopportune times, and utilities have to be managed and paid for.
The cost of financial independence is working your side hustles when on break from your main hustle. Weekends and nights are a must. When the going gets tough, sleep becomes the sacrificial lamb.
Money vs Experience
I mentioned above the international travel that I have missed because I was otherwise occupied with some money making scheme or another. I can’t even begin to count the number of family obligations I have missed. It seems like every week, my son or daughter has some presentation, game, or recital to attend. While other parents dutifully attend every function, I often have to juggle responsibilities and hope to pull up in time before the event is over.
And even when I’m there, I’m not all there. My phone is always ringing or buzzing. The emergent texts and phone calls pull me out of the auditorium or cause me to avert my eyes just as the winning goal is being scored.
In Conclusion
Financial freedom is a boon and I wouldn’t trade it for anything. But the cost of financial independence is real. It is patently untruthful to misrepresent the sacrifice, hard work, and suffering often required.
Is it worth it?
It was for me. Especially at the beginning of my career before children.
As I enter my mid forties, it would be hard to start this journey all over again.
How about you? What have you sacrificed to become financially independent?
Truth be told, I haven’t made any really hard sacrifices. Sure I’ve missed the odd night out or expensive holiday but this was as the result of a conscious decision, which I am happy with.
But as a result, my income and net worth are not on the same scale as yours Doc G, but the hours I work are much less.
I think you have it right and maybe I had it wrong. I think the journey should be as enjoyable as possible!
I hear you. I could not count the number of holidays missed because of call. I guess we know this going into medicine but I feel like it leads to burnout. I did every other weekend call in OB for about 10 years. We added others to our call group and it was 1 out of 6 when I quit OB. I sometimes feel like I missed an entire decade because I was on call or exhausted post call. Work/life is becoming a huge issue in OB/GYN and shift work appears but incomes drop too.
I totally get the feeling like you missed a decade. I bet many Docs would say as much!
Reminds me of a quote: “Opportunity is missed by most people because it is dressed in overalls and looks like work.” – Thomas Edison
Many people who have less than me, envy what I have. Some use the word “lucky.”
“The harder I work, the luckier I get” is a phrase from Thomas Jefferson. Seems this is not a new concept. Some things never change.
Dr. Cory S. Fawcett
Prescription for Financial Success
I love that Edison quote. It rings so true.
I love the Edison quote too. Personally, I worked a lot of 90 hour weeks while commuting an hour each way, for many years. I like to say that I worked 40 years, I just did it in 25!
What we failed on is the Tim Ferriss concept of scalability. Four hour workweeks are not possible if you can’t remove yourself from the growth. I never really figured that out. I admire those who have.
I like Tim Ferriss but scalability is not always possible. You bring up the important idea about front-loading sacrifice. Which, of course, is the topic of tomorrow’s post (that I just finished).
Hi Doc,
Financial independence at mid 40’s is a dream come true.
My cousin who is in general surgery and mid 40 is considering about putting down the scalpel. Not because he’s not passionate about his profession anymore but more like tired as he described it to me.
I’m getting tired too!
I totally relate to this. Sometimes I feel like I built this great life – nice home, good schooling, family, etc, – but I’m on the outside looking in . Being so busy sometimes robs me of my enjoyment of life. I need to outsource more of my low return work so I can concentrate on higher return work.
I think outsourcing is a good option. You also have some passive income streams. Increasing those, and decreasing your main hustle might also help.
Would you really call them sacrifices? This is the difference between employee thinking and ownership. The employee wants to engage in just enough of the bosses business to finance his own life, while the owner just lives his life engaged 100% of the time. Totally different motivation.
I see your point. I guess you could say “tradeoffs” instead of sacrifice. Every use of our time comes at a cost.
This is a perspective that isn’t explored and shared enough. You’re right, the true cost of financial independence may require a lot of sacrifice and suffering. But for a lot of people (I am suspecting you are in this demographic), the sacrifice is enjoyable and the “suffering” results in pride from all of the blood, sweat, and tears put into the hard work.
I haven’t sacrificed nearly as much as you have. I am trying my best to enjoy the journey (even though it may take a bit longer) as much as the destination. Thanks again for sharing your perspective.
I think enjoying the journey is the right idea as well as to make sure the “sacrifices” are palatable.
DocG. My husband and I always went to the kids and family events. We would forgo income for that regularly. And it still built up. The only time we could not was when we were residents and did not get the choice.
Once we came out, we decided- we were NOT having any of that! Our kids would only be young for so long and we would regret it.
And yes, we’ve done those bleeping every second night calls during training. Those were awful. The current residents are smarter now. Good for them!
I agree. The next generation has done better.
Sounds like quite a hectic pace, DocG. Finding the right balance is hard to do. Sometimes careers need you to be “all in” and that is tough with a family. I’m finding with each passing year, the career is taking a backseat to family time and I’m ok with that.
Nice post!
I think careers do need to be “all in” especially in the beginning. In fact, I’m writing about that tomorrow!
Your summary is another reason why it is so important to start early. Not only does compounding work on your side but energy levels just decrease as life goes on. There also seem to be other things to focus on like families and spending a little bit of time pondering why are we all spinning around on this rock called Earth!
Great read.
Wow Damn Millenial, your comment just completely summed up the ideas behind the post scheduled for today.
I sacrificed a good deal and worked my butt off too, but probably not to the tune that you have. You’ve earned every penny.
One thing I did in particular was front-load my sacrifice years early on. From age 23 – 33 I really hit it hard. Sometimes a 90 or even 100 week happened. Sometimes I thrived on the busyness, and other times I took to beer to get the edge off.
Ha! Great minds think alike. See today’s post!