As a private practice otolaryngologist, you likely make a substantial salary that allows for a more than comfortable living. According to Medscape, otolaryngologist salaries are still going up (between 2016-2017 there was a 13% increase in the average ENT’s salary).
However, there’s a phenomenon occurring that many ENTs are unaware of: doctors spend more than they earn. Even private practice owners – who think they will have plenty of money when they retire or will make millions when they decide to sell – are experiencing this issue. Over-spending is causing many ENTs to either perform surgeries longer than they want to (or perhaps should be) or retire with a more modest lifestyle.
So, why are ENTs spending too much?
Right out the gate, many ENTs finish school with up to $400,000 in student loan debt. These payments alone can cause financial strain. On top of that, physicians feel pressure to live a certain lifestyle – even if they can’t afford it.
Think about it, do doctors live in apartments? Do they drive clunkers? No, of course not. Many physicians have nice houses, nice cars and take lavish vacations. Even though ENTs make an above average salary, it’s not always high enough to cover the student loan payments, mortgage, car payments, family costs, etc.
Unfortunately, realtors, insurance companies and banks WANT you to spend more and more money. Add the societal pressure and it’s a recipe for disaster. If you find yourself in this situation, you can’t keep telling yourself you’ll plan for retirement later.
Now, no one is saying you can’t have these nice things, because you most definitely can! Obviously, you’ve worked hard and long for your education and a great career, and you deserve all the financial rewards that come along with those things. However, you must have a plan for how you will get there ONE DAY. Don’t rush out and buy a mansion if you’re still making huge student loan payments!
You have two ways for a more fruitful retirement = 1. Save more money or 2. Make more money
To plan for retirement, you can focus on following a budget that allows you to enjoy your life and save money at the same time. Or, you can focus on living your same lifestyle, but adding ancillary services to your private practice and generate passive income. There are profitable ancillary services that will generate hundreds of thousands of dollars in your business, even when you’re out of the office.
You should also consider other aspects of your business that could be improved upon. If you can reduce inefficiencies, hire physician employees and implement successful marketing strategies, you will create an even more profitable business. By taking these steps, and adding ancillary services your patients want and need, you will provide enhanced patient care and grow your business faster than ever.
Don’t worry – there’s an answer that makes this a lot easier for private practice ENTs. If you don’t think you’re prepared for retirement, you need to find out how FYZICAL can help you improve your business systems and implement the #1 most profitable ancillary service in your ENT practice. Click here to request more information!