[Editor’s Note: This is a republished post from Passive Income MD (PIMD), the newest member of The White Coat Investor Network. PIMD is all about finding financial freedom through creating additional income streams. This post is about “side hustles” or some sort of income-seeking pursuit you have on the side of your main job. I had one of those once, then the side hustle became the main job and the main job became the well-paid hobby. It's made for an interesting first half of my career and it's quite an adventure wondering what the second half will look like. The original post ran here, but if you missed it the first time, it’s new to you! Enjoy!]
Let’s face it: being a doctor is great, but the job doesn’t always meet all of our needs. Sometimes we need a little something more – whether that be a hobby, time with family, or, yes, even money.
Enter the Side Hustle
A side hustle is simply a way to make an income apart from your primary job. Let me tell you, physicians are jumping onto this idea in droves, and it’s not just because they want to be rich. Trust me, if getting rich was our primary goal, we wouldn’t have gone into medicine.
There are some deeper things at play here, especially the concept of physician burnout. Unfortunately, I’m not the best equipped to handle that discussion. I’ll leave that to my friend Nisha Mehta, M.D.
I’ve highlighted physicians who have done everything from starting their own YouTube channels to starting their own companies. For some of these doctors, the side hustle has become a significant source of revenue. (If you’d like to talk about it and creating other sources of passive income, consider joining the Passive Income MD Community FB Group to learn, support, have fun, or just dream.)
But while money is an important part of the concept, there are other reasons a side hustle might be right for you. So here are five of those reasons, starting with the obvious:
1) Make More Money
When it comes down to it, everybody likes the idea of having a little extra income. Besides providing a safeguard against unforeseen expenses, a side hustle may help you take that dream trip you’ve always wanted, or perhaps help put your kids through college.
And if you doubt how significant the income from a side hustle can be, just talk to the White Coat Investor or Physician on Fire. Again, check out some of the True Doctor Stories. There are many people who have matched or even exceeded their physician incomes through what can be considered side hustles. I can now actually say that’s the case for me and my wife.
2) Hedge Against the Unknown
We all know medicine is changing. Who here is optimistic about the direction we’re headed in? We’re constantly at the mercy of regulatory changes and insurance carriers who often dictate the timing and amount of reimbursement. Some physicians are seeing reimbursements cut by as much as 10-20% from year to year.
Of course, the biggest worry is losing your job altogether. And if you think doctors have full job security, ask any anesthesiologist whose group got bought out by Sheridan (bought by Amsurg). One day you’re in, the next you might be out.
In the face of all that uncertainty, wouldn’t a little extra security be nice? Not only can a side hustle provide more financial security for yourself and your family, it can greatly reduce your daily stress, just by knowing you could make it if the worst happens.
3) Provide an Outlet For Your Passions
#imnotjustadoc (I’m not just a doc).
Some love to be creative otherwise through writing, art, or music, while others love to start businesses. Physicians are multi-talented, and why not contribute to the world using those other talents as well. Whatever your passions are, wouldn’t it be nice to have an additional pursuit that also happens to bring in a little extra income?
4) Allows For More Enjoyment in Your Day Job
No doubt you’ve heard that variety is the spice of life. Sometimes it can be nice to flex different muscles. Having other pursuits and passions, especially those that can produce some sort of income, is extremely gratifying. But I’ve noticed it also makes me appreciate being a doctor in some other ways as well.
With another outlet for my interests and other sources of income, my profession as a doctor goes from near obligation to another passion to pursue. In fact, in the past I’ve suggested that if you want to have a long happy career, make medicine a hobby.
5) Gives More Freedom… and Happiness
One of the greatest benefits of having a side hustle is simply the ability to choose what you do with your time. Happiness can sometimes be a very elusive state of mind, but I think a huge part of it is feeling like you have choices.
Personally, by having income-producing side hustles, it’s changed the outlook on my job, and I and my family are better off for it. Because of my own side hustles, I can choose to spend more time doing what I want–whether that be time spent with family or time spent at work.
Final Thoughts
The great thing about having a side hustle is that you don’t have to give up your career as a physician. In fact, I hope that you never give it up completely because the world needs great, caring, compassionate, and happy doctors. If your intention is simply to reduce your current clinical time, having a side hustle may give you an opportunity to explore that without putting your primary source of income at risk.
Maybe you’ve already come up with a business idea, or an invention, or thought of trying something on the side. Why not at least give it a shot? The worst that could happen is that you basically end up in the same place, maybe having wasted a little time or money. But depending on what your goals are, the upside could be tremendous.
If you’re interested, a good place to start might be the growing List of Physician Side Hustles and see if anything appeals to you.
What do you think? Do you think physicians should “waste” time and effort on a side hustle that could be spent on their practice or family? Why or why not? Any other good reasons for a side hustle? Comment below!
I completely agree with this post! And it was the three of you in the WCI network that encouraged me to start my own side hustles.
I’ve enjoyed making a medical invention, starting a website, and doing some expert witness work on the side to supplement my income. Being someone who “pours into something” when I do it, I’ve really loved how much enjoyment I’ve gotten out of things that are outside my primary job. I still do a bunch of clinical work, teaching residents, and more research than I probably should… but the side hustles have helped me see the bigger picture.
I’d encourage anyone with an entrepreneurial spirit to pursue a side hustle, because it is an outlet outside of medicine.
I agree. I have always had at least one. As more physicians become employed it is even more important. As an employee of someone else’s company, you have few opportunities for upside growth, equity building, tax-deductions etc. Also, your employer has more and more leverage over you as time goes on.
I used a lot of my “side hustle” money for CME or optional seminars and work/family travel. Later, I used $1K a month to help out my father financially. I wanted to help him but not take money out of my family’s takehome pay. After he passed away, I dropped that particular side gig. That kind of flexibility is tough to do as an employee. Also, the option of a solo 401K or SEP-IRA can grow your wealth fast.
These are some great reasons. I’ve encouraged colleagues to pursue their interest outside of work, but the biggest reason they don’t is perceived lack of time. The truth is, it doesn’t take too much time. Even a focused half hour a day into something that you enjoy will produce great results over time.
I started my side hustle, a realestate business, in 2001. Managed it in my spare time, about 10 hours a month. Today, 17 years later, that side hustle completely covers my living expenses with zero hours a month input from me. I put less money into realestate than into my retirement savings accounts, and the realestate is worth more, and has great cash flow. Not a bad return on investment.
Dr. Cory S. Fawcett
Prescription for Financial Success
Nice post. I would say that these ideas can be applied to almost any high income professional. If anything, I would think that a doctor’s need for a side hustle is probably the lowest of any high income professional though. Most other professionals operate in a pyramidal structure where there are less opportunities to earn a high income as you get older / advance in your career, i.e. there are more entry level positions than CEOs. Docs don’t really have this issue.
I agree. A physician income combined with a reasonable savings rate and a reasonable length career is plenty to reach financial independence.
For me, the best use of my time is to optimize my medical practice, save and generate passive income from my investments. I have a blog (not related to medicine or finances) and it took over three years of patient work and quality content to see traffic finally pick up. It is not monetized since the its goal is not income production. Income from such endeavors is definitively possible, but nothing happens overnight and nothing is truly ”passive”.
I do a few things in addition to my main job. They are all clinical practice, but different settings and populations. They’re great for me to mix it up when I start feeling dragged down by my main job. Variety is the spice of life after all right? Plus, with about 10-15 hours per week, I made over $100k last year on the side jobs. That’s a nice chunk of extra tax protected retirement savings and how I was able to pay off my student loans so quickly. I’m always surprised at how many of my colleagues aren’t interested in side gigs, even when they seemed motivated to moonlight during residency.