I am Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits.
When building a profitable practice, it’s important to remember that time is money. Time flies, doesn’t it? You’re a teenager planning for the rest of your life, and then … POOF! … much of it is in your rearview mirror. You sit down and write out a bucket list of things you want to do before your time is up, and suddenly, your time is up! You’re twenty-nine and dread turning thirty, then suddenly you’re forty and wish you could be thirty again.
Time makes victims of us all. It also teaches us valuable lessons along the way. We learn that the people we thought were cool aren’t always as cool as they seemed. We learn that the first seemingly innocent cigarette we smoked under peer pressure can become a lifetime addiction accompanied by serious health problems.
And many times, we learn much too late that time can be a moneymaker.
The Power of Compound Interest
The wise young person indeed starts saving for the future today. Look back on your life. How much more secure would you be financially had you started tucking away a little bit of money in your teens or twenties?
Take a poll today, next year, and a decade from now, and most people will tell you they weren’t prepared financially for retirement. That’s a shame, especially when you can use the power of compound interest to prepare you for your golden years.
Imagine you only get a 3% return on your savings over time. That’s very doable. The S&P 500 Index has averaged an annual return of 11.88% from its debut in 1957 through 2021. So, managing a 3% return annually over time is a highly likely scenario.
In this example, if you only saved $20 each month for 35 years, you would have put away $8,400. At an annual return of 3%, your investment would be worth $14,868. Salting away a $20 bill monthly is manageable for many of us. Make that $200 monthly, and compound interest would give you $148,680.
You Can’t Go Back in Time, So Start Now
The sooner you start to save for your future, the better. Unless you have a time machine (and if you do, can we take it for a spin?), there’s no going back. Start today if you haven’t been benefiting from compound interest’s power over time.
Start putting some money away. As you can see in our examples, a little bit of money adds up. The more you can save, the better your financial health in the future. Life teaches us that time marches on. Get it marching to the tune of a stress free-retirement, or possibly an early retirement, by adding to your savings today.
Avoid wasting money by making the most of your time! Check out our blog post here for tips on how to do this by prioritizing your work.
I’m Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits. Please go to businessofrehab.com/guide to pick up the free guide to help you determine the best business entity for your new practice.
Attention, Physiatrists! Stop leaving money on the table. Sign up for the free video series: How To Build A Profitable Practice in 90 Days or Less: http://www.sixtytosuccess.com