Buy Back Your Time

Using your income to buy back your time

Time…your most important resource

Here at The Motivated M.D. we spend most of our time writing about physician personal finance.  However, many of our readers share a similar goal: to eliminate debt and expedite financial freedom.  This generally is achievable but requires the same determination and self-control required to successfully complete your medical education. 

The last thing many want to hear as we come into our attending salary is “live like a resident.”  Often, unfortunately, this is exactly what it takes!  Reaching financial independence usually takes a few years.  This can be achieved by making an attending income but spending like a resident.  By doing so you can redirect your excess income towards eliminating your debt fast.

What about when we are debt free?

What do we do once we are debt free?  For many, the answer is straight forward.  We then reallocate student loan payments towards retirement savings, 529s, investments, real estate, etc.  There are an endless number of ventures to pursue with your money once you are debt free.  

In the age of COVID, burnout has played a pivotal role in how healthcare workers view their jobs and lifestyles.  Many are turning to financial independence as a means of working fewer hours or retiring from medicine completely (i.e. the FIRE movement).  Can we use our high-income professions as a means of improving our quality of life?  The short answer is yes.  But to what extent?  Do we truly have to work part time, or retire in our 40s just to counter burnout?  With this article, I hope to convince you that other options exist. 

Buy back your time

Enter the concept of ‘buying back your time.’  To individuals who have eliminated their debt (or are pursuing PSLF), use a small portion of your attending income to outsource tasks that are time consuming.  These tasks can range from paying someone to do your grocery shopping (think Instacart) to hiring someone to walk the dog (think Rover). 

For example, cleaning the house or mowing the lawn.  Each of these are tasks that I am capable of performing.  However, when I am on an inpatient service these tasks get pushed to the wayside.  I do not prioritize cleaning because it can be time consuming.   When I return home from work… I am exhausted.  These are opportunities where employing others to work for you may be beneficial.  ‘Buying back your time’ really symbolizes your ability to offload tasks onto others.  By doing so, you open more time in your schedule. 

Let’s face it… after you have eliminated your debt, you are focused on growing your nest egg.  Your excess finances are no longer being shunted towards aggressive debt reduction.   This frees up a large sum of money, often thousands of dollars or more!

The Physician Philosopher argues increasing your spending by 10% when you get a pay raise.  I would argue that paying off hundreds of thousands of dollars of debt is a substantial pay raise. 

Debt reduction is a pay raise

Let me paint a picture for you.  If you are a physician who makes approximately $200,000 after taxes, who carries a debt of $200,000 or greater, then (depending on your loan term) you have likely been paying between $4,000-$8,000 a month.  If all the sudden you pay off your debt, you now have an extra $4000-$8000 a month!  Continuing this example, 10% would mean $400-$800 you can spend on yourself each month.  This rule works by allowing expansion of your lifestyle by 10% of your raise.  The rest you should save.  If you are saving 90% of your pay increase, you’re doing incredible!

With that extra 10% ($400-$800 in the above example) you could employ a home cleaning service twice a week.  You very well could hire someone to do your yard as well.  This can be hours of time you buy back weekly.  This is time you can spend exercising regularly, dining, seeing your children, relaxing, reading… or pursuing that side hustle!

Letting go

Like many in the healthcare filed, I have a type A personality.  I like to be in control.  Moreover, I want to do it all!  I want to clean my house because it will be performed to my standard.  I want to maintain my lawn because I will trim the hedges just-so.  Unfortunately, as a busy physician, I often have to sacrifice quality time to do these tasks with regularity.  It can be hard to give up control of these tasks.  Not necessarily because we love utilizing our time in such a way, but because it has become an expectation.  These expectations of ourselves can be difficult to sever. 

Start slow.  Hire out a single task and see how it goes.  Was the cost of employment in your budget?  Was the task completed to your standard?  Did you unlock a few hours in your day you would not have otherwise?  What did you do with your new found time? 

If you found yourself able to let go emotionally from the task, as well as monetarily, then build from there!  Hire out a second chore.  Incorporate these expenses into your budget.  Continue to trial offloading menial tasks and see what freedom this allows your schedule. 

A disclaimer

A quick note, I really only recommend ‘buying back time’ to individuals who are debt free, pursuing PSLF, or need to offload a task for mental/emotional reasons (i.e. burnout prevention).  If you are working to aggressively eliminate your debt, you really should be putting every excess dollar towards your debt reduction.  However, I do recognize that there are other extraneous circumstances.  For some, a task may be so cumbersome that it needs to outsourced.  I get that! 

To those working on debt reduction, stay the course!  You will soon find a time where you are able to reallocate funds towards ‘buying back your time.’  For those who are debt free, take the time to review your weekly routine.  Are there any tasks you are willing to pay someone else to do?  If so, flex your financial power and buy your time back!

Stay motivated!

The Motivated M.D.

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