Read time: 3 minutes
Everybody wants to make more money, but not everyone knows how to go about making it happen.
Let’s discuss that problem using my specialty – anesthesiology – to provide some specific figures. (But everyone can apply this to their clinical field, just with different figures because of different supply/demand forces.)
The conventional wisdom solution
Most people who work as anesthesiologists, whether in a small practice or a large academic hospital, think the same way when it comes to earning more income:
They commit their time, energy, some nights, some weekends, some risk of medical malpractice, etc. in exchange for job security, a 401k/403b with a small match, subsidized health insurance, and the aforementioned salary.
But when it comes time to consider making more money, they only consider the immediate solution: “I’ll work more, to make more.”
They already trade their time for money, so why not trade more time for more money?
Why they don’t get very far
Unfortunately, this is a relatively low-yield way to earn more money.
You’re already working full-time, anywhere from 40 to 60 hours weeks to start with.
So you try to add 20% more time each week at work in order to make 25% more money each week (because let’s assume there is some incentive to the late evenings, nights, or weekends that you take on).
So you used to make about $10,000 each 40 hour work-week and now with the 25% additional, you are pulling in $12,500. So if you made $450k* each year before, you’d be on track to make $562k* going forward.
(* – assuming you work 45 weeks, with 7 weeks vacation… which is much better than every single person that I know working in big-hospital, academic anesthesiology… but I digress!)
That’s not bad at all. But you had to trade a lot of free-time to get it and you might miss some dinners or weekend ball games, but hey – money is money!
Unfortunately, you’ve been underpaid from the start.
Always know your value.
How I doubled my pay rate
“What a time to be alive.”
– Future (the rapper)
Given the remarkable mismatch in the supply of and demand for anesthesiologists, there is money to be made. (See Newsletter #007 for a short discussion of labor supply and demand.)
I’ve made it no secret how I desired to work less so much that I quit my job to work as a locum tenens independent physician contractor. It’s been such a benefit to my family and me that I can’t stop talking about it…
I was able to find very well compensated opportunities to provide my anesthesiology services, while working less.
Let’s use some actual numbers to see why it is such a no-brainer to recommend: those labor supply/demand forces drive the going rate for an anesthesiologist’s services upwards of $450/hour. (That’s the most I’ve ever heard of and is not the amount that I get paid.)
Everything will vary based on the location, the setting, and the level of desperation, but trust me that $325/hour is a very reasonable, average going rate in the northeast..
So let’s imagine you left that job from above and struck out on your own to lock in $325/hour.
You want to see how far that gets you if you work your old schedule which was 40 hours/week:
$325*40 hours = $13,000 each week (and with 45 weeks comes out to $585k yearly)
That’s similar money to before, but there’s a big difference here: time.
With this locum tenens contract position you can work 8 fewer hours and make the same money (actually it’s $500 more each week, but let’s call it even).
This is basically what I did: I found higher compensation positions which allowed me to trade less time, for more money in order to reclaim my sanity.
And guess what?
If you want to make even more money, then you might be able to pick up more shifts at the new job at this higher rate.
Even better ways to make money
Those with a real entrepreneurial mindset will want to take this even further.
If you are wanting for more, the real way to earn money is to decouple it from your time: sell/license a product/course, earn investment returns, etc.
Because in all of the above examples, and in all employment everywhere, time is the limiting factor for earning.
But I’m not here to wax on about things that I don’t have first-hand experience with.
Summary
This isn’t a Get-Rich-Quick scheme.
This is a career, a livelihood, a path forward.
The only barrier to entry is to start thinking like an entrepreneur and be willing to take calculated risks.
Work smarter and find the biggest money lever you can to pull.
That’s it.
That’s what it took for me to trade up in money and trade down in time.
If you only want the money, then more power to you.
But you have to go out and get it.
It won’t find you.
Whenever you’re ready, here are 2 ways I can help:
1) Let’s talk through what choosing your own path through medicine looks like. Over the phone, confidential, free: https://calendly.com/tonyvullo/20min
2) Free Guides and Resources to Help You Reclaim Your Time and Autonomy: www.tonyvullo.com
Help Patients. Work Less.
Do More of Everything Else.
