Diversify Your Income, Your Life Might Depend on It


When it comes to investing, managing risk is everything, and in order to do that, all the smart folks out there say that the key is diversification. Reference this oldie but goodie from the White Coat Investor on the topic.

If you’re investing in the market, that means that you’re smartly allocating your funds to an array of stocks and bonds, or you’re putting your money into a broad-based mutual fund, like Vanguard’s Total Stock Market Fund. Some investors will take it a step further and say that you should diversify from only holding assets in the stock market by also investing in real estate, commodities, and/or precious metals like gold.

Well, it all seems like common sense –  don’t put all your life and future retirement eggs into one basket, right? You wouldn’t put all your money into one stock and hope that your retirement fund will be where it needs to be when you need it. Then why do we do that so easily with our sources of income?

As doctors, most of us are more than content to rest our entire lives and our family’s lives on one source of income – doctoring. Well, we’re now seeing the effects of doing that, as insurance companies and government regulations now dictate our profession and uncertainty is rampant. We’re seeing more and more burnout and dissatisfaction as reimbursements have dropped, (electronic) paperwork has increased, and job satisfaction has plummeted. It hurts because we don’t have any other options and feel trapped.

Well, there’s a solution for that… seek additional sources of income. Seek them early in your career (although it’s never too late) and don’t be afraid to try new and different things. I’m trying to do the very same. If I have to be the guinea pig for it and it inspires someone, then I’ve done something good. Take a look at my income reports, take a look at these ideas and stories like this. There are physicians doing this very thing and it is possible. Take a look at the White Coat Investor, Physician on Fire, and Future Proof MD, they’re hustling and doing it as well through their respective sites.

I’m not saying that additional sources will solve everything, but it might relieve some of the pressure. Maybe that’s all some people need, a little relief to bring some contentment back into their daily lives.
So take the same advice that seems to make so much sense when it comes to investing, and diversify, diversify, diversify your income. Your family and life just might depend on it.


  1. Excellent. Couldn’t agree more. Nearly all my income comes from clinical care at this point, but as my stock and bond investments grow I should be able to bring in some passive income from that as well. Once I have enough saved up, I plan to cash flow a rental property to diversify my investments. The pinnacle of diversification for me would be starting my own business but that’s probably quite a few years off. Thanks for the post!

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