• 02:54:22 am on October 6, 2008 | 7
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    Scott’s “Lee’s List”

    In my haste to publish, I did Scott a disservice by not writing this intro! Scott seems to have a very altruistic ‘purpose’ (mine is far more self-indulgent, at least on the surface, although I hope that all of my ‘traveling’ produces some benefit to others along the way), one that I did not fully understand until he wrote his “Lee’s List”

    My Life’s Purpose: To have the financial, spiritual, emotional and physical freedom to use my knowledge, skills, talents and wisdom to help others.

    In order to make this happen, I believe I will need the following:

    1. Replace AT A MINIMUM, the monthly net income required to support my family’s current lifestyle to free both of us from the rat race of ‘work’ and allow us to live our life’s purpose  (replacing active income with passive) – $4k per month net or $48k/year.

    2. To Run a clinic to help people with little or no ability to pay and/or poor insurance coverage – A bare minimum monthly overhead to run a clinic where only the required staff(2-3 assistants) are earning pay, but I am not due to lack of collections would be approximately $15k/month, which totals $180k/year.

    3. Traveling abroad to help patients – AT A MINIMUM, 2 trips per year with my wife for ‘mission’ type patient care in countries where health care is virtually non-existent or very poor. This would be at a minimum, 1-2 week long international trips, business class, but not always at the finest hotels due to possible destinations @  $8k per trip = $16k/year.

    3. Having the time and money to travel with family on 2 personal vacations per year – Business class, 3-4 star hotels, minimum 1 week vacations = $10k per trip = $20k/year.

    4. The payoff of my student loan is currently $140k and the payoff on my primary home mortgage is currently $323k, which together totals $463k. These payoffs would be added to our ‘NUMBER’ to make us debt free. This does not include the payoff of our rental property, but we are allowing the payoff of the primary mortgage and student loan to be our only ‘increase in lifestyle’ for now. We will let renters continue to pay down the mortgage on our rental and continue to refinance this every few years, while raising rents according to market conditions which will also effectively add passive income to allow us to increase lifestyle slowly overtime.


     

Comments

  • Debbie 8:29 am on October 6, 2008 | #

    Scott, I did not even THINK about including “extra” money in my numbers for paying off debt I currently have. I’m not sure why, considering it’s the reason the money I currently make doesn’t seem to be enough! But then I thought about it some more, and if you replace your existing income with passive income (which is what I said I wanted to do as well), wouldn’t that passive income then be used to pay off your debts- in the same way that your active income is doing now?

  • AJC 10:23 am on October 6, 2008 | #

    @ Scott – A cheaper way is simply to free up your time to volunteer locally and abroad, or is actually owning your own ‘free’ clinic important?

    If the latter, don’t forget to factor in the costs of the doctors that you will need while you are traveling … in fact, do you want to be the principal doctor at all? Or, do you want to set up the clinic/environment and merely do as many/few sessions as you happen to have the urge? All of this costs!

    @ Debbie – You and Scott are both right …. for now, you get to make a decision: Are your debts likely to be paid off before you reach your DATE?

    If YES, then you can ignore them for the purposes of your Lee’s List and calculating Your Number.

    If NO, then you can still ignore them for the purposes of your Lee’s List BUT you will simply add what you think is likely to be left to Your Number as a lump sum.

    Remind me to cover this again, in case I forget when we get back to (re)calculating Your Number, which is the next cab off the rank in this ‘grand experiment’.

  • Scott 12:13 pm on October 6, 2008 | #

    @ Debbie – I am adding in the money needed to be debt free to the “Number”. I figured, what’s the point in being in any more bondage to any banks if I have already reached my number and want to focus on living my life’s purpose.

    I think It will have a greater impact when you not only reach your number, but have no debt to think about as well. And on top of that, if you have replaced your passive income with active income AND you no longer have the debts that you once did, you can use the extra money as a lifestyle increase without requiring additional passive income, even though it is the same amount coming in. I would much rather have a couple of extra nice dinners out with my wife with my student loan payment money, instead of sending it over to Sallie Mae Inc, so they can have nice dinners with their spouses with it… 😉

    @ Adrian – Actually I have thought about replacing myself entirely in the clinic with other doctors, however, I was just focusing on the bare minimum needed to make this happen as we talked about before, to get to the minimum number needed in the maximum time I can deal with. Close the office for the week or 2 i’m gone on these trips.

    As far as having the clinic period, I just feel that it is a great way for me to give back in abundance with my knowledge, training and talents, without having to deal so much with insurance bureaucracy.

    I could just own a couple of clinics that other doctors run, for passive income, but i’ve seen this played out in reality and the “owner” works harder than anyone else due to hired doctor woes, turnover, poor business performance by the hired docs, even though they may be clinically gifted, etc.. In every instance i’ve observed and interviewed successful multi-clinic owners, it seems the owner of the clinics is running around like a maniac 7 days a week trying to keep the multiple offices afloat because even on a generous bonus system, the contracted dr’s never put the kind of effort required to keep it running without constant contact by the owner(ie; one clinic’s doing well on it’s own, one is barely breaking even and one is going out of business).

    So I figured multi-clinic ownership would be “one” of my money making 201 strategies to get to the “Number” with, and then as I make my approach, just sell these clinics to the doctors running them, then they can “make or break” themselves without me having to stay on their backs to do well.

    In any case, this is definitely all a work in progress to get down exactly how do this and I’m sure the specifics will change a hundred times 😉

  • Di Eats the Elephant 12:22 pm on October 6, 2008 | #

    Scott, Have you looked into the Doctors Without Borders program? It sounds like exactly what you are talking about and if you are wanting to run a separate program, could give you some pointers on things to look for and things to avoid….
    @ AJC – sorry for not coming in from the other portal – quick jump in and my quicklink here was the old one….mea culpa

  • Scott 12:50 pm on October 6, 2008 | #

    Hey Diane, I’ll check it out. Thanks for the tip!

  • Lee 4:18 pm on October 6, 2008 | #

    Scott I believe that most every denomination has a “Medical Missions” organization that would also be good resources. My wife who is an RN I have traveled to Ukraine twice with an Orthopedic Doctor friend of mine who has made ten different trips on his own. He selects his team and goes to teach the Russian and Ukrainian Doctors how to do knee & hip replacements and gets a lot of outdated equipment donated as well as other personal items.
    I said all that to say that he normally asks his team to raise $2,500 each and he pays the rest for a team of six for 17 days. Needless to say that a great cost but it has worked for him.

  • Scott 7:29 pm on October 6, 2008 | #

    @ Lee – That sounds terrific Lee. I’m sure those have been some really cool experiences and I bet a lot of people felt lucky and glad that you, your wife and the orthopedist made the trips to help out!


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