The “No Money” Syndrome
Approximately 80% of the healthcare professionals we meet with feel that they “don’t have any money.” However, when we dig deeply into this matter, this “feeling” has two possible sources: either they are not generating enough income, or they actually are making enough but the spending is out of control leaving little left over in terms of net income.
Since we have written endlessly about how to increase the gross income, let us address the bottom line issue with a few quick tips:
- The principle to apply to income and spending is: fast in, slow out.
- Work out what equipment and office upgrades you will need in the future and by what date, and start setting aside weekly or monthly what you will need till it is all accumulated. Then buy the item.
- Avoid emergency cheque writing. Try to write all cheques on a scheduled basis.
- Budget for things like supplies. You can usually estimate when you are going to need to place your next order. This avoids emergency cheque writing.
- Don’t use your LOC unless it’s an EMERGENCY. If you don’t have the cash in your account, you probably shouldn’t be spending it. Build up a cushion in your bank account to use in case of EMERGENCIES.
By the way, this system works perfectly at home too! Creative Commons Attribution: Permission is granted to repost this article in its entirety with credit to The Art of Management Inc. and a clickable link back to this page.