Maximizing Income

How To Build a 6 Figure Rental Portfolio in Less Than 3 Hours a Week

Posted on by yfpadmin

How to Build a 6 Figure Rental Portfolio in Less Than 3 Hours a Week

The following is a guest post from Dr. Ryan Chaw. Ryan is a full-time pharmacist who built a rental portfolio on the side, going from zero to $10,755 per month in just 4 years. He is the founder of Newbie Real Estate Investing where he teaches others his system: how to find a college town to invest near, analyzing a deal, generating tenant leads through strong marketing tactics, and how to self-manage college tenants so everything is hands off and automated.

For most new investors, real estate is like a dragon.

It’s big, scary, and you’re afraid of getting burned.

Even scarier is having a bunch of immature college students renting out your bedrooms. But that’s exactly what I specialize in.

“Aren’t you worried the students will trash your house?”

This is a question I get asked all the time whenever I tell somebody that I invest in the student housing market.

My answer is always the same…

“Absolutely not. No way. Nope.”

In fact, thinking that college students will trash your house is one of the biggest myths of college town real estate investing.

Unfortunately, this myth is what holds most real estate investors back from one of the most lucrative markets in all of real estate investing: renting out by the room to college students.

You’re probably wondering right now, “Huh? I don’t understand. How’s that a myth?”

I’ll cover that later in this article, but let’s first talk about why I chose student housing.

How to Start Investing in Real Estate in a College Town

Most real estate investors leave half of their cash on the table when they rent out their house only as a single unit rather than renting by the bedrooms.

For example, here’s what one of my houses would have made if I rented it out only as one unit:

Source: Rentometer.com

But by renting out each bedroom separately, here’s what it’s actually making:

I doubled my rental income by renting by the bedroom.

Because I own 4 of these houses, I’m now making $10,755 per month in rental income!

It wasn’t always like this though. I started out as a typical pharmacist. I graduated in 2015 with my Doctorate of Pharmacy and worked two jobs as a retail and hospital pharmacist. I quickly realized that I didn’t want to work as a pharmacist until I was 65 after talking to an older pharmacist colleague. He told me, “Honestly, I just come here for a paycheck now. I wish I could have retired a lot sooner.”

I realized that while pharmacists typically make over 6 figures, this alone isn’t enough to achieve financial independence.

My inspiration to get into real estate came from my grandpa who had purchased several rentals in the SF Bay Area back in the 50s before Silicon Valley existed. As we all know, Bay Area prices went up like crazy, so Grandpa Chaw was able to retire early and live mostly off the income from his rentals.

I knew I wanted to get into real estate as soon as possible because it’s truly a time game. You buy as soon as you can, then wait for it to grow over time (as your rent goes up, your property price goes up, and you write off tons of money in taxes). When I got my pharmacist license, I decided to work a lot of overtime to save up for my first downpayment, which I used to buy my first rental in 2016.

Unfortunately, I made a lot of mistakes on my first rental and lost over $30,000!

I got a call from one of my tenants one night who said, “You’ve got to fix this. Sewage is pouring out of the kitchen sink and it’s all over the floor now.” I hired a clean-up crew and a plumber to assess the situation. It turned out that I needed to replace the whole sewage line. This cost me $9,000! I had to pay for the repairs out of pocket since this happened only 2 months after I purchased the property and I didn’t have much rental income.

On top of that, I didn’t realize the house had virtually no AC system. I ended up having to install a mini-split HVAC system which cost me $15,000.

Lastly, I had a vacancy for 8 months because I had no idea how to advertise my bedrooms. This cost me $5,200 ($650 per month x 8 months).

At the end of it all, I was feeling very depressed and discouraged. I was tired of having to take calls during my lunch breaks and late nights on weekends. I thought I had made a huge mistake investing in real estate. But I kept at it because I knew if my grandpa could do it, I could do it too. Over the next 4 years and after much trial and error, I created a system for student housing that I now teach to others. The system allowed me to cut the amount of time spent on my rentals to less than an hour a week. I’ll summarize the steps below.

There are 7 steps to creating your own student housing model that will significantly reduce the amount of time you spend on your rental properties.

Step #1: Do your research ahead of time.

Check your local city laws first to make sure everything you’re thinking of doing is legal. Some cities may require you to get a business license to rent by the bedroom. During this COVID-19 pandemic also check the college website to confirm they are scheduling on-campus learning (most colleges have some on-campus activities, whether it be with labs or experiential programs). Luckily, most graduate school students still need access to on-campus buildings to do their research.

Step #2: Choose a college based on enrollment data, college ranking, and the programs that are offered there.

You need to make sure to choose a college with a good market size to rent your bedrooms out to. Consider targeting more Ivy League type colleges because most students that go to those types of colleges received straight A’s in high school and are therefore more serious about completing their studies. Ivy League type colleges also offer opportunities for higher degrees such as medical school, pharmacy school, and nursing school. These types of students likely don’t want to waste their time partying in college. Finally, because these colleges are so popular, most of the students will be from out of the city, state, or even country, so they are definitely searching for a place to stay close to the college.

Step #3 Make your place attractive to college students.

I try to find properties that are in close proximity to campus so that I can charge premium pricing. I also look for houses with plenty of parking. This allows the college students to bring a car so they can drive to their experiential functions such as health fairs for pharmacy, nursing, and medical students. Check out the neighborhood to make sure it’s a good area so the parents feel safe letting their children stay there.

Step #4: Calculate your rental amount and know how much to charge if you put two people in one bedroom (like a couple).

If you are cheaper than on-campus housing, then you automatically have market demand. Because you provide more room and more privacy than on-campus dormitories and charge cheaper rent, it makes sense for a lot of students to just stay in one of your bedrooms. Keep in mind that putting couples into a single bedroom will allow you to charge more for that bedroom.

Step #5: Know what to look for when deciding if you can add or convert a room to a bedroom.

Whenever you can create an extra bedroom, that’s another $500-$700 in additional rental income per month. This is huge! Even adding one extra bedroom will pay for the majority of repairs and expenses that come up on your house throughout the year. Doing this step also typically allows you to at least double the amount of rental income and cash flow you make on the property.

Step #6: Market your bedrooms well to create urgency and demand.

You need to know how to create demand and urgency by highlighting the benefits of staying in your bedrooms vs on-campus housing. And, you have to advertise in the areas where your target market (i.e. college students) hang out. If you have a lot of students interested in renting out a bedroom at your property, you’ve really got the upper hand. You can choose the best tenant out of a large pool of applications. Consequently, it’s really important to get your marketing right so that you can be picky in choosing a tenant.

Step #7: Create systems and teams to help you self-manage the properties to save yourself a lot of money.

Personally, I spend less than an hour a week managing my rentals because I have systems in place for it. I empower my tenants to take on certain responsibilities. Payments are made through a phone app called Zelle since students are tech savvy. I’m able to manage my rentals while working as a full-time pharmacist job because I have these systems in place. And the best part is that I don’t have to waste 8-12% of my revenue on hiring a property manager.

Now that we covered the 7 steps, let’s go through the most important part of this process: how I completely avoid problem tenants to reduce my work load even more.

Marketing

As mentioned earlier, I do targeted marketing toward the type of students I want to attract. I’m looking specifically for the types of tenants who are more concerned about passing their midterms and finals than throwing wild house parties.

Screening

I screen social media accounts. You don’t want people who smoke, drink a lot of alcohol, do drugs, or party nonstop. Any of these types are hard a “no” for me.

Be strategic in pairing up housemates

I strategically pair up college students. This creates a balance so that even if there are a couple of immature college students in a property, they’re kept in check by the more mature, professional college students. I then also have at least a few people at every house who take on responsibilities to maintain the house. Sometimes I’ll have a tenant who may be messier, but his/her mess gets cleaned up by their parents or the other tenants.

Set yourself up for success

I minimize common space and turn those spaces into additional bedrooms. Not only does this boost my profit, but there literally will be no space to throw a large party.

That’s how simple this can be!

I believe real estate investing should be fun, simple, and enjoyable rather than this big, intimidating beast you have to slay. It also allows you to give back and provide affordable housing. If you’re interested in learning more about how student rentals can shortcut your way to financial independence, I offer a free PDF guide on how to do this and in my emails I offer you quick practical tips on how to determine the best location to invest in, red flags to watch out for, and how to create automated systems that you can implement in your own real estate portfolio at www.newbierealestateinvesting.com.

Ready to take the next step in your real estate investing journey?

One of the most important aspects of real estate investing is building your team and that all starts with finding the right real estate agent.

But as a busy pharmacist, researching, vetting, and connecting with real estate agents can be tough.

That’s why we partnered with our good friend Nate Hedrick, The Real Estate RPh, to offer a free home buying concierge service. As a pharmacist and real estate agent himself, Nate’s got the insider’s view. He has a unique perspective on the home buying process and has used it to help many pharmacists achieve their real estate dreams.

With this service, Nate helps you craft a plan that works within your budget and financial goals, connects you with a pro that you can trust, and helps you stay the course.

Click here learn more about this free home buying concierge service and to book a free call with Nate.

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These Tax Benefits Get Unlocked When You Have or Adopt a Child

Posted on by yfpadmin

These Tax Benefits Get Unlocked When You Have or Adopt a Child

The post is for educational purposes and does not constitute financial advice.

Everyone talks about how much it costs to have or raise a child, and for good reason! Having or adopting a child is not an inexpensive thing to do. You may be surprised at how much you spend after factoring in the accumulated costs of necessities like healthcare, food, housing, and clothing on top of activities, sports, and the toys that they have to have. According to a 2015 report from the U.S. Department of Agriculture, middle-income married couples could spend $233,610 to raise a child until they are 18. After adding in inflation, the cost rises to $284,570!

That’s obviously no small chunk of change.

The good news, aside from the immense amount of joy they can bring into your life? Having or adopting a child can unlock several key moves you can make that can help to lower your tax bill and allow you save for future tuition expenses.

1. Child Tax Credit

Taxpayers who claim at least one child as a dependent on their tax return may be eligible to receive the Child Tax Credit (CTC). The Child Tax Credit is different from a tax deduction. A tax deduction reduces your taxable income, but a credit actually lowers your tax liability or the amount that you owe the IRS. For example, if you have a $5,000 tax bill and are eligible for the Child Tax Credit, you’d owe $3,000 instead. Another amazing feature of this credit is that you’re eligible to receive a refund for up to $1,400, so if the credit brings your tax liability below zero, you could receive a refund up to that amount. Woohoo!

For 2020, the Child Tax Credit is capped at $2,000 for each qualifying child and begins to phase out for those earning $200,000 filing single and $400,000 married filing jointly. To qualify for this credit, you must have earned at least $2,500 in the tax year.

Check out this IRS tool to see if you have a child that would qualify for you for this credit.

2. Child Care Credit

Paying for childcare is a huge expense that parents and caregivers have to face. According to the Center for American Progress, the average cost of center-based child care for an infant in the United States is $1,230 per month. With a family care center or in-home daycare, average costs are around $800 per month. If you have multiple children, you’re obviously looking at a larger bill.

Fortunately, there is the Child and Dependent Care Expenses Credit to hopefully provide some relief to families that are paying for out-of-pocket child care expenses come tax time. The Child and Dependent Care Expenses Credit is designed as a non-refundable tax credit that can cover 20% to 35% of your expenses. Qualified expenses include babysitters, preschool or nursery school, day camp or summer camp, daycare costs, and before and after school care. There are no income restrictions for claiming this credit, however it is capped at $3,000 for one child and $6,000 for two or more dependents that live with you for more than half of the year.

The caveat is that you can only claim this credit if you are working or are looking for work during the time of care, so babysitter expenses for date nights out (or in, thanks COVID!) don’t count. Additionally, you can’t claim payments to your spouse, the parent of the dependent child, a dependent listed on your tax return or your child who is 18 years or younger whether they are listed as a dependent on your return or not. Additionally, you can’t combine this credit with expenses that were paid with pre-tax money from a dependent care flexible spending account. To use the Child and Dependent Care Expenses Credit, Form 2441 must be filled out when filing your taxes. In order to claim payments made to a care provider, you must provide their name, address and Taxpayer Identification Number or a Tax ID number for a preschool or daycare.

3. Adoption Tax Credit

Adopting a child today can cost up to $50,000. The cost is dependent on the country you are adopting the child from, the type of agency or adoption professional you work with, and medical, travel, or other adoption expenses you may incur.

The Adoption Tax Credit is in place to help relieve some of the expenses you may have during the adoption process. This tax credit is non-refundable meaning that it can help lower your tax liability, however you won’t receive a refund because of it. The credit is also only available for the tax liability for that year, although if you have a remaining balance on the credit you’re able to carry that excess forward for up to five years. For 2020, the maximum credit adoptive parents are able to claim is $14,300 per eligible child (child has to be under the age of 18 or mentally or physically incapable of caring for himself or herself). Additionally, there is an income limit and phase-outs on the credit. If your MAGI is below $214,520 then you’re able to claim the full credit. If your income falls between $214,520 to $254,520 you can receive partial credit. However, if your income is above $254,520 then you’re unable to claim the credit.

According to the IRS, the Adoption Tax Credit can be used for the following adoption-related expenses: necessary adoption fees, court costs and attorney fees, travel expenses including meals and lodging, and other expenses that are directly related to the legal adoption of a child. These expenses can count toward the credit even before a child has been identified for the adoption. You can still use this credit for qualified adoption related expenses even if the adoption falls through and never finalizes.

Additionally, some employers offer employer-provided adoption benefits to pay for qualified adoption expenses. These benefits can be excluded from your taxable income for up to $14,300 in 2020, however, you cannot double-dip by using the same expenses in the exclusion as you’re claiming in the credit.

The timing of using the Adoption Tax Credit can vary depending on when you pay the expenses, if and when the adoption was finalized, and whether it’s a domestic or foreign adoption. It’s best to consult with a tax professional to ensure that you’re claiming the credit correctly.

4. Dependent Care Flexible Spending Account

You may have heard of a Flexible Spending Account that allows you to save pre-tax dollars from your pay into an account that can be used for qualified medical expenses, but did you know that a similar account is available to pay for child care costs?

A Dependent Care Flexible Spending Account (DCFSA) is an account offered through your employer where you can use the funds to pay for qualified child care costs. You authorize your employer to hold a certain amount of money on a pre-tax basis each pay period that is then deposited into this account. Unlike an HSA, you cannot spend the money directly from the account. Instead, you have to pay out-of-pocket for the expense, submit the expense and then receive reimbursement.

Qualified expenses that can be covered with a DCFSA include before and after school care, babysitting or nanny expenses, daycare/nursery/preschool costs or summer day camp. It’s important to note that the child or children receiving care must be under 13 years old. You can also use this account to pay for care for your spouse or another adult that is claimed as a dependent on your taxes, who cannot take care of themself and that lives in your home.

Expenses that do not qualify include paying for education or tuition fees, overnight camps, expenses for children over 13, field trips, or transportation to or from the dependent care provider.

You can contribute up to $5,000 per year if you’re married and filing jointly. If filing single, you can contribute $2,500 per year. This can be a powerful way to save money for expenses that you know you’ll need to pay for. Because the money comes out of your paycheck pre-tax, you’re lowering your MAGI and ultimately your tax bill.

However, this money doesn’t rollover. Like the healthcare FSA, you have to use it or lose it, so only contribute an amount that you know you’ll use throughout the year.

5. 529 Plan

Depending on your financial goals and plan, saving for your child’s or children’s education may be a top priority for you. One of the most popular ways to do so is with a 529 plan.

There are two types of 529 plans: 529 college savings plans and 529 prepaid plans. 529 college savings plans are the most widely used. Money is contributed after tax, grows tax-free, and is distributed tax-free as long as it’s used for qualified expenses. 529 plans are generally run by your state, however, you don’t have to use that plan and can choose another plan instead.

529 prepaid plans allow you to prepay for a partial or total amount of tuition, but this type of plan isn’t available in every state. While 529 prepaid plans are also tax-deferred, it often doesn’t cover as many expenses as the 529 college savings plan does. According to Saving for College, if you opt for the prepaid plan you may have to pay a premium for tuition and you may not have enough money saved for future tuition costs.

You’re able to open a 529 plan at any time and there aren’t any income phaseouts or age limits on contributions or when the funds have to be used. In the past, 529 plans were only available for undergraduate, graduate, medical, and law school, but that changed in 2018. Now 529 plans can also be used for tuition costs for K-12 education (up to $10,000 per year per child) in addition to higher education costs. Qualified expenses for 529 college savings plans include tuition and fees, books, supplies, equipment, room, and board (if the student is enrolled at least half time), and computer or software equipment, among a few others. However, 529 prepaid plans often only cover tuition and room and board.

Another feature of the 529 plan is that you can choose from a few dozen investment options and can mix funds depending on your risk tolerance. Many plans also have age-based options where the money is invested more aggressively when the child is younger and moves to more conservative allocations as the child gets closer to college age. Another perk of the 529 plan is that many states also allow you to take a tax deduction or tax credit for your contributions which could in turn lower your modified adjusted gross income (MAGI) and tax liability.

When it comes time to fill out FAFSA (Free Application for Federal Student Aid), as long as the 529 plan is owned by a dependent student or a dependent student’s parents, it’s reported as a parent’s asset and the distributions are ignored. This allows you to receive more favorable federal financial aid than if it were added to the student’s assets.

But what if your child decides not to attend college? You have the option to change the name of the beneficiary on the account to someone else in the family, like a brother, sister, cousin, or parent. Remember, there is no age limit on using money from a 529 plan so you can pass this money through your family for as long as you want. If you don’t want to give the money to another family member or save it for a future grandchild, you can withdraw it but you’ll have to pay taxes on any growth earnings as well as a 10% penalty.

6. Coverdell Education Savings Account (ESA)

If a tax-advantaged 529 plan doesn’t seem like a good fit for you, there is another option to save for your child’s education. Formerly known as the Education IRA, the Coverdell Education Savings Account (ESA) is a tax-deferred trust or custodial account designed to help families pay for education expenses. Money contributed to a Coverdell ESA grows tax-free and is distributed tax-free as long as the money is used for a qualified expense. The ESA can be used to cover the cost of tuition, fees, books, and sometimes room and board for higher education as well as elementary and secondary education (K-12).

Anyone can create a Coverdell ESA account through a brokerage account, bank, credit union or mutual fund company, however the beneficiary must be younger than 18 years old at the time it’s opened. Depending on your income, you can contribute $2,000 total per year to a beneficiary.

Your contribution limit begins to phase out if your modified adjusted gross income (MAGI) is between $95,000 and $110,000 for single filers or $190,000 to $220,000 for joint filers. If your MAGI is more than $110,00 (filing single) or $220,000 (filing jointly) then you can’t make any contributions. You also can’t make any contributions to the account after the beneficiary is 18.

Unlike a 529 plan, the funds must be dispersed by the time the beneficiary is 30 years old (except for a special needs beneficiary). If the distributions are higher than the education expenses of the account holder then a portion of those earnings would be taxed to the beneficiary. If the funds aren’t used in their entirety there are options to either roll them over to a family member’s Coverdell ESA account, transfer them to a 529 plan or withdraw them. If the funds are withdrawn and not used to pay for a qualified expense, the earnings would be counted as taxable income and an additional 10% would be changed as a penalty.

One of the benefits of choosing a Coverdell ESA comes down to investment options. With this account, you can self-direct your investments and choose from a range of individual, international or domestic stocks, bonds, mutual funds, exchange-traded funds (ETFs) and real estate investments. These options vary depending on where the account is opened. You’re able to adjust your investment portfolio as many times as you’d like.

Conclusion

Between dependent care flexible savings accounts, child care or child tax credits, and options to grow your money while you save for your child’s education, there are a lot of powerful tax moves that should be considered once you have or adopt kids. It’s important to take a step back and analyze your tax strategy so that you can decide which options are going to work best for your financial plan.

If you want to check out more money tips to consider when having or adopting a child, check out the comprehensive checklist below.

Need Help Trying to Determine Which Tax Moves to Consider?

Trying to navigate the possible tax moves for your situation can be overwhelming. If you need help analyzing which moves work best for your family, how you can get the most out of saving for your child’s education or with your overall financial plan, you can book a free call with one of our CERTIFIED FINANCIAL PLANNERS^TM.

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10 Financial Benefits for Federal Pharmacists You Wish You Had

Posted on by yfpadmin

10 Financial Benefits for Federal Pharmacists You Wish You Had

The post is for educational purposes and does not constitute financial advice. The post may contain affiliate links through which YFP receives compensation.

The federal government is one of the largest employers of pharmacists and offers many unique practice opportunities beyond traditional roles.

Besides the Veterans Health Administration and the Indian Health Service, federal pharmacists also are employed at the Centers for Disease Control and Prevention, the Federal Drug Administration, the National Institutes of Health, the Department of Defense through one of the military branches, and the Department of Justice in the Federal Prison Bureau.

Pharmacists tend to find their work extremely satisfying with the hours and flexibility in schedule being among the top reasons which are something I can personally attest to after spending nearly a decade in a government position.

But beyond these factors that can positively contribute to one’s quality of life, there are also some huge financial perks of being a federal pharmacist.

While salaries are usually less than those in community pharmacy positions, the gap isn’t that wide. However, it’s really the employee benefits in combination with one’s salary that make the total compensation package so generous.

1. Federal Employment Retirement System (FERS) Annuity

As a federal pharmacist, your retirement plan has three components: a FERS basic benefit plan, Social Security, and the TSP (Thrift Savings Plan) which I’ll discuss later on. Contributing to your basic benefit plan each pay period is mandatory and the amount you contribute depends on when you were hired with those starting in 2013 and 2014 paying a higher percentage than those with an earlier start date.

The FERS basic benefit plan is essentially a pension paid out as a monthly annuity which is pretty amazing in a world where these are basically extinct. Remember, this is in addition to any social security income you are entitled to.

How much will I get?

Your benefit is calculated using a pretty straightforward formula:

1.1% x High-3 x Years of Service = Basic Annuity Annual Payment

If you retire before age 62 or at age 62 with less than 20 years of service the 1.1% multiple is reduced to 1.0%. Your “High-3” is your highest average salary for three consecutive years which is usually the last three years of your service. This number is based on your average rates of basic pay which does not include bonuses, overtime, allowances, or special pay for recruitment or retention purposes.

Length of service takes into consideration all periods of creditable civilian and military service and only years and months are used in this calculation, so odd days you worked beyond a month are dropped.

Here’s an example of this calculation: Let’s say you are 62 years old, have been a federal employee for 30 years and your “High-3” salary is $150,000. This would result in an annual annuity of $49,500.

If you don’t want to worry about all the rules check out the FERs Retirement calculator below.

FERS Retirement Calculator

When can I retire?

To be eligible to receive the basic retirement annuity you have to meet two conditions. First, there is a minimum number of service years. If you retire at 62, that number is 5, 20 years if you retire at 60, and 30 years if you want to retire at your minimum retirement age (MRA) and that happens to be prior to age 60.

You can also retire at your MRA with 10 years of service, but your benefit is reduced by 5% per year every year you are under 62 unless you have 20 years of service and your benefit starts when you reach age 60 or later.

The second condition to retire is to reach your MRA and this depends on when you were born. If you are a millennial or Gen Z, then your MRA is 57. Sorry FIRE folks!

Check out this table to find out what your FERS minimum retirement age (MRA) is:

2. Access to the Thrift Savings Plan

The Thrift Savings Plan (TSP) is essentially the 401(k) equivalent for federal employees. It’s subject to the same contribution limits as other employer-sponsored plans at $19,500 with the option for $6,500 catch-up contributions if you’re 50 or older for 2020.

However, unlike many 401(k) plans there are some unique features and benefits.

First, regardless of how much you contribute, your employer will contribute an automatic 1% of your basic pay. In addition, your agency will match the first 3% you contribute dollar-for-dollar and 50 cents on the dollar for the next 2%. Essentially, you get a match up to 5%.

This is something to pay close attention to especially if you are a new employee as you are automatically enrolled in contributing 3% of your income. Therefore, unless you adjust this promptly when you start, you could be missing out on the additional matching contributions.

There is a 3 year vesting period but this does not include the 1% automatic contributions.

Similar to other employer-sponsored plans you have the option to make traditional contributions or after-tax contributions via the Roth TSP.

When it comes to fund selection, you have two basic choices: Lifecycle or target-date funds and individual funds. The lifecycle funds (L Funds) are a combination of the individual funds and every three months, the target allocations of all the L Funds except L Income are automatically adjusted, gradually shifting them from higher risk and reward to lower risk and reward as they get closer to their target dates.

There are five individual funds that range from government-backed securities to index funds with the objective to match the performance of the major stock and bond indices such as the S&P 500.

While one of the criticisms of the TSP is the lack of fund options especially for savvy investors, others tout the simplicity in the options and find it less challenging to navigate and make decisions.

But beyond the options that exist, the number one feature that sets the TSP apart from other employer-sponsored plans is fees!

The average plan fees for those with 401(k)s range from 0.37% to 1.42%. Compare that to the expense for the C fund in the TSP at 0.042%!

Here’s why that’s a big deal. If you were to invest $500/month over 40 years into two different funds with a similar performance of 7% rate of return, one with an expense of 1% and one with fees similar to the C fund, that fund with an expense of 1% will cost you about $700,000 over that period, significantly lowering your overall rate of return.

That’s the power of fees.

You can see the current expenses of the individual funds within the TSP. One of the major reasons why the fees are so low is that many employees leave money on the table when they separate from federal service prior to becoming vested and that helps offset the administrative costs.

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3. Life Insurance

Working for the federal government means that you’re eligible for the Federal Employees’ Group Life Insurance (FEGLI) program. FEGLI was started in 1954 and is the largest group life insurance program in the world covering over 4 million federal employees and retirees. This program provides basic term life insurance coverage as well as three additional options that can be added on (Standard, Additional and Family).

To give you an idea of cost, for ~$250,000 policy at age 35 would be around $40/month. You can calculate your potential cost based on coverage here.

One of the huge benefits of this program is that it does not require any medical exam prior to being in force. In fact, you are automatically enrolled when you start.

While getting access to affordable life insurance regardless of pre-existing medical conditions is an amazing benefit, the biggest downside is that it’s not portable. This means that if you are terminated or leave federal service for another position, you no longer have coverage. That’s why it’s important to consider a private term life insurance policy as well.

4. Long-term Disability Retirement Benefits

Beyond the life insurance benefit, you also have some protection in the event you became disabled while in federal service. This is known as disability retirement.

To be eligible, there are several requirements that have to be met including:

Completed 18 months of Federal civilian service which is creditable under the Federal Employees Retirement System (FERS);
The disability is expected to last at least one year;
Your agency must certify that it’s unable to accommodate your disabling medical condition in your present position and has considered you for a vacant position in the same agency at the same pay grade or level;
You, or your guardian, must apply before your separation from service or within one year thereafter;
You must apply for social security benefits. Application for disability retirement under FERS requires an application for social security benefits

The amount you’ll receive varies depending on your age and number of years of service. If you meet the requirements for traditional FERS retirement benefit based on age and years of service, then the calculation of benefits is the same.

However, if you are under 62 and not eligible for immediate retirement, the calculation gets a little more complex. For the first 12 months it is 60% of your high-3 minus 100% of your social security benefits you are entitled to and after that the calculation is based on 40% of your high-3.

Benefits are recalculated after 12 months and again at age 62 if the person is under age 62 at the time of disability retirement.

While this does guarantee at least some income beyond social security once you have at least 18 months of service, it’s not going to be similar to your take-home pay as a pharmacist.

Therefore, you should strongly consider an individual long term disability insurance policy as a supplement in order to move your potential replacement income closer to your current pay.

You will notice that when you are applying for policies, you will be asked if you are a federal employee. That’s because most states will not allow you to replace over 60% of your total income and this will essentially be a supplement.

5. HSA Eligibility

There are a variety of health plans that are offered for federal employees including fee-for-service plans (both PPO and non-PPO), health maintenance organizations (HMO), and high deductible health plans (HDHP) which offers a health reimbursement arrangement (HRA) or health savings account (HSA). This large variety of health plans allows federal employees to choose a plan that makes the most sense for themselves and their families.

I explained in a recent blog post Why I’m Not Using My Health Savings Account to Pay for Medical Expenses that choosing to use a PPO instead of the HDHP that was available to me was one of my biggest financial mistakes. This is because I was making high premium payments each month but wasn’t utilizing the majority of coverage that was available and I was missing out on the triple tax benefits that an HSA account boasts.

As mentioned, an HSA is unlocked through a high deductible health plan (HDHP) and can be used as an account to save for medical expenses. An HSA allows you to contribute money on a pre-tax basis to pay for qualified medical expenses, like costs for deductibles, copayments, coinsurance, and other expenses aside from premiums. If you’re using your HSA to pay for a qualified medical cost, you don’t have to pay any taxes on the money that’s withdrawn from the account.

In my opinion, the most powerful aspect of an HSA is that it can be used as a retirement vehicle, like an IRA. What makes an HSA so appealing are those triple tax benefits I mentioned. Triple tax benefits, you guessed it, all have to do with taxes; your HSA contributions lower your adjusted gross income (AGI), the contributions grow tax-free and the distributions are tax-free. If you’re under 65, the distributions are only tax-free if they are being used to pay for a qualified medical expense. If they aren’t, you’ll have to pay a 20% penalty. After age 65, your distributions don’t have to be for qualified medical expenses, but you will have to pay income taxes if they aren’t.

To learn about how I’m leveraging this benefit and how I’m allowing my money to stay in my HSA as long as possible, check out this post.

6. Paid Parental Leave

Paid parental leave varies so much from one employer to the next. Some companies like Netflix offer up to a year off of paid maternity or paternity leave while employees at other companies are “lucky” to get 4 or 6 weeks off, if any.

Due to recent changes, federal pharmacists will be able to receive up to 12 weeks paid parental leave for the birth, adoption or foster of a new child. This benefit is supposed to go into effect October 1, 2020.

7. Raises for additional credentials and board certifications

Federal employees are paid based on their grade and step and will have a GS or General Schedule status. The grade usually pertains to the position and the step is typically determined by initial qualifications at the time employment starts and also the years of service. Therefore, the most common way to get to the next level is often just to keep your job.

However, some federal employers may actually incentivize you to get these as well either in the form of a one-time bonus or even a permanent raise. In the VA they are referred to as Special Achievement Awards.

8. Opportunity to Pursue PSLF

When I graduated from pharmacy school, I made one of the biggest financial mistakes that ended up costing me hundreds of thousands of dollars! That was not pursuing the Public Service Loan Forgiveness (PSLF) program. As a government pharmacist, I was eligible for PSLF but because I wasn’t aware of all of my options and didn’t have a good handle on the program, I ended up paying way more money than I needed to.

Although PSLF has had a rocky past, it is one of the best payoff strategies available for pharmacists. The math doesn’t lie; PSLF is often the most beneficial to the borrower as far as the monthly payment is concerned (it’s the lowest) and the total amount paid over the course of the program (it’s the lowest).

Of course, determining your student loan payoff strategy takes a lot of thought and discussion. To learn more about all of your options, check out this post.

9. Tuition Reimbursement and Repayment Programs

Did you know that working as a federal pharmacist might qualify you for tuition reimbursement or to enroll in a tuition repayment program? These programs essentially provide “free” money typically from your employer or institution in exchange for working for a certain period of time.

Pretty awesome, right?

The programs that tend to provide the most generous reimbursement or repayment are those offered by the federal government through the military, Veterans Health Administration, and the Department of Health.

If you’re a pharmacist who works for or plans to work for one of these organizations, connect with your human resources department to see if you’re eligible. There is generally a set amount of funding for these programs, so even if you aren’t eligible initially, you may be able to reapply in a subsequent year.

Here’s a rundown of federal tuition reimbursement programs that are currently available:

Veterans Health Administration – Education Debt Reduction Program

Eligibility

Pharmacists at facilities that have available funding and critical staffing needs.

Benefit

Up to $120,000 over a 5 year period

Army Pharmacist Health Professions Loan Repayment Program

Eligibility

Pharmacists who commit to a period of service when funding is available

Benefit

Up to $120,000 ($40,000 per year over 3 years)

Navy Health Professions Loan Repayment Program

Eligibility

Must be qualified for, or hold an appointment as a commissioned officer, in one of the health professions and sign a written agreement to serve on active duty for a prescribed time period

Benefit

Offers have many variables

Indian Health Service Loan Repayment Program

Eligibility

Two-year service commitment to practice in health facilities serving American Indian and Alaska Native communities. Opportunities are based on Indian health program facilities with the greatest staffing needs

Benefit

$40,000 but can extend contract annually until student loans are paid off

National Institute of Health (NIH) Loan Repayment Program

Eligibility

Two year commitment to conduct biomedical or behavioral research funded by a nonprofit or government institution

Benefit

Up to $50,000 per year

NHSC Substance Use Disorder Workforce Loan Repayment Program

Eligibility

Three years commitment to provide substance use disorder treatment services at NHSC-approved sites

Benefit

$37,500 for part-time and $75,000 for full-time

10. Generous Leave Structure

One of the benefits that I have really appreciated while working for the federal government is the amount of paid time off. First, as a federal employee, you get all 10 federally recognized holidays off assuming you have a typical Monday-Friday schedule. But if you do have to work on one of those days, you get paid double time!

In addition to holidays, you start off accruing 4 hours of annual leave or vacation in addition to 4 hours of sick leave every pay period. This equates to a total of 7.2 weeks of leave as a brand new employee.

Once you hit 3 years of service, your annual leave increases to 6 hours and then to 8 hours per pay period once you reach 15 years of service.

When you become eligible for retirement, any accrued annual leave you have remaining is paid out to you in a lump sum whereas any remaining sick leave counts toward extending your time of service which can increase your overall FERS annuity benefit.

Conclusion

Working as a pharmacist in the federal government carries a lot of benefits that go way beyond your salary. Between possible student loan forgiveness with PSLF, access to TSP and HSA accounts, life and disability insurance, and raises for additional credentials and board certifications plus so many more, there are a lot of reasons to consider working for the government. If you’re currently unemployed, are a recent graduate or you’re looking to make a career change, I highly suggest checking out USA JOBs and sign up to get alerts as new positions become available.

Need Help With Your Financial Plan?

Trying to navigate your federal benefits can be overwhelming. If you need help analyzing how these benefits affect your overall plan or are looking to solidify your financial game plan, you can book a free call with one of our CERTIFIED FINANCIAL PLANNERS^TM.

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6 Ways to Protect Your Cash Flow as a Pharmacist

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6 Ways to Protect Your Cash Flow as a Pharmacist

The following post contains affiliate links through which YFP or its team members may receive compensation.

What would you do if your next paycheck wasn’t deposited?

How long could you survive if you just stopped getting paid?

If you’re a recent grad, new practitioner, or potentially even a seasoned pharmacist, the answers might look something like “use a credit card and not long.” This is especially true if you aren’t the only one who depends on your income.

Despite having a good income, it’s not that uncommon for pharmacists to live paycheck-to-paycheck. With massive student loan payments, living costs, lifestyle creep, and other priorities, unless you have substantial savings, having consistent cash flow is essential.

An emergency fund can only buy you so much time if something happens with your job. Therefore, protecting your primary means of income is key.

There are some moves you can make that can help reduce the interruption in your cash flow.

1. Have a side hustle

The most obvious way to prevent any significant change in cash flow is to have multiple sources of income. Even if you feel your job or position is relatively secure, there’s always the potential it might not be there. Unfortunately, many community pharmacists have already experienced this with large numbers of brick and mortar stores closing and the decision to downsize pharmacist presence in large companies.

By having a second or multiple income streams, you will reduce the probability of not being able to pay your bills and living expenses even if one source of income becomes affected. This could be as simple as moonlighting at another pharmacy, writing a book, or even creating a legitimate business that makes six figures a year.

If you want some ideas, check out this post 19 Ways to Make Extra Money as a Pharmacist in 2020. You can also check out the YFP podcast as we frequently have pharmacists on the show who talk about side hustles they started.

2. Make yourself indispensable

How many people do you know that work just hard enough to keep from getting fired?

There’s no question that burnout and unfulfillment run rampant in our profession, but does that mean you shouldn’t work hard, take on new challenges, and embrace opportunities?

Make it difficult to get fired.

What can you do to stand out from everyone else? What skills and knowledge can you acquire that make you a linchpin in your company or organization?

I’m not just talking about board certifications and additional credentials, but rather demonstrating the ability to solve problems or reinvent existing systems and protocols that provide value and improve outcomes.

I work in a primary care clinic with a focus on type 2 diabetes management. Most of the days are pretty full evaluating patients but I’m fortunate there are a few hours per week given to work on continuing education or to come up with ideas to improve patient care.

Taking full advantage of this time, I studied how to manage very complex diabetes patient cases such as those with suspected LADA, patients who need u-500, best practices for carb counting, and how to optimize the use of continuous glucose monitoring. This has enabled me to become a go-to resource when colleagues or other services encounter difficult cases.

In addition, I have created population management protocols to identify patients with diabetes who are not receiving guideline-directed medical therapy and those at high risk of hypoglycemia.

I then I took it a step further and created an action plan on how our team of pharmacists could intervene and set up appointments to directly impact these opportunities. Because we have been so successful, these practices have been discussed and utilized by other institutions within the organization.

None of these things I described were necessary or required of me in order to maintain good standing in my position. They were gaps and opportunities I identified that would not only improve our current practices but further my skills and value within in my role.

Even if you become a linchpin and still get let go, chances are you will be in a much better position to make a job transition and will be able to better articulate your value to prospective employers.

3. Have adequate disability insurance

With a six-figure income, you are going to have projected lifetime earnings in the millions. Besides losing your job, becoming disabled is one of the biggest potential disruptors in cash flow.

I know what you may be thinking, “As a pharmacist, something pretty bad would have to happen to me to not be able to work.” That may be true. After all, most pharmacists just require their cognitive faculties to be intact, and therefore accommodations could be made in the event of broken bones or limited mobility secondary to an accident.

Remember, you are not invincible!

The Social Security Administration predicts that more than 25% of today’s 20-year-old Americans will become disabled before the age of 67. However, almost 70% of those working in the private sector do not have disability insurance.

Beyond car accidents, think about insidious diseases like Parkinson’s disease, dementia, cancer, or MS. There are a lot of health-related scenarios that could occur at a young age and either force you out of the workplace or reduce the time you are able to work.

Disability insurance for pharmacists is really income insurance. It provides you with money in the event that you are unable to work because of an accident or illness.

Besides being able to afford typical bills such as food, mortgage, utilities, etc, think about your student loans. If you still have federal loans then you don’t have to worry because these are discharged in the event that you become permanently disabled. However, what about private loans? Or ones that you refinanced?

Therefore, unless you already have substantial wealth or have additional income streams and don’t require an income as a pharmacist to live, you need disability insurance.

Even if you have some coverage through your employer, consider an individual long term disability insurance policy. It doesn’t matter where you work or if you change jobs because it follows you and you don’t have to get another evaluation of your health status.

For a more detailed discussion on disability insurance, check out the post Disability Insurance: The Ultimate Guide for Pharmacists.

4. Be ready to make a move if needed

Motivational speaker Les Brown often says “It’s better to be prepared and not have an opportunity then to have an opportunity and not be prepared.”

What if you lost your job tomorrow? Would you be ready to start applying and submit an up-to-date polished CV? Would you be ready to interview?

It’s easy to submit your CV once and then just forget about it for years.

Brandon Dyson, pharmacist and co-owner of TL;DR Pharmacy, wrote about his experience with hiring a part-time employee at an outpatient oncology clinic. Within 6 days, he closed the posting after receiving 49 applications. Well, sort of 49. I say sort of because he mentions a number of applications were not filled out completely, were missing elements such as a cover letter, and clearly did not update their CV.

That is really unfortunate and inexcusable in our profession. Don’t eliminate yourself from the running right from the start by not following directions and being prepared. At the very least, have someone else you trust to review your application and contents if you are not 100% confident.

You can also check out Brandon’s post for more suggestions and tools for getting prepared for your next job.

5. Maintain your license in good standing

This one should go without saying: you can’t practice if you don’t have a license. Well, you can, you just may face fines or even felony charges. For most pharmacists, this means just doing the bare minimum continuing education and any other requirements.

However other situations that could affect your license and ability to practice include complaints made to your respective board of pharmacy or malpractice suits.

You know mistakes can happen. If you work for an employer, they likely offer some protection if you’re functioning within your scope of practice. However, their main concern is protecting the organization, not you.

Besides actual damages, liability or malpractice insurance can help cover litigation costs, costs for representation for board of pharmacy hearings, and lost wages. The latter is particularly important especially if you’re involved in a complicated suit that lasts months and your employer is not assisting.

Coverage is relatively inexpensive (~$12-$20/month). Proliability, Pharmacist Mutual, and HPSO offer policies for pharmacists up to $1 million in liability coverage per incident and $3 million aggregate limit.

6. Grow your pharmacy network

I was recently on LinkedIn and saw firsthand the power of and the difference between having a strong network and having a bunch of weak connections that someone blasts information to.

Whenever someone asks to connect with me, I always ask for the reason they reached out. It’s a great ice breaker and also helps to find some common ground. But what is surprising to me is that the first thing some pharmacists say to me is “I’m looking for a job and trying to expand my network.”

Now there’s nothing wrong with that, but there is usually no attempt to learn more about me, what I do, or how I may even be able to help them. In other words, the primary intention was what they could from me.

These are usually the same people that literally blast their CV on a LinkedIn post multiple times per day expecting to get results. Contrast that to someone who is well connected and within hours of them explaining their situation and intention to seek other employment already has multiple leads. That’s why it’s important to make it more about relationships than it is about connections.

Brandon Dyson nicely sums this up: “If you just joined a group and you start asking everyone for favors, you come across as self-serving and desperate. But if you’re already a part of that community, people will go out of their way to help you.”

Whether it’s through LinkedIn, professional organizations at the national, state, and local levels, Facebook groups, or other channels, you should be building your pharmacy network now. Not when you are in a dire position and urgently seeking a job but before you’re actually in need.

I also highly recommend checking out podcast episode 116: Transforming Your Life and Career Through Networking where bestselling author David Burkus shares the science of networking and discovering your hidden networks.

Conclusion

One of your greatest financial assets as a pharmacist is your ability to generate an income. Unless you already have substantial wealth or have multiple streams of income, you’re probably going to be in a tough spot if the next paycheck wasn’t there. Changes in the job market have resulted in less security and many pharmacists have already experienced being laid off or had their hours cut.

Protecting your cash flow is essential to not only paying your monthly bills but also making progress on your savings and long-term financial goals. The key ways to do this include creating multiple streams of income, protecting your existing main income source, and preparing yourself to make a job transition to reduce the time of interrupted cash flow.

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19 Ways to Make Extra Money as a Pharmacist in 2020

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19 ways to make extra money as a pharmacist in 2020

Updated 2/2020

The following post contains affiliate links through which YFP or its team members may receive compensation.

Within the past couple years, many pharmacists have unfortunately experienced pay cuts as multiple community pharmacy chains reduced weekly hours to be considered full-time (such as 32 hours). With this example, considering median pharmacist pay, it would result in about a $25,000 loss per year or more. That’s a big deal for anyone but especially those struggling to pay back pharmacy school loans and other debt.

Not only that, some pharmacists have experienced a job loss because of stores closing or companies downsizing.

Even if you’re fortunate and haven’t had a pay cut or lost a position, you still may be looking for ways to accelerate your financial goals, fund vacations, or just upgrade your lifestyle, etc. Obviously, you can cut and minimize your expenses up to a point, but eventually, you’ll reach a limit. This, combined with the pharmacist salary being relatively fixed in many settings, can lead you to find ways to make extra money as a pharmacist.

While there are a plethora of options to make extra money and many side jobs for pharmacists, some are not practical. Your time is important, right? With a median hourly pay around $60, doing something for less where you trade your time for money may not be the best use of your efforts unless it’s something you’re really passionate about. Other ideas such as starting a blog or podcast with the goal of eventually monetizing can work but they can take years to reach that point and take up a ton of time.

For this post, we are going to focus on some practical ways to earn some extra cash not in a year or five years from now, but this year. While most of these are focused on a pharmacy background, I have included some others as well that are relatively easy to get started and won’t necessarily take a lot of time to execute.

1. Take Extra Shifts

This is probably one of the easiest ways to earn extra money as a pharmacist if it’s available. While not likely for those working in community pharmacy, there may be some opportunities in hospitals and health systems especially when there is a temporary shortage.

One of my friends who recently switched from a community chain to a mail order specialty pharmacy was really concerned about the pay cut he was going to initially experience. However, even though the base salary was lower, he actually made more because of the ample opportunities for overtime.

2. Look for Additional Projects / Assignments

Throughout my pharmacist career, there have been several times when special projects required pharmacist intervention. Typically, these have been large volume medication changes that needed patient education either due to manufacturer backorders or formulary changes secondary to pricing changes. Because of the potential cost savings for these projects, employers can often justify overtime pay.

While these types of opportunities may not be blatantly advertised, I would encourage you to reach out to your supervisor or manager to see if there is anything available.

3. Refinance Student Loans…And Then Do It Again

Save money by paying less in interest each month because of a lower rate. That’s the typical reason why most people with refinance student loans. While saving money is great, why not also get paid. In a single year, my wife and I made $2,700 by refinancing our student loans multiple times. Each time we were able to get a lower interest rate through a different company and each time we were able to get a cash bonus.

Refinance companies will make money from you by the interest you pay each month. Because pharmacists typically carry high debt loads in the six figures, refinance companies will make more money over the course of the loan versus those with much lower student loan balances.

Therefore, as an incentive for you to use a particular company, they will offer a cash bonus or welcome bonus. As mentioned above, you’re not limited to doing this one time. With interest rates always changing, it’s not uncommon for another company to provide a better rate than what you refinanced to the first time.

Now, some big student loan review sites offer nothing to very little to their audience when they refinance in order to take larger commissions. But that’s not our style. We have partnered with several refinance companies that offer bonuses of $300-$800 to you and sometimes higher when they are running promotions. Yes, we receive a commission on each refinanced loan, but we have shifted most of the benefit to you.

If you’re pursuing the Public Service Service Loan Forgiveness (PSLF) program or non-PSLF forgiveness (taxable forgiveness after making income-driven payments for 20-25 years), then refinancing is off the table given it will disqualify you from these programs. If you want to refinance your student loans, check out our current offers below:

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4. Take a Moonlighting Position

A few years ago when I was gung-ho about getting rid of my student loans ASAP I was on a mission to figure out how to bring in extra income. At that time, I was limited to 40 hours per week with my full-time job without any overtime opportunities so I had to look for something else. Eventually, I was hired as a PRN pharmacist at a local hospital where I would work in the evenings and weekends allowing me to bring in anywhere from $500-$2,000 extra per month.

If you’re looking for a moonlighting position, consider inquiring at local hospitals and independent pharmacies. While they may not need a ton of help, even a couple of days a month could bring in a decent side income.

5. Earn another certification/credential

In the world of medicine and particularly pharmacy, there are credentials and certifications for everything now. They can be a great way to promote your additional qualifications and training and could even be required for specific academic and clinical positions. Some employers may actually incentivize you to get these as well either in the form of a one time bonus or even a permanent raise.

For example, federal employees who work for the VA are paid based on their grade and step and will have a GS or General Schedule status. The grade usually pertains to the position and the step is typically determined by initial qualifications at the time employment starts and also the years of service. Therefore the most common way to get to the next level is often just to keep your job.

Depending on the facility, one can also add a step or two by earning a board certification or special credential like a Certified Diabetes Educator (CDE). If your employer will also pay for the prep materials and the exam(s) itself, then that’s a double bonus! This is definitely something you want to ask prospective employers about if you are planning to start your pharmacist career or switching jobs.

Beyond raises, it’s possible that some paid opportunities could come knocking. Since getting his BCOP, my friend and colleague Brandon Dyson, PharmD is semi-regularly called by a consulting firm doing research on a new product to figure out the market and to see if this product would integrate into existing oncology practices.

These are usually a 1-hour consult call, and he usually gets paid $200 or $300 each. Although they are not consistent, he notes that once you get a relationship with a given firm, they start contacting you more.

6. Switch to a Higher Paying Job or One With More Opportunities

Many pharmacists express feeling stuck or burned out in their current job and that there’s no way out. It’s true that it can seem overwhelming to make a transition, especially if you’re someone who doesn’t like to step outside of your comfort zone and feel like you’ve lost some of your clinical skills and knowledge to pursue something else. Although it’s never usually easy, it’s definitely possible and making the move could result in more money or the potential to make more money.

My friend and colleague Alex Barker, PharmD, and the founder of the HappyPharmD, created an entire business around helping pharmacists create inspiring work and lives by primarily assisting them in transitioning to pharmacy and non-pharmacy jobs that they are passionate about. He does this through 1-on-1 coaching and also through his free training.

If you’re someone looking to make a job change, I highly encourage you to check out his free webinar on how to escape burnout, get job offers regularly, and take control of your pharmacist career.

7. Start Doing Medical Writing

Brittany Hoffman-Eubanks is a community pharmacist who started her medical writing career about four years ago. Initially, this was a side hustle that brought in a couple thousand dollars per year. It supported her obsession with traveling and need to see everything in the world. Now she is working on making the move to make this her full-time gig.

Medical writing can come in the form of continuing medical education, needs assessments, and research and grant proposals just to name a few.

Although the income from medical writing varies so does the method of compensation. It could be hourly with a huge range of $25-$180/hour, per word typically somewhere around $0.20-0.25 per word, or a flat fee of a couple of hundred dollars to a couple of thousand dollars depending on the scope of the project and writer experience.

If you have stellar writing mechanics and grammar use, and you want to get started with medical writing, Brittany has a few recommendations for you. First, there are several social media groups where you can network and find opportunities and encouragement from other writers. Joining applicable associations such as the American Medical Writers Association is another good idea.

You can also check out episode 126 of the podcast, where Brittany breaks down some other tips for getting started in medical writing.

8. Provide Continuing Education / Other Presentations

If you’re able to deliver an effective message, you could be turning that skill into dollars. Think about how many national, state, and local pharmacy organizations there are. Most of them are paying people to provide CE since it’s something that’s required.

But even beyond pharmacy, many other healthcare providers such as physicians, nurses, physician assistants are also required to maintain their license with ongoing education. Why not reach out and inquire about delivering medication-related programs?

The other great thing is that if you are an expert on a particular topic and have already done the work, you can essentially deliver the same content multiple times across multiple channels enabling you to minimize the time for any prep work.

Beyond continuing education, if you have a great story or possess knowledge on a topic outside of medicine that is needed, people will pay for this as well. Tim Ulbrich, PharmD, the founder of Your Financial Pharmacist, has made around $10,000 in the past two years telling his story about getting out of debt and delivering education on personal finance to pharmacy schools and pharmacy organizations.

9. Start a Consulting Practice

Have you ever thought about starting your own business by providing clinical services? Contrary to what you may have heard, you can get paid for doing MTM and other consulting work. You just have to know the keys to implementing services along with the mechanics of billing and reimbursement. It can be a great opportunity to work more closely with patients and directly impact their health and well-being.

Blair Thielemier, PharmD has set up an entire academy to help pharmacists get their consulting business off the ground. Besides an on-demand online training program, you get access to business coaching and live Q&A calls. You can get $50 off the first month of your membership by using code “YFP50”.

10. Complete Comprehensive Medication Reviews (CMRs) through Aspen RxHealth

Aspen RxHealth is a company with an app-based platform that connects pharmacists with patients to perform MTM. The app connects with Medicare plans and identifies patients who are eligible for a Comprehensive Medication Review (CMR).

What’s cool about their technology is you call the patient directly from the app and then perform all of the necessary functions of the CMR directly within the app. There’s no paperwork and once complete, the patient gets a copy of the review and any recommendations you have.

They currently pay $40/CMR and then typically throw in bonuses and incentives to complete a certain amount within a week or particular days. In one recent report, pharmacists were making around $72/hour based on the volume they were able to complete.

I went through the process myself to check it out and see what it was all about. The onboarding process was fairly easy and smooth and my application was approved within a week. They have a Learning Management System with videos to help get you acclimated to the app and the dos and don’ts of performing a CMR.

What I really liked is that you can work whenever you want and complete CMRs when it’s good for you as long as it is within the typical business hours that the company sets. This also includes being able to make calls on Saturdays.

Once I actually got trained and was prepared to make some calls, it was a little disenchanting because I had made about 15 calls and could not get a single person to answer. Apparently, I am not the only one who has had this issue as the last time I checked it takes an average of somewhere around that number before one typically gets a patient on the line. Because this took me about an hour or more just to make calls without any success, I decided not to continue.

However, I have heard from other pharmacists, that they have someone who makes calls for them to either transfer or set up a time to discuss their medications which could reduce a lot of the wasted time for a pharmacist just making calls.

At one time they were only accepting pharmacists registered in Florida, but you can learn more about the platform and opportunities at www.aspenrxhealth.com.

11. Write a book

With the expansion of ebooks and audiobooks and the tools for self-publishing, it has never been easier to write and publish your own book. While the thought of taking something like this on could seem grueling and years to accomplish, the reality is that it doesn’t have to be dissertation and you could take an idea to finished product in a matter of weeks to months.

When I wrote my first book that educates patients about medications for type 2 diabetes, I was able to get the whole project done within 6 months. It was a very short book but this was intentional in order to keep the reader engaged and not overwhelmed with too many details.

While the process for writing and publishing a book is relatively simple, making a meaningful income that not only covers your costs to create but also ongoing is not. Because everyone is doing this now and there are millions of books on Amazon and other marketplaces, the competition is high. Even if you have an awesome idea that is filled with great content, you can’t expect to just release something on Amazon and sit back and watch the royalties come in.

Marketing and the positioning of your book is really the key to actually make it a profitable endeavor. Yes, you need to have great content that people want to read, but you have to have a strategy on how you will get the message out. If you have a big audience through a blog, podcast, social media channel, or another outlet, that really helps and can be a great starting point. If not, you can partner with other influencers and people with large followings.

If the idea of writing a book sounds intriguing but you have no idea what to write about, here are a couple suggestions. For nonfiction, consider medical topics that are important or widespread that would be of value to patients or other medical professionals.

Test prep or study materials for exams and courses are another option. Outside of pharmacy and medicine, consider writing about a very profound story that involved you or someone you know. If you have a very creative and imaginative side, perhaps writing a fictional book could be up your alley. There are many possibilities out there!

Ok, one big tip I have, if you are going to self-publish, is don’t be cheap on creating the cover. People DO judge books by their covers and many people are turned off if they can immediately determine your book is self-published solely based on the cover. Spend good money on a quality cover!

99 Designs has a great service where multiple designers compete to get you the best cover. A couple of great books to help you get started with the writing and publishing process are Authority by Nathan Barry and Book Launch by Chandler Bolt. If you are interested in doing an audiobook, I would recommend reaching out to Tony Guerra, PharmD who has published and helped other pharmacists publish many books.

12. Teach a course / Become an adjunct professor

Brandon Dyson, the co-founder of TL;DR Pharmacy, author of 100 Strong Residency Interview Questions, Answers, and Rationales, and wizard of all things pharmacy, has been teaching a general pharmacology course for the past five years through Georgetown University School of Nursing.

Currently, the course is offered three times a year and he gets paid for each one, bringing in $4,000 each or $12,000 per year. Not bad for a side hustle, right? The best part is the course is online so he doesn’t have to worry about traveling and does all the teaching and mentoring from home.

If you enjoy teaching and are able to deliver great content in an engaging and professional way, there may be some great opportunities for you. Besides checking out the major pharmacy and non-pharmacy job sites, you could consider reaching out to a local pharmacy school.

Offering to do a free lecture or learning session can be a great way to show off your skills and could result in future paid opportunities. Also, don’t restrict yourself to just pharmacy school. Like Brandon, you should also consider other healthcare professionals like nurses, physicians, and physician assistants who are required to learn pharmacy topics.

13. Serve on an advisory board

An advisory board provides strategic advice to a company or organization and unlike a board of directors, they typically do not have any voting rights or decision-making powers.

Pharmaceutical companies and other healthcare organizations often have advisory boards and there are typically opportunities for pharmacists to get a spot. You often need to be an expert in a particular area or have the experience that can demonstrate your value.

Diana Isaacs is a pharmacist who is an expert in the diabetes arena and has often been asked to serve on advisory boards to provide her knowledge and insight. While the compensation varies, she has typically earned a couple of hundred dollars/hour in exchange for her time. You can learn more about her experience with this in episode 137 of the podcast.

14. Become an Expert Witness

In episode 112 of the podcast, Brent Rollins shared his story about becoming a pharmacist expert witness for law firms primarily focusing on marketing cases in addition to standards of care cases. He was able to get some experience while he was in school when his professor asked for assistance on a big case, he got his start and continued to receive casework.

Many criminal and civil cases involve medications and toxicology and quality of care/negligence where pharmacists can be positioned well to provide their expertise and testimony. While reports vary on compensation, according to a report by SEAK, an expert witness directory company, medical experts earn on average $350/hour.

You can serve as a witness by providing documentation or reports, answering questions by attorneys, depositions, and expert testimony.

Having a colleague as Brent did, to get an in is certainly a good way to get started but also consider your network of friends and family if they are attorneys or know attorneys who frequently take on cases that use pharmacists or other medical experts.

You can also check out some of the big expert witness directory companies/sites such as SEAK , The Expert Insitute, HGExperts. You can also get plugged in with the American Society for Pharmacy Law. which is a nonprofit organization that organizations of attorneys, pharmacists, pharmacist-attorneys and students of pharmacy or law who are interested in the law.

15. Monetize a non-pharmacy skill

In 2019, I made about $3,000 from building websites. Through my experience at Your Financial Pharmacist, I picked up the skill of basic web design and although I’m not an expert by any means, knowledge of the foundation has allowed me to monetize it. Plus, it’s really fun and something I truly enjoy so it doesn’t even feel like real work to me.

Through my podcast interviews with pharmacists who have unique side hustles, it’s evident how talented and creative those in our profession are. What skill or knowledge outside of pharmacy do you have? Is there something you are passionate about that can either help solve other people’s problems or bring incredible value?

Some ideas include photography and video editing, graphic design, IT, translation, voice production, social media management, and marketing. You can check out sites like www.upwork.com and see if there are any freelancing jobs where you have the skills to jump in.

In 2020 I interviewed a pharmacist named Stephanie Roberts (episode coming soon) who had a passion for creating art and did this just as a hobby for a while until one day she had the idea of possibly selling some of her pieces. To her surprise, her pill petri dishes and trays using epoxy resin have been a huge hit and continue to sell out all the time.

She has become so successful that she now makes over six figures with her art alone and pharmacy has become her side hustle! You can see some of her work below.

16. Switch to a high yield savings account or money market account

When you consider inflation, money sitting in regular checking or savings accounts can lose a lot of purchasing power over time given most interest rates are essentially next to nothing.

Sure you avoid market risk or the risk of keeping cash in other investments but there are other options that are less risky and can yield at least some return. These include high yield savings accounts and money market accounts.

If you are sitting on a bunch of cash that’s for an emergency or you are saving for a big purchase, these can be good options can earn a little extra money. Now if your savings amount is relatively low and you aren’t adding anything to it then it may not be anything substantial, but remember it’s better than 0.001%.

I recently did a review of my experience with CIT Bank which offers competitive interest rates from 0.85-1.40% for their high yield savings and money market accounts.

17. Become an Airbnb host

Tim Baker CFP®, team member on the Your Financial Pharmacist team loves to take his family on vacations around the country and the world. But frequent trips can get expensive. That’s one of the reasons why he and his wife became an Airbnb host. In just 1.5 years they have made $10,000!

Hilary Blackburn is a pharmacist in the Nashville area who rents out her primary residence about 14 times per year and has been able to earn about $8,000 per year or more. You can learn more about how she’s making it happen on episode 121 of the podcast.

If you’re not familiar with Airbnb, essentially it is an alternative way to lodge instead of the traditional hotel. As an Airbnb host, you list a property you own or rent on their platform for guests to book and stay. Airbnb only takes 3% of the total reservation so you keep most of the booking fee.

Some people host their primary residence when they are out of town or have additional rental property or space that they list. For some, the thought of having strangers stay in your house even if you’re not there may seem pretty overwhelming and concerning.

Sure there are some potential issues that could occur such as theft or vandalism but you have control over who is able to stay based on reviews and other factors on the Airbnb platform. Plus, as a host, you get access to up to $1 million of property damage protection if you ever need it.

If you want to find out how much you could earn by listing your space, you can check out the Airbnb estimator below.

18. Buy a rental property / House Hack

Many people have built entire businesses around managing rental property. On one of our most popular podcast episodes, Carrie Calton, PharmD discussed how she achieved financial freedom by acquiring 18 rental properties! You don’t need a ton of cash in order to purchase a property as you can typically get approved with even a low down payment. However, that amount will be dependent on your risk tolerance and the equity you want to start with.

It may seem enticing to simply look at the potential mortgage payments vs. how much rent you could collect for a particular property. However, when you are doing an analysis to determine if the property would be cash flow positive and provide another stream of income, you have to consider ALL of the costs and maintenance involved such as insurance, HOA, taxes, repairs, capital expenditures, etc.

Along the lines of buying a rental property is house hacking. This usually involves buying a property with a low percentage down (generally 1, 3 or 5%), living there for a year (required), and renting out the other units or rooms. For example, if you purchase a single-family home, then you would rent out the other bedrooms.

Or if you owned a duplex or condo with multiple units, you can live in one and rent the others. Depending on the cash flow, you may be able to cover the mortgage payment and even make a profit. Check out episode 130 for more information on this.

Bigger Pockets is a great resource to get started and learn more about real estate and rental properties. Besides their podcast and online resources, they also have an awesome book: The Book on Rental Property Investing by Brandon Turner.

19. List your car on Turo

What happens to your car when you go on trips or the days when you don’t need it? It probably just sits in your garage or driveaway right? But what if your car could make you money? With Turo, you can!

Often referred to as the Airbnb of vehicles Turo is an alternative to a traditional car rental service. From the user standpoint, through their platform, you enter the date and location you are looking to use a vehicle, choose what you want, and book. You can pick it up or even have it delivered to you.

So how much can you earn? It varies from $40/day up to several hundred dollars per day depending on if you are handing the keys over to a Toyota Corolla or Mercedes E-class. Here’s an example based on Turo’s calculator. If you have 2018 Tesla Model X and live in the Miami area, you could earn approximately $1,724 or $180/day if your car was booked an average of 9.6 days per month. Not bad right?

You’ll earn 65% to 85% of the trip price, depending on the vehicle protection package you choose but you can also choose to just use your own commercial insurance which could get you a bigger cut.

Conclusion – How to Make More Money as a Pharmacist

There are many practical ways to make extra money as a pharmacist. Some are directly related to the profession while other opportunities exist by capitalizing on other skills and interests you have. Some need relatively little time and effort (i.e. refinance student loans) whereas others may require additional training and several hours of work.

With the pharmacist salary being relatively fixed, having a side hustle and earning additional streams of income can help you reach your financial goals faster and help pay back pharmacy school loans. It can also give you an added layer of protection from relying on one source of income, which is important as the profession continues to undergo changes and technology and innovation are disrupting traditional roles and positions.

Another Way to Find Side Jobs for Pharmacists or a Pharmacist Side Hustle

If you want some additional inspiration I would recommend checking out the side hustle series where I interview pharmacists who have businesses and gigs that bring in additional monthly income.

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21 Financial Moves Every Pharmacy Graduate Should Make

Posted on by yfpadmin

The following post contains affiliate links through which YFP receives compensation.

It took me about a year and a half after graduating from pharmacy school to finally start making good decisions to improve my financial situation. I had some bad spending habits, very little personal finance knowledge, and wasn’t taught good financial principles growing up. This resulted in some unfortunate financial mistakes early in my career.

Most pharmacy schools don’t have mandatory personal finance education, some offer elective courses, and some provide some basic information before you graduate. Therefore, it will largely be up to you to be proactive in making sure have a financial game plan.

Check out these 20 moves that every pharmacy graduate should make to get a good start.

Depending on your personal situation, you may not be able to work on all of these at once. The key is to get them on your radar so you can develop a good foundation.

1. Create Solid Financial Goals

When I graduated from pharmacy school, my main goal was to survive an intense residency program. I fully admit, I wasn’t thinking very much about my finances and I hadn’t set any goals. Looking back, this should have been a priority.

Consider having specific, measurable, and timely goals that have a strong purpose behind them and lay out the steps you are going to take to accomplish. I recommend that you actually write your goals down and tell your friends as research shows these additional steps can increase your rate of success. Here is the basic framework you can use:

By <date to achieve goal>, I want to <financial goal you want to achieve> so that <why you want to achieve the goal>. To accomplish this, I will <steps you will take to make the goal become a reality>.

Example

By December 31st, 2018, I will save $5,000 for an emergency fund so that I can avoid the stress and anxiety when an unexpected expense occurs.

Consider having goals around these areas: savings, net worth, debt payoff, and giving.

2. Develop a Budget

Many people associate a budget with living frugally, eating ramen, and shopping at thrift stores. The truth is that a budget is just a game plan on how you will spend your money and execute your goals. You plan for your expenses in advance and then direct your disposable income (or money left over after expenses) toward your financial goals.

Personally, having created and stuck to a unique budget every month for the past several years has helped prevent overspending, given me a sense of peace, and also kept me on track to achieve my goals. If you want an easy four-step process, check out our free budgeting template to get started. After getting your budget set up, consider using one of the budgeting software/apps to track your progress each month. Some of the popular ones out there include Mint, YNAB, Mvelopes, and Everydollar.

3. Set up an Emergency Fund

If you’ve never had an unexpected car, medical expense, or another emergency, it’s only a matter of time. Life happens and you better be prepared. Having a good chunk of cash on hand can mitigate emergencies that have the potential to derail your financial plan.

The textbook answer is to have 3-6 months of expenses saved in a liquid account like a simple savings account or money market account. Ally bank has a great rate of up to 1.00% APY (Annual Percentage Yield) for their savings account which is significantly higher than what most banks offer. The CIT Bank Savings Builder is another option for a high yield savings account that currently offers an APY of up to 0.75% and requires a minimum deposit of $100. There are no fees to open or maintain the account, however, to get the maximum APY you have to either maintain a balance of $25,000 or more or make monthly contributions of $100 or more.

Some argue that this is too much money to be earning interest rates that can’t even beat inflation. Find an amount you are comfortable with and one that allows you to reduce your dependency on a credit card to bail you out.

4. Eliminate Your Credit Card Debt

No one ever plans to go into credit card debt. It’s often the result of either overspending or unexpected medical events or emergencies. Having credit card debt is really a financial emergency in and of itself given the typical ridiculously high interest rates.

If you’re in this situation, you should make it a priority to get rid of it as soon as possible. You want to take advantage of compound interest and not have it work against you. Do you need an emergency fund in place? Would a budget help prevent you from overspending? Find a strategy that will help prevent it from recurring in the future.

5. Calculate and Track Your Net Worth

This is a quick way to analyze your financial health. Your net worth is your assets (things you own) minus your liabilities (debt you owe). As a new pharmacy graduate, this is likely going to be a large negative number thanks to student loans. However, don’t let that discourage you!

The goal is to make strides to increase your net worth by building your assets and paying off debt. The trajectory is more important than the actual current number. With apps like Mint or Personal Capital, you can quickly check your net worth if you have all of your accounts synced. Tim Baker CERTIFIED FINANCIAL PLANNER™ on the YFP team also has a great net worth tool that’s easy to use.

6. Get Long Term Disability Insurance

You put in a lot of time, energy, and effort to be able to become a pharmacist and make a good income. That’s why it’s so important to protect it. Disability insurance for pharmacists is really income insurance. It provides you with money in the event that you become disabled and are unable to work. Personally, I have known pharmacists that have been unfortunately out of work for months to years because of head trauma and autoimmune diseases. What would happen if you were suddenly unable to work because of an accident or illness? How would you support yourself or your family?

Compared to other types of insurance, long-term disability insurance for pharmacists can be more expensive depending on your health status and coverage options. But can you afford not to have it? You may have a policy through your employer but many times they are not as robust a private policy and may not offer own occupation coverage.

You can learn more by checking out our disability insurance page. When you are ready to shop around for a policy, check out Policygenius, an online broker we recommend where you can quickly shop multiple reputable companies to find coverage that’s right for you. They have a very user-friendly interface and offer incredible service.

7. Develop a Student Loan Payoff Strategy

86% of pharmacy graduates borrowed money to pay for school and the average student loan debt is now over $160,000. With debt loads continuing to rise and salaries being somewhat stagnant compared to inflation, you need a solid strategy to tackle your student loans.

If you’re lucky enough to work for a company or institution that offers a tuition reimbursement/repayment program, this should be your first strategy to consider. There are some well-known federal programs offered by the government and military and some state programs, too. Beyond these, your options are to pursue loan forgiveness through the Public Service Loan Forgiveness Program or forgiveness after 20-25 years or to pay them off in full.

If you’re not pursuing forgiveness and don’t need an income-driven repayment plan, a great option can be to refinance student loans. Reducing your overall interest rate by 1% could result in thousands in savings. You can even get a nice bonus up to $800 through one of our partner companies. If you need help finding the best strategy, you can take our free student loan quiz or download our Quick Start Guide.

8. Start investing in your company’s 401(k), 403(b), or TSP

When you’re flooded with student loans and other debt, it can be hard to balance other goals such as investing. While you may feel you can put off retirement savings for a few years, the reality is that you want to take advantage of compound interest, and the earlier you start contributing, the better.

Many companies offer a match program where they will put in a dollar amount equal to your contribution up to a certain percentage, such as 5%. This is essentially “free” money. For most people, taking the match is going to be the best play, even while paying off student loans. Beyond the match, how much you contribute to your retirement savings plan depends on your financial goals.

9. Get Liability Insurance

Even as a highly trained professional, mistakes can happen which could jeopardize your license and even your career. If you work for an employer, they likely offer some protection if you’re functioning within your scope of practice. However, their main concern is protecting the organization, not you.

Besides actual damages, liability or malpractice insurance can help cover litigation costs, costs for representation for the board of pharmacy hearings, and lost wages. Coverage is relatively inexpensive (~$12-$20/month). Proliability, Pharmacist Mutual, and HPSO offer policies for pharmacists up to $1 million in liability coverage per incident and a $3 million aggregate limit.

10. Get Term Life Insurance

Not everyone needs life insurance, but, if you have a family that depends on your income or someone would be responsible for your debt if you pass, you should have a policy in place. There are two major types of life insurance: term life insurance and permanent. Term is the way to go for most people because it’s less expensive and not flooded with fees.

The amount of coverage required will depend on your needs including existing debt, income support, and future expenses. Future expenses include things like funeral costs, childcare, and college tuition. Check out Episode 44 of the YFP podcast for more information on figuring out your life insurance needs. You can get a free quote in two minutes through Policygenius without putting in your personal information.

11. Set up a Health Savings Account (HSA)

If your employer offers a high deductible health plan (HDHP), then you’re eligible to contribute to an HSA. This can be a good option, especially if you’re relatively healthy and rarely use health insurance because your premiums will generally be lower than traditional plans.

An HSA allows you to save money pre-tax into an account designated for health expenses. But, here is the best part, it doesn’t have to stay in a savings account. The money can be invested aggressively just like an IRA. Furthermore, these accounts grow tax-free and distributions can be taken tax-free if used for qualified medical expenses.

However, you don’t have to use the money for medical expenses that occurred in the same year. You can reimburse yourself for medical expenses that you paid out of pocket in previous years. For 2019, you can contribute up to $3,500 per year if single and $7,000 if married or have dependents.

12. Start Contributing to an IRA

Like a 401(k) or 403(b), an IRA or Individual Retirement Arrangement is another great way to save for retirement in a tax-efficient manner. This is something you set up on your own outside of your employer through a mutual fund company or brokerage firms such as Vanguard or iShare.

While your investment selection will vary based on your personal situation, consider using low-cost index funds or exchange-traded funds (ETFs). You can do this completely on your own or use a robo advisor where portfolio options are already established and your asset allocation is automatically rebalanced.

Meeting with a financial planner to help you choose investments and your overall portfolio is another great option. You can set up a free discovery call with YFP Director of Business Development, Justin Woods, PharmD, MBA to learn about how YFP Planning can support your investment strategy.

You have the option to contribute to a traditional IRA, Roth IRA, or a combination of both. Contributions to a traditional IRA can lower your taxable income, but you likely won’t be able to take advantage of that benefit if your adjusted gross income is $63,000 if single and $101,000 if married filing jointly.

Although you may not be able to contribute to a Roth IRA directly because of income limits, you can contribute to a traditional IRA and convert to a Roth (known as backdoor Roth IRA). Any gains prior to the conversion will be taxed. For 2020, the contribution limit is $6,000 per year.

13. Get a Will in Place

This is probably one of the last things on most people’s financial to-do lists but it’s something you don’t want to overlook. Having a will in place will ensure your property goes to whoever you decide, give you the ability to name an executor who will enforce your will, and to name a guardian for your children if this applies. If you die without a will in place, this will be decided by probate court according to your state’s laws and regulations.

Along with a will, you want to have a living will which is also called a health care declaration or an advanced directive. This outlines how you would receive medical care and who you want to make decisions in the event that you are incapacitated. Depending on how complex your estate is, you may want to hire an attorney to help. Otherwise, you can download state-specific estate documents for free or at a very low cost from many sites.

14. Get Clarity on How to Get Raises or Promotions

Your raises will typically be based on time worked, merit, or a combination of both. If you can increase your salary through achievements, do you know exactly what those are? Some organizations will give raises if you obtain board certifications or other medical credentials.

What about publications, presentations, or positions within state and national pharmacy organizations? If you are already doing things to promote and advance your career, knowledge, and experience, you should definitely take advantage of the financial benefits if available.

15. Set Your Withholdings to Break Even

When you first start working for an organization, you will fill out an IRS W-4 form. This tells your employer how much in federal taxes to withhold on your paycheck and is designated by a number.

The lower the number, the more money they withhold. To maximize your net pay every month without owing a tax bill, you will need to determine the optimal withholding based on your projected income and deductions. If your taxes are relatively easy, you can figure this out using the IRS Withholding Calculator. Otherwise, consider seeking the help of an accountant. You can adjust your withholdings multiple times throughout the year if needed.

16. Consider Hiring a Financial Planner

Having a good financial planner on your team can help you achieve your goals, manage your investments, and put together a comprehensive plan. Beyond the financial benefits, a planner can give you peace of mind knowing someone is looking out for you. The key is finding someone you can trust that has your best interest in mind.

While there are many types of financial planners and advisors out there, consider a Certified Financial Planner (CFP®). They have the most rigorous education requirements including thousands of hours of experience. Be sure they do comprehensive financial planning and not just investment management (unless that’s all you’re interested in). The team at YFP Planning works virtually with pharmacy professionals across the country for one-on-one fee-only, certified financial planning. You can set up a free discovery call to see if YFP Planning is a good fit for you.

17. Start Educating Yourself

Before graduating from pharmacy school, I received about two hours of financial information. Since I didn’t make it a priority to learn about money while in school and didn’t have any good examples to follow, I had a very weak foundation. That resulted in some big mistakes in my first year and a half as a practicing pharmacist.

You don’t need a master’s degree in finance to be successful with money, but you should have the basic knowledge that helps you make good decisions and develop good habits. Some of the YFP team’s favorites include Money: Master the Game and Unshakeable by Tony Robbins, and The Millionaire Next Door by Tom Stanley. If you want more education that is focused on pharmacists, check out our book Seven Figure Pharmacist: How to Maximize Your Income, Eliminate Debt, and Create Wealth and the YFP Podcast.

18. Consider a Side Hustle

Side hustles are ways to make extra cash beyond your full-time job. This could be moonlighting at another pharmacy or hospital or could be something completely outside of your training. Having an additional stream of income can help you achieve your goals faster and reduce the risk of relying solely on your main job.

If you want some ideas, check out this post 19 Ways to Make Extra Money as a Pharmacist in 2020. You can also check out the podcast as we frequently have pharmacists on the show who talk about side hustles they started.

19. Set up Systems to Avoid Lifestyle Creep

Lifestyle creep is one of the biggest threats to a pharmacy graduate. This is when your expenses meet or exceed your income no matter how much you earn. With incomes starting out high, there is a tendency to get comfortable and maintain a certain lifestyle.

Spending the majority of your money on things that bring you pleasure and happiness today and the need to compare yourself to those around you are the main contributors to lifestyle creep. So you have to protect yourself from yourself. Many pharmacists have recommended, “living like a student” for the first few years following graduation. This is a great way to avoid upgrading your lifestyle and making large purchases too quickly.

Another strategy is to automate your contributions toward savings and investments so you never “see” certain money. If you can divert a percentage of income before it hits your checking account, you won’t be able to spend it. Increasing your savings in step with your raises is another great way to prevent lifestyle creep.

20. Connect with the Your Financial Pharmacist Facebook Group

Surrounding yourself with people on the same journey is a great way to help you achieve your goals. We have some great discussions on the Facebook group and you can post your own questions at any time. Join over 7,000 pharmacists and students for some extra motivation and inspiration by clicking here.

21. Use a high-yield savings account or money market account for big purchases

When you consider inflation, money sitting in regular checking or savings accounts can lose a lot of purchasing power over time given most interest rates are essentially next to nothing.

If you are sitting on a bunch of cash that’s for an emergency or you are saving for a big purchase such as a car or home within 5 years or less, these can be good options to earn a little extra money. Now if your savings amount is relatively low and you aren’t adding anything to it then it may not be anything substantial, but remember it’s better than 0.001%.

I did a review of my experience with CIT Bank which offers competitive interest rates from 0.85-1.40% for their high yield savings and money market accounts.

Financial Planning for Pharmacists

While these are some great tips to get you started on your journey, everyone has a unique situation. Whether you want to pay off your student loans, make the right investment decisions, or simply build a solid financial plan, YFP Planning can help you get your income working for you (rather than the other way around). YFP Planning offers fee-only financial planning for pharmacists. You can book a free discovery call to learn more!

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Strategies for Earning Additional Income

Posted on by yfpadmin

In Part 1 of this blog series (Don’t Forget About the Income Side of the Equation), I wrote about (1) why pharmacists should look at opportunities to maximize their income and (2) the importance of knowing the WHY for wanting to do so.

There are many ways for pharmacists to make extra money. The two main categories to get you thinking about earning some additional income; active and passive income. Let’s take a further look at both and some side jobs for pharmacists.

Active Income

With active income, you are trading your time and your skill for money. For most of us, this is what we do every day. We get paid a salary or hourly rate to perform our functions as a pharmacist. Thankfully, for pharmacists, where the median salary is $58/hour, it is a GREAT profession to have the option of trading time for money. As you know, not every profession has the luxury of picking up an extra day’s work for $500 of pre-tax income.

Therefore, the most common and obvious option for pharmacists looking to earn some additional income is to pick up extra shifts with their employer. As you will see with the passive income streams I mention later in this article (which may look more attractive in the long run), this strategy of working extra hours in return for income is likely the fastest way to earn additional income without investing a bunch of time, energy and money to getting something off the ground (such as a book, blog, side business, etc.).

If there are no extra shifts available from your current employer, you could explore PRN staffing opportunities at another employer such as a hospital, community pharmacy, pharmacy benefit manager, mail order pharmacy, or long-tern care consulting company to name a few. Use your network of pharmacy friends to identify companies that have staffing needs!

Other options for earning active income could be starting a consulting business where you can provide your expertise to organizations and businesses that need assistance without hiring a full time employee. For example, maybe you are a clinical specialist that has developed a transitions of care clinic within a large academic medical center and a community hospital near by is interested in doing the same thing. You could set up a limited liability company (LLC), determine an hourly rate for your services and start leveraging your expertise.

Instead of a clinical specialist in a hospital, maybe you are a community pharmacist with 10 years of experience developing and running MTM programs. Could you consult with other pharmacies (probably best to do so outside the area you are working that would be considered competition) to help them establish their own MTM program? Similar to the example above, you could establish an LLC and market your services to pharmacies looking to implement similar services.

It is a good time to mention that with all work you are doing outside of the scope of your day job, you should be very clear on the policies and procedures your employer has on you doing such work to make sure there are no conflicts of interest. After all, if you lose your current job because you are spending time outside work building a consulting business that is in conflict with what you are allowed to be doing, you just negated the purpose of earning extra income. Depending on your employer and their view of you doing these types of activities, you may have to go outside of the area where you are working which may be viewed, in their eyes, as direct competition to what they are paying you to do for your day job.

Another option for earning additional income would be to seek teaching opportunities either at local college of pharmacy that may pay you an honorarium or another health professions program (e.g., nurse practitioner, physician assistant, pharmacy technician, or podiatry) that is in need of pharmacist expertise. If you love teaching and the idea of shaping future practitioners, this is a fantastic opportunity since you will see and feel value in that aspect of the work. However, if you are looking at this as a primary revenue stream, I would use great caution here as your preparation time for class and grading afterwards (if required) will likely be much greater than the time you are being paid to be in class.

If you enjoy writing and are considered an expert in your practice area, you could consider writing CE articles and/or speaking opportunities through various trade journals and state and national professional organizations. Similar to teaching opportunities, if you factor in your total time spent in relation to payment, this usually does not come close to an hourly rate for a pharmacist but could be an excellent way to build your brand which could lead to additional opportunities.

Last, it is important not to lose sight of the things you can do within your current job to increase your income, including, but not limited to the following: (1) asking for a raise if you feel it is warranted; (2) seeking opportunities for a promotion within the organization; (3) gaining additional credentials (such as your board certification) that may allow you to earn additional income in your current position and/or be more attractive for a different position.

Passive Income

Generating passive income (where you are not trading your time for money) seems to be all the rave these days. I think there is a grandiose and unrealistic vision in many people’s mind of a NY Times best selling author sitting on the beach sipping margaritas while the income from book sales comes rolling in. While passive income can seem attractive on the surface (and certainly can be over time), what we often don’t see and hear as much about is all the time, sweat, tears and failures that occur all the way up until the point someone is making “passive income.” Before something ever becomes available for sale, there has been countless hours put behind creating whatever product is being launched.

Caution: If your financial situation is such that you are trying to pay off debt, build an emergency fund, or get any part of your financial foundation in place, any efforts towards building a business that has passive income should not cost you a lot of money. However, if you have time and that can be your main currency of investment to get this venture off the ground, go for it!

So what are some common examples of passive income that pharmacists could explore?

Writing a book in your area of expertise. If you enjoy writing, this could be incredibly rewarding while providing some ‘passive income.’ I put passive income in parentheses because after you account for your time in writing and editing, you might be making closer to minimum wage than you would be a pharmacists salary. However, once you get the first version off the ground, if you are successful in building an audience to promote your product, the true benefits of the passive aspect start to become reality as time goes on.

Starting a blog. While you may not see a blog as having passive income on the surface, a blog can become a foundation for advertising and promoting other products that you create over time (e.g., book, online course, podcast, etc.). Most blogs are not successful in earning money because of the time it takes to keep up with writing on a regular basis and promoting that content to effectively build an audience that cares enough to keep coming back (and hence, be interested in buying something else you are selling).

Developing an online course. Pharmacists are very used to the idea of completing CE hours and attending certificate training programs, so developing an online course could be a worthwhile endeavor. For example, maybe you are an ID specialist with extensive experience in developing antimicrobial stewardship programs. Could you develop an online training program for $99 (or whatever price you decide) that teaches others how to develop, implement and evaluate an antimicrobial stewardship program? Maybe you could even partner with a state or national organization to help you promote this program and in turn share the revenue.

Building a membership site. This one may be harder to visualize than the others mentioned above but the idea here is to create exclusive content that provides tremendous value in return for regular payment (e.g., monthly fee). For example, maybe you are a pharmacy educator that has years of experience developing classroom materials, test questions and other assessment activities. Could you develop a membership site, where for $9.99/month, faculty from across the country could join to get exclusive tools/resources to help them in their own teaching experiences? Maybe you could even create a separate forum where only those that pay for the membership site could pose questions where you or others in the membership site respond to help them with their teaching needs, to give feedback on test questions, etc.

Investing in real estate. We are getting outside the pharmacy box now to look at opportunities for passive income that you could generate without having to wait until you are old enough to access your retirement funds. If you are in a financial position to do so, you could look at owning a second property in the town you currently live or a place you vacation regularly. Ideally, this property would be rented out at a rate that would cover at least your mortgage , taxes, insurance, and maintenance on the home. I have heard both the lucrative and horror stories of real estate investing so make sure to do your homework before jumping into this opportunity. One of my classmates from Ohio Northern University, Ben Holter, wrote an excellent blog post on this topic that is worth checking out if you have not already done so (Real Estate: The Investment You Should Not Overlook).

Affiliate marketing programs. In short, affiliate marketing programs allow you to promote another product in return for a percentage of that sale. For example, Amazon has an affiliate program where you can sign up to promote a book (or other content as well) and in return get a certain percentage of all sales purchased by the individual clicking to buy that product (using your unique URL). While one way to take advantage of affiliate programs is to be an affiliate for someone else’s product, another way is to leverage affiliates for the product you are trying to promote. For example, maybe you are promoting a recent book you published and you have several other pharmacy colleagues that help you promote the book and in return (through a unique URL identifying that individual), they receive a portion of the sales. While you are giving up some of the revenue, you are likely having a broader reach than you could have had on your own.

Examples of Pharmacy E-Entrepreneurs

If you are a pharmacist thinking about starting up a side business (or even side hobby that may turn into a business over time), one of the best steps you can take is to see who else is out there in the pharmacy community doing this type of work. Besides checking out the work Dr. Blair is doing with her business BT Pharmacy Consulting, here are some others for you to explore:

Alex Barker, PharmD – ‘Side Hustle Coach’, author and podcast host of Pharmacy Life Radio and the 66 Day Experiment.
Eric Christianson, PharmD, BCPS, CGP – creator of Med Ed 101; a popular education site for pharmacists and pharmacy students preparing for board certification or the NAPLEX.
Tony Guerra, PharmD – author (Memorizing Pharmacology: A Relaxed Approach and How to Pronounce Drug Names: A Visual Approach to Preventing Medication Errors) and podcast host of “Pharmacy Future Leaders” of the Pharmacy Podcast Show.
ID Stewardship by Timothy P. Gauthier, PharmD, BCPS-AQ ID – very popular infectious disease blog for students and pharmacists.

The Time Investment is Real…and Rewarding

From experience and talking with many pharmacists working in these areas of developing passive income streams, I can tell you that these take an incredible amount of time, energy and effort to build before you may have $1 to show for it. If the idea of spending months and hours of time with the potential of still having something fail isn’t for you, then I would suggest holding off on pursuing these options. However, if the thrill of starting something to provide a solution to a problem that you see (whatever that may be), then this may be for you!

Tax Advantages

Without getting into the weeds on taxes for the sake of my sanity and you staying awake, there are significant tax advantages of turning a side project into a business. Setting up a business structure is much easier than you think and can result in being able to deduct business expenses and employing other family members to reduce your taxable income. If you are interested in learning more about the tax advantages of owning your own business, I would recommend reading or listening to Tax Free Wealth by Tom Wheelwright.

Your Financial Homework

If you read Part 1 of this blog-series, you will remember the $1,000 challenge I put in front of you. Here it is again for those that may not have seen it or to provide some extra motivation for those that have accepted this challenge.

In the next 90 days, make a commitment to earn $1,000 beyond your current income to throw directly at your top financial goal for the coming year. Whether that goal is debt repayment, saving up for a home, saving for kids college, opening a Roth IRA or something different all together, I am confident the momentum you will get from $1,000 going directly towards you goal will catapult you into doing more. Once you do this, share your success with me at [email protected]

So what would an extra $1000 (net income after taxes) do for you in 2017?

If you don’t have an emergency fund in place, it would be a great way to get together a ‘starter’ emergency fund that you can build upon over time. This could help give you peace of mind knowing that in the event of an emergency, you have some buffer to take on an expense without having to take on more debt.
Or how about retirement savings? If you were to invest $1000 today in a Roth IRA and the money were to earn 8% growth over the next 40 years, that $1,000 would turn into almost $25,000 tax-free!
Or how about paying off debt? If we assumed that you had $100,000 in student loan debt remaining at 6% interest (under the 10 year repayment plan) and you were able to throw $83 extra per month ($1000 per year) above and beyond your principal starting this year and continuing here on (because we will keep the momentum going!) you will save over $3000 in paying interest and have the loan paid off almost 1 year earlier.
What about college savings? Maybe you are debt free with a good emergency fund in place and on your way to saving for retirement so you want to start a college fund for your newborn. If you were to start saving $83/month for your newborn from now until they go to college in a tax-free growth account (such as a 529 plan), you would have almost $40,000 saved to pay in cash for college.

Talk about BIG WINS with a small start…start the momentum TODAY!

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Don’t Forget About the Income Side of the Equation

Posted on by yfpadmin

We tend to make personal finance way more complicated than it needs to be. Pick up an investing book at the bookstore or attend a financial seminar and you know what I mean. All the financial lingo, tax codes, strategies….yada, yada, yada.

While understanding the lingo is important (to some degree), at the end of the day, achieving financial success depends upon setting financial goals and being able to put a plan in place to achieve those goals. A good zero-based budget (the budgeting process I like most and recommend) takes your household income and intentionally and thoughtfully assigns a dollar amount to every spending category before the pay period begins. The result should be a $0 balance because every dollar has been assigned to a spending category.

If you have done a budget before with some goal in mind that you would like to achieve (whether that be debt repayment, saving up for a vacation, etc.) you know well the frustrating feeling of wanting to make progress faster than is mathematically possible. At the end of the day, you can do one of two things to make your plan move forward faster. Increase your income or cut your expenses. It is simple as that.

In this 2-part post, I am going to address (1) why pharmacists should look at opportunities to maximize their income and (2) practical ideas for getting started with earning extra income.

Increasing income vs. cutting expenses

The financial community tends to focus almost exclusively on the option of cutting expenses since there is a lot of data to suggest that we as a country are out of control with our spending. This inherently then becomes the goal of the budget…figure out as many areas as you can cut to free up cash to put towards financial goals.

I would contend that figuring out the expenses side of the equation is the most important of the two and should be your primary focus. After all, if you can figure that out, any additional income will be maximized because it will be spent with purpose and within the boundaries that you have already set. On the other hand, you could earn $150,000 instead of $120,000 next year but because of a lack of discipline with managing that $120,000 and the bad habits that have been built (we all have them!), $150,000 may not provide much additional benefit after you consider the taxes that will be taken out. Rather, if you have been spending your $120,000 with purpose and direction and have goals and a budget in place, when you get that extra income, you know exactly where it should go. That is when you see real progress being made towards achieving a financial goal!

Why should pharmacists focus on maximizing their income?

While a pharmacist’s income is certainly nice (median of $121,500 in 2015 according to the Bureau of Labor Statistics), the purchasing power of a pharmacist’s income is declining in recent years because student debt loads and the interest rates associated with that debt is outpacing any salary increases. That is worth saying again. A pharmacist today has less ‘available income’ than a pharmacist 5 or so years ago because debt loads have gone up faster than salary increases (and continue to do so).

For example, 5 years ago, the median debt load upon graduation for a pharmacy student was $110,000 (Ref: AACP Graduating Student Survey, 2011) and the median pharmacist income was $113,390. At this point in time, the median income for a pharmacist exceeded the median debt load. Fast forward to 2015, where the median student debt load was $150,000 (Ref: AACP Graduating Student Survey, 2016) while the median salary for a pharmacist was $121,500.

Therefore, the median salary during that 5 year period (2011-2015) increased by $8,110 while the median debt load during that same period increased by $40,000. Ouch.

The other consideration, besides the apparent eroding purchasing power of the pharmacists income, is the reality that for many pharmacists, income starts out high coming out of school but maintains relatively even with inflation via cost-of-living adjustments and some minor pay raises over time. This will, of course, not be true for the minority of individuals that pursue a management position or other opportunity to grow income such as starting a new business. This flat trajectory of income for the majority is unique to our profession compared to other fields of work. This further highlights the importance of avoiding the temptation to live up to your income coming out of the gate as it can be difficult to adjust down from this over time because income may not increase significantly for a pharmacist yet his/her expectations for life and the expenses that come along with life over time will go up.

Why is that relevant? We can’t continue to lean on the pharmacist’s income as the sole factor for achieving financial success. Yes, it is important, and if managed wisely, should be more than enough. However, if this trend continues, the pharmacist (to maintain his/her purchasing power today), will need to either (1) further cut expenses, (2) hope for significant pay raises or (3) take action to generate more income.

Know the WHY

Before we talk about ideas for how you may earn extra income in part 2 of this blog series, it is important to address the WHY for earning additional income or else it will feel like spending a lot of time and spinning your wheels for not a whole lot of benefit. This takes us back to the importance of setting financial goals. If you know what you are trying to achieve (pay off debt by a certain date, build an emergency fund, put more towards retirement, pay off the house early, etc.) your extra work will have that much more motivation behind it.

Once you know the “why” for earning additional income, the next logical question would be ‘how do you practically earn additional income?’

There are two major ways to think about earning extra income. You can focus on earning “active income” where you trade your time for money or you could focus on “passive income” where there is an uneven distribution between your time and earning money (hopefully less time for more money but not always the case). We will take a closer look at both of these categories with specific examples and ideas so stay tuned…you won’t want to miss it!

Your Financial Homework

In part 2 of this post, I’m going to outline specific ideas for how you may go about earning some extra income.

Before reading part 2 of this blog-series, I want you to make a commitment to earn an extra $1000 (net income after taxes) this coming year to help jumpstart progress towards a financial goal you are working on.

You might be thinking ‘how much impact can $1,000 really have?’

If you were to invest $1000 today in a Roth IRA and the money were to earn 8% growth over the next 40 years, that $1,000 would turn into almost $25,000 tax-free!
Or how about paying off debt? If we assumed that you had $100,000 in student loan debt remaining at 6% interest (under the 10 year repayment plan) and you were able to throw $83 extra per month ($1000 per year) above and beyond your principal starting this year and continuing here on (because we will keep the momentum going!) you will save over $3000 in paying interest and have the loan paid off almost 1 year earlier.
What about college savings? Maybe you are debt free with a good emergency fund in place and on your way to saving for retirement so you want to start a college fund for your child. If you were to start saving $83/month for a newborn from now until they go to college in a tax-free growth account (such as a 529 plan), you would have almost $40,000 saved to pay in cash for college.

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4 Ways for Pharmapreneurs to Improve Their Personal Financial Equation

Posted on by yfpadmin

By: Blair Green Thielemier, PharmD (Founder of Pharmapreneur Academy)

I want to thank Your Financial Pharmacist for inviting me on the blog to talk about a subject that really excites me. Making money! You see there are two variables to everyone’s personal financial (PF) equation: saving more and earning more. Those are the only two possible options for improving your financial situation; barring some exceedingly good luck regarding lottery tickets or wealthy great-uncles.

Saving more means cutting out extraneous spending, balancing your budget, strategically managing debt payments and prioritizing retirement planning. The downside, however, is that you can realistically only cut back so much. There is a limit on saving. You are limited to saving $6,000 per year in an IRA or $19,500 in a 401(k) for someone under the age of 50. You are limited by the basic cost of living in your area when cutting out extraneous spending (unless you want to audition for one of those “living-off-the-grid” TV shows, then by all means, go ahead!)

Saving is big piece of the equation because, until you can control your spending you will likely fall into the lifestyle inflation trap. My dad told me soon after I graduated pharmacy school, “It seems likes you will be earning a lot of money, but be careful because the more you make, the more you spend.” He was so right; those wise words have kept my family living below our means for the past five years and have helped us avoid financial disaster during a very difficult time. Once you feel comfortable with gaining control of your spending (most likely by using the “B” word), you can focus on the second variable in the personal finance equation: earning.

Why is earning so much more so exciting?

Because there are no limits on earning. Earning more, whether by career advancement, side “gigs”, investment income or entrepreneurship, is the secret multiplier in the personal finance equation. Imagine if you could create something once and sell it over and over again, this is known as passive income. It is why investing works. It is why entrepreneurship works. Without time as a limiting factor, earning potential becomes as vast as the effort you are willing to put into it.

Think of it this way; as an employee you essentially trade your time and skills for a predetermined amount of money. The problem is the limitations on your salary as there are only so many hours each day. As an entrepreneur, you can find ways to leverage your time.

How to Make Money as a Pharmacist

Here are four ways to earn extra money and tip the personal finance equation in your favor by becoming a pharmacist-entrepreneur (Pharmapreneur).

#1 – Offer MTM as an Independent Consultant

You can capitalize on your clinical skills and offer MTM services to independent community pharmacies, physician groups or even to cash-paying patients.

In a short-staffed community pharmacy, for instance, they may be struggling to meet their dispensing numbers. In 2016, Medicare began following CMR completion rates and monitoring performance measures at a time when many community pharmacies are struggling to keep up with the growing MTM queue. They need independent consultants in their local areas to step up and help them meet their performance goals.

In physician groups, pharmacists can provide value through multiple MTM-related services. My favorite example is of the pharmacists at Cleveland Clinic who are improving outcomes for post-transplant patients by counseling them on immunosuppressant therapies. Medicare is reimbursing for their time through utilization of the “incident to” CPT codes 99212-99214.

You could easily model a similar practice model on a smaller scale for physician groups in your area. At Pharmapreneur Academy, I help other pharmacists build pharmacy consulting businesses. Many other pharmapreneurs have taken the course because they are interested in finding new opportunities to use their clinical skills.

However, building a consulting business is not the only way to generate income using your pharmaceutical knowledge and skills. Perhaps if you aced Pharmacokinetics or Drug Induced Diseases then you should look into a new branch of healthcare. DNA testing.

#2 – Become a Pharmacogenomic Testing Representative

Another burgeoning branch in pharmacy clinical services is genetic testing. A genotype test panel gives physicians and pharmacists a better understanding of enzymatic action (the “M” in ADME from Pharmacokinetics) in patients.

Healthcare providers can use genotype test results to improve medication safety and efficacy and decrease “trial and error” prescribing. Pharmacogenomic tests help identify non-responders before it is too late. Because pharmacists are the most trained healthcare providers in pharmacokinetics, it makes sense for us to take advantage of this knowledge.

The biggest barrier to using genotypic tests, according to physicians, is lack of time. Pharmacists can offer to interpret tests, optimize therapy and improve medication side effects for patients in exchange for a fee. In certain states, pharmacists are eligible to receive a commission on pharmacogenomic tests and can offer their services as an independent consultant.

Here is more information about how to begin a PGx service in your community.

#3 – Put Your Writing Skills to Work

If you are interested in sharing your ideas and enjoy putting those thoughts into the written medium, becoming an author could provide you with another income option.

A friend of mine offers paid medical writing positions which are a great option for pharmacists who want to generate a bit of extra cash. She has told me multiple times that because of our medical knowledge and attention to detail, pharmacists make some of the best medical writers on her team. If you are interested, I would be glad to put you in touch with her to learn more.

In addition to medical writing, authoring a Kindle book can earn you passive income for as long as Amazon is selling your book. This absolutely does not have to be pharmacy-related. You can easily write a 10,000 word ebook on any subject of interest and begin selling it on Amazon. I recently released a book on the Amazon platform without spending a ton of money.

Another source of revenue, could be writing for pharmacy publications such as Pharmacy Times. If you enjoy writing you can submit a one-time article or if you decide to regularly submit your work, become a contributing author. Contact Tim or I for a referral if you are interested in publishing in Pharmacy Times.

Writing can be a creative, enjoyable way to create additional income streams that head straight into your piggy bank. Authors with a medical background can be highly sought after and therefore command higher fees so once you get started, there are many options for the pharmapreneur/author.

#4 – Teach Workshops to Pharmacists in Your Area

If you have expertise in a subject other pharmacists would find interesting, you can easily put together and teach your own workshop for CE hours. Recently myself and two colleagues hosted a successful MTM workshop in Little Rock.

A workshop can be a good, replicable income stream for the entrepreneurial pharmacist. Once you develop your slide presentation and a general outline, you can submit your objectives and offer the workshop a few Saturdays each year.

First, I recommend you “test-sell” your workshop on Facebook or through your local APhA chapter to see how many pharmacists in your area would be interested in signing up. Then, if there is enough interest, create the slideshow, apply for CE credit, book the venue and begin pre-registering people.

You can test sell your workshop in a few different ways.

Pre-register people using Paypal invoices
Create a “wait list” to gauge how much interest there is before booking the venue
Use a program like Eventbrite to manage attendance and register attendees

We limited our course to 20 pharmacists and gave 4 CEUs. We had such great feedback that we plan to offer the workshop again soon. The workshop is something that we created once and we can offer to pharmacists again and again as long as there is interest.

The greatest thing about entrepreneurship is there are no limits your creativity and earning potential. You can generate income through your ideas and your own hard work.

Whether it be through consulting, genomic testing, writing or teaching, your knowledge and degree opens so many doors if you are willing to work hard.

Entrepreneurship will change your life!

Financial Homework: Can you take advantage of any of these income opportunities? If so, consider exploring one further and projecting how much revenue you might be able to generate by participating in that activity. Take this one step further and determine how this additional revenue could help you achieve one of your short-term financial goals.

Looking for More Ways to Make Money as a Pharmacist?

Check out 19 Practical Ways to Make Extra Money as a Pharmacist in 2020!

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ABOUT THE AUTHOR:

Blair Green Thielemier, PharmD is an independent consultant pharmacist living in Arkansas with her husband and daughter. She is the founder of Pharmapreneur Academy, an online teaching platform where she guides pharmacist-entrepreneurs through the process and barriers of building a pharmacy consulting business. She is the author of How to Build a Pharmacy Consulting Business, a contributing author for Pharmacy Times and guest host on the Pharmacy Podcast. More information about Dr. Thielemier can be found on her website http://BTPharmacyConsulting.com

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How to Build a 6 Figure Rental Portfolio in Less Than 3 Hours a Week

How to Start Investing in Real Estate in a College Town

Ready to take the next step in your real estate investing journey?

These Tax Benefits Get Unlocked When You Have or Adopt a Child

1. Child Tax Credit

2. Child Care Credit

3. Adoption Tax Credit

4. Dependent Care Flexible Spending Account

5. 529 Plan

6. Coverdell Education Savings Account (ESA)

Conclusion

Need Help Trying to Determine Which Tax Moves to Consider?

10 Financial Benefits for Federal Pharmacists You Wish You Had

1. Federal Employment Retirement System (FERS) Annuity

FERS Retirement Calculator

2. Access to the Thrift Savings Plan

3. Life Insurance

4. Long-term Disability Retirement Benefits

5. HSA Eligibility

6. Paid Parental Leave

7. Raises for additional credentials and board certifications

8. Opportunity to Pursue PSLF

9. Tuition Reimbursement and Repayment Programs

10. Generous Leave Structure

Conclusion

Need Help With Your Financial Plan?

6 Ways to Protect Your Cash Flow as a Pharmacist

1. Have a side hustle

2. Make yourself indispensable

3. Have adequate disability insurance

4. Be ready to make a move if needed

5. Maintain your license in good standing

6. Grow your pharmacy network

Conclusion

19 ways to make extra money as a pharmacist in 2020

1. Take Extra Shifts

2. Look for Additional Projects / Assignments

3. Refinance Student Loans…And Then Do It Again

4. Take a Moonlighting Position

5. Earn another certification/credential

6. Switch to a Higher Paying Job or One With More Opportunities

7. Start Doing Medical Writing

8. Provide Continuing Education / Other Presentations

9. Start a Consulting Practice

10. Complete Comprehensive Medication Reviews (CMRs) through Aspen RxHealth

11. Write a book

12. Teach a course / Become an adjunct professor

13. Serve on an advisory board

14. Become an Expert Witness

15. Monetize a non-pharmacy skill

16. Switch to a high yield savings account or money market account

17. Become an Airbnb host

18. Buy a rental property / House Hack

19. List your car on Turo

Conclusion – How to Make More Money as a Pharmacist

Another Way to Find Side Jobs for Pharmacists or a Pharmacist Side Hustle

1. Create Solid Financial Goals

2. Develop a Budget

3. Set up an Emergency Fund

4. Eliminate Your Credit Card Debt

5. Calculate and Track Your Net Worth

6. Get Long Term Disability Insurance

7. Develop a Student Loan Payoff Strategy

8. Start investing in your company’s 401(k), 403(b), or TSP

9. Get Liability Insurance

10. Get Term Life Insurance

11. Set up a Health Savings Account (HSA)

12. Start Contributing to an IRA

13. Get a Will in Place

14. Get Clarity on How to Get Raises or Promotions

15. Set Your Withholdings to Break Even

16. Consider Hiring a Financial Planner

17. Start Educating Yourself

18. Consider a Side Hustle

19. Set up Systems to Avoid Lifestyle Creep

20. Connect with the Your Financial Pharmacist Facebook Group

21. Use a high-yield savings account or money market account for big purchases

Financial Planning for Pharmacists

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