The Financial Cocktail
What is The Financial Cocktail? It is my attempt as a CRNA to help CRNAs achieve financial success. We have spent many years studying and understanding the workings of the human body and the art of anesthesia. Throughout this decade (plus) long journey, finance rarely made an appearance on the docket. CRNAs makegood money and it would be a setback if that money was not managed intentionally and suppoeted the greater good (whatever that means to you). The CRNA community is filled with some smart cookies. Who better than smart people to have extra money? I know your alma mater endowment fund would thank us both. Not to mention the governing bodies and their associated Political Action Committees (PACs). Maybe get away from anesthesia and give back to a school, religious organization, or lemonade stand. Read the books on The Financial Cocktail must-read list and put yourself between Musk and Bezos on the Forbes list. You pick your poison.
We have pages of notes that accumulated over the didactic portion of our learning. Many of us have pages of notes that accumulated over the clinical phase of our learning. Many pearls hide in the college-ruled pages of pocket-sized spiral bound notebooks. Just as we scribbled notes in the effort to refine our practice of anesthesia, I have taken my share of notes regarding personal finance, investing, and wealth management. I started this financial journey well before anesthesia entered my life. Things really took off when I trialed different learning methods with finance books. So nerdy. The Financial Cocktail is my outlet to share what I have learned over the years to set myself up for financial success. It is nothing revolutionary, but until someone explains that living paycheck-to-paycheck is not the only way to live, it seems like a viable, or even the only option. But personal finance is soooo tough and boring right?! Well, kind of, but it doesn’t need to be.
As the adage says, money isn’t everything. I conditionally DISAGREE. Money represents different things to different people. For many, money represents a big house, fancy car, and designer clothes. I challenge you to look at money through a lens of opportunity. Money is not a newly built 5,000 sq. ft. 5 bed 4 bath home with a 4-stall garage, but rather the opportunity to afford housing. Likewise, money is not a new 8-cylinder rocket that goes 0 to 60 in 2.5 seconds, but rather the ability to have transportation when needed. And the ability to seamlessly purchase a new ride if something happens to your current one. Going farther, the power of money goes well beyond material possessions. Money represents comfort, time, options, and freedom. The dollar is not to be worshiped, but rather used as a tool for the aforementioned.
Money conflicts are the primary stressor in divorces and relationship strains. It’s a heavy straw that brings down a lot of camels. The weight of the straw doesn’t change with income levels, but rather an understanding. Families can minimize this by openly discussing their personal finances, financial goals, and how to best make financial decisions. It would make my day to see readers with chubby pocketbooks and better marriages. Take that out of context for a nice quote. Seriously, do the CRNA community and your family a service by joining the discussions.
Money does a few things for me. I’ll keep it short in this “Welcome to The Financial Cocktail” post.
1. Money removes the pressure to continue a miserable job. An emergency fund allows me to cover my expenses if I leave a job prematurely for any reason. Surplus capital in the form of investments PAY ME. This is how I am on track to fully retire at age 35. Not part time, kind of, sort of retire. Not FIRE movement retirement with 2 part time jobs. Money gives me the option to walk away from anesthesia if the job market changes, political policies sour, reimbursement decreases, or I just lose the passion for it. I have no plans on leaving any time soon as I am OBSESSED with anesthesia (just ask my wife), but options are good.
2. Money provides opportunities that are unavailable to those lacking. People mistake planning for luck. When financial recessions come knocking, the only people who do well are those with capital. Think of the people who made millions off the housing market crash of 2008. I don’t wish for recessions as they have the potential (and often do) hurt millions of peoples’ retirement and standard of living. Examples of benefits include medical coverage, therapy, and taking a job with lower compensation because your priorities guide you (think aging parents). I wish everyone prosperity, but to manifest, it takes planning and discipline.
3. Money is financial freedom. This parallels the first points but focuses on the retirement side. Living paycheck-to-paycheck doesn’t allow you to walk away from a job because the utility company will cut your power the following week if you don't see a paycheck on Friday. I read a crazy statistic off a major news network (I can’t remember which) that said 1 in 3 people making $250,000 annually are living paycheck-to-paycheck. Just needed to gather my jaw from the floor. If you find yourself in this situation, please reach out. The Financial Cocktail will gladly help.
4. Money mitigates risk. Financial security is at the top of my list. It is important that if something happens to me, my entire family will be covered, all debts paid, wife doesn’t need to work for a year (pretending she will be grieving), and any expenses for kids will be paid not only through age 18, but college (including tuition). This comes down to a solid investment portfolio and good insurance. Don’t overpay for insurance because the bigger your investment portfolio, the less insurance you need. It is your insurance policy.
5. Money buys time. Most people understand this concept to a degree. Cook at home or order out. 18-hour road trip or 4 hour flight. Pay someone to clean, mow, shovel, etc…Enough said.
6. Money CAUSES stress. This contradicts the first five points, but it is true. Christopher Wallace said it best…Mo Money Mo Problems. With financial success comes a responsibility to keep the financial train on the rails. The average fortune is squandered within 3 generations. Work to gain, then work to maintain. Inevitablely and rightfully, toys such as houses, cars, boats, and campers enter your life. Enjoy your spoils. All of these require repairs and maintenance, which is expensive. Or you can do it yourself, which costs time. When I look at my 401(K) and it is down 21% on the year, I think to myself, if I didn’t have a 401(K), I wouldn’t be down 21% this year. And taxes… My favorite 5 letter word from my favorite 3 letter statutory body, the IRS. Taxes are only a problem for people who make money, so be glad it is a problem. We will talk extensively about managing said problem, but that is for another time.
At the end of the day, I am fortunate to be where I am. I count my many blessings. Years from now, I will look back and ask myself if I really did enough in the world. Did I make a difference? As someone who lacks creativity and writing skills, this is what I came up with, The Financial Cocktail. From one CRNA to another (or whoever is reading). A referral to someone who would find this site helpful is greatly appreciated. Take care everyone.
