The Revision of The Number…

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The Revision of The Number…

Scott has found the intersection between his Life’s Purpose and the Real World: it’s called his Number and he has just realized that his dream needs to be modified slightly to avoid it becoming a nightmare

Well folks, i’ve gone over it and over it time and again and guess what?  I’m realizing that at least for the moment, I can’t justify the number I set forth previously for myself of 10 million dollars.  The reason being is simple. First of all, it seems a lot of what was driving my number was to run a “Free Clinic”  and all the monthly costs associated with such a venture. The trouble is, in order to run a clinic like this, it is going to require just as much “work” ie; busy work, rat race, (enter Robert Kyosaki discussion of choice) as I do now, because even a free clinic has to be marketed and how on earth am I going to be able to take mission style trips abroad to help those less fortunate as well as take personal family time vacations I desire as well as have the freedom I desire if I personally have to run this clinic.

Instead, i’ve opted for owning a clinic that does accept pay, insurance assignment, etc.. however provides extremely generous ‘discounts’ to those who genuinely cannot afford to pay and meet certain financial eligibility qualifications or rather hardship qualifications. This will enable those that need and want care but truly cannot afford it to have the ability to receive it. Plain and simple. What this also does is allow me to have another doctor, or doctors to effectively “run” the clinic, handle the insurance issues, paperwork, etc… while I don’t!!  But it gives me the freedom as the owner to come and go as I choose, when I choose as well as have other, well-paid individuals to deal with paperwork, insurance chasing, etc..     all the things I don’t want to do, while I get to enjoy the things I do want to do, which is the doctor/patient relationship, patient education and patient care!  Why you ask, don’t I set my clinic up that way now? Simple, because doing the marketing, the paper work and the other ‘rat race’ tasks myself keeps my overhead low and my profitability high and is what generates my high income at the moment. The income necessary to fuel real estate purchases and other investments that will help me achieve my number, hence, my Life’s Purpose. Once this clinic is established the way I want in the future, it will not be very profitable, in fact it may just barely make overhead after additional staff and doctor’s salaries are met, and will produce me no profit, but essentially ‘pay for itself’ and help me live the purpose of helping others while having freedom from “work” and the freedom to travel.

I think another thing that would drive my number up would be a desire to live in a multimillion dollar home. However, my wife and I have no intentions for the moment or desires to purchase more home than we currently have. We just recently purchased a horse estate just outside of Louisville that we absolutely love.  It is a 100+ year old, former plantation farm that has basically been about 70% renovated, and really just needs a few other projects completed as well as some cosmetic restorations and a barn renovations. We basically got this house for about half of what other similar horse farms have sold for in the area because most people can’t look past cosmetic work(some of which i’ve already completed myself this year for little or nothing) that needs to be done and I think this real estate market and the drop in acreage prices have helped out as well. We got the house for 325k and plan to spend around 200k total on it completing all restorations to make the house COMPLETE and when done, it will be an absolute gem and should be worth around 800k(in today’s dollars). Our total investment in doing this will be around 525k. This is in rural Louisville, KY numbers. Pick this house and land up and drop it in Southern California where Ryan lives, or in Chicago where Adrian lives, or even in NY near Josh and I guarantee you can easily double or triple its value. So as you can see, we feel no need to purchase another or spend 3 million dollars(3 million spent here would get you an Evander Holyfield estate with 27 bedrooms and with an airstrip on it, lol).

Also, we have no need to purchase brand-new cars. We do however desperately want to drive nice, expensive, high performance cars(a 911 porsche turbo has been on my dream list as long as I can remember. Just as Josh desires, but in my research, one can be obtained for 50-65k) and my wife and I love BMW.

I think what has stuck in my brain is what Adrian has tried to stress several times which is: What is the BARE MINIMUM that you NEED/WANT in order to live the life that you NEED/WANT? Right now, I just don’t desire things that necessitate 10 million I guess. The extra would be nice but who knows, that could all change in the future, right? I’m sure later I may desire more. But I figure if I can make this number happen, why couldn’t I reset in 10 years, and make A NEW NUMBER happen from that new starting point if I get bored being “retired” and want to put the gloves back on and climb back in the ring? Hey, it worked for Bernard Hopkins at 43 years old a couple of weeks ago! 😉

Anyway, with all this realization, this brings me to our new Number:
One-Off Expenses

Housing needs:                          Today:                           Total needed in 10 yrs(inflation adj):

Pay-off current mortgage:                323k                                 271k left(according to amortization schedule)

Renovations needed:                        200k                                300k

Student Loan Payoff: 140k                                102k left in 10 years

Vehicles 100k                                150k(then replace these every 8 yrs or so…)

(for used Porsche Turbo, BMW 7 series and farm equip. needed as well as investable assets to replace every 8yrs or so)


General Yearly Costs

General monthly living costs: 48k                                       72k

(gas, electric, insurances, groceries, nutrition supplements, basic

dining & entertainment, gifts, horse and other animal care, etc..)

Travel Abroad to Help Patients 16k                                      24k

(2,  1 week long trips @ 8k each)

Travel for Pure Enjoyment 20k                                     30k

(2, 1 week long trips @ 10k each)

Additional Gifts 5,000.00                           7,500.00

(above what is budgeted in living expenses already)

Philanthropy 12,000.00                     18,000.00

(above what is budgeted in living expenses already)
Car Maintenance 4,000.00                     6,000.00

(estimates for upgraded cars above what is included in living expenses already)

Additional Car Ins. Premium 2,400.00                  3,600.00

(Ditto, above)

Total:                                                     107,400.00                 161,100.00
161,100.00 x 20 =  3,222,000.00 + total of one-off expenses above(823,000.00) =

New Number of  $4,045,000.00 (Multiplied by 20)

$5,656,000.00 (Multiplied by 30)<==================This is what i’m going by for now

$6,444,000.00 (Multiplied by 40)

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Reader Comments

And I want to apologize for my spreadsheet posting out of column and difficult to read. I tried three times to edit it and straighten it up on wordpress, but it wouldn’t let me for some reason ;(

No problem with the spreadsheet, Scott. Just wonder why you can’t live your dream now – from what you just described, you could hire others to do the grunt work while you do the patient care. Your income would be less now, but it sounds like that is NOT what you are after, other than paying off the mortgage, the student loan, and getting some new vehicles. Did I miss something? Does it cost doctors to do the Doctors-without-borders care? Do you mind telling us what kind of doctor you are? Are you GP, internist, surgeon, or what? My niece and her husband (one in Chicago at Loyola now, the other in Ohio, both in residency now) are also MDs, and my brother is a DDS. With my ex-in-laws being ENTs (father/uncle inlaws), I’ve had vicarious education in what it’s like in your field (tho not in how to do what you do, of course!).

@ Diane – I run a spinal injury/rehabilitation clinic here in Louisville with plans to open up at least 2 more clinics in the near future. As far as living my dream, I most definitely am in terms of chosen profession but the greatest myth and illusion of all is that working in your dream profession is exactly what you thought it was cut out to be before seeking out the dream. As we all know, the grass isn’t greener on the other side. In other words, as i’ve stated before, what most people don’t realize is the bureaucratic rat race behind practicing any healthcare discipline here in the U.S. As i’m sure is true in any profession from being a professional baseball player to being a rock star.

As I was saying, I could hire more people to handle the paperwork, marketing, etc..and make my job nothing but pure joy, but those are salaries that you have to pay(at least 2 additional salaries to cover what I personally do myself right now in marketing and paperwork) and the pay-back that I would receive from their services would not increase gross profits very much as they would be just taking care of what I already take care of, basically cutting my income down considerably.

I believe a better question to ask one’s self is this:

How can I work my tail off in my chosen profession with as much passion, commitment and determination as possible, while living as low below my means as possible and investing every penny above that lifestyle towards buy and hold strategies that create great wealth until the day when you no longer have to do what you do for money, rather do it for the love of ‘doing it’ without asking for anything(in this case reimbursement from anthem, aetna, humana, etc..) in return except the smile on someone’s face when you’ve made a difference in their life?

I imagine Bill Gates, Howard Schultz, Ray Croc and Colonel Sanders got great joy out of pursuing their chosen professions, but they also wanted to use it to build great wealth with, and I’m certain all of them have made a difference in countless lives later on with that money(just try and fathom what the Bill Gates foundation has done for people)

Aside from those challenges, I personally believe building great wealth is something that you attain while living your life’s purpose and having something to give charity with, support yourself and family with should you get injured and become disabled with, be able to fall back on during true retirement years, instead of falling back on failed government systems or being a financial burden to your children, enjoy a richer fuller life with, travel and see and enjoy other cultures with, give, give, and then give some more with, etc…well you get the point.

I just believe that someone should obviously soul-search and find their chosen profession as a vehicle to build this great wealth, just as I would love seeing you write a best seller with your chosen profession skills, sell millions of copies and become wealthy living your ‘dream’.

@Scott – Thanks for your “revision” I have really struggeled with this exercise but your latest revision helped me. I think 🙂

Also I wanted to say that all of us have been given certain abilites, talents and passions that if used properly will enable us to become all that we were created to become and that we need to also balance the “me and them” issues of life. More specifically our life needs to be directed by something more than our own personal dreams.

I like what I hear about you and am honored to be a part of the experiment with you. I look forward to hearing and reading about your work around the world.

@ Lee – Thank you so much for kind words and encouragement Lee. I feel honored to have a group with people such as you to help push each other through these obstacles, while continuing to see ‘the big idea’ behind why we are doing what we are doing. So that way we can get it done!

I’ve never been a person who operates very well in terms of motivation when it is based on fear. However, give me a vision to be inspired about and I feel I can move mountains.

@ Scott – Kudos for revising your number DOWN! Now you’re automatically closer to your goal!

Can you tell me/us more about your current clinic? I am in the business of spines too.

@ Ryan – My clinic uses a variety of tools such as therapeutic exercise, neuromuscular rehab, massage therapy, spinal traction, spinal adjustments as well as spinal biomechanics to rehab spinal disc injuries, sports injuries, auto and work related injuries, scoliosis reduction and/or correction or any other physical spinal problem etc.. basically if a condition is related to the spine and/or nerves as well as some extremity work, we focus on getting you back to 100%, and without drugs and surgery.

@ Scott – If I just take out all the words that I don’t understand, I get: “My clinic uses a variety of tools to make ME a lot of money, but the drug companies and hospitals aren’t so lucky” 😉

@ Scott – What a great business! Very necessary, extremely beneficial to your patients, mostly recession proof, and likely to grow significantly in the coming years.
I sell implants for spine surgery, so I’m acutely aware to the great work you are doing and pain and suffering you are saving your patients from.
Have you explored the idea of attempting to develop some IP for back pain/treatment? You have the perfect place to test your ideas and start a referral base. There’s no income like passive income!

@ Scott – Ryan’s definitely on to something … you do great work, and if you really believe in what you do, how does ‘Drug Free, Surgery Free, and Pain Free Sports & Spinal Injury Rehabilitation For ALL Americans’ sound to you?! I can just see the infomercials …

If you can sell the idea, I may be able to put you in touch with some investors. The ENTs I was related to have a personal interest (a child of one of them) in non-surgical, non-drug relief of spinal pain. They also managed to do (without a clinic, but with real estate and stock/bond investments) what you have proposed, for their own families. I’d love to have such a solution for the tendonitis I have right now… and no surgery in my shoulder when I’m older (or anywhere else!)

Thanks for your good thoughts on the best-selling book. I think I am the one who is “motivated” by fear. It’s not actually the motivator; it’s the red flags that go up when I think I am “getting too big for my britches” or trying to make myself be more than I am…if you know the thought process I’m talking about. I’m trying not to let myself scare myself out of doing something I really want – not to use rational thought to talk me out of it, in other words, but to accept that there are risks and I have to stop the negative voices at those times and just go for it. It’s really hard to explain. I usually just see everything good happening and it happens. I guess a part of me thinks “I could never do THAT” and I know that is not true, but there it is.

I’m trying to ask myself now, “What’s the worst that can happen if I fail?”

What did the guy House say on “House” the other night? “We’re all dying.” Sounds like something Hawkeye (Benjamin Franklin Pierce, Capt., M.D., for anyone without the instant reference) might have said.

The risks I have to take are perhaps a little bit bigger than the ones you have to take, and quite a bit higher than most folks my age want to take. Now’s the time when they redo their kitchens and send their kids off to college. Mine are still in middle school and high school and I’m selling off my belongings – basically reaching back to that 21-year-old optimism, realizing that I have a bit more experience than I did then, and hoping I can merge the two into something fantastic!

Scott, Here’s another idea for making some quick money….or, make an alternative, build a guest house for some year when…and then do the same thing…or run a B&B. This is from another blog that led me to Adrian’s eventually…thought it was interesting…unfortunately my house is not quite within the 100 mile radius indicated, but I thought yours might be…read on (and smile!):

@ Adrian – LoL, I guess you can say that about the hospitals and drug companies. I think I’ve kept enough people out of surgery just in the past 6 months at least that the orthopedic surgeons around here probably don’t like me too much, eheh. The funny thing is though, my referrals come mostly from people that have been pushed around like a hockey puck from one surgeon to the next and from one general practitioner to the next, just handing out pain pills while the patient’s condition is getting worse and telling the patient everything from “it’s all in your head”. They end up coming to me as a last resort(when they should have came first so it wouldn’t have gotten so bad in the first place) and we just have them do what their bodies where designed to do to get them better.

@ Ryan – Wow, small world Ryan, lol. Thanks for the compliments! And it looks like you have developed quite a success in helping people with spine trouble with your work. Keep up the good work. I’m definitely exploring as many options as I can to build my practice in different ways to help more people and that is a terrific way to spread it across the country. I figure the only way I can get what I want in life is to help more people get what they want in life!

@ Diane – I wish you were near by, I could probably help with the tendonitis and shoulder problem.

Using our home as a bed and breakfast after all the work is completed is not a bad idea actually. We have already toyed with the idea of boarding horses on our property for some passive income as well.

@Scott – A ‘Bed & Breakfast For Horses?’ … do you OWN the clinic that you are in, or are you a PARTNER or EMPLOYEE?

@Adrian – I own 50% of the clinic. I will own it 100% in 3 years. I’m also planning to buy the building that it is in, next year.

@ Scott – Both sound like good moves to me … now, get back to work! 🙂

LoL, you got it!

[…] myself, after coming to the realization that I don’t actually need quite so high of a number in the next 10 years to fulfill my life’s purpose as I previously thought, I now have to pick […]

[…] myself, after coming to the realization that I don’t actually need quite so high of a number in the next 10 years to fulfill my life’s purpose as I previously thought, I now have to pick the […]