Like this? Share it with your network

Share

Financial independence

  • 291 views
Uploaded on

Finance for doctors, finance, financial independence, doctors and finance,

Finance for doctors, finance, financial independence, doctors and finance,

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
291
On Slideshare
291
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
2
Comments
0
Likes
2

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Finance for Doctors Mr Vaikunthan Rajaratnam MBBS(Mal),AM(Mal),FRCS(Ed),FRCS(Glasg),FICS(USA),MBA(USA), Dip Hand Surgery(Eur), PG CertMedEd(Dundee),FHEA(UK),AFFST(Ed),FAcadMEd. Senior Consultant Hand Surgeon
  • 2. Good Medical Practice: Financial and commercial dealings • 72. You must be honest and open in any financial arrangements with patients. In particular: • a. you must inform patients about your fees and charges, wherever possible before asking for their consent to treatment • b. you must not exploit patients' vulnerability or lack of medical knowledge when making charges for treatment or services • c. you must not encourage patients to give, lend or bequeath money or gifts that will directly or indirectly benefit you • d. you must not put pressure on patients or their families to make donations to other people or organisations • e. you must not put pressure on patients to accept private treatment • f. if you charge fees, you must tell patients if any part of the fee goes to another healthcare professional. • 73. You must be honest in financial and commercial dealings with employers, insurers and other organisations or individuals. In particular: • a. before taking part in discussions about buying or selling goods or services, you must declare any relevant financial or commercial interest that you or your family might have in the transaction • b. if you manage finances, you must make sure the funds are used for the purpose for which they were intended and are kept in a separate account from your personal finances.
  • 3. Financial Independence • state of having sufficient personal wealth to live, without having to work actively for basic necessities
  • 4. Rich Dad's CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom
  • 5. The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It Michael E. Gerber
  • 6. The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich Timothy Ferriss
  • 7. Wealth • net worth (assets minus liabilities) • generates automatically • capital gains, • income, and • Dividends True wealth means having control over your time. Unless you get to do what you love every morning when you get out of bed, you are not successful. You are merely a highly paid wage slave.
  • 8. Applying MBA Knowledge and Skills to Healthcare Reza Nassab , Vaikunthan Rajaratnam, Michael Loh , B. Sonny Bal (Foreword) www.mbamedicine.com
  • 9. • Asset Accumulation Accumulating assets can focus one or both of these approaches: Gather revenue generating assets until the generated revenue surpasses living/liability expenses. Gather enough liquid assets to then sustain all future living/liability expenses Expense Reduction Another approach to financial independence is to reduce regular expenses while accumulating assets, to reduce the amount of assets required for financial independence. This can be done by focusing on simple living, or other strategies to reduce expenses.
  • 10. strategies to reduce expenses • Tax • Lifestyle • Purchases • Deals • Generate revenue in high currency • Spend in low currency
  • 11. http://en.wikipedia.org/wiki/Financial_independence
  • 12. Passive sources of income • Rental property • Dividend from stocks, bonds and income trusts • Bank fixed deposits and monthly income schemes • Royalty from books, patents, music, etc. • Alimony, Child Support or Child Trust Fund • Renting out professional or academic qualifications • Interest earned from deposit accounts, money market accounts or loans • Oil leases • Notes • Business ownership • Patent licensing • Trust deed (real estate) • Life annuity • Pensions
  • 13. Cash Flow Quadrant
  • 14. Profit and Loss • Profit(P) = Revenue(R) – Costs (C) • The financial functions therefore include:- • 1) Recording financial data - This is the ‘book-keeping’ part of accounting. • 2) Measuring the result - This is the ‘financial’ part of accounting.
  • 15. Profits • 1) Retained for future investment and growth – this is what happens in NHS Foundation Trusts and non profit organisations • 2) Paid out to owners and investors e.g. a ‘dividend’ – this happens in for profit companies • 3) Paid as tax
  • 16. Balance Sheet • A balance sheet is a statement of the total tangible assets and liabilities of an organisation at a particular date - usually the last date of an accounting period. • (1) A statement of fixed assets, current assets and the liabilities (sometimes referred to as "Net Assets") • (2) A statement showing how the Net Assets have been financed, for example through share capital and retained profits. • Assets = Liabilities + Shareholders' Equity
  • 17. Financial Needs • Operating Expenses • House • Car • Children's Education • Pension • Investment • Leisure • Altruism • Taxes
  • 18. Investment • Property • Stocks • Trading • Venture Capitalist • Wealth Management • Pension funds • Insurance