Frugal Doc

What drained your pocket this summer???

noreply@blogger.com (Bone MD) — Fri, 05 Jun 2009 05:33:00 +0000

Summer vacation went by so fast, and so with some of my "savings". In my private professional practice, I realized that summer is almost always a busy period. The kids are away from school and closer to fractures. Hence I get patients and therefore earn a "living'. Ironically, this is also the time where I often go out on midyear conventions and vacations, hence the expected expenses. But this summer, I didn't go to any convention nor I went into a major vacation. Now I'm wondering why where did my savings go??

Car maintenance, repairs and gasoline. These "new" expense for me suck a bit of my income. The rising gasoline prices and car parts seem to slowly nibble my budget. If you don't carefully plan your car usage, you're in for a surprise. I hope I'll reap something from this investment weather monetarily or not..

Most of my electronic gadgets suddenly reached its life span. They suddenly die out, like my prehistoric laptop which underwent numerous repairs and revivals before. This time, I has had enough of it and bought a new Acer Aspire 47207Z.It seems like the cost of having it repaired is almost the same as buying me a new one. Being an academician and a relentless net marketer guy, a laptop is essential for me.

Then there's this unscheduled events and "gifting" that eat up a portion of my savings. Its good that my Joy has been there with me to defray some cost, but then that is still an expense for us. We were saving for something else more important.

Will the financial crunch "rock" your medical practice?

noreply@blogger.com (Bone MD) — Sun, 15 Mar 2009 10:32:00 +0000

"Are you also hit by the financial crisis doc?" One patient asked me. I jokingly answered "Yes, I will be, unless you pay my professional fees" The patient answered "my HMO will pay you doc". Darn, I will be in crisis indeed.

I stumbled upon an article that predicted some potential negative impact of the financial crisis to health care in the US. But that's in the US where the financial crisis is largely felt. What about the Philippines' health care system?Are we going to feel the crunch also?

Looking at our present health indicators, the government has been brandishing the term "better health". Dig further and you will know better. If we use the "unholy trinity"- 1) the quality of health care provided, 2) access to the health care system, and 3) the cost of health care, as indicators for the status of health care system, our scorecard will be shameful. We've improved from our past health care system but we're 10-20 years behind our former contemporaries in Asia.

Many MDs believe (including me) that since our patients are so poor to begin with (and therefore doesn't have the ability to pay ANY form of service) the global financial crisis will not affect the grassroots doctor patient interactions. Most patients couldn't even buy medicines much less pay their doctors for services rendered. "Our health care system is in deep shit already, it couldn't go any deeper anyway". Most felt this is a hopeless case anyway, so why bother? Who cares about the financial crunch anyway?

Its not a question of whether the financial crisis will (or will not) affect our health care system. The question will be "when"? When will the financial crisis trickle in and affect our health care system?"

The one thing that will be affected of course, is the sustainability of giving charitable services by physicians themselves. Yes, we do perform charity services most of our practice a. But can we sustain it for long with the financial crunch? Depleted medical supplies gets even more scare. Essential instruments getting more difficult to acquire. More physicians going abroad or shifting to more financially viable job. Just some of the bleak scenarios.

While we are at the helm of pushing for a preventive rather type of medicine vis a vis an overhaul of our medical education and health care programs, the economy to fuel such move is contracting. The vicious cycle goes on and on.

Frankly, I dont have an iota where a "stimulus" package could break this cycle. I've seen glorious programs flunk in the past where we still enjoy better financial security. I have no better outlook now, but hope that it wouldn't be as hard as I thought it would be.

Maybe you who is reading this post may have better ideas.

Some questions you need to ask yourself before buying a second hand car

noreply@blogger.com (Bone MD) — Tue, 20 Jan 2009 14:23:00 +0000

Convinced that I need a car for my practice and that my present financial situation only allows me to buy a second hand car, I started researching about the specifics of the used car I wanted.

My previous experience with buying used items was limited to computers and scooters. I have a good batting average for these items- something like three good buys to one sucker deal. But buying a used car is different. Weeding out lemon from the apples in the used car business is a grueling tasks not to mention the recurring dilemmas of 'what if's and 'what should's. This is not made easier by the lack of institutions that protect consumers from unscrupulous dealers and car sales agents!

To save myself from a totally dissatisfying used car transaction, here are the questions I "answered" first before I started "shopping" for a used car.

What's my price range and upper limit for buying second hand car?
This means analyzing my monthly budget and calculating the extra allowable expense I will incur without me or my family going on a hunger spree. The ceiling gives you an idea of what financial scenario you will be after you bought the car.The assumption here is that you saved some amount for the car and that you can extract the remaining amount from other resources that will not hurt your day to day expenditures. Emergency funds are not included in this resources, mind you.

Commit yourself to this price ceiling and create an environment that will encourage you to do so.
These imply knowing where will you get the money (bank loans, personal or financing?) for payment of the car and shutting off potential resources that might tempt you from taking a bit more of "extra"( for the 12 CD changer). Thus it is important to decide on the features you want on the car as most used car have some sort of owner add ons that may jack up its price. Sometimes, you need to add a little bit on your ceiling but it shouldn't be well above your paying capacity!If your budget is for a second hand lower model sedan, try not to stare on newer model of SUVs.

What features do you want most out of your intended car?

Is it reliability?utility?luxury? fuel efficiency? The make of your car mostly depend on the answer to this question. And so are the hidden cost. The SUVs for example rely on utility and luxury. People who want utility and reliability will find mini vans appealing. Sedans are for people who need reliability more than utility. This will also narrow your shopping list to the type of car you need at the moment.

What car models, make, trim, engine and specifications that will meet my requirements.

Knowing the features of the car you wanted will surely help you answer this. Researching thru the net (like buy and sell sites) on used car magazines, buy sell sites as well as advices from friends and relatives are common sources for this type of information. Manufacturers sites and car forums usually provide ample information about their cars. But this usually include only newer models. Also, beware of glowing car reports and stories.

Did you factor in other cost like operating expenses and maintenance?
The hidden cost of these expenses may just kill the bargain you get. Generally, a well maintained and later model cars are more economical and fuel efficient than older ones. In the same way, a bigger engine and greater "powered" car may eat up more fuel and thus a higher operating costs. You also have to factor in the intended travel routines for your car. Is it just for office use? frequent long distance travel and so on. Maintenance cost will be higher for car used on long drives and travels.

Where are you going to buy your used car.
Will you buy on a surplus shop? A second hand dealer's lot? or on an first car owner upgrading to another car. Most insider will prefer the latter type of seller because of the lower probability of engine alterations and better maintenance record. This may not be true at all times. If possible, research for the car history (like accidents, overhauls repairs) or the dealers car selling history. Online sites like DavaoSale or Tsikot.com or Kotsemo.com will be helpful also

Is there a way for you to protect yourself should the transaction turn awry?
In used car sale business this is almost impossible for the buyer. Used car warranties are almost always void. Check if the car or the owner have pending liens with other persons or institution or that the papers are all valid and updated. The hidden cost of car registration sucks and worst, a bad car record is a good sign to bail out from the deal. The transaction's deed of sale and transfer of car ownership should be fixed even prior to consummating the deal. Proper documentation of the transaction and the car is essential.

How will pay for the car?
Cash?Cheque?Bank transfer? Map out a workable and practical plan to accomplish any payment mode should the seller insist on one payment mode. Most sellers wanted a cash only sale but carrying large amount of money is dangerous here in our country! Bank or cash transfer seem to be difficult in the provinces. Bank limits on cash withdrawals is also prohibited at times. Bank transfer may take days so plan your payment before hand.

It's lamentable that checking a car history via the vehicle information number (VIN) is not at all possible here in my place. This information will give the buyer an idea about cars status and will probably appraise him of the car's value. If anyone knew how else we can get such information here in our country, please comment to this post and we will be happy to try your suggestion.

Is it practical to buy a used car?

noreply@blogger.com (Bone MD) — Sat, 17 Jan 2009 18:04:00 +0000

Should I buy a car in the first place?
Unless you were born with a golden spoon in your mouth and a car in your crib, this question hound an upcoming yuppie torn between saving for his future and investing on a car. This subset of yuppies include me and I hate this dilemma. For quite some time, I've been avoiding this nagging dilemma thinking such "luxury" is fit only for those who have money to spare for a car. However, a hard look on my financial status now coupled with a no nonsense assessment of my practice "loses" (secondary to a non existent practice accessibility) made me conclude that a car is not just a luxury in my profession, but a necessity. I have to expand my practice, make myself more visible and accessible so opportunities may knock at my doorsteps.Again a hard earned lesson on my part.

What sort of car is fit for me?
For a thirty something single yuppie, without much savings yet, with a mostly city practice and an occasional provincial clinic sortie, what type (brand new or used), brand, model, trim of car, engine is most appropriate for 3 year period of transition (my optimistic time I can buy a brand new car at my present earning)? I looked at my status and then set this goal for finding a car.

Used vs. a brand new car: Same old question?
Most car savvy owners recommend that you buy a brand new car. The lower maintenance cost, fuel efficiency of newer engines and longer life span of the car seem to be the more practical reasons. You can also choose the type and make of the car to suit your taste. The warranties on the parts and service is most usually maximized up to 3 years in most car manufacturers.A brand new first owed car also is free from car papers haggling as registrations and insurances are usually cleaned by the car dealers.

On the other hand buying a new car is extremely expensive especially for young upstarts like me whose earnings may not be well enough to spend a few more thousands each month for the car of my dream.Even with car financing and bank loans, I find it nightmarish that one day I would be thrown out of work and I can find no money to pay for my next amortization!More over, buying a car is never an investment is a direct sense since the car you brought depreciates quickly. In fact the moment you bring the car out of the dealers porch, the car depreciates already by 10-20K! In three years time the value of your car could only be as much as 60% of your initial value!

Buying used cars is a gamble nonetheless. Aside from buying an object already somewhere near the full span of its efficiency line, you really have to bet on a savvy, careful first owner to get a good buy. There's no assurances or warranties for parts replacements, service etc. Careless previous owners may have had accidents and the engine or body might have undergone numerous repairs. Theses are risks you always have to take whenever you have to buy a used car.

It's a lot cheaper however. If you buy a second owned car, the depreciation cost wouldn't be as much as a new car if you can sell it in three years time. Plus, you can get all the modifications and goodies not present in brand new cars. Capitalizing on careful research, astute mind, focused car learning experience and the guidance of a tested car mechanic, you can squeeze out some more out of what you buy out of the second hand cars!

Lessons in Personal Finance #2: Walking away from a huge potential

noreply@blogger.com (Bone MD) — Tue, 22 Jul 2008 09:03:00 +0000

Frugal Doc is posting a series of articles that recounts the author's experiences from early childhood to his formative years enumerating circumstances, highlighting milestones, analyzing the mistakes made and how it contributed to his financial awakening

Looking back at my childhood, I grew up learning the wrong frugality concepts. I didn't learn any money managing skills at all. Worse, if ever I got hold of any sizable amount of money, I used it to but things for instant gratification.

Determined to go to high school despite the obvious lack of finances, I focused more on my academics unlocking a once hibernating potential. In my teen years, I bloomed into an academic powerhouse. Thus, I went on to high school on scholarships and finishing it at the top 3 of my class. While busily striving to maintain the momentum of my new found academic status, I failed to harness this academic prowess and make it productive (financially that is) for my future. Worse, my fame brought in another level of wasteful and expensive social mongering that I later realized, of no benefit to my education. I went on to parties and gimmicks and bought new clothes that's worthless after one week. While I did save on my allowances and fees, I was not keeping any money on a bank. I had a budget that only aimed at saving a certain amount of money and then spend it on a buying spree. At the end of the day, I'm penniless and still felt empty about the last night's gimmick.

I ventured into one passion I had during those years and actually took an extra time attending a course in electronics. But aside from the personal gratification for learning something new,I was just spending valuable time on it and never earned a single cent from the learning I got.

Lacking insights into my personal financial habits, I never turned my academic prowess into something that could even make me a rudimentary financial plan. I did swear to graduate though, earn a nice pay check after college and walk away from the poverty my family is in. But I was lacking in clear, practical and manageable how to. I was spending money and losing opportunities let alone bring in some form of money for me. I zealously valued academic prowess but never made any desire to turn it into an advantage for me. I was still dependent on the small allowance my mom would give me. Worse, I'm nurturing the very same misconceptions I had in my early years.

All in all, despite the blooming of my academic potential during my teen years, I failed to capitalize on this great potential and make it financially advantageous for me. I never tried to look into my personal goals to even lay a rudimentary financial plan. All I want is to get out of poverty but never really studied how to do it. Worse I keep on nurturing the misconceptions I had from my childhood.

Here's a podcast from Randy Peterman of My Money Maker entitled

"Five Things About Finances I Wish I'd Known as a Teenager"

Taking all of these in mind, you'd probably think how lucky I was to survive high school and even went on to college. Did I had any chance of surviving college? Was I able to come out of my financial paradigms?

Find out in my next post!

Lessons in Personal Finance #1: Early Miseducation

noreply@blogger.com (Bone MD) — Sun, 20 Jul 2008 08:33:00 +0000

I was born in a typical middle class family of the seventies with both my parents coming from a lineage of similarly impoverished working class. Living is of day to day basis and payday to payday survival. The obvious concern of my parents is to put food in our table, maintain a decent shelter and send us kids to school. Premium was put in these basic needs and especially with a college diploma. Aside from the obligatory company insurances that is being subtracted from my parents paychecks, no form of financial investment is being appropriated for my parents future, our future and our future family's future. Rumors has it that our parents is only interested in sending kids to school and get a degree so they can earn a nice paycheck after.

Many people adorned us knowing what my family went through, rising from an impoverished family to an all professional, less poverty stricken, educational technocrats. I say it again, that though we live a bit comfortably now, none of us has totally broken free from these erroneous financial concepts we've learned in the past! There is always this danger of passing it on to our own kids and families. I don't blame my parents for not knowing this. They were born into such paradigms not one of them had the opportunity of changing it.

I never had a good chance of managing any money during my early years. The piggy bank habit was all aimed at keeping money away from our hands. My parents were so frugally strict that any money should all be kept for later emergency needs. Most of these emergencies are actually just shortages of money for all those basic needs I earlier enumerated. and for our "regular windfalls". That's why during birthdays and Christmases, I save the money-gifts I get, so I can buy tangible, unimportant material things that produces instant gratification!

When a windfall comes in (usually on paydays) our family went into all sorts of buying spree. The family deserve bonuses after fifteen days of extreme frugality. That hard work should be paid by leisurely activities during paydays, was the rationalization for this annoying kind of financial literacy.

When my dad died during the early part of my school years, the family plunge into an abyss of financial chaos. Four school age kids with insatiable thirst for material things were left to a single working parent. So my mom, whose salary could barely support our basic needs, succumbed into disadvantageous loans and each payday is almost just enough to pay our family's previous mortgages. The day after payday is another debt acquiring date for us. Our family is embroiled on debt and debt servicing twenty hours a day and seven days a week. We were so busy paying off our loans, debts and we forgot our future. Nobody is interested in saving anything for our future. When we were through paying these debts, we lost half a lifetime of opportunities capitalizing on our financial forte and putting it on investments for our future.

In a nutshell, I was made to believe in my early years that money should be kept frugally so that on next windfall, you can spend it all on tangible, immediately gratifying wants. That because we were so preoccupied with putting food on our table, debt and debt servicing is an integral part of our daily living. I barely managed any money at all. Ultimately, I was taught to live "payday to payday" and save for your kid's education, investments are only those for people who have the "extra money" for it.

Because of these, I matured into my teens with misplaced frugality and aiming at wrong priorities. Not a bit about my future. So was I able to survive my teen with these concepts? What were other mistakes I made here?

Find out next in,
Lessons in Personal Finance #2: Walking Away from a Huge Potential
(Photo credits: Picture taken from More 4 Kids)

Retracing Habits in Personal Finance

noreply@blogger.com (Bone MD) — Sun, 20 Jul 2008 04:40:00 +0000

Since the dawn of my age, I was made to believe that being born into an impoverished family has its advantages. One of these so called "advantages" is the resulting lifestyle of frugality borne out of extreme financial necessity. To some extent this may sound so admirable and true, but I wallowed in accolades for so long I failed to capitalized on a slowly disappearing opportunity. I never really looked hard on my financial literacy thinking that these experiences are more than enough for me to survive an onslaught of monetary catastrophe.

In retrospect, some of the financial concepts I've had or was taught to me in the past is wrong. Worst, some of these experiences contributed to the backlash of spending splurge I thought was a reward for the long sacrifices I made in the past! It was painful accepting these mistakes but this brought me to the doorsteps of my financial awakening.

This process historical evaluation I learned from reading psychology books, but looking at it from a personal finance perspective, this I patterned from the very enlightening story of The Simple Dollar. Like him, I am sharing my personal experiences to everyone, so we all learn from it and help find ways to correct mistakes that once duped me into financial complacency.

Eager to read on? Here's an index to guide you of my posts about Retracing Habits in Personal Finance:

Doctor quit job to blog full time!

noreply@blogger.com (Bone MD) — Tue, 15 Jul 2008 12:17:00 +0000

I remember when I wrote about alternative practice styles for physicians last time, I haven't seriously thought of blogging as another source of income for physicians. Of the physicians I knew who blog, majority do so for personal reasons- a hobby and on a part time basis at that. Some physicians earn from blogging but majority felt this "income" pales to what they earn from their professional practice.

Well, not until I read this "story" in the blogosphere. Think again.

When MacRumors founder/editor Arnold Kim formally quit his professional practice to blog full time, my first expression was-what????? Yes, I am a bit surprised. But this seem to an inevitable next for Dr. Kim!

Arnold Kim has been blogging since eight years ago, during his fourth year medical school. Unknown to many bloggers and colleagues , he was working part time on MacRumors during his residency, finishing a fellowship and while working for two years as a nephrologist. Then just last week he bade goodbye to his other work, which turned out to be Medicine. He has this to say for his decision:

During that time, I’ve been fortunate enough that my hobby has become successful enough that I am able to transition it into my career. While the trend may have been clear for past couple of years, I was slow to recognize it.

One of the most frustrating things over the years, however, has been my inability to dedicate the proper time to improve MacRumors as I might have wanted. In addition, as a web-tech-guy I constantly have ideas and plans for other web projects that I’ve never had the time to pursue. By settling on this as my career, I will be able to execute some long standing plans.

Rumors abound that with the popularity of MacRumors, Arnold Kim is possibly earning close to a whooping 370K USD a month, considering his blog's popularity and estimates of his CPM ads income . Now that should probably be a payoff for doing something you love!Well, did Dr. Kim lost his passion for the medical profession? Only he knows. But one thing is for sure, he hit a jackpot in choosing a crossover job for his passions!

I wish you luck and more power Kim!

Ten tip offs you're getting dubious financial deals and agents!

noreply@blogger.com (Bone MD) — Mon, 14 Jul 2008 15:55:00 +0000

It is not just once or twice that I've been approached by some financial agent that talked me into various kinds of deals, ranging from credit cards, insurances, stocks, investments, car loans and money markets . One agent succeeded in swooning me over to an overvalued insurance that disappeared prematurely and nearly rob me of some thousands in cash-all for for nothing but lessons learned.

Just starting my career and financially broke at that, I keep wondering why a person like me "attracts" these bogus financial agents? One lawyer - friend told me in my face. Either that I look stupid enough to be easily deceived about financial matters or that I appear "filthy rich" to swindlers. The latter filthy rich hype is obviously not true. But some scumbags thought I am earning big money from my professional practice. I'm not, if you read my previous posts here. So that leaves me to the most probable reason why I attract bogus financial deals. I look money-stupid.

In all of these rip offs (especially that scumbag who rob me of my moolah) there were "not so obvious" signs I missed heralding a bogus financial deal. Take note I do not claim all of these financial agents are bogus and some can be truly helpful and sincere. But if you see these telltale signs its wise move to hold back signing any piece of paper yet because something might not be in place for you.

The agent suddenly appears in your doorsteps out of nowhere. He or she claims to be referred by someone else vaguely worth remembering in your long past. The common method is a phone call from far away land. Politely refuse, hang down that phone immediately or close your door nicely. If credibility of this agent is in question, increase your personal value by shunning of their bait at first glance.
Deals with unknown companies who doesn't even have a local portfolio. Or he is someone with the credible financial institution, there's no way of validating it. Not in the easiest way. A company ID or a certification is NOT the way to validate them.Only credible companies or persons will refer a credible financial agent.
A ready made plan or deal on the first one minute of your talk. "Here's the best deal I have for you, I have worked this out in the past, you don't have to worry the details yourself!". Sounds familiar? The guy rants about so many assumptions about your financial personality, yet you only talked to this guy now. Again, show the doors politely and just get on with your busy life.
He's stuck into a cliched, stiff salesman like infomercial that boast of the positive aspect of the product and not even mentioning a portion of the risks involved. The guy is obviously aiming for your pockets and he wants you to believe him fast using that outdated, unvalidated punchline. One of my favorite question i use to parry these guys is to ask about the "risks involved". "What risks, there is no risks to these deal!" Run to the hills and hide, this guy barely knew what is he talking about.
Holding off any information from you. I always take this as a distrust on the agent side and is a grave offense. Or if the agent really doesn't know, chances are his company won't let him know. Hide and just hold on to that pen yet. You do not enter into contracts with any sign of distrust at hand, however credible the company or agent is.
The guy pushes in a contract immediately without giving you time to read the terms and policies your signing. His too eager to get the deal or the contract because of a promising immediate returns on your part one that may be sometimes totally unrelated to the contract itself.
Offers some vague short term returns with the long term outcomes abstracted you won't even knew if it existed. He even cannot answer the simple question of "what will I get with the money I paid for this deal in one year? in 10 years? When I die? Or what will my family receive in the future?
Product tied up with another less relevant product or worse something you don't need at the moment, as a bonus. Some call it an incentive, but I say this- if you're product is good, you don't need any other 'bonus"product to hype it. Besides, those bundled up products might have hidden costs II may regret later!
The agent insist on the "bandwagon effect".That just because a hundred or more is rushing into the scheme, you should be joining too otherwise you'll be left behind nor benefit from it. The contract urgency is embroiled in the bandwagon effect, muddling the real rip off of the deal. This is a common approach among networking scams aside from the promise of big and easy returns.
The guy talks one liners he couldn't even understand in his lifetime. Like how his deal or investments will gauge up against inflation runs. The blank stares I get from this guys gives me shivers and bewilderment. Instead he uses other guy success but there's no way of validating this stories!

I might not be an experienced finance guru, but if I can hack your bones and realign them, I sure can read terms, agreements, policies, research on investments, talk to FPs and so forth. The bottom line is being critical and reading those deals before even talking to financial agents. Signing any documents or handing out money should only be relegated after a thorough review and advice from credible financial advisers!

When I wrote this piece though, reading through the news and watching probes on TV dealing with financial scams, I wonder why our government (supposed to represent the Filipinos) succumbed into such dubious deals such as NBN and Northrail? And we are paying for it?

Probably those government people missed these telltale signs of dubious deals, like what I enumerated here. Or were they blinded by the tong pats and looked the other way? You're guess is as good as mine, but that's another story!

Please don't get cold on rainy days!

noreply@blogger.com (Bone MD) — Fri, 11 Jul 2008 16:17:00 +0000

Because if you do, both the patient and the doctor will likely to get into expensive troubles than anyone else! Here are some outrageous reason why!

An ounce of prevention is definitely worth my consultation fee. "I told you so. If you listened to my warnings before, you won't get sick, run into my clinic or pay me my PF". So go get sick and you pay the price , for a flu!
Most (if not all) insurance companies do not cover health expenses incurred by such popular rainy day illness called "common colds". So you go broke spending money from your bleeding pockets. There's economic crisis now, not just rainy days!
Your car's gasoline (or whatever transport you used) and the time you spent waiting for your MD call is probably more expensive than my PF. So lets save on the gas and my PF!
Hassles of parking on rainy days is definitely unbearable not to mention expensive. You might well reconsider visiting your physician on rainy days.
When the road to my clinic is as slippery as the race track, chances are you won't find me in my clinic. Id rather stay home and keep my butt safe. And we both won't spend more severe injuries from road accidents!
Don't come to an emergency room crying because you've got colds and that you can't breath through your nose. Trust me they would charge you more than what a vicks inhaler will cost!
Nope, antibiotics are still prescription drugs during rainy days. You don't get them over the counter just because you've got stuffed noses. The fact is, they are not used for the common colds! So don't fret because your doctor didn't give you an antibiotic prescription. Because if he did, you'd probably be more willing to suffer the dreaded cold than the total cost of your antibiotics!

Perhaps now you know, why getting the preventable common colds during rainy days is darn so expensive.

How to survive the UMPC buy out mania!

noreply@blogger.com (Bone MD) — Mon, 23 Jun 2008 09:38:00 +0000

(Subtitle: How to resist buying a new gadget)

It was just a few months ago that my old Sony Vaio Sr33 laptop died after unsuccessful attempts of "reviving" it. Having bought this laptop (my first ever) off my residency pay, and have used it for 5 years, I laid it to rest with an unceremonious funeral rites fit for a loyal, worn out buddy. I promised I'll get a new laptop, fully loaded just like my old one but at a reasonable cost.

When the dirt cheap ultra mobile PCs (UMPC) entered the Philippine market, I was drooling to get one after reading reviews (here , here and more here) and talking to techies (Dominique with his article here, Village Idiot Savant). But when I came face to face with my UMPC of choice 2 weeks ago, I botched the planned laptop buy out!!!

The Blue H1 Mobile PC , for now my choice of all UMPCs (Photo taken from Blue H1 website)

The "why?" is so easy to answer. With my current job, preoccupation and financial status, I don't need a laptop. Not yet. I can live without it. It's that simple.

The hardest part of course, was the "how?" "How'd you do it man? I thought you were drooling about it? Whats 17k by the way?"

What I'm about to enumerate gave a "boost" in my fight over an impulsive spending habit I learned long ago. And I'm sharing it with you.

Have a definite financial plan. Learn your spending demons and keep track of your spending habits. Fortunately, I was religiously tracking my expenses during this period, overhauling a financial plan and building up my emergency fund. These goals kept me in focus.
Talk to the tech guys about the "buy" and study your options. Keep an open mind. When you find some perceived problems with the product, try to wait for future more bang-for-the-buck packages. A friend( Dom again, quoting you) explained to me that most PC retailers usually "sell" a product line over a stable price range for a period of time, usually a year. You won't really expect much price changes for the same product line or specs over this one year period. So I was thinking, if ever I'll buy, I'll wait for the better component packages at the same or very minimal price change.
"Touch" the product first. Imagine and feel how this product will fit in to your current lifestyle. Will it improve your living? Will it make life easier for you? Will it bring you more income?What if it will break down? What about repairs? Who will do it? Where will you send it? The bottom line is, I was looking for a reason not to buy this UMPC for now. Once I found that one reason, I did create realistic scenarios of surviving a bad "product effect" once I bought the gadget.
Do not bring your ATM or credit card whenever you're still window shopping for UMPCs. It's easy to pull out those plastic cards out and then buy the product at whim.
Ask the opinion of a close person (one closest to your heart) what he or she thinks about the "buy out". Joy V. threw me a very "practical question" that whacked me out of my UMPC trance. "Is it an emergency?"My honest to goodness answer to that question threw me out of the shop instantaneously.

I walked out of the computer store mesmerized but visibly happy to have survived the "UMPC buy one" craze. And I feel really good I did not gave in to my trance. For now, I think these steps really made me win another round of my battle for frugality!

Importance of knowing the psychology of our spending habits

noreply@blogger.com (Bone MD) — Fri, 20 Jun 2008 08:43:00 +0000

For quite sometime now I've been trying to discover and understand the "psychology" of my spending traits and habits. I believe this is an important step towards developing a pragmatic and sustainable financial plan. Every sane minded individual has to know and understand his spending demons firsts, understand the psychology behind it and try to resolve issues previously overlooked. It's only then that he can develop a financial plan with a "doable" attitude of changing "undesirable" spending habits.

Almost all type of "businesses" thrive on the psychology consumers' spending. Quite a number of researches were undertaken to understand these traits and the "results" are used to formulate marketing strategies. The end result should be better consumer markets and increase in sales. Why do you think cellphone companies earn so much from the text messaging craze of Filipinos? Do you think it was purely accidental these tycoons stumbled on the Filipino SMS "craze"? Maybe. But the result of market research on SMS use has a big market potential that TelCos will loose millions in income if they allow text messaging for free! See the connection?

Results of market and consumer researches is obviously a potential gold mine for businesses and entrepreneurs. Thats why there are such books (like The Psychology of Saving: A Study of Economic Psychology)) and journals (Journal of Economic Psychology) for these purpose. It essentially made public scientifically conducted market research and relate them to attitudes, habits and personalities of the consumers.

But we can use it too, for our personal financial planning purposes. We should learn what these habits are and then benchmark it to what our financial goals should be. If these habits turns out to be good, reliable and beneficial, then by all means we should retain them. If not, we should be at least determined in stopping these habits or better yet, change them into something positive for our financial plans!

(If anyone has access to this journal (Journ of Econ Psych) I would gladly appreciate if you can download me a copy of this study. Thanks in advance!)

How to prepare an "emergency fund"

noreply@blogger.com (Bone MD) — Wed, 11 Jun 2008 03:55:00 +0000

We all know what an emergency fund is. Many people however, could not clearly define, what their financial emergencies are!

"My son suffered multiple injuries from an accident. He needs to be operated on and we need a huge amount of money to finance this? Where will I get this money?"
"My car's engine suddenly refused to start when I was stuck in traffic along EDSA! I just replaced the tires two weeks ago!"
"Our farm lands was hit by a typhoon recently. Our crops were wiped out! We have no income at all!"
"Boy, my company went caput and fired me! Suddenly, I don't have a job!"

Sounds familiar?Perhaps everyone have been into similar financial situations before and wished we have something to "parry" the impact of such emergencies. That is, if you were lucky to survive one.

An emergency fund is not only basic nowadays, but a necessity to any individual -rich or poor. A universal truth among financially savvy individual, it is also the singular, most common failure the average,middle income Pinoy. Why? Blame it on our "bahala na" attitude.

Emergency funds are there for two things. The first one is to cushion the impact of life emergencies and second, prevent you from being buried into the graves of debt during financial calamities. The 'bahala na' attitude of Pinoys dangerously avoids preparing for this scenario and consequently, rob us of our productivity or worst, our life!

My experience (read: the "bottom pit") and reading from the write ups of financial gurus and personal planners (this one, from Money Smart Life, sums it all) helped me formulate a guide in creating my emergency fund. Let me share it to you:

Define your emergencies. I define financial emergencies as those that inhibit me from performing my daily life, work and those that diminishes(or cut) my productivity. These are life events whose expenditures has not been allocated yet in all my other priority expenses- daily, savings, insurances, retirement and investments. No, mall sales are not emergencies. So is the latest flashy phone in the market.
Create a rough cost estimate of all near possible "scenarios" for your life emergencies and multiply it by 3. This gives you a better buffer amount for Murphy's double emergencies. Most FPs will recommend an emergency fund amounting to 3-6 months worth of your monthly expenses. Six months will give you more time to recover from losses you incurred during these emergencies. I survived three months before, without an income and relying only my savings. But that only covered my basic expenditures. The rest of my financial portfolio went stagnant and worst, hit rock bottom. This explains the multiplier (3) in my formula. You get an even more, reasonable buffer I think.
Immediately save for this emergency fund as soon as you get your pay check , ahead of your daily expenses, investments and other savings. Do so until you accumulated the "target amount" for your "emergency fund". And don't touch it unless the"emergency" qualifies your definition in number one. Again, the latest Asus Eee PC is not an emergency unless it's your source of living.
Save it in a separate, liquid, savings account. The Digerati Life tells us why here. Should be easily accessible by you or any of your representative during emergencies but not tempting enough to be withdrawn whimsically. Like when you hit clearance sale at Marks & Spencer and you shell off your credit card or ATM EF thats just near by!
Replenish this emergency fund as soon possible and as soon as you withdrawn from it. Make it your topmost priority again if needed. Remember, surviving an emergency doesn't exempt you from hitting another one soon. Most likely, it will increase your likelihood of succumbing to another one. Mind you, a vacation trip to Hongkong is not an emergency. Unless travel is your business!
Once you have gained a sizable amount (or the fixed amount you set earlier in step one) for your emergency fund, you may choose (if you are knowledgeable enough) to transfer it to a less risky, liquid asset (bonds, mutual funds) that earn while being kept in a bank!
Its not wise to put it on credit cards! Or use your retirement allocations or any other budget allocations for that matter! As The Digerati Life gave a thumbs down fore credit cards as EF here , I also believe the "evil" card makes it all too easy and tempting. It should be on a separate account!

Remember, life emergencies are unforeseen events that will possibly render you unproductive for sometime or for life. This fact doesn't excuse us from not preparing for financial catastrophes before it happens. Go and save now for your EF! Make it your priority!

(Please feel free to leave comments and suggestion if you think you can add up to this guide)

Tracking expenses religiously: The first step to knowing thyself!

noreply@blogger.com (Bone MD) — Sat, 07 Jun 2008 16:34:00 +0000

I wrote about the first steps to financial prosperity in this blog about a week ago.

Frankly, I wanted to pressure myself to do this vis-a-vis blogging so I can move on to setting my financial goals and inch my way attaining it. What else could be a better way to pressure thyself than making it known to everyone you're on to "beating" your money demons and crossing swords with impulse buying?

Well, quite a number of bloggers have done so and though I still am wary publishing my moolah matters here, maybe there is a benefit in trying to blog about it and learn from my readers!

I started tracking my expenses about one and a half month ago, and for 3 months, I would meticulously jot down every cent that come my way so that I'll know my spending habits. This is what I described in my earlier post as the first step- Know thyself.

I'd be posting my expenses for the first month (I 'm still tracking for two more months) but I won't be putting figures, only percentages and trends. Note that these are all, just expense tracking of my current spending habits, and no financial planning is yet involved.

Here are the trends.

On the over all, I only saved 25% of my income, my net worth (income minus the expenses) for this month not counting what is already in my savings. Of my total income, about 96% came from my primary job and only 4% from other sources, like my part time work. I haven't decided yet what to do with this 25% savings (should this be for my retirement, investments or just bank savings?) so I'll just carry it over to my previous savings.

What was more interesting to me were my spending traits as reflected in the percentages of expenses I had for my various priorities. Almost half (46.5%) of my expenditures was spent on housing that includes electricity, water, phone, cable tv and internet. This actually came as a surprise for me because technically, I live alone! The next big eater is transportation, roughly at 24%. This includes both personal and work related transportation expenses. But it was also last month that I bought a scooter (cold cash), another frugality step to ease up my around the town transportation without digging deep into my pockets. I'm not sure if it was a good financial decision, but with the skyrocketing fuel prices now, the scoot is one hell of a very good, transportation alternative for short distances. Had it been without the new scoot, this figure would have gone down.

I spent around 16% on food, including dining out and all the food related events. My sports entertainment expenditure is almost 8.53%, the bulk of which is on badminton and trekking expenses. I spent the least on personal things, with just around 2.5% of my total expenditures. I hope I'm not neglecting my personal self with this!

Looking at my expenditures in another perspective, some 14.77% was spent on paying credits and mortgage items. The rest was routine expenses. I never spent or save something for paying myself, like savings, retirement, health insurances and the likes. I'm pretty sure this is a big mistake but then again, that's why I am making these first steps so I can move on to a better financial plan for myself and my family.

So what does this "spending trait" imply? What will I gain from this?

If you have read my previous post on knowing thyself, these trending and habits will give me an idea on my financial status now and give an answer to the first four "mini questions". The fifth question deals with my financial phase now and that is pretty obvious- starting phase. A late bloomer perhaps but a bloomer nonetheless.

I will probably answer question number six in my upcoming post, as it might dwell with the psychology of my spending history. This same goes true for the seventh question, which deals with my "strength and weaknesses" as it affects my financial and business decisions.

While I continue tracking my expenses for now, I'm developing a financial goal for myself that should cover all aspects of me and my future family- savings, retirement, investments and others. It would be nice if I can have a benchmark of a financial plan for my age, phase of life, and profession. Any suggestions and directions?

Alternative "practice styles" for physicians

noreply@blogger.com (Bone MD) — Thu, 29 May 2008 06:53:00 +0000

Medical practice styles are always anchored on the goals of the physician for his practice. While donning the white blazer seem to be "cut" for a single working setup- that is of a doctor-patient interaction, practices do evolve and a distinct, single practice style is a rarity. Coupled with the ever growing stringent ethical considerations, burgeoning health care cost, decreased practice revenues and information boom, this shift to alternative forms of practice styles ured quite a number of physicians.

There are other alternative practice styles that can liven up or totally change the way you handle your practice and life style. Most of us call them "moonlighting" but one or more of these can be combined depending on your goals and your needs. And give you enough revenues to still practice the profession you so loved.

1. The Beach Doctor:
This has so far has topped the list of fun, adequately paying and less strenuous type of practice style. There is ample time to work and enjoy vacation at the same time. This is fit for the outdoor, traveler type of physician on 1-2 moth hiatus. Most of the clinics that hire physicians for these jobs are targeting newly grads and those waiting for their residency call for training.Of course this is temporary to most, but some physicians actually made it a permanent practice style for life!

2. The cruise ship physician
This one sounds lonely, but it ranks as one of the better paying practice styles and yes, you get the "free" travel accommodations. Thats not all, you get to treat almost nobody each day save for the adventurous seafarers and their Pencillin shots. The caveat is, you get to see nothing but seawater for months. Yup, you can treat your own sea sickness however.

3. The Free Lancer
Here is where I belong. The beauty of this type of practice is the greatly reduced practice overheads. No nurses, no clinics, almost non existent secretary and no electric bills! How'd I do that? Being a surgical specialty, I see my follow ups in the clinics and ERs of hospitals who have their own staff. On rare occasions when I have new non-emergent or OPD consults, I share a clinic with a another physician and just pay half the rent. The caveat is the unpredictability of the patients coming in and so is your revenue. Thats why it is very important to schedule the number of patients you'll see in a week and to keep up with your targeted income. Combine with other, practice styles, this working style is attractive for single, surgical specialty who loves lots of free time for his other interests.

4. Hospitalists or the Staff Physicians
The on call specialist and the "resident" physicians falls into this category, whether there is actually a credited training program or not.You go on duty in a hospital for a certain period of time and then get paid for it. You actually see in patients and make rounds, do chart works and manage house cases. You get a fixed rate for this no matter how small or how many patients you see, in patient or outpatient wise. Some specialist actually succumed to this kind of job to boost up their income.

5. Locum tenens
This is actually better for newly grads rather than a specialist physician but for lack of GPs nowadays, some medical specialist go into this working style or combine it with their primary practice. Here you are hired as a company physician to answer to the basic medical needs of their employees. If treatment is way beyond your expertise, you may be responsible for referring the patient to the appropriate specialist and hospital. Most of the time, you'd be called in to do yearly physical exam of employees and newly hired personnel. You get a fixed wager in this type of work, minimal work load and ample company benefits.

6. City or Town Health Officer
In this practice, you'd probably enjoy a modest pay, a stable government item, lots of vacations and an "office hour" kind of work. You are expected to render free services to your patient so private practice is non existent. Due to the diaspora of doctors nowadays, there's a proposal to allow private practice for government physicians off office or duty hours. But this is still in the dust bin so far.Under the government nods and whims, you'll get a modest pay, a snail paced learning and lots of bureaucratic paper work.

7. Doctor to the Barrios
This heroic, modestly paying practice lifestyle enticed the community oriented physicians and outdoor bums recently. An interesting drive by the DOH to keep their DTBB physicians on competitive pay and CMEs make this practice style attractive to GPs and newly grads. One caveat though is that you get to be assigned to places away from your place, and probably not the place of your choice. Thats no to mention the limited medical logistics at your disposition.

8. Legislator/Politician
Probably the road often traveled by physicians who are with political families or those so popular with their community. In the Philippines, the "pay" is really handsome. Here, your private practice is probably non existent or is purely on charity basis. But you are in the best positions to pass bills that will alleviate the status quo of health care and medical profession in the Philippines.

10. Medical Director
Calling the shots for a pharmaceutical company or a private institution on matters concerning their medical needs and thrusts, this alternative practice style offer pay packages and benefits that are one of the highest in the profession. Plus, you get to travel and attend meetings first class or get dream vacations all expense paid. Practice is definitely limited to the confines of the company or institution you belong to.

11. Research
Often the practice taken by the academics and geeky physicians out there, basic or applied medical research is a practice style many wanted to do but couldn't because of looming financial survival. Unless support from donors and institutions interested in your research, or you're handling so many research at the same time, the chances of you getting all your income here is close to nil. But such accomplished research looks good in your resume, in case you apply for another practice style.

12. Academic
Like the research driven practice, physicians going into this practice often gets into a teaching hospital and provide training of new doctors, specialties and allied medical staff. Often on voluntary basis and without pay (unless you hold an administrative post) it is usually part of the contract for a physician to gain admitting or operative privileges to that institution. This practice style is therefore best combined with another private practice form of practice method.

13. Private Business
More lucrative than any other practice style, this is often ventured into by entrepreneurial MDs who wanted to earn more or augment their professional practice. Venturing into a medical or non medical sort of business has the greatest risk also and the social stigma given to business MDs in the Philippines is often frustrating. Unless you still do private or academic medical practice, continuing medical learning is nil.

14. Writer/Actor/IT consultant
The road less traveled but often, the more glamorous, has steadily caught attention lately. Famous medical suspense writers, like Michael Creighton ( Lost World) or Robin Cook ( Coma) get good reviews and handsome incomes from this practice. Writing your own medical book might give you the break you need, but unless you have some other source of living, relying on this style solely may give you financial headaches.

That's it!

If anyone of you can add another practice style to this list, leave a comment and I'll update this list.

(Original article taken from the article of James Giovino MD: 14 Alternative Practice Styles Feb 2001 . Family Practice Management Web site at www.aafp.org/fpm and modified for the Philippine setting)

Knowing thyself: The first step towards financial prosperity

noreply@blogger.com (Bone MD) — Mon, 26 May 2008 06:05:00 +0000

I failed miserably on my first (and second, and third) attempt at financial planning. I took the following steps I'm about to regurgitate, half heartedly. Meaning, I was all for "the show"- assuming I knew something about my financial goals and hoping it will work on itself.

But we all know that achieving financial prosperity is not an overnight win in a casino or a lotto hit. It's a slow, painstaking process of discipline and money smart attitude. A recent study by a giant American banking Fin-Q showed that we Filipinos have low financial IQ (one out of ten!) Even physicians, who often have complicated financial portfolios rarely understood what financial planning really mean for us. Learning, understanding and creating a blueprint (through financial planning) is our way to personal and practice financial stability.

No matter what stage you are both personally and financially or what goals you've set for yourself (or your family) , the key to financial stability is first, " knowing thy self":

Know how deep your "pocket" is. Academic degrees often do not reflect what is inside our pockets. There's a good chances its not that deep and we're just afraid to accept it. It took me one large columnar book, a logbook of my spending, a pencil, a calculator and another month sitting down my table computing for my net worth.I started determining what my assets are and then painstakingly subtracted the liabilities. I got my current net worth. I wasn't surprised about my lilliputian net worth, but I'm appalled by the worthless spending spree I've indulge before!
Worst,I borrowed money from someone else pockets (debts) they grew on leaps and bounds without me knowing! These liabilities all include my "obligations" and loans I incurred and been paying off for quite sometime. How much does these liabilities suck up on my earnings? Am I stuck waist deep?
Not yet. Not until I examined my current earnings. How much "income" am I generating right now? How did I allocate it before?I wrote it down. I was spending more than what I'm being being paid for? The good things is, I'm not alone. Some 30% of the population spend more than what they earn. Welcome to the nilioner's club! But this is not something I'm going to be proud off in the future.
How much am I spending on everything? Ain't got a clue. But when I woke up one day flat broke and my bills came banging at my door, I got hooked to jotting every single cent I spent on everything (including that diet coke and shuttle cocks I've wasted) for a month (three months supposed to be but I only got to religiously do this everyday for one month). Boy, I am not really happy of my spending habits! Are you?
Then I looked at my age, and begun pondering, where I am right now? At what stage of the financial phase or ladder am I? Some people already earned their first million by the age of 21. I, on the other hand is still on the start up stage, meaning my income comes directly from my job. Nothing else.
I went deeper into my personality. What are my spending traits?My spending demons? Psychologically, do I have unresolved spending issues from the pasts, unfulfilled wishes perhaps?Most financial planners and advisers would agree that these issues be understood and resolved first as these greatly affect our financial personality!
But the hardest to dig upon, or at least in my case, is determining my unique potentials, my strengths and weaknesses as well as my business savvy-ness. But my being a good at interpersonal interactions and verbal command pooled me quite a number of loyal friends. I thought this might be a potential, as in the business of medicine, where communications with your patients is a must.

After conscientiously and honestly answering these questions, I wrote them down on the front page of my columnar notebook to remind me of who I am or where am I, financially, right now.

(Special thanks to the following money "advisers" who in indirect ways have made me develop these questions into my fit. Francisco J. Colayco PhD, his book Wealth within your Reach Pera Mo Palaguin Mo book 1 & 2; Salve Duplito of Money Smarts; and the other blogs of financial planners)

My take on the business of medicine

noreply@blogger.com (Bone MD) — Fri, 23 May 2008 16:04:00 +0000

The complex business of medicine
Patterned after the US health care system, professional practice here in the Philippines is sadly, market driven. The government, who couldn't care less, only responded with its meager health care budget and vague health priorities for its citizens. And though some key players essentially affect the doctor-patient interactions and the resulting service rendered, both the contracting parties suffer from this continuing negligence. Either that the patient receives no (or inadequate) health care at all, or the physician stops rendering service because they couldn't even make a living out of their practice. Either way, the physician ( being the presumed "more knowledgeable" of this truth) is left to survive on his own and at the same time render top notch health care service. And we all know where this "parasitic" type of interaction is going to.

Are physicians really rich?
I bet your first reaction to the title of this blog is this...

Aren't physicians earning beyond what they really need? Why blog about earning a living when professional fees come in easily for doctors?
Physicians aren't suppose to earn money out of their patients' miseries. Is this scheme ethical?

It is always assumed that physicians earn much. In the recent Philippines I knew, they do not. Or at least to us beginners. A large portion of these MDs entered medical school with just enough money to support their costly education. Worst, quite a number of them come out of medical school, broke and in huge debts. Like any working human being, physicians cannot function on an empty stomach or a financially burdened mind. Imagine yourself undergoing a surgery or a procedure from a surgeon who have been starving for days! I'm pretty sure no patient will come under my knife if they knew I am being sued by BIR for tax problems!

Despite being alluded to the most noble of professions, only a handful of physicians become filthy rich. Take a look at the richest people in Forbes magazine if you're in doubt.

I've been a complete financial dork before, but not again!
The financial side of the Hippocratic practice was never taught in med school or tackled in specialty training. This is partly because of the perception that "earning a living" out of rendering health service (the business of any service provider) is in all, unethical or worst not noble. New physicians are left to themselves discovering financial anatomy and physiology in their professional practice. Most of us plunge into this complex and often confusing "medical business" and learn our way through the maze. This "see one, do one" attitude often drifts into "financial diseases" that are too "septic" to control. Financial planning is as strange as alchemy in medicine.

Financial planning is even more necessary for physicians who remained in the country to be of service to their countrymen. These physicians usually belong to the working middle class who struggle to have a stable, sustainable earnings just to render service to indigents Filipinos. If most of these middle class physicians only get gastronomic amounts of lip service for professional fees, then the diaspora of Filipino MD's will always be a continuing phenomenon.

Personally, I am blogging about my journey towards financial freedom because now is the best time to learn financial planning , even for us physicians. Yes, it is when you're starting up, or better, when you have not been weathered by financial crisis.

Welcome and keep reading my posts! We will altogether discover financial freedom, serve our fellowmen and free ourselves from our woes and support our frugal living!

Five things the government won't tell you when you start your practice!

noreply@blogger.com (Bone MD) — Fri, 23 May 2008 02:30:00 +0000

Well, not exactly as you will discover in the years of your practice. But to be aware of these "stakeholders", keeps the playing field even.

1. Philhealth, is the mother of all HMOs
Philhealth is the de facto government key provider for health care expenses of its constituents. The recent drive to make this universal among Filipinos will make it even more influential. Philhealth theoretically assumed as the" financial" provider for the health needs of Filipinos especially in the countryside, taking as much as the "policing" power of DOH with threats of withholding accreditation and reimbursements to health institutions it deemed "unfit". Owned and run by appointed individuals, it is not immune to the politicking and bureaucracy of the government.

2. If you can't get to the mother, try the breathen.
Whats not being controlled by Philhealth is largely taken by HMOs. Manage care has been steadily creeping into the Philippine healthcare system that while it is quite unsuccessful in its aim of lowering health costs, it gloriously succeeded in reducing physicians fees and practice revenues. Just ask the so many doctors who grimace in agony every time they have to change diagnostic procedures and treatment just to have it covered by an HMO. If its not even good for our patients and will it then be beneficial for the physicians?

3. You only get nearly half of what or you're paid!
This brings us to recent and controversial government regulatory laws and taxation that seem to make surviving as a physician really a luxury. The flawed premise of a physician earning more because of their profession is definitely not true today, at least for us newbies. A simple mathematical computation for the investment (time, money, stress etc..) a doctor gives and the return he gets, is mind boggling. Compare this with a telco engineer or an investment banker who gets so much in return of investments (ROI). How many years do you need study (and spend)to be a "caregiver"? And how much do you earn when you work as a caregiver abroad? Do the math and beat that.

The flawed taxation principle is also based in this premise. You are earning more, so you pay more. Ever experienced not seeing any patient for months and still pay your exorbitant taxes just because you're a doctor? Is there a law that provides us with tax exemptions for the charitable acts we do? If there are, we physicians should take advantage of it.

4. Legislation, laws and more laws are coming
What about the recent health laws that handcuffed us more with how we mange our patients? The Generics Law? The Cheaper Medicine Bill? Both were heroic in their goals but mostly politicking in substance. Both laws were premised on a distrust for MDs (yes, simply because some are said to have biases to pharmaceutical giants) and tying their hands in managing their patients. So, do we really manage our business of medicine?

5. "Earn a million, or two, by suing your physician" The new business
Admitingly, malpractice suits is not as rampant as that of the US. Caution however, because we are being lured into such complex and difficult health care environment. The Malpractice law, espoused by Sen. Sergio Osmenia, criminalize medical malpractice and require a mandatory malpractice insurance for physicians. If approved, it imposes horrendous penalties and psychological trauma to erring physicians that it is maybe aimed better at training cow heads and mules as MDs to withstand such penalties . I'm not up to discuss the ills of this bill but we all know the effects of lawsuits -increase insurance and practice cost for both the patients and physician

Business is not as usual in medicine

noreply@blogger.com (Bone MD) — Fri, 23 May 2008 00:36:00 +0000

Business is never "as usual" in medicine.
The words "medicine" and "business" are like antonyms in the medical lexicon. When used concurrently, the two terms sometimes fall into the category of "unethical practice"- an unfair misconception for most of us, that have grown out of distrust for the health care professional and his practice.

The true business of medicine, is far from that misconception however.

Physicians and taxi drivers
The simplest analogy I can make is to compare the practice of this profession to a taxicab driver. Both profession is into the service industry, using instruments to render service, and a fixed method of determining fees for the service rendered. They both are humans to start with, have families, get sick, needed shelter, food, adequate health care and so forth.

What happens if you don't pay the fees for the service rendered by the taxicab driver?For some filthy rich driver this would seem irrelevant. But to most of drivers, the domino effect of service malfunction is predictable, if not catastrophic.

But physicians are not taxi drivers?
Well, taking out the glamor and glitter, and looking at the bare minimum, they are pretty much in the same business- that of rendering service. They both are humans, they have families to feed, need shelter to rest, and healthcare to pay. They have practice instruments, a fixed system for fee determination and probably need some financial road map to a better living conditions. Both are involve in a fair business.

So why the misconception then?
Social "stigmatization" of the healthcare profession and the low health care priority pervading among most citizens, is the culprit.

The fact that some unscrupulous physicians taint the noble profession with their unethical practice doesn't mean all physicians do cheat on their patients. Like any other profession, physicians have to "earn a fair living" too.

The low priority given for healthcare of the government is reflected also in the spending habits of the average Pinoy. It is very common to see the poorest Pinoy spend more on cellphones, alcohol, cigarettes and gambling than their health needs- unless it is an emergency, or someone is dying.

So what should physicians do about this?
Smart, frugal and wise healthcare service is always based on sound ethical practice. Building a professional practice, creating a sound financial plan for both personal and professional practice and then rendering ethical service to our patients.

That would be our blueprint for financial prosperity.

Key "players" in the business of medicine

noreply@blogger.com (Bone MD) — Thu, 22 May 2008 05:39:00 +0000

Who are the key playersin the business of medicine here in the Philippines? Is it limited to the doctor and the patient alone? Are there any external factors that affect the outcome of a physician patient relationship?

There is no denying the obvious. Not surprisingly, acknowledging such factors exist and that learning them may all give us a better understanding of how we can improve on our professional practice.

There are external forces in such physician-patient relationship that sometimes influence outcomes of a physician-patient interactions, which is rendering good health service. Who are these key players? What do they do?How can they influence the business of medicine here?

Philippine Health Insurance Corporation (PHIC) or PhilHealth, the largest and probaly the most influencial government owned corporation and policy making body, replaced the old Medicare system. Having the widest coverage of all HMO's, it is envisioned to be the universal health insurance system for all Filipinos.
Managed Care and HMOs, though not as influential as the PHIC, ushered another driving force towards the market economy of medicine. What Philhealth does not cover in the "pie" of this business, is being taken by HMOs.
Government Regulations (Generics Law, Cheapers Medicine bill, Medical Act, etc)) and regulatory departments (DOH, BFAD), restrict physicians hands in some areas of managing their patients.
The legal environment with the advent of laws governing malpractice suits (The Medical Malpractice Law) will be a ripe business arena for insurance companies in the business of medicine
Other players like the pharmaceuticals, hospital organizations, physician organizations, though not as powerful as the others, sometimes influence the outcomes and interactions in the healthcare industry.

What is the "outlook" for the business of medicine here n the Philippines?
Roughly, more laws to govern the business, more politicians clipping our stethoscopes and a universal HMO.

Disclaimer

noreply@blogger.com (Bone MD) — Thu, 22 May 2008 05:33:00 +0000

Having said my reason(s) for starting this blog, I am cautioning the readers on what this blog is not all about.

This blog is not a guide to make money more than what is due for the professional service a physician renders. Instead, it tries to find solutions for physicians to gain financial freedom by smart practices and financial planning while rendering top notch, ethical care to patients.
It is not a guide to cut patient services (usually at the cost of delivering sub par professional service) just to earn an extra income. Instead, it will try to discover ways to reduce extravagant MD practices that will unload them of their resulting financial burdens.
It will not provide you with measures to outsmart other MDs, health institutions, government tax programs and so many other regulatory and legal responsibilities, if ever such measures exists. It will in fact, try to educate physicians on how they can efficiently manage their finances so as not to fall short of their financial responsibilities.
More importantly, this blog is not maintained nor written by a certified financial planner, a CPA or a business savvy individual.

I am a newbie physician, starting a non nonexistent often undervalued professional practice. Frequently, "lost" on financial decisions and bad loans I wan to gain financial freedom by planning ahead, reading financial planning materials (online and in paperbacks) and learning from financial gurus available. I write down my thoughts, my experiences in layman's language the way I perceived situations and new skills.

Readers are solely responsible for their financial actions. "Frugal Doc" and /or the author will not be liable for any loss or damage caused by a reader's reliance on information obtained from this blog. This blog or the author receives no compensation of any kind from any company or individual mentioned anywhere in the site.

About Frugal Doc

noreply@blogger.com (Bone MD) — Thu, 22 May 2008 05:20:00 +0000

Frugal Doc is for any person trapped in the windfall of an upstart white collar job. Professionals who wanted a grip on their finances, secure their future and still afford that enticing summer-on-the-beach vacation dream. This blog is also for people who needed sense and cents saved off their post graduation, job hunting financial idiosyncrasies. Ultimately, this blog will be of benefit yuppies who find themselves on financial meltdowns and burgeoning debts despite working their ass from eight in the morning till five in the afternoon.

Who are you?
I am an upstart yuppie (a slang for young professionals) and in 2005, I became a board certified orthopedic surgeon on an almost empty pocket. I was born to an impoverished middle class family who lived from payday to payday and paying of debts 24/7. My financial mis-education started since early childhood believing that surviving poverty half a lifetime is more than enough to pull through another half of possible financial catastrophe. I woke up one morning in late 2007, noticing that I'm slowly drifting to a financial meltdown. I went on to honestly and painstakingly review my financial history to get a grip on my finances, implement a damage control financial plan and is now working vigorously to secure my future. In about six months, I was able to pay off 95% of my debts, implemented a flexible budget, polishing a long term financial plan, built 75% of my emergency fund, put up an almost zero overhead clinical practice and still travel with my Joy to places we wanted to.

Why this blog?
I had this passion for learning new things and writing about them. Since I gained a fair amount of knowledge (from my experience, from reading books on financial matters and from other numerous internet resources mostly) of how personal finances work for yuppies like me, I started this blog in March of 2008 to consolidate my experiences and share it with you in the hope of helping others in the same predicament as I am.

This blog and your profession doesn't make sense
In reality, it make perfect sense. Imagine having to invest so much on your prolonged education only to get a job later on that will mostly pay you with "goodwill' and "thank you"s. Surely this investments that could swell your heart, but will never immediately put food on your table. Health care service in the minds of Filipinos is still dole outs and voluntary. So if you want to survive helping others and save lives, you've got to have a good grip of you financial situation and look for other means of investments. That's what this blog is all about.

I don't believe you.
Don't. But had I not gotten control of my fledgling finances and debts, I will surely be one of those physicians who went out of this country for a more advantageous financial returns in the future. I'm writing in this blog because I certainly believe that with proper financial goals and literacy, I don't need to go out of this country looking for greener pastures.

Are there any ethical misgivings this site will bring to that of your profession?
None. Check out my site FAQ.

How often do you update this blog?
At least twice a week and as often as my internet connectivity will allow me.

Any other financial sites would you recommend?
See my blogroll and you'll find a wealth of personal finance links there, as well as numerous other links from their sites, to other useful financial sites. The more important thing is you know your financial circumstances so you can pick which one you'll read and not be swarmed by the thousands more in the net.

I'm also a blogger and I want to link with your blog, is that possible?
Write a good content, introduce it and your blog and email it to me. That's the best way I'll link up to you. Some links landed in my blogroll because I discovered they had very good content of interest to me. Random exchange links, meme, tagging, or just link padding is definitely a big NO.

How do I get your articles in my e-mail Inbox or in my RSS reader?
Every after post there is this footnote that tells you like this:

Just subscribe to them. You can also subscribe to the RSS feed on the top of my sidebar. Thank you by the way, for asking this.

How do I contact you, the author of this blog?
E-mail me personally at kokegulper[at]yahoo[dot]com.

Contact

noreply@blogger.com (Bone MD) — Sat, 22 Mar 2008 04:05:00 +0000

Email feed backs, suggestions, requests or any communications to the author to this email.
kokegulper[at]yahoo[dot]com

and receive my posts directly in your inbox, for FREE!

All post comments are moderated and spam mail will be blocked automatically.

Site FAQ

noreply@blogger.com (Bone MD) — Sat, 09 Feb 2008 08:51:00 +0000

Frugal Doc as a web resource:
Like any other web resource, I try to stick within the tenets of responsible internet publishing. Thanks to Emergiblog, and The Medical Network Blog, and to Dr. Lei at Genetics and Public Health. They encourage medical/health bloggers to answer the following questions which is a modification of those recommended for web resources by The National Center for Complementary and Alternative Medicine, part of the U.S. National Institutes of Health. (Philippines don't have one)

The purpose of the questions is to give the readers of medical/health related blogs the ability to evaluate what they are reading.

Who runs this site?Frugal Doc is run by Bone MD, a young upstart, board certified orthopedic surgeon practicing in the South Mindanao area.
Who pays for the site? No one. It's hosted on a free site. I use Blogger as a CMS platform.I do most of the tweaking of the design (as far as a free blogger account would allow me to) and I have total control over the content.As of now, I don't earn anything from maintaining the site. But I plan to put ads in the site and probably receive renumeration from the ad links and actual contracts with specific companies arranged through.If ever there will be ads on this site I have no financial interest in any of these companies, other than what they pay me to advertise on my site. As of this time, I have not received any gifts from any companies that advertise on Frugal Doc.
What is the purpose of the site?I'd like to blog about my journey towards attaining financial prosperity while rendering sound, ethical and professional healthcare service. This site also aims to help other professionals in the same financial situation as the author.
Where does the information come from?Mostly from what I hear and read around- the news, journals, net and experiences of colleagues and superiors. Some are direct quotes from established financial planners, business advisers and medical experts and acknowledgment will be provided as needed.The majority of my posting is anecdotal. All persons, patients, staff and hospitals are either composites or have identifying information concealed or altered to allow for confidentiality. Links to information's sources are given whenever applicable
What is the basis of the information?I answered this in question number four.
How is the information selected?I am a beginner on this niche so my postings are based on what I perceived as important to my learning and what might interest the readers.
How current is the information? It will be current only depending on the sources and links given. Often, I do update some post to improve accuracy and factual information.
How does the site choose links to other sites?My links are based solely on sites I read and found interesting .
What information about you does the site collect, and why? The site collects no information about anyone other than what is recorded on the site meters. That information is used just for my own personal interest in seeing where my readers come from and keeping track of how much traffic this blog generates.
How does the site manage interactions with visitors? Not like a patient- physician interaction. I will not entertain medical consultations on the net. I will answer comments when necessary! I sometimes put up mock polls, for purposes of knowing what my readers think and results are not sold for monetary gains. Spammers are blocked. All opinions are welcome. Post containing profanity or harassment are removed.