Passive income streams refer to ways for Doctors to earn money without actively working for it or quitting their full-time day job. For doctors, these side hustles may include investments in real estate, dividend-paying stocks, or creating an online course or information product that can be sold repeatedly. ‘
Doctors with passive income sources can avoid physician burnout and put themselves on a path to financial freedom or pay off their student loan debt.
15 Passive income ideas for doctors
Below we will review and rate commonly suggested passive income ideas for physicians.
1. Real Estate Investing
Passive income real estate investments can be a good option for doctors looking to diversify their investment portfolio and passive income streams without much active management. Some examples of passive real estate investments for doctors include:
This can include purchasing a single-family home for Airbnb, a multi-family dwelling, or commercial property and renting it out to tenants. This can generate ongoing rental income for extra cash but may involve some management responsibilities.
REITs (Real Estate Investment Trusts)
REITs own and operate income-generating real estates, such as apartment buildings, office buildings, and shopping centers. Investors can purchase shares in REITs, providing a steady stream of dividends. These monthly payouts can provide a significant amount of cash flow.
3. Real estate crowdfunding
Online crowdfunding platforms like Fundrise and RealtyMogul allow investors to pool their money and invest in real estate projects, such as rehabbing properties or building new developments. This can provide the opportunity to earn returns from real estate investments without the need to manage properties directly.
4. Investing in a business
Investing in a franchise can provide the opportunity to own a business and generate income but with the support and systems of a larger company. If you have an entrepreneurial mindset, this can be a great way to generate extra money. Keep in mind that many franchises may have high upfront costs.
5. P2P Lending
Online platforms like Lending Club and Prosper allow investors to lend money to individuals or small businesses in exchange for interest payments. In this case, you act as a lender to people looking to borrow money which can be risky.
Some publicly traded companies pay dividends to shareholders regularly, providing a steady income stream. Many mutual funds specialize in dividend-paying stocks, which can provide investors with a steady stream of passive income. Investing in a diversified portfolio of dividend-paying stocks through a mutual fund can help to reduce the risk associated with investing in the stock market and provide a more stable source of passive income.
7. Influencer marketing through podcasts
Influencer marketing through podcasts can be a way for doctors to generate passive income by promoting products or services to their audience. Here are a few steps to consider if you are a doctor interested in using podcasts for influencer marketing:
Identify your niche
Consider what area of specialty or passion you want to focus on in your podcast. Discuss your personal life, such as your time in medical school or what it’s like to work in a medical practice. This will help you attract a targeted audience and determine the types of products or services that may be relevant to promote.
Start a podcast
Many platforms and tools are available for hosting and distributing a podcast, such as Spotify or Amazon. You can also consider working with a podcast network or hiring a producer to help with the technical aspects of starting a podcast.
Build an audience
Once your podcast is live, promote it through affiliate marketing channels, social media, email marketing, bloggers, and other strategies to attract listeners. Consistently releasing new episodes and engaging with your audience can help you build a loyal following.
Connect with brands
Once you have an established audience, you can start reaching out to brands or companies you think would be a good fit for your podcast. You can pitch yourself as an influencer and offer syndication to promote your products or services to your audience in exchange for a fee or commission.
8. Online consultations
Online consultations can be a way for doctors to generate passive income by offering virtual appointments to patients. Here are a few steps to consider if you are a doctor interested in using online consultations for passive income:
Determine your services
Consider what types of consultations you want to offer, such as second opinions, follow-up appointments, or general medical advice. You may also want to consider the platform or technology you will use for the consultations, such as a video conferencing tool or a telemedicine app.
Set your fees
Determine how much you want to charge for your online consultations, considering the time and expertise required and market rates for similar services. You may want to offer different rates for different types of consultations.
Promote your services
Once you set up your online consultation service, start promoting it through your website, social media, and other channels. You may also consider contacting potential patients directly or collaborating with other healthcare providers to promote your services.
Set up a system for scheduling and managing appointments, such as an online calendar or appointment scheduling software. This will help you streamline the process and make it easier for patients to book appointments with you.
9. Paid speaker
Paid speaking can be a way for doctors to generate passive income by giving presentations or talks at conferences, events, or other venues. Here are a few steps to consider if you are a doctor interested in using paid speaking for passive income:
Determine your areas of expertise
Consider what topics or areas of medicine you have expertise in and are passionate about sharing with others. This will help you determine the types of speaking opportunities that would be a good fit for you.
Develop your speaking skills
If you are new to public speaking, consider taking a course or joining a group, such as Toastmasters, to improve your skills. You may also want to practice your delivery and get feedback from colleagues or friends.
Build your reputation
Consider writing articles, giving talks at local events, or participating in webinars to establish yourself as an expert in your field and build your reputation. This can help you attract paid speaking opportunities in the future.
Find speaking opportunities
There are many ways to find paid speaking opportunities, such as joining a speakers bureau, pitching to conference organizers, or reaching out to organizations or groups interested in your expertise.
10. Savings accounts
Doctors can use savings accounts to generate passive income by earning interest on their deposits. Here are a few steps to consider if you are a doctor looking to use savings accounts for passive income:
Compare the interest rates and fees of different savings accounts to find the best option. You may want to consider both traditional and online banks, as they offer different rates and features.
Understand the terms
Ensure you understand the savings account terms, including the minimum deposit required, the minimum balance to earn interest, and any fees that may be charged.
Consider your goals
Determine what you want to use the savings account for, such as saving for retirement or an emergency fund, and choose a savings account that aligns with your goals. You may want to consider a high-yield savings account if you are looking to maximize your returns or a money market account if you need more flexibility in accessing your funds.
Make regular deposits
To earn the most interest on your savings, consider making regular deposits, such as every month or pay period. This can help you take advantage of compound interest earned on both your initial deposits and the interest you have already earned.
11. CDs (certificates of deposit)
Doctors can use CDs (certificates of deposit) to generate passive income by earning interest on their deposits. Here are a few steps to consider if you are a doctor looking to use CDs for passive income:
Compare the interest rates and terms of different CDs to find the best option for your needs. You may want to consider both traditional banks and online banks, as they may offer different rates and features.
Understand the terms
Make sure you understand the terms of the CD, including the minimum deposit required, the term length, and the early withdrawal penalty. CDs generally have higher interest rates than savings accounts but may have stricter terms, such as a longer-term length and a penalty for withdrawing funds before the CD matures.
Consider your goals
Determine what you want to use the CD for, such as saving for a specific goal or earning a higher return on your money, and choose a CD that aligns with your goals. You may want to consider a longer-term CD if you are looking for a higher interest rate, but keep in mind that you will be unable to access your funds for a longer period of time.
Make a deposit
Once you have chosen a CD, make a deposit to start earning interest. CD interest is generally paid out at the end of the term, but some CDs may offer interest payments at regular intervals.
Doctors can use bonds to generate passive income by earning interest on their investments. Here are a few steps to consider if you are a doctor looking to use bonds for passive income:
Understand the basics of bonds
A debt security bond pays periodic interest to the investor and returns the principal when the bond matures. The bond issuer, such as a government or corporation, is responsible for making these payments.
Consider your goals
Determine what you want to use bonds for, such as saving for a specific goal or earning a steady stream of income, and choose bonds that align with your goals. You may want to consider the creditworthiness of the issuer, the term length of the bond, and the interest rate when selecting bonds.
Diversify your portfolio
It’s generally a good idea to diversify your portfolio by including a variety of different types of bonds, such as government bonds, corporate bonds, and municipal bonds. This can help reduce risk and provide a more stable stream of income.
Consider your risk tolerance
Different types of bonds come with different levels of risk, such as the risk of default by the issuer. Consider your risk tolerance and financial goals when selecting bonds.
13. Side gigs
Doctors can use side gigs or side hustles to generate passive income by providing services or products in their spare time. Here are a few steps to consider if you are a doctor looking to use side gigs for passive income to reach financial independence:
Determine your skills and interests
Consider what types of services or products you have expertise in or are passionate about and how you can monetize them. This could include creating and selling a product, providing consulting or coaching services, or renting out a property or equipment.
Research the market
Research the demand for the services or products you are interested in and the competition and potential pricing. This will help you determine whether there is a viable market for your side gig and how you can differentiate yourself from competitors.
Set up a system
Consider how you will manage and promote your side gigs, such as setting up a website or social media accounts, and create a system for scheduling and invoicing clients.
Promote your services
Once you have your side gig set up, start promoting it through your network, social media, and other channels to attract clients. You may also consider joining relevant online communities or groups to connect with potential customers. It’s important to carefully consider the time and effort required to manage a side gig and to ensure that it does not interfere with your primary job or responsibilities.
You may also want to consult with a financial advisor to discuss any side gig’s potential risks and returns before starting.
14. Investing in a startups
Here are a few steps to consider if you are a doctor looking to use investing in startups for passive income:
- Research the market: Research the startup ecosystem to identify industries and trends that are of interest to you, and look for companies that align with your values and goals. You may also want to consider the risk profile of different startups, as investing in early-stage companies can be highly risky.
- Understand the terms: Carefully review the terms of any investment opportunity, including the amount of capital required for borrowers, the ownership stake being offered, and the potential risks and returns. You may want to consider consulting with a financial advisor or lawyer to help you understand the terms and assess the potential risks and returns of any investment.
- Diversify your portfolio: It’s generally a good idea to diversify your portfolio by investing in a variety of different startups rather than putting all of your eggs in one basket. This can help reduce risk and provide a more stable stream of income.
- Monitor your investments: Once you have made an investment, stay informed about the company’s progress and consider actively engaging with the management team to help support their growth. This can help maximize your returns and minimize your risk.
15. Design and sell a course
Doctors can design and sell a course to generate passive income by sharing their expertise and knowledge with others. Here are a few steps to consider if you are a doctor looking to design and sell a course for passive income:
Determine your area of expertise
Consider what you have expertise in or are passionate about and how you can share that knowledge with others through a course. This could be a specific topic within your field of medicine or a broader topic such as time management or personal development.
Research the market
Research the demand for courses in your area of expertise and the competition and potential pricing. This will help you determine whether there is a viable market for your course and how you can differentiate yourself from competitors.
Design the course
Consider the format and content of your course, and use a learning management system or other tools to create and organize your materials. You may also want to consider hiring a designer or other professionals to help with the production of the course.
Promote and sell the course
Once your course is complete, start promoting it through your website, social media, and other channels to attract students. You may also want to consider offering discounts or bonuses to encourage enrollment.