In the 2024 Medscape report, 49% of physicians reported that they were feeling burned out. This number is justified because long working hours and constant pressure can take a toll. But to earn money, a doctor has to keep their mental health aside and work long shifts because without that they can’t get paid.
This is one of the main reasons that doctors are actively looking for ways to make passive income. Passive income allows a person to take a step back and relax for a bit without having to worry about their finances.
In this article, we’ll talk about the best ideas for doctors to generate passive income. All of these ideas are great for making passive income and can liberate you financially.
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Profitable Ideas To Build Passive Income For Doctors
Here are some of the best ideas that are extremely profitable and can make passive income for doctors.
1. Invest in Real Estate
As a doctor, if your goal is to build long-term wealth, then there is no better option than investing in real estate. You can buy a family home or a commercial property based on the money you have saved for investing.
If you don’t have time to manage a real estate property, consider investing in real estate syndications. These are group investments in which many people come together and put their money into large-scale properties such as apartment complexes or office buildings. You’ll only need to invest the capital here.
If you don’t want to invest in either of the options mentioned above but still want something closely linked to real estate, then REITs are the best option for you. When you purchase some shares in REITs (Real Estate Investment Trusts), you are buying a portfolio of income-generating properties such as malls, hotels, etc.
Here are some evergreen passive income ideas that anyone can start and earn over $1000/month.
2. Medical Equipment Leasing
This is one of the best ways for doctors to make passive income. As a doctor, you understand the equipment that’s in high demand. You can buy medical equipment such as diagnostic tools, imaging machines, or surgical instruments and then lease them to clinics, hospitals, or labs.
The equipment is in constant use and has a high demand, so hospitals will definitely need it. This way, you will be able to earn a great return. You can partner with a reliable company to handle the contracts and maintenance.
3. Sell Courses or Provide Tuition Online
There are different platforms like Udemy and Teachable where you can sell online courses or provide tuition to medical students. You can create guides for new doctors or residents on different topics such as “how to navigate residency, manage work-life balance, or negotiate salaries” or topics like, “Continuing medical education (CME)” courses for licensed practitioners.
On the other hand, you can provide online tuition to medical students who are preparing for some special exams such as USMLE and MCAT.
You can record your courses and easily earn through them in the coming years. Just focus on covering everything and creating high-quality content. These ways of generating passive income for doctors are extremely profitable.
4. Develop a Healthcare App
We are living in a digital world where everyone is looking to find a solution at the tip of their fingers. As a doctor, you can create a healthcare app and earn through it. It is easily a great way to make passive income for doctors.
As a doctor, you can partner with software developers that address some healthcare needs. Following are some ideas that you can choose from:
- Create a patient management application. The sole purpose of this app will be to make the process of tracking patient records and prescriptions easier. It will also smoothen the process of booking appointments
- Create a Telemedicine app that will enable remote consultations and follow-ups.
- You can even create a wellness tracking app that will help in chronic disease management and focus on mental and fitness health.
As a doctor, you’ll already have an idea about the problems that your patients are facing. You can step in and fill these gaps. You can even interview your patients during their appointments to get a better idea about their pain points.
5. Medical Practice Franchising
Many doctors have a practice and if you are also one of them and running a successful practice, you can easily earn passive income through franchising. This is another extremely profitable way to expand your brand and make passive income as a doctor.
You can earn money by charging a franchise fee and a share of profits from each branch.
6. Invest in Stocks
Doctors can make dividend-yielding stocks, bonds, or ETFs. You can make passive income by purchasing assets that will regularly pay dividends.
There are several options that you can choose from such as:
- Dividend EFTs (these are funds that pool multiple dividend-paying stocks to minimize risks).
- Blue-chip stocks (companies that have a good history of paying consistent dividends).
- Municipal Bonds (these are low-risk investments that offer tax-free interest income)
Making passive income for doctors is not difficult. By investing in these stocks, you be able to easily earn returns that will compound over time and help in building wealth.
7. Invest in Healthcare Startups
As a doctor, you can invest in startups within the healthcare or biotech sectors because you know these fields. You can invest in companies that are making innovative products such as new medical devices, AI-powered diagnostic tools, or novel therapies.
Investing in startups is a great way to build passive income for doctors. Once the company breakeven or gets acquired, you will be able to earn massive profits. It is a bit risky as you will be required to invest heavily but the return can be huge depending on the risk.
8. Writing and Publishing
Every other writer does not have the medical knowledge and expertise to talk about medicine-related topics. As a doctor, you can step in, and fill this gap.
You can write textbooks, medical guides, or self-help books related to medicine and biology and publish them on platforms like Amazon Kindle Publishing or go for the traditional publishing route. This will help you make passive income and earn royalties throughout your life.
Another great way to build passive income for doctors is to start a blog. You can create a blog that focuses on health tips, specialty insights, and medical innovations. You can easily monetize your blog through ads, sponsorships, and affiliate marketing.
You can even write for medical journals, newspapers, and healthcare magazines.
9. Peer-to-Peer Lending
This is another great way for doctors to build passive income for doctors. In peer-to-peer lending, you will just have to lend your money to small businesses through different online platforms.
There are many online platforms but some of them are as follows:
You can research which platforms suits you best. You will then provide loans to the borrowers and in return, they will repay with interest. As a doctor, you have a high income and can easily set aside some funds to lend through these platforms.
10. Start a YouTube Channel
As a doctor, you have the knowledge and expertise that builds your credibility and makes you stand out in this saturated field. You can share knowledge about different things. For example, if you have some certifications or completed specialization in the field of dermatology, you can talk about skincare tips, product reviews, etc.
You can even share something like, “a day in the life of a doctor”, or something other than that, like debunking medical myths, etc.
You will be able to earn money through ads, affiliate marketing, sponsorships, etc. If your channel is able to get attraction, this is one of the best ideas to build passive income for doctors.
Frequently Asked Questions
What is passive income for doctors?
Passive income is anything that you can earn with minimal ongoing effort. Passive income can be anything such as rental income, royalties, dividends, etc.
Why should doctors consider passive income?
Doctors should look for ways to make passive income as it can will help them reduce their work hours, achieve financial independence and diversify their income streams.
Is passive income for doctors taxable?
Yes! Passive income is taxable for everyone, but certain investments, such as real estate, can also offer tax benefits.
How much time do doctors need to set up a passive income stream?
While building passive income for doctors, the time will vary depending upon the method. Ideas like P2P lending, and real estate investments require minimal time but other ideas such as creating an app and earning from it can take several weeks.
Passive Income for Doctors – The Bottom Line
All of these ideas are a great way for doctors to build passive income. The best part about starting a passive income stream is that you just have to put in some effort at the start and then there is just little ongoing involvement.
You will be making money even when you are doing absolutely nothing. As you continue to earn more, you can easily reinvest all of your money into even bigger projects or businesses and create generational wealth.