How Much Is Enough? Defining Your “Number” as a Physician

There’s a quiet paradox in medicine. Many doctors earn more money than they ever imagined, but few feel financially “set.” The numbers grow, the accounts compound, but the nagging question remains: Do I have enough?

The truth is, without a definition of “enough,” the finish line always moves. That uncertainty leads to stress, overwork, and sometimes burnout. Defining your “number” is about reclaiming control—not just of your money, but of your time and peace of mind.

Why the Idea of “Enough” Matters

Imagine practicing medicine for 30 years, saving diligently, and still feeling like you’re chasing something undefined. Without a target, there’s no arrival point. You’ll either:

  • Work longer than you need to, out of fear.
  • Overspend today because you assume tomorrow will sort itself out.
  • Or bounce between both, never finding balance.

Your “enough” number grounds you. It tells you when you’re secure, when you can step back, and when you’re free to say yes—or no—without guilt.

The 25x Rule: A Simple Starting Point

A widely used shortcut is the 25x rule. Take your desired annual spending in retirement and multiply it by 25. That’s your ballpark number.

  • Example: If you want to spend $200,000 annually in retirement, your target nest egg is about $5 million.
  • Why 25x? Because withdrawing 4% per year from a diversified portfolio has historically sustained retirees for decades.

This isn’t perfect, but it’s a framework. And frameworks beat guesswork.

Customizing Your “Enough”

Of course, your number isn’t just math—it’s personal. Factors to adjust for:

1. Retirement Age

Want to retire at 50? You’ll need more cushion than someone planning for 65. The earlier you stop earning, the longer your portfolio must work.

2. Passive Income

Do you have rental properties, dividends, or a side business? Those income streams reduce your required savings. If you’ll reliably earn $50k/year outside investments, your 25x number shrinks.

3. Lifestyle Choices

Big spenders need bigger numbers. But here’s the secret: many physicians find their desired lifestyle in retirement costs less than during peak earning years. Mortgages are gone, kids are grown, work expenses vanish.

4. Geography & Taxes

Living in Manhattan isn’t the same as living in Montana. Cost of living, state taxes, and even healthcare expenses shift the equation.

A Mental Shift: Net Worth vs. Cash Flow

Instead of obsessing about a lump sum, think in terms of cash flow freedom:

  • “My investments generate $X/month.”
  • “My fixed expenses are $Y/month.”

When X > Y, you’ve crossed into financial independence.

Guarding Against “One More Year” Syndrome

Many physicians, even after hitting their number, keep practicing longer than they need to—not because they love it, but because they fear the unknown. That’s the danger of not trusting your definition of “enough.”

To counter this:

  • Write your number down.
  • Share it with your spouse or accountability partner.
  • Periodically test: “If I had this number today, would I feel secure enough to cut back?”

The Emotional Side of Enough

Money isn’t just math—it’s security, identity, and status. Defining your number helps you detach from the comparison game. Your colleague’s Tesla or vacation home doesn’t move your finish line.

It also clarifies trade-offs. If “enough” is $4M, then working extra years for $6M is a choice—not a necessity. That choice may buy luxuries, but it also costs time, health, and presence with family.

Practical Steps to Define Your Number

  1. Track Spending: Know your real lifestyle cost today.
  2. Project Forward: Decide what expenses disappear and what new ones appear (travel, healthcare, grandkids).
  3. Run the 25x Rule: Multiply projected annual spend by 25.
  4. Adjust for Passive Income: Subtract other reliable income streams.
  5. Write It Down: Put your number on paper.

Final Thoughts

“Enough” isn’t about limiting yourself—it’s about clarity. When you know your target, you stop chasing every dollar for its own sake and start using money as the tool it’s meant to be.

Doctors who define their number tend to work with more joy, spend with more freedom, and retire with more peace. The number itself doesn’t matter as much as what it represents: security, choice, and the ability to practice medicine on your own terms.