One less clinical day could give you time for family, other interests or a different role in medicine. Before changing your schedule, estimate what you would earn, spend and save.
Compare your current schedule with the one you are considering. A day off does not necessarily reduce income and costs by the same amount.
Define the change you want to make
Would you reduce clinical work for a year, take a temporary leave or keep a lighter schedule indefinitely? Would call, administrative work or other medical responsibilities continue? Write down the proposed change and when you would review it.
If you share finances with a partner, discuss what each of you wants the change to achieve. Keeping spending unchanged, making a major purchase and reducing work can place different demands on the same income.
Estimate income and continuing costs
Use a consistent period, such as a year, for both schedules. Estimate the income from the actual work you would retain. For a practice owner, identify which costs would change and which would continue. For an employed physician, examine the effect on compensation and benefits.
Items to compare under your current and proposed schedules| Item | What to establish |
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| Income | Expected practice or employment income under each schedule, using the same basis. |
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| Practice costs | Continuing commitments and costs that would change, where applicable. |
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| Tax and personal pay | Tax assumptions and money available personally, reviewed with your accountant. |
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| Household spending | Living costs, debt payments, planned purchases and other commitments. |
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| Saving or withdrawals | What remains to invest, or what would need to come from existing savings. |
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The Financial Consumer Agency of Canada describes a budget as a way to compare income, expenses and saving. Use account statements and known commitments to establish what you spend now before estimating what would change. FCAC: Making a budget.
Separate saving less from spending your savings
You may still earn enough to cover household spending, but have less to invest each year. Estimate how that would affect your retirement date or other savings goals. If income would fall short of spending, identify which accounts would fund the gap and allow for tax on withdrawals.
If you are incorporated, allow for the steps and tax involved in paying yourself from corporate investments. The CRA explains that a corporation is a separate legal entity. Review how money would become available personally with your accountant rather than treating a corporate balance as household spending money. CRA: Corporation.
Review contributions and withdrawals
If you would need withdrawals, estimate how much and for how long. Keep money needed soon accessible when reviewing the portfolio. If you would still be saving, update planned contributions and assess whether they support your goals.
Changing work can also change your ability to absorb investment losses. CIRO distinguishes willingness to accept risk from financial capacity to bear it, and recommends reassessing risk when financial or life circumstances change. CIRO: Understanding risk.
Test the assumptions before relying on the answer
Compare the proposed schedule with higher household costs, weaker markets or a longer period of reduced work. Decide what you would adjust if savings fell short: spending, the date you retire or the schedule itself. If the plan depends on returning to your previous workload, check whether that would be realistic.
Review employment, partnership, patient-care and coverage responsibilities separately with the appropriate people. Financial analysis cannot settle those obligations. For example, Ontario physicians can consult the CPSO’s Availability and Coverage policy; requirements in other provinces need their own review.
Prepare for a planning conversation
Bring the schedule you are considering, your current income and costs, household spending and the accounts that could contribute. These figures give your adviser a basis for assessing whether the change fits your financial plan.
Our team provides financial planning within an investment-management relationship. We begin with a 30–60 minute conversation about your situation and whether working together fits your needs, with no commitment. Talk with our team.
General planning information. Assess affordability using your own figures and professional advice.