Tag: financial independence

Achieving Financial Freedom Through Travel Therapy

~ Travel Therapy Mentor ~ Leave a comment

I recently had the opportunity to write a guest blog post (below) for MedTravelers (AMN Healthcare) on a very important topic: Achieving Financial Freedom Through Travel Therapy.

We wouldn’t have been able to accomplish all that we have and be in the position we are now if it weren’t for beginning to pursue financial independence and travel therapy early in our careers as new grad physical therapists. By establishing our financial goals early on and working toward them, we were able to save a significant amount and get ourselves into a great financial position only a few years out of school. The best part is, what we did is reproducible. You, too, can use a career as a travel therapist to pursue your own version of financial freedom.

Read the full blog post below to learn more!

Achieving Financial Freedom Through Travel Therapy

My career as a traveling physical therapist has allowed me not only to explore the country, meet new people, and try new settings, but also to achieve financial freedom and lifestyle flexibility that wouldn’t have been possible otherwise!

I first started travel therapy as a new grad physical therapist in 2015, traveling with my partner and fellow PT. We set out on our travel therapy journey for many different reasons, but a major factor was the ability to earn higher income and meet our financial goals—including tackling our student loans, saving for retirement, and planning for our futures.

After working full time as travel therapists for just three years, we were able to achieve financial goals that would not have been possible with permanent PT jobs. In the first six months (two 13-week travel therapy contracts), we had saved enough together to purchase a truck and fifth wheel camper outright with cash, to live in and travel the country. Over the next two years, we saved enough to fully pay off all of our student loans, with enough left over to also contribute to savings and retirement accounts. (While we did save enough to fully pay off our student loans, we personally chose to go on an income driven repayment plan instead of paying them off right away. This allowed us to contribute even more to savings and retirement accounts for our futures.)

After traveling and working full time for three years, we had saved enough to be able to transition to what we call “semi-retirement,” where we now only work part of the year as physical therapists. The first year of semi-retirement, we only worked six months (two 13-week contracts), then took the rest of the year off to travel the world. We worked about six months the following year as well. Starting the next year onwards, we now only work about three months or less per year as physical therapists.

I can say with certainty that when I was graduating from PT school, I did not anticipate it would only take me three years of working full time to reach financial stability allowing me to only work a few months per year. But travel therapy, combined with smart financial choices and strategic planning, has made this a reality for me.

Travel therapy can open up a lot of opportunities for financial growth with the right planning. As a travel therapist, you’re able to earn higher income than at a permanent job. You do have to account for added expenses when you’re traveling, such as duplicating housing expenses at your home location and your travel location. But if you can keep your costs relatively low, search for higher paying contracts, and maintain a high savings rate through being frugal, you can use travel therapy to your advantage and achieve financial freedom!

In addition to the financial freedom, travel therapy allows you to enjoy lifestyle freedom that usually isn’t possible at a permanent job. Because as a travel therapist you’re working short term contracts, you can take off as much or as little time as you’d like to between contracts. If you’re at a point of financial stability in your life, you can choose to work three months, six months, nine months, or somewhere in between as a travel therapist each year, while taking the rest of the year off to pursue other priorities.

Between travel therapy contracts, my partner and I have been able to travel to all fifty states and visit almost all of the national parks via US road trips, as well as travel to over forty countries internationally (not for work, just for fun)! There is no way we could’ve seen or done as much all over the world if we were working permanent PT jobs.

Think what we’ve done sounds crazy or unobtainable? I will admit that we certainly did things to the extreme in a lot of ways, but what we achieved through travel therapy is definitely reproducible. We know many other travel therapists who have paid off their student loans, saved for their futures, and are living their own version of financial and lifestyle freedom through travel therapy.

If you want to learn more about our journey, including our own personal travels and financial pursuits, you can check out our personal blog, Fifth Wheel Physical Therapist at FifthWheelPT.com (named after the fifth wheel camper we bought and lived in for the first three years as travel therapists)!

If you want to learn more about how you can become a travel therapist and start pursuing your own financial and lifestyle freedom, visit our Travel Therapy Mentor website at TravelTherapyMentor.com, where we now teach other therapists how to become financially successful travel therapists! Don’t hesitate to reach out to us with any questions you may have!

Happy Travels!

Article written by Whitney Eakin, PT, DPT, ATC. Whitney has been a Doctor of Physical Therapy since 2015. Since then, she has been traveling all over the US and the world with her husband and fellow Travel PT, Jared Casazza. Whitney and Jared were both born and raised in Virginia and still call Virginia home between their world travels. Together they’re known in the travel healthcare community as the “Travel Therapy Mentors” and have provided education and mentorship to thousands of current and aspiring travel therapists over the years.

If you’re ready to get your own travel therapy journey started, contact us to get connected with some of the best travel therapy recruiters who we’ve personally interviewed and vetted for you to save you time and help you have the best experience! Fill out our Recruiter Recommendation Form here to get connected!

If you’re looking for the most comprehensive resource to learn everything about getting started as a travel therapist and pursuing your own financial independence journey, check out our course “Becoming a Financially Successful Travel Therapist.” You can save $150 with the discount code “travel.”

Travel Therapy Mentor Course: Becoming a Financially Successful Travel Therapist: The Comprehensive Guide to Start and Succeed in Your Travel Therapy Career.

Retiring Very Early as a Physical Therapist (Yes, even as early as in your 30’s)

photo of Jared hiking while looking up at the sky, with title "Retiring Very Early as a Physical Therapist by Jared Casazza at Travel Therapy Mentor"
~ Travel Therapy Mentor ~ 2 Comments

Written by Jared Casazza, PT, DPT

Retiring from your career as a physical therapist earlier than “traditional” retirement age may be a goal you’re seeking, or something you’ve at least thought of in the back of your mind at some point. What if I told you that it’s possible not only to have a comfortable retirement before the age of 65, but possibly even as early as in your 30’s depending when you began your career and how you choose to structure your life? If this is something that’s piqued your interest, let’s dig a little deeper to understand how a very early retirement (or at minimum a transition to part time or optional work) has become a reality for me and could be a real possibility for you as well.

Background

Over the past five years, I’ve written dozens of articles on personal finance, investing, and financial independence. Almost all of these articles have been on the blog I started back in 2016, Fifth Wheel Physical Therapist, where I’ve consistently tracked my progress toward financial independence since that time. Over the past couple of years I haven’t felt as motivated to write about these topics though. That’s mostly because usually I feel that either I’ve already covered things I would potentially think about writing, or it’s already been covered elsewhere in the finance space. It’s also because I’ve had gradually decreasing interest in personal finance and financial independence since I reached my ultimate financial goal in May of 2019. In reality, the decrease in interest started even before then, when I realized that I’d saved more than enough to “Semi-Retire” (transition to only working part of the year) back in 2018, after only working full time for 3 years as a physical therapist. Once I was certain that my financial future was secure, my interest in personal finance took a backseat to other interests.

Every now and then though, I’ll get a particularly moving email or message from a follower who was inspired by my articles to improve their own financial situation and is now on their own path to financial independence. The excitement that emanates from those communications reminds me of the excitement that I felt when I first discovered that financial independence and early retirement (known as the “FIRE” movement) was possible and achievable for me, and it reminds me why I started writing about FIRE and working toward it in the first place. For the right person, like me, being introduced to the idea of financial independence and the math behind it is intoxicating.

After all, who in their right mind wouldn’t want to reach financial independence and have nearly unlimited options for their future?

With so much negativity regarding finances and workload after graduation in various therapy groups where I’m involved, I realize now the value in at least occasionally putting out content to introduce those that are receptive to the idea that a 30+ year career seeing 20+ patients per day isn’t a foregone conclusion. With some planning, optimization, and foresight: it’s possible to achieve financial independence and effectively make work optional much earlier than most think is possible.

Making my job as a Physical Therapist (PT) optional financially was my ultimate goal from my very first day working as a PT. From my clinicals, I knew that I enjoyed working as a physical therapist, but that it was probably something that I wouldn’t want to do 40+ hours per week indefinitely. It’s becoming clear from the conversations being had online that a large number of current therapy students and new graduates have had, and are currently having, this same realization.

In my opinion, actively working toward financial independence is the answer. This was one of the best decisions that I’ve ever made personally. I like to think of working toward financial independence as a game, with every net-worth milestone being one step closer to buying lifestyle freedom and optionality.

If you think this sounds crazy, or is just a pipe dream, below I’ll explain how I was able to leave my career as a full time physical therapist at the age of 30, after only working full time for less than four years, with enough saved and invested to support my expenses indefinitely — and have since used that freedom to design a lifestyle full of adventure, international travel, and plenty of leisure.

The Journey to Financial Independence

As I mentioned above, I discovered financial independence along with the math behind it prior to graduating physical therapy school, in 2015. I instantly knew that this was a goal that I wanted to reach as quickly as possible and started sketching out potential scenarios and thinking about options to supercharge my path. Below I’ll detail some of the key strategies that helped me to achieve financial independence, and some ways that you could utilize similar strategies to reach your own financial independence.

Maximizing Income

Based on research I’d done while considering options after PT school, I knew that it was possible to make significantly more money as a Traveling Physical Therapist. That combined with a desire to venture outside of my hometown made Travel PT a no-brainer and led me to pursuing it immediately after graduation. To my delight, my girlfriend (and now business partner, with whom many of you are familiar on this site) Whitney who was graduating at the same time as me saw the potential benefit and was quickly onboard with Travel PT as well. And thus began our Travel PT journey as new grads.

By no means is travel therapy the only way to maximize income as a physical therapist though. There are many therapists that I’ve communicated with over the years that make as much or more than I do as a Travel PT by working in home health, cash based outpatient practices, or by working a PRN physical therapy job outside of their full time job. Travel therapy was just the path that I personally chose to maximize my income as a new grad PT.

Knowing that maximizing income is vital to reaching a goal of financial independence, in addition to working as a Travel PT, I also started working on some side hustles to further increase my monthly earnings. To my surprise, these side hustles actually helped me earn enough that I was able to cover all of my expenses with them and save 100% of my travel therapy income each month during my first 3 years as a PT.

Minimizing Expenses

Another vital component of reaching financial independence and early retirement is minimizing expenses. As a traveler, keeping expenses low can sometimes be more difficult due to the need to duplicate living expenses in order to maintain a tax home, but it’s possible to still keep expenses low with some strategic planning.

I decided to rent a room in a house for my tax home instead of renting an apartment or entire house, which helped me to save a lot of money. Whitney and I also decided to buy a fifth wheel camper to live in while on travel assignments, which not only saved us money each month but also made finding housing in assignment locations much less of a hassle. We bought both our fifth wheel and the truck to pull it with used in order to reduce how much we’d lose in depreciation costs when it came time to sell them later on.

Besides keeping housing and transportation costs as low as possible, we chose to limit how much we spent on things like meals out, electronics, and subscription services to further reduce the expenses side of the equation.

Savings Rate

By maximizing income and minimizing expenses, I was able to maintain a high savings rate. Throughout my three years of full time work as a travel therapist, my savings rate stayed in the 80-90% range. More specifically, around 88% in 2016, 85% in 2017 and 72% in 2018 — even despite working for only half of the year in 2018 and spending the second half of the year traveling around the world!

As a side note, most people believe that traveling for long periods of time internationally would be very expensive, but that doesn’t have to be the case. In fact, I keep track of all of my expenses during our long international trips to show that traveling internationally can cost the same or less than it costs to live a median lifestyle in the US, with some strategic planning. It cost me less than $37/day to travel for 5 months through Europe and Asia in 2018 and less than $46/day to travel for 4 months all over Europe in 2019! These were both trips of a lifetime for us, and being able to take them while still saving money was a massive bonus!

Investing

Having a high savings rate is wonderful and a key component to achieving financial independence, but utilizing that money saved each month wisely is just as important. Being able to cover your yearly expenses with 4% or less of your invested assets (known as the 4% rule) is what most people in the personal finance community define as “financial independence.” This is where making intelligent investing decisions comes into play. Investing as much as possible early in your career is ideal in order to allow compound interest to work in your favor for as long as possible.

There are endless ways that people choose to invest, but what worked best for me and probably makes sense for the majority of people is a simple passive index fund investing approach with a reasonable asset allocation**. For me, that meant sticking primarily to Vanguard passive domestic equity index funds. Passive index fund investing not only costs less in terms of fees but also requires significantly less time to implement, which means more time to earn extra income or for leisure.

**Please note that I am not a licensed financial advisor and this is not meant to be specific financial advice for your situation. It’s important that you do your own research and if necessary consult a licensed financial advisor to assist you with investing and finance decisions.

Managing Debt

Besides investing, money saved each month should also go toward paying down debt. I believe that avoiding high interest rate debt at all costs is imperative for achieving financial success, but often some debt is unavoidable. For most of you reading this, that would include student loan debt.

There are generally two main approaches to managing student debt. Either pay the debt off as quickly as possible, or make minimum payments on an income driven repayment plan for 20-25 years until the debt is forgiven, while saving/investing the money saved along the way. Initially, I planned to pay my debt off as quickly as possible, which is what the majority of travel therapists will take the opportunity of having higher income to do; but, after a lot of time spent learning and making projections, I instead decided to go the income driven repayment plan route. You can find the considerations and math behind my decision here. This certainly isn’t the best option for everyone, but for me this choice has saved me tens of thousands of dollars over the last six years and supercharged my path to financial independence!

Early Retirement or “Semi-Retirement”

Since reaching “semi-retirement” in 2018 after only working full time as a PT for three years, and full financial independence in 2019, I’ve significantly reduced how much I’ve worked as a physical therapist, while instead choosing to spend more time traveling the world and working on hobbies and entrepreneurship.

I’ve only worked a total of 200-300 hours/year in each of the last two years, mainly to maintain my physical therapy license and keep my evaluation and treatment skills from getting rusty. This amount of work seems about ideal for me personally, as I’m still able to help patients, which brings me joy, for part of the year, while still having plenty of time to do other things that I want to do including travel the world. I’ve found that working on and growing our websites Travel Therapy Mentor and Fifth Wheel Physical Therapist is something I really enjoy, and I value the ability to impact the lives of others who find and read the articles I write.

The hours I work as a physical therapist combined with income earned from the websites and from my investments have caused my net worth to continue to increase each year, despite not working full time since 2018. At this point, I have over 35x my anticipated future yearly expenses saved and invested, which means an even more secure financial position. I plan for this to continue for the foreseeable future as I continue to keep my expenses relatively low.

Is Retiring Very Early Possible as a PT?

Retiring very early as a physical therapist is not only possible, but I believe that the path I took to get there isn’t unique and is replicable for many students and new grad therapists who are interested in pursuing this goal. In fact, since first writing about this years ago, there are many other therapists well on their way to achieving similar financial success. Here is one such story and here is another!

The wonderful thing about financial independence and personal finance is that it truly is personal. No two individuals have the exact same situation, and therefore no two paths will be exactly the same. I hope that you can find some aspects of my path that will work for you to improve your own financial situation and allow you to achieve financial independence more quickly — and in doing so, be able to design your lifestyle and future to look how you want it to!

If you’re a student, new grad, or current clinician interested in utilizing travel therapy to improve your own finances, here’s a great place to start. If you need helping finding reputable travel companies and recruiters we can help you with that as well! Please don’t hesitate to message us with any questions!