Protecting your finances against cancelled clinics

The scenario

“As a self-employed optometrist, I have seen a number of friends and colleagues left out of pocket due to cancelled clinics – including finding that they were only booked for half a day after turning up at the practice expecting to work a full day. I have also experienced last-minute half-days and cancelled clinics. I was determined that this situation would not lead to financial stress for myself.”

Francesca Marchetti, self-employed independent optometrist

How I navigated it

If you think you are going into a practice for a day’s work for £300, but you get a notification the day before saying that you are only needed for half a day so will be paid £150, or that you are not needed at all so will earn nothing, this is a challenge.

Also, if you’re not working, you’re more likely to be out spending money: you’re meeting a pal, you’re going for coffee, you’re going for lunch. It’s a double whammy.

I have navigated this during my time as a locum by managing my financial expectations sensibly. I have a certain amount that I know I need to earn to cover my outgoings each month. Although I might have a large number of locum days booked, I don’t rely on them all being completed or earning a huge amount over what is needed for my planned outgoings.

I know what my monthly outgoings have to be: mortgage payments, car payments, petrol, and living expenses in general. I know how much I minimally need to earn and I always make sure that I earn that. That’s guaranteed income every month. Anything I earn above that is a bonus, but there are no expectations of it in case days get pulled, half days get given, or I’m sick.

If you expect to be earning a large amount of money and then you don’t, you might find yourself in a difficult position

Advice for fellow locums

As a locum, you really have to manage your finances efficiently, and take it from there. If you expect to be earning a large amount of money and then you don’t, you might find yourself in a difficult position. There is also the issue that if you are unexpectedly sick and therefore unable to work, you will not be earning. You should manage your expectations: know the minimum amount you need to earn in a given month to cover your outgoings, and whenever you earn more than that, view it as a bonus.

I recommend that locums take out income protection insurance. Manage your finances closely. Otherwise, if a locum day is cancelled, if you get half days instead of full days, and you’ve still got things you need, you can’t afford them.

Importantly, as a locum, you do need to manage your expectations. If you are going to have a high earning month, think of that as a bonus. Don’t think of that as your day-to-day income. Always prepare for a rainy day. Keep some savings behind. Just because you have a high earning month, don’t spend it all. Remember to save for the unexpected.