10 issues the wealthy physician throughout the corridor will not let you know
You heard from the millionaire next door. But have you heard from the rich doctor across the hall? She heard about you and is not impressed.
Today’s classic is being republished by White Coat Investor. You can see the original Here.
Guess what? You are surrounded by rich doctors. You probably didn’t even know it. You know why? Because doctors don’t talk about that dirty light known as money. So if you assume that all the other doctors in your group, office building, and hospital are in the same position as you, you are wrong. Some of them are rich. There are 10 things they won’t tell you that you probably need to know.
# 10 Rich doctors don’t care about your Tesla
Do you know Tesla drive you? It goes so fast It’s so environmentally conscious. It shows people that you are now a doctor and a successful one. Guess what? The rich doctor across the hall doesn’t care. She really doesn’t. In fact, almost no one does. You buy things you don’t need with money you don’t need to impress people you don’t like. Are you sure you want to hang out with someone who is impressed with your Tesla?
# 9 They don’t care what you think of their bat
They also don’t care what you think of their spending decisions, whether it’s their car, house, clothes, vacation, their children’s schools, or their favorite restaurants. You’re immune to being with Dr. Jones to keep up.
# 8 You never owed as much in student loans as you still do
You know you have a $ 300,000 student loan under your bed? That rich doctor in the hallway doesn’t have that. She lived like a bum when she was a student, like a student when she was resident, and like a resident for 2-5 years after her residency. Her student loans were only 2/3 the size of yours and she paid them off by Halloween after she finished her stay by living like a resident.
# 7 They don’t have any payments
It’s not just the student loans. These other documents have no payments. No student loan payments, no car payments, no credit card payments, no moving loan payments, no timeshare payments, no ski condo payments, and not even a mortgage on their primary home. There are plenty of good math arguments out there to show you should be taking out low-interest loans for as long as possible, but most of these rich doctors have stupidly paid them back early. Idiots. However, this lack of payments improved their cash flow and gave them the confidence they needed to take risks in their life and careers, and often those risks paid off with higher incomes and better investment returns.
# 6 You have a written plan
Guess what else those idiots have in the hallway? A written budget. Stupid right? Some of them wrote it themselves after reading some books or taking a class, but many of them met with a financial planner and some of them still do it on a regular basis. They could actually tell you where their money is going each month, how much they have and will need for retirement and college, and what their returns on investment have been. Strange isn’t it?
# 5 You’re not afraid to take the ownership risk
Rich people tend to own things, and that includes doctors. Owning property can be risky, whether it means having a high stock allocation in your portfolio, owning a practice, owning a side business, or owning rental property. However, because they apply the same intelligence and hard work to property as they do to entering medical school, those risks generally pay off with more wealth.
# 4 You are financially literate
This wealthy doctor across the hall not only has a written budget, she’s also financially savvy. She knows what a Roth IRA and a mutual fund are. She knows the difference between a savings rate, an expense rate and a safe payout rate. It can calculate its return on investment and payments on a 15 year mortgage. She knows the current financial advisory rate and why a capitalization rate has nothing to do with a mid-cap stock. Do you? Would you like to? There are ways to learn this stuff with almost no effort.
# 3 You buy for quality
If you went to their house you might be surprised at some of the old furniture and exercise equipment they have. But when the stuff is worn out and they replace it, they do so with good quality stuff. You want something that will last a long time. You have saved and shopped for it and are not afraid to spend money on it. You have a lot of money and you are ready to enjoy it. But they’ll still wait for the old one to wear off. You might drive a 15 year old Accord, but the next car will be a brand new Audi paid for with cash.
# 2 They like their job more than you do
The doctor in the hallway likes her job more than you do. How do you know that’s true? Because it is there. It doesn’t have to be, you know She has enough money not to work at all. If she didn’t like it, she would be away from mountain biking, going home with the kids, running a business, or pursuing another career. Some people are surprised when they achieve financial independence and find that they no longer enjoy their jobs. But guess what? You’re not in the hallway at the clinic. You are elsewhere. The rich in the hall want to be there. But they can’t stand the shitty parts of the job. You can tell the admin to crack the whip to push it. They can pay someone else to work their night shifts or to take their call. They no longer do procedures that they do not like. They have figured out how to eliminate most of the parts of their job that they don’t like.
Do you remember that rich doctor in the lounge that you never thought was rich? He has been married for 25 years. To the same person. I know right? He’s also in the same house he bought when he moved to this town. It has paid off for 18 years. Also no lake house or ski apartment. Perhaps these decisions have something to do with his wealth. Or maybe it’s just the X factor.
What do you think? Why Are Some Doctors Richer Than Others? Is it genetics, the environment, better choices, sheer bad luck, or a combination of the above? Are you the rich doctor next door? Do you know some? Comment below!