How to Build Wealth as a Physician by using a Millionaire Mindset
Being a high earner is not a guarantee of wealth accumulation, while it is undoubtedly a step in the right direction there are common practices observed from those in the millionaire club.
There is an assumption that doctors are bad with their finances and assumptions as to why, ranging from being too comfortable living in debt, to being too zealous of jumping into a new lifestyle when the big checks start rolling in, or being too independent to seek guidance from a professional, and so on.
Whether these assumptions have truth or not is inconsequential because you forage your own path, and many before you have succeeded at building wealth and have wisdom to share.
The stats aren’t so grim according to Medscape, an average physician’s salary is over 200k a year, with 51% having a net worth of over a million by 50 years old. The net worth does include their home’s value. It is reassuring half make it to become millionaires.
And it is unknown as to why the other ½ has not, it could be from reducing hours to spend more time with family or hardships like divorce, disability, and so on.
Nonetheless, there is much to gain from those that have been there done that.
Interestingly in the book The Millionaire Next Door, coauthor Sarah Fallow from Data Points applies her PhD in psychology to finance, in a recent podcast from the White Coat Investor she shares the commonalities they found of those in the millionaires club.
Characteristics of a Millionaire
Most millionaires in America are first-generation accumulators of wealth. They didn’t come from old money and trust funds, but they do have a can-do attitude and discipline.
They found that those that accumulate wealth had a similar mindset about money and patterns of behavior that led them to greater prosperity.
Frugality
It was observed that most millionaires don’t look like millionaires, they usually were raised by a frugal parent(s). They live below their means and are dedicated investors. The majority don’t buy luxury cars or the latest model. While frugality does not sound sexy, a plan with discipline is a proven route to building wealth.
Self-discipline
Most in the millionaire club are entrepreneurs, the self-employed, or in high earning professions like doctor or dentist. They are a group of driven dedicated individuals that have made an investment in themselves and are disciplined in living within their means.
Passion
Also having a passion for what you do increases the likeliness of building wealth. Perhaps in part, this is because it is easier to work longer hours if you are doing what you love. Longer hours also correlated with greater wealth.
Planning and Monitoring
An essential step to building wealth is having a plan to invest, save, and monitor. This is an obvious step. A rule from finance guru Robert Kiyosaki is to always pay yourself first. As with any well-laid plan, it requires commitment for its success. Another observed characteristic was calmness when things go awry and patience. A patient investor finds more success than an impatient one.
Conclusion
It is inspiring that the majority of wealth in this country was earned from a solid work ethic, discipline, and a good plan.
Unless you are lucky enough to trip over a big diamond at a state park then it’s going to take planning, investing, patience, living within your means, and discipline.
This list of millionaire characteristics teaches us our mindset about money is critical to our ease in building wealth. This is an opportunity to identify your relationship with money so you can forage a plan that is reasonable to you.
Before creating a financial plan understanding yourself, goals, and lifestyle values will influence your path to building a financial plan that works for your life. As no plan will have any success if it is not realistic for you. Reach out if you would like guidance to your financial goals.
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