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Lessons from my conversation with a physician Deca-millioniare!

Physicians are known to be bad with money! Yes, you heard that right. Most physicians like most high earners and frankly the rest of America fall into the "monthly-payment" lifestyle. They believe they can afford anything as long as they can make the monthly payment. Well, not this physician. Read below to find out how this physician was able to amass a net worth of $10 to $15 million over just over 2 decades.

#1. Ownership is key: He is a part owner of a medical practice. Although he joined his current practice as an employee, he worked his way up to be a partner. He benefits from electing to file his taxes as an S-corp to avoid double taxation. He also benefits from a large 401k contribution plan (up to $69,000 this year). He took advantage of the backdoor Roth IRA and even help bitcoin for a brief period.

#2. You don’t need to own a house or real estate to build wealth: This doctor never bought a house. He rented for over 20 years by choice. This means he benefited from not having to pay property taxes and insurance. He invested all that money in stocks. As a homeowner, I understand exactly why he did this but I still choose to own my primary residence.

#3. Live below your means: This doctor was very frugal, he drove the same car for 14 years. Nothing fancy just a Lexus (I had an issue with this because I’m a car guy). But it’s true, the average millionaire drives a Toyota or a Ford.

#4. You can have anything but you can’t have everything: Be frugal, spend on things you value. One thing he splurged on were vacations. He paid cash for all his vacations and his most recent vacation cost $60k.

#5. Pay yourself first: This should have been the first point. He prioritized investing! He invested a good portion of his income in index funds and the 10 best stocks in America. This was excellent advice from a patient (likely a financial advisor).

#6. Get a high paying skill: Your income is your #1 wealth building tool. He had a high income and has been able to increase his income annually. With a high income, you can save more after fixed expenses have been covered.

#7. Get expert help: This doctor used a financial advisor to manage his money. While you can manage your money on your own, getting help from a financial advisor or coach is key to staying level headed when the stock market is not doing as well. Most people can handle a bull market but when stocks are down 30-50%, you need a shrewd mentor to guide you through the storm.

#8. Be a giver: From my experience with this doctor, he gives a lot of his time, money and resources to others freely. Sometimes to his own detriment, and I am not surprised he amassed this level of wealth.

You can do it too. Share your thoughts below. Do you know you financial independence number and when do you plan to get there and how?

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