"You're a slave to money then you die"
-- From "Bittersweet Symphony" by The Verve
So I'm listening to this awesome song from the 1990s, and it reminds me of the way many physicians view money and how money enslaves them.
A few examples from some Financial Strategy Consultations I've had with physicians will illustrate my point:
Example #1: 55 year old physician who can't retire any time soon
This guy's been practicing medicine for about 20 years and his retirement portfoio is about $1 million. I flat out told him that he's failed as an investor.
As you can see, I'm a "no BS" kinda guy. I could sugarcoat it and say "everything's gonna be OK" and baby him, but I feel like it's my responsibility to say it like it is.
The past 20 years have been an absolutely phenomenal time to invest even if you completely avoided the stock market. Investing only in bonds and missing the wild swings of stocks should have led to a decent amount of wealth.
Now this doctor simply doesn't have the time to make up for it. He's become a slave to money because he has to make a paycheck -- a full time one -- to save enough and support his retirement lifestyle.
Example #2: 35 year old physician who just bought a $1 million home
This doctor just finished his fellowship and has delayed gratification for a long, long time. Naturally he's itching to buy the next big thing.
Make that the next big things: big house, a car requiring $100 oil changes, and of course private education for his kids.
He's been duped into thinking that whatever his pay is now will be the same or higher 10 years from now.
Or that it'll keep up with his future obligations such as the kids' college education, other toys he'll buy for himself, and ever more lavish vacations.
"Hey I've got a lot of time," is his subconscious thought.
He's become a slave to money because he's put too much emphasis on "Today's bank account" rather than "Tomorrow's bank account."
See, there are only two types of spending you can do with money: current spending or future spending. It's like a seesaw. More current spending = less future spending and vice versa.
But many physicians try to defy the laws of mathematics. They think that more current spending can still equal MORE future spending.
Unless you use the government's accounting methods, that's not possible.
So how do these two physicians make money work for them instead of them working for money?
Well, the 55 year old needs to revise his expectations of spending during his retirement and then significantly ramp up "Tomorrow's bank account" starting now.
The 35 year old should question whether he really needs his seven figure home and consider getting a car without heated seats. And perhaps looking a bit more closely at that private school tuition for kindergarten.
It all begins with having a financial and investment plan, which many physicians -- whether managing money themselves or after hiring a financial advisor -- don't have.
No financial or investment plan = working for money.
Solid financial plan and an expert to implement it for you = money works for you.
It starts with your Financial Strategy Consultation which you can set up by clicking here:
You'll only get no BS, cut to the chase, straight financial talk.