The senior partners in Jess' practice gifted this book to her when she first joined - a tradition they uphold with any physician who becomes a part of their team. And there's a great reason why.
This book isn't just considered canon in the world of personal finance, it's a cornerstone. Its authors are two business professors who spent years interviewing as many millionaires as they could to learn what path each took to reach the point of $1M+ ($3.7M, on average) in net worth.
The results were anything but intuitive.
They found that the actualaverage American millionaire is probably a lot different from what most peoples' image of a "millionaire" might look like. For example, the average millionaire:
Didn't receive an inheritance
Never went to a private school (but does have a college education)
Lives in a middle-class area, has lived in the same house for 20+ years
Drives an old, used vehicle
Invests 20%+ of their pre-tax income
This book is especially valuable to Jess' practice and this newsletter's readers because it includes a number of cautionary tales about physicians and how common it is for them to NOT end up in the "millionaire" group - despite incomes that should be almost guaranteed to land them there (and yes we're factoring student loan debt into that statement).
But we don't want you to get the idea that delayed gratification and miserly frugality are the only way to get there. Just thatevery dollar you spendshould be driven by a series of intentional, clear-eyed choices based on asystem you create before you spend that dollar.
The bad news is that you don't get to write the rules of wealth accumulation. They are what they are, and this book is one of the shortest, most effective ways to learn them.
The good news is that youdoget to create a system that reflects your priorities and values - and the webinar series we're almost done creating is designed to be one of the shortest, most effective ways to help you do so.
Who we're following
Dr. Carrie Reynolds, MD (@HipHustlePod) is, in her own words, a "Peds GI doc by day and podcaster and side-hustler by night." She's the "founder and producer of the Hippocratic Hustle Podcast- a podcast for women physicians," and she also just happens to be one of our favorite contributors to the physician finance space. If you're interested in all this stuff, we strongly recommend giving her a follow!
BBMD tip of the week
Remember those 10 ideas for how you could increase your income (or better yet add entirely new sources of income) that we asked you to come up with last week?
Well this week, we're going to put some meat on their bones!
Pull out your list, and give each one of those ideas it own 0-10 scores in the following 3 categories:
Monetary investment to establish and maintain (think of this as a reverse-coded question - 0 for a high monetary investment because that's bad, 10 for a low monetary investment because that's good)
Time investment to establish and maintain (again - 0 for high, 10 for low)
How much the idea capitalizes upon YOUR UNIQUE gifts/talents/skills/assets (0 for not at all, 10 for completely)
Next, calculate the blended average for each idea and re-order the list based on that score, highest to lowest.
Then, if you feel like it, email them to us for some free feedback!
Lastly, make sure you read next week's newsletter, in which we'll share how you can put this newly prioritized list of ideas into action.
Quote we're contemplating
“Money should never change one’s values…. Making money is only a report card. It’s a way to tell how you’re doing.” - Thomas Stanley, PhD (author of The Millionaire Next Door)
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PPS - As always, please let us know your requests and suggestions by replying to this email (we read 'em all) or getting at us via Twitter. Which section above is your favorite? What do you want more or less of? Just send a tweet to @BossB_MD and put #SaturdayMorningRounds in there so we can find it.