Health is Wealth | Unlock the Secret of Wealthy People!

May 10, 2021

Harsha Moole, M.D., MBBS

Health is wealth indeed. This saying is not only applicable to being healthy in your body. Financial health is also vital. As a doctor, building sustainable wealth is possible and easy. You don’t necessarily have to rely on your income which is heavily taxed to be rich. There is wealth in investing, and you can maximize it to build a solid financial future for yourself. Beyond being rich, you can become wealthy. And the vehicle to take you there could be an investment.

Riches vs. Wealth | Why Do They Say Health is Wealth?

Why is it a common saying that ‘health is wealth’? The words riches and wealth have been used interchangeably in the past. But one can not help but wonder if they are the same thing. If I am rich, does that mean I am wealthy? Or is there a difference between being rich and being wealthy?

There is indeed a difference between a rich person and a wealthy person. Wealth is sustainable. A wealthy person remains wealthy and can transfer that wealth to multiple generations. This is possible because he or she has been able to set up systems that can sustain such wealth.

A rich person, on the other hand, has a lot of money to spend as long as the money remains. Riches can disappear at any time because there is no system built to keep money coming in. This is why some people who previously were high earners became impoverished due to a turn in fortune. Their money is dependent on their direct effort and contribution.

Being wealthy means that you have money and freedom, and time to do what you love. Wealthiness does not necessarily require you to be physically present to make money. Money comes to you even when you are not actively working for it.

Being rich is good, but wealth is the real deal. As a doctor, you should aspire to be wealthy and not just rich. It is possible to earn high and yet not have sustainable wealth. The difference between a wealthy person and a rich person is the knowledge they have.

While rich people work for money, the wealthy use money as a tool to make more money. The wealthy have learned the act of investing money and the importance of passive and multiple income streams.

Before you can come into a place of wealth, you must have mastered the act of putting money to good use. The wealthy know the underlying principles behind making money. They understand saving and learn how to identify and maximize investment opportunities. To be wealthy is to be free from anxiety or worries about your finances.

Importance of Investments for Doctors | Health is Indeed Wealth

Health is wealth, indeed. The pathway to building sustainable wealth is an investment. Where and how you invest your money also determines what comes back to you as interest. There are several reasons why Doctors need to invest.

  • There is a return on investment: When you invest your money, what happens is that you are temporarily forgoing the benefits that you would derive from using the money now. This forgone benefit is with the hope of getting a higher future value. Investing ensures that the $1 you have today increases or doubles in the future without actively working for it. And because doctors are high-income earners, the higher investment will ensure they attain financial freedom faster.
  • Reduces the amount of money remitted to “Uncle Sam”: Who wouldn’t jump at the opportunity of paying a lesser amount of tax. That is precisely what investment does. High-income earners like doctors are subjected to high tax remittances. But investment is an excellent medium to bypass some of those deductions for most organizations with a retirement plan.
  • Investment helps you beat inflation: If you leave your money in a savings account without investing it, the value will drop with time. This decline in the purchasing power of money over time is caused by inflation. The interest paid on a savings account by a bank is very insignificant to cover for the reduction in value due to inflation. Therefore to ensure that the value of money you earn today appreciates in the future, you need to invest in different assets.
  • Achievement of financial goals: You need investment to achieve your financial goals. As you go through life, your needs and aspirations continue to change. You may want to buy a house at some point. However, you can fund the buying of your home with a loan. You will still need to have a substantial down payment ready. Through investment, you will be able to build up enough funds to have a good head start.
  • Investment ensures you retire in comfort: An average Doctor wants to retire early and in comfort too. But that is next to impossible without investment. This is because your paycheck stops coming once you retire. It is at this point that many rich people who didn’t build a system of wealth through investment begin to struggle. Having a diverse investment portfolio will therefore ensure that your needs and desires are taken care of long after you have stopped working actively.
  • Ensures financial freedom: When you invest as a Doctor, you succeed in diversifying your income. This makes you less dependent on your job (W-2 or 1099) as your sole income, and gives you a peace of mind. Gaining financial freedom will help you to practice medicine not just for the money but for the passion.

Real Estate as a Vehicle for Wealth for Doctors

Real estate has gained popularity as the number one vehicle for wealth for doctors and others alike. But is this always the case? Will real estate make you wealthy as a doctor? Yes. If yes, how?

  • It ensures you a steady cash flow: With real estate, you are sure of regular monthly income aside from your salary as a doctor. This income or dividend is generated from rentals. The monthly payment can be channeled towards fulfilling urgent financial goals. You may even decide to reinvest the dividends and build a more robust investment portfolio that will bring in more money.
  • Helps in the fast accumulation of wealth: Real estate is one of the quickest ways to accumulate wealth as a doctor. If you decide to buy a house, all you need is a 20% down payment to get access to a mortgage loan with lower interest. The loan will most likely be paid off in a matter of years by the tenants. With time, the property’s value will appreciate, and you will accumulate more wealth through the additional asset bought.
  • There are tax advantages: If you own real estate, you will enjoy some tax benefits that come with it. For instance, you can write off property maintenance expenses, insurance, and so many other expenses that you incur on the property.
  • Pays high dividends: Compared to other investment portfolios, real estate investment in all its forms pays higher investments. Investing in real estate is therefore a good deal.

Health is Wealth

Types of Real Estate Investment

If you believe that health is wealth, this is something that you should take note of. If you are considering branching into real estate as a doctor, then you need to know the different real estate investments available to you. This will help you know which one suits you depending on your peculiar circumstances. Let’s take a look.

#1. Real Estate Investment Group

If you are seriously considering going into real estate but you don’t have time to run it, this may be ideal for you. Real Estate Investment Groups purchase or develop apartment blocks. Investors are then allowed to buy these properties through the company. It doesn’t end there though. The company goes on to manage these properties on behalf of the owners for a percentage of the rent paid by tenants.

Another group-investing vehicle that is similar to REIG is real estate syndication deal. A group of investors pool their resources together and purchase properties. There are however two groups of people in syndication deal: the sponsor and the investors. The sponsor scouts for buildings, may contribute a percentage of money for acquisition of the property and manages it. The investors on the other hand contribute funds and receive returns based on the agreement reached.

#2. Rental Properties

This may be ideal if you want to be directly involved in the running and management of the property. It also comes with its downside. You may also be accruing additional costs from repairs and maintenance, as well as other management costs.

#3. Online Real Estate Platforms

Also called real estate crowdfunding, online real estate platforms as the name implies are done online. These platforms serve as bridges linking real estate developers with investors looking to finance real estate projects.

#4. Real Estate Investment Trusts

A REIT is a corporation that uses investor’s money to buy properties. They go ahead to manage these properties, remitting at least 90% of their returns to investors as dividends. This type of real estate investment is also ideal for those who may not have the time to directly manage their investment.

Bottomline | Health is Wealth

Real estate investment is one of the sure vehicles for doctors to build sustainable wealth. However, before embarking on the journey, equip yourself with the correct information and watch your finance rise to the roof.


Here at PhysicianEstate, we welcome all physician entrepreneurs to learn about commercial real estate investments, rental property investments, and wealth generation. We encourage all physicians to eventually become real estate physician investors. We know a great deal about Who – What – Why – How. 

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Legal Disclaimer: This is not investment advice. I am not a legal and/or investment advisor. This is my personal blog, and all information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. These are my views, it is not a production of my employer, nor is it affiliated with any broker/dealer or registered investment advisor. While the information provided is believed to be accurate, it may include errors or inaccuracies. To the maximum extent permitted by law, PhysicianEstate disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. You should consult with an attorney or other professional to determine what may be best for your individual needs. Your use of the information on the website or materials linked from the Web is at your own risk. 

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Authored by Harsha Moole, M.D., MBBS

Hey there! I hope you enjoyed reading this blog. PhysicianEstate is my brain child and passion project. I run this platform to empower entrepreneurially motivated physicians to make financially educated investment decisions and discuss asset protection strategies. Lots of important but free content here and here! If you have any questions or if you are interested in partnering with me, let’s connect!

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