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.
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.
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.
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?
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.
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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