How can you determine if you have attained true wealth as a doctor? Does having a home and fleet of cars signify true wealth? Or is there something else that you may be missing out on? Perhaps, having a private jet is an indication that you have arrived at a position of wealth?
Having a magnificent home with several cars gracing your garage may be the average American description of wealth. However, all these things are not a good measure of true wealth. It is possible to have many luxuries and not be wealthy. And this is because true wealth is not measured by the number of things you have but by being able to live life without being under the control of another. True wealth is living your life on terms that were outlined by you.
Doctors earn very high. So it is possible to believe that having money is the same as being wealthy. Money however is not an end itself but a means to an end. Money is a vital tool in achieving financial freedom and attaining true wealth if only you know how to use it. Money is essential in designing the life that you desire; a life where your dreams come true before your very eyes.
True wealth (true financial freedom) is being able to focus on the things that make you come alive without any form of limitations. It is that point where you no longer experience money anxiety.
Difference Between Being Rich and Being Wealthy
Whenever wealth is mentioned, what naturally comes to the mind of many is the amount of money in their bank accounts or the amount of paycheck received every month. It is however possible for an individual to earn less and yet be wealthier than someone who earns more and has various fancy things. Doctors usually fall into the “rich” category.
Ordinarily, doctors are expected to be wealthy. This is because the salary doctors receive is in the higher economic range. However, the heavy taxes, student loan debt, expensive lifestyle, and poor choices have made it almost impossible for most doctors to qualify as truly wealthy. Considering that doctors start their financial journey quite late because of the time it takes to get a doctor’s qualification, knowing how to bridge the gap becomes very important.
Being rich is having consistent cash flow. So a person who earns high and lives from paycheck to paycheck can be rich. However, being wealthy requires much more. It is at that point where you gain financial freedom. It is that point where you are living above your paycheck. A wealthy person can sustain their lifestyle without having to work every day.
A wealthy person can afford to sleep while passive income flows in. Wealth happens when you focus on accumulating assets. The wealthy have their focus on investment and one of the fastest ways of accumulating wealth is real estate investing. A rich person may spend their money buying assets that boost their luxurious life like the latest car models, or magnificent homes.
When a wealthy person thinks of assets, what comes to mind is passive income generation. Wealthy people spend their money on assets that can generate passive income in the long run. As a doctor, don’t settle for riches. Aspire to become wealthy. Wealth is measured by the number of days you can stay off work and still maintain your standard of living.
How Doctors Can Attain True Wealth through Real Estate Investing
One of the easiest ways doctors can accumulate wealth is through real estate investing. Being among the high earners, doctors are also heavily tasked with the normal daily expenses. So, it is increasingly difficult to build wealth solely on your salary.
What makes real estate the ideal wealth accumulation vehicle for doctors is that its flexibility makes it possible for you not to be actively involved. The value of the real estate does not diminish over time, rather it keeps appreciating. With this type of investment, doctors can be sure of steady passive cash flow.
Why is real estate investment ideal for wealth building for a doctor?
- Renewable capital: owning a real estate property means you always have a renewable source of capital. The value of real estate properties is always on the increase. These properties can become a source of collateral that you can use to raise capital to invest in other projects.
- A steady flow of income: passive income is the best way for a doctor to accumulate wealth. This is because doctors are very busy with patients almost round the clock and have little or no time to be actively involved in other things. By investing in real estate, doctors can accumulate wealth and still fully practice medicine. So even while you sleep, the income will keep rolling in. When you don’t have to worry about money, you can then afford to work on your terms. This is the definition of true wealth.
- Creation of wealth: Real Estate makes the process of wealth creation as easy as a walk in the garden. You don’t necessarily need to have so much money to benefit from the wealth creation possibilities inherent in real estate. For instance, if you want to purchase a rental property, all you need to do is to come up with 20% of the price of the property. This will qualify you for a mortgage loan. You can repay this loan with the rents paid by the tenants. As you gradually pay off this loan, the value of the property will increase. With time, you become an owner of a fully paid-off property.
- Tax benefits: Doctors as high-income earners usually pay taxes that have a huge impact on their finances. However, with real estate investing, doctors can take advantage of tax deductions on properties such as insurance, depreciation, property management fees, and repair and maintenance cost.
Different Types of Real Estate Investment that Can Grant You True Wealth
The real estate investment world is vast and you can gain entry through different investment gateways. What are the different types of real estate investment?
#1. Real estate investment groups
Real estate investment groups is a business that purchases, renovates and finances, and manages real estate properties on behalf of investors. These groups comprise individual shareholders who are knowledgeable about real estate. REIG buys different units of properties and sells these units to investors but takes full responsibility for maintaining the property. The investors in turn forfeit an agreed percentage of the rent paid by tenants.
#2. Online real estate platforms
This is popularly known as real estate crowdfunding. These platforms connect investors to real estate developers. It allows investors to benefit from real estate without going through the hassles of financing and direct property management. Investors can invest and receive dividends without being directly involved.
#3. Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts pool investor’s funds together and purchases properties with these funds. They then manage and maintain these funds while paying the investors a minimum of 90% of the annual income generated from the properties. As a doctor who may not have time to be directly involved in the management and maintenance of the property, a REIT is ideal.
#4. Rental properties
You can buy different blocks of property and rent it out to individuals and families. You generate steady income from the rent paid by the tenants. Rental properties however demand that you be directly involved in the maintenance and management of the property. It therefore may not be ideal for busy individuals such as doctors or those who have little or no knowledge about the real estate world.
Wrapping Up | True Wealth
True wealth is a destination you should aspire to get to. Though financial freedom may seem far-fetched for so many persons, it is attainable through the vehicle of real estate investing. You can learn more about Real Estate Syndication deals here.
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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