If you're so smart, doctor,
why aren't you rich? Before you go off on a tirade about
the sorry state of medicine in this country and the penny-pinching
bureaucrats who negotiate fee schedules, take a step back.
Fact is you earn quite a lot of money, certainly more
than the average Canadian, so why do you never seem to
have enough? There are two ways to accumulate wealth,
either make more or spend less. Most of the energy in
this society is focused on making more. On the other hand,
some of your colleagues with a net worth that is worthy
of admiration have taken the other route � though you
might never guess it from outward appearances. Some manage
to save as much as 20% of their annual income because
they're not on the spending bandwagon and savings of that
size grow in even the most conservative investment vehicles.
Here are some of the ways they do it.
Clothes A Toronto Ob/Gyn
is known for his sense of fashion. He always seems to
be dressed in the latest styles, so much so his colleagues
call him Diamond Jim. When a friend recently complimented
him on the fine cut of his shirt he thanked him and
said he got it on sale, 70% off. Turns out he buys all
his clothes on sale and never pays more than 50% of
the original price. On a recent road trip to the US
he bought three pairs of slacks, a jacket and six shirts
at an Armani outlet at 10% of the original cost.
That kind of style may not be for
you but saving money is more a state of mind that anything
else. An Ottawa endocrinologist who once headed the
city's largest hospital always wore a blue blazer and
grey slacks. They cost him less than $200 at Moores
and he only replaced them every other year. It was an
attitude that saved him money in most aspects of his
life. He retired recently with a comfortable nest egg.
Cars That same Ottawa physician
doesn't like to drive. The family car, a 10-year-old
Ford, spends most of its time in the garage. He estimates
he's saved a minimum of $5,000 a year on transportation
costs by taking cabs and using public transport. Even
modest compound rates translate that into big money
over 20 years.
The smart money when it comes to
cars: always buy second hand and drive them till the
engine no longer turns over � that could be 10 years
or more, today's cars last much longer than they once
did. Another rule of thumb � especially with gas prices
approaching $1 a litre � never buy eight cylinders when
you can buy six, never buy six when you can buy four.
Houses You don't have to
live in a large house in one of the better neighbourhoods
just because you've got MD after your name � and you
may not be able to afford it even if you wish you could.
Instead consider what a Winnipeg specialist with an
international reputation has done. He still lives in
the modest neighbourhood where he grew up. He's around
the corner from his parents' house and he paid off the
mortgage in his first 10 years in practice, two big
pluses in his book.
You had to scrimp for years during
training and the tendency for many doctors is to overspend
once the money finally comes in. The trick, if there
is one, is to live your own life the way you envision
it and not the way "other people" think you should live
just because you're a doctor.
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