The ATO does not usually do this, but they have just released the highest-paid jobs in Australia.
Not surprisingly medical professionals are up there. Out of the 10 highest paid jobs, 5 go to Medical Professionals.
I know what you are thinking. Where are you the list?
Well, I can tell you that if you are a surgeon, you are number 1, an anaesthetist is number 2, an internal medicine specialist (whatever that is) is number 4, a psychiatrist number 5, every other medical professional are lumped together and make it at number 6. In fact, medical professionals make up half of the top 10 list. So, you should be chuffed.
The average surgeon earns $460K, which is about 8 times more than the average. But you must remember this list relates to employed medical professionals. Those that are contractors or specialists operating their own business earn more. A lot more.
But there is a problem.
And that is because if you look at the wealth of individuals what you find is that medical professionals do not make in the top ten.
How can that be? How can medical professionals hold 5 of the possible top 10 jobs in terms of income yet in terms wealth hold, none in the list of top ten wealth?
I will let you into another secret.
If you take 100 engineers and 100 medical doctors who earn the same income, you will find the engineers work less hours and also manage to generate more wealth.
And that to be honest a bit shocking.
But to be honest (again) this does not surprise me. I have been saying this for number of years
But I guess the question is how is this possible?
Well, there are a few reasons
1. Medical professionals are overworked. Most medical professionals work long hours and that in a nutshell the main problem because:
2. Long hours mean you don’t have the motivation to think about your financial future. If you have worked a long day and seen 30 patients, will you really be in a mood to meet a financial planner?
3. For some reason, medical professional like to keep and be loyal to poor advisors. This might be the case of better the devil you know. But if you want to build wealth, you are going to need good advisors.
4. You think your do medical work not for money or wealth but because you care. It’s because you love the job. And you won’t get any complaints from me. I know for a fact that you work hard and are dedicated to the job you do. But I also know that on my books, I have many doctors in their 60’s and 70’s who are still working not because they want to but because they must. They are used to a certain lifestyle and need the income to survive.
And, as many of you know I arrange medical missions in the Philippines. If you believe that is true, I would never struggle to find doctors to go on a mission yet every year we struggle to get doctors prepared to give up 10 days out of 365.
5. You do not think you are savvy when it comes to finance. And that I can tell you is crap. Most medical professionals have IQs but you do not need to be clever when it comes to creating wealth. All you really need is a good financial plan.
6. You concentrate on low taxes and work with advisors that promise low taxes even to the point of going against the tax law. There is a myth that the rich become rich because they pay low or no taxes. They have a different strategy. They want the highest income or wealth and ask their advisors to work out the lowest taxes based on that high income or wealth.
In most cases the strategy I come up with may mean more taxes but often leads to significantly more wealth.
What do you want? Less tax (which invariably means lower income and wealth) or significant wealth.
So as a medical professional who earns a lot of income, if you want to build wealth too, this is what you need to do:
1. Understand that high income does not mean wealth. They are different, and you need to understand that.
2. Realise that high income usually mean high expenses. Try to control those expenses and think about your financial future.
3. You can only reduce working hours if you have alternative income.
4. Make sure you have awesome advisors. If you have crap ones, give them the boot. And do it now.
5. Work with your advisors to come up with a plan that works for you.
Creating wealth and passive income is step 7 and 8 of our 9 steps of our 9 steps to work less, earn more and create massive wealth. If you would like more information email hitesh@medisuccess.com.au or call 07 3172 0819.
