10 Reasons Doctors Spend Too Much Money

When asked for my best tip for doctors & others to grow wealth & become financially independent, I usually answer with three words that echo the warning from the loudspeakers as you enter the subway car in London’s “tube".  Mind the gap.

That is, mind the gap between your earning and spending and do what you can to grow it. One way to do that is by earning more, and I do encourage that. 

Here are the Top 10 Reasons Doctors Spend Too Much Money

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Reason number one is that we deferred gratification for so long, that when we first start getting a real paycheck, instead of having a little lifestyle inflation, we have a lifestyle explosion.

Pent-Up Deferred Gratification

Another issue is that docs don’t have much financial literacy. In particular, they don’t understand how the tax code works. 

Lack of Understanding of Our Progressive Tax Code

Another major difficulty for doctors is that everyone else sees them as rich, even if their incredibly negative net worth actually ranks them as being some of the poorest people on the planet.

Societal and Family Expectations

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