Have you ever wondered, what does it take to be a millionaire?
What are the differences between most millionaires and physician millionaires?
How can I put myself in the best possible position to be successful?
In this second podcast, Dave continues the golden nuggets in the latest book that he loved, “The Millionaire Mind” by Thomas Stanley.
There’s so much packed in that book that we’ve divided up the podcast into 3 different parts. This is part two!
In part two of “The Physician Millionaire Mind”, we discover:
– The Role of “Luck”. (Is it really luck or something else?)
– The Tale of a Chrysler Executive and What We Can Learn From It
– The Trade-Off of Financial Risk versus Playing the Lottery. What do millionaires do?
(Note: I outsource transcription efforts, please forgive in advance any grammatical errors. I just simply don’t have time to review it all)
Hey everyone this is Dave Denniston and welcome back to the Freedom Formula for Physicians Podcast in the latest three on three video. Life moves pretty fast. If you don’t stop to look around once in a while you could miss it.
Welcome to the freedom formula for physicians podcast with all about slashing your debt and taxes and creating a liberated lifestyle. And now, your host, with the love of fantasy books and funk and the hatred of running more than three miles; Dave Denniston.
Alright. So here we go; if you didn’t have a chance last time we talked about this book the millionaire mind. And I ask this question; have you ever wondered when you think of a millionaire what do they look like? And as a matter of fact how do you become a millionaire? And are millionaire physicians different than other kinds of millionaires? And does a millionaire physician have different needs or desires or drives?
So make sure you check out part one of that series in the last podcast, the last video. And here is the book; A Millionaire Mind by Thomas Stanley. S again, a wonderful wonderful book I can`t recommend it more. As a matter of fact I think is a great gift for any child or friend or anyone struggling with money. It`s fantastic resource. So what we talk about today you guys and make this video a lot shorter than the last one, first ?? ?? format.
The role of luck what does that look like? And in the book, on Page 84 he goes through these different factors. How many folks when they looked at being lucky thought that was the reason for their success. And what was so fascinating for me here; 70% of business owners, 12 % of senior corporate execs and 7% of attorneys all thought that being lucky played a big role for them.
But physicians being lucky only 4%. One fourth of the other professions. And instead physicians came much stronger with elements of discipline such as being well disciplined, being well organized, working harder than other people. For physicians what`s so much important 73 of physicians said being well disciplined, 50% said being well organized, 61% working harder than most people has led to their success.
And you guys I think that this is something that is so much different for physicians because many physicians today they aren’t entrepreneurs, they aren’t trying to start a business and so really does all come down to that discipline in organization so this is just fascinating to me comparing to other millionaires. So I would like to know for you, can you relate to that? Do you think where you are at is because of luck? And what are these qualities do you have? is it being more disciplined? is it lack?, is it being well organized? Is it working harder than other people?
Alright, Part Two here that I gained from the book. In this particular section are grades indicative of success? do grades equal success? And personally I have always thought that way because I usually think of grades as being hard work. But in fact what Dr. Stanley talked about was Bob let the CEO of Chrysler and he said like many millionaires Mr. ?? was not beaten down by early lack of academic achievement.
As a matter of fact he didn’t graduate college until his mid-20s. He was 22 when he finally graduated high school so he was a really slow start but he said that what happened for him he ended up getting in the marines. He ended up having great mentors, he learned to have discipline and leadership and integrity. And the work ethic he developed from that changed his financial future. And you know what’s interesting that he points out next was if everyone who gets the grades… everyone who gets the 1600 on SAT, if everyone who ?? students in ?? college should be the most successful then all of us should go to work for those people but what he finds is that being perfect in school does not translate into being a high performance leader and does into high net worth.
So I found that to be interesting because I challenged frankly my own assumption in terms of what success and successful people do. And what he said particularly about doctors, this is on Page 151 of the book if you want to skip to it. He pointed out a particular cardiologist and he said why outdo your surfers, what are they do when it comes to investing their life savings and the more data he collects about the issue.
He says that so many do yourself as often scholars they were scholars in college and medical school, great reading habits. High level of analytical intellect. And what he said was that people who have a high level of intellect, they are much less likely to use advisors and CPAs and attorneys and financial folks. He said only 40% of millionaires have SAT scores of 1400 and over use advisors whereas those who got between a 1000 and 1200 over 60% used skilled advisors.
And what he said that’s having high analytical intellect does not necessarily guarantee a high level practical intelligence and one’s ability to make accurate judgement about people. And we all know that poor service, poor recommendations without bouncing it off other people you guys I have seen many folks make mistakes so I would encourage you to hire good people around you, a great CPA, a great attorney and you can find those people often in referrals and in good materials so check that out, alright?
Now the third thing that I would like to ask you here is where do you see yourself? Are you a doer yourself or do you see yourself as an analytical? Or do you see yourself more as a relational person or somewhere in between? Where do you see yourself? Are you a doer yourself? And finally what can you outsource? What can you do to turn to good advisors?
Now the third point that I wanted to make today as we are talking about hard work versus luck versus risk is this concept of financial risk versus playing the lottery. And this is something that I can’t agree with more. And the whole idea here you guys is in weighing risk. you have to think about am I making an economic decision or am I simply rolling the dice so what’s fascinating in this chapter that there can be good things to take on, that there can be good things to take on risk.
When you study, when you know in and out how things work or you work with people who can point those things out to you. And what he says is that his study of people that are decamillionnaires; USD 10m or more. 41% of them are willing to take financial risk. Whereas those under 1 m only 18%. And it gets higher every single level. 18% and then there is 21% those have 1 and 2 million and 28% 2 m to 3m and so on. All the way up to 41% for decamillionaires. So that is a huge component of being successful. Having the willingness to take financial risk. Now, what he found was that the inverse is true of playing the lottery.
For people that are regular lottery players playing lottery in the last 30 days, 38% of people under a million dollars play ?? only 14% of decamillionaires ?? slighting skill. 38, 36, 27, 21 and 14. And then who has played the lottery in the last 12 months? Again that’s a slighting skill for under a million dollars of worth or nearly one out of two, nearly 50% ?? over USD 10m or more are 20. So there is 47, 48, 35, 27, 20 in terms of net worth. So both of those things you guys tells us that the people who are the most successful they don’t play the lottery, they put their investments, they put their hard earned money into financial risk where they know and they study and they can have a good feel for any investment that they do. And they emphasize that kind of investment rather than pure games of chance.
So I would like to know from you did you learn something today? Did you see yourself in one of these aspects? And I would like to know again can you imagine yourself being a millionaire? And there is so much more I want to cover but is always so much time. So we are going to do part three in the next podcast in the next video. So make sure to check that out on Dr. Freedom podcast.com or on the YouTube site. And again there is wonderful resource that I have available to you; a brand new book about overcoming common physician financial mistakes that you can get entirely for free when you subscribe to my newsletter on doctorfreedompodcast.com this is Dave Denniston thank you so much for listening. I am looking forward to hearing from you, hearing your experiences. Make sure to check back in again soon. Have a good one.