Almost every person in the Philippines thinks ALL doctors are RICH. But honestly speaking, doctors are the most underpaid professional, especially the ones in training.
Imagine, a resident physician getting paid 12,000++ pesos per month, doing 36 hours duty every other day? And even after residency, most doctors, especially the underprivileged ones don’t get to have their own clinic hours without paying 100,000++ stocks and rights to practice?
But, if you are a Filipino doctor reading this article, you know EXACTLY what I mean when I say, most Filipino doctors are not RICH. First and foremost, doctors didn’t typically go to a medical school in order to become rich, it wasn’t your goal.
Doctors study medicine for 10 years and even more, oblivious to the fact that, money is the last thing doctors are going to get. But when a doctor begins with living the LIFE in the real world, money now becomes a primary need and commodity.
I will be enumerating several obstacles that keep some doctors from becoming rich, even when money starts coming in and they begin on enjoying the fruits of their years of study and training. There are many still trapped in their old ways and ended moneyless on their retirement.
These obstacles are very real and these are:
1) Filipino culture influencing your ability to make money.
- Do you know that: The Philippines has the lowest number of people who saves regularly
- 90 % of Filipinos do follow a budget, but only 33% Really stick to it (doctors not exempted to that)
- Most Filipinos have a ONE-DAY-MILLIONAIRE Syndrome. Have you heard a man who spent 14M pesos in just 3 months. click here.
- But be it Lotto or just extra money or bonus, Filipinos have already budgeted their 13th month pay to buy their “wants” in life.
- We have the so-called “Manana habit” or “Saka-na-lang” habit – we really love procrastination, DON’T WE?
- No financial education in school, UNLIKE IN OTHER COUNTRIES, THEY HAVE FINANCIAL LITERACY SUBJECTS EVEN IN ELEMENTARY, sadly, our teachers are still not that qualified to teach financial literacy themselves, since, they likewise are in debts and barely surviving with their merger income.
- As a result, Filipinos are Being overly conservative, that is, we just store our money in Banks or Piggy banks. Which I was able to discuss in my previous post “Money’s Greatest Enemy.”
2. A late start
As doctors, we all know we are late in everything. We graduate at 24++, have family at 30++, and start really earning at 35++.
Losing those first few years of compounding can really make a big impact on the bottom line. This loss can be made up by working until later in life, by choosing a more highly-paid specialty, or by being more frugal/kuripot or be one of the smart few, who learn how to invest and save their money wisely.
3. Inadequate savings
Whether it is lack of financial savvy-ness, a sense of entitlement (I am a doctor, I should have a great lifestyle), or lack of self-discipline, you cannot invest if you cannot save.
Choosing to skip on saving for your retirement, especially early on when compound interest has plenty of time to work its magic, can devastate a financially-independent-retired-YOU.
The longer you wait until you start saving, the more you need to save. Likewise, saving just 5 or 10% of your income isn’t enough.
That will mean more years of hard work. You should aim to save 15-25% of your income each year you practice and save it in a good investment vehicle (not in banks!).
4. Failure to insure against financial catastrophe/Uncertainties
There are really only a few things that can wipe-out a doctor and his family financially. Death, disability, natural disaster, critical illness and liability.
These are uncertainties in life, but all are very easy to insure against. So get a life insurance with disability and critical illness benefits. We all know that Cancer or any other critical illness and disability can strike anyone even if you are a doctor. You can also get non-life insurance to insure your practice towards possible liabilities. It is better to pay a 10,000++ worth insurance than paying the 1 Million worth of financial emergency.
5. Inappropriate investment plan
With a steady income, any reasonable investment plan should get the physician investor to his goal.
Unfortunately, far too many doctors have inappropriate investment plans. Filipino doctors have inadequate knowledge on financial hierarchy and emergency funds before they start on stocks investing. Many are also trapped in old ways of being overly conservative and leaving money in assets without adequate long-term returns.
And why is that? Because many doctors are financially unwise, they are afraid to ask, or they ask the wrong person. Oftentimes, many consider, financial advisers are costly? But if you don’t get proper guidance, planning inappropriately is more costly than planning with guidance from the experts. It is like constructing a house without consulting an architect. The collapse of a building (and building it again) will be more costly than building it with proper planning and expert advice in the first place.
Don’t be afraid to ask financial experts. Most of them, like me, don’t even charge you and they would be friendly enough to share their expertise even if there is a slim chance you will be getting their advice. Look for a great financial adviser for you. Don’t be afraid to ask, tell me how can i help you.
“Plans fail for lack of counsel.” – Proverbs 15:22
Those are the obstacles in your road to financial freedom. I hope this will be a wake-up call to your sleeping mind. Unleash your great financial future. Start as early as possible. Time is better than timing. Subscribe here for free. Don’t know where to start? Click here.
Update on the TRAIN Law 2018:
Stay informed,
Read more:
- “6 Secrets of Becoming the Rich Doctor Your Friends and Family Think You are!”
- FILIPINO DOCTORS AND TAXATION Part 1: The Ultimate Guide on How to Register as a Doctor/Physician in BIR
- Doctor’s Biggest Mistakes in Choosing a Financial Advisor
- Hurdles of Financial Freedom (Mga Balakid sa Iyong Pag-Yaman!)
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doc can you recommend any insurance company and their plan that is applicable to a 30 y/o GP. thank you
hi doc, i sent you a PM. 🙂
Hi doc,
Can you please suggest what insurance company is best for me and why? 🙂 thanks much..more power..
sent you pm. 🙂
Hello Dr. Intal, I just wanted to ask how much do attending physicians get paid in general in the Philippines? I know it depends on the specialty but in general, is it enough to live a comfortable lifestyle? I’m talking about being able to afford a nice house, car, school for kids, kasambahay and still have enough money to invest/save.
I’m currently an RN in the States contemplating about going back to the Philippines to become an MD and practice there for good. Life in the States is very nice. I have a good paying career but I’d be lying if I say don’t miss the Philippines. Its still so much better to live in the Philippines despite the humid weather, corrupt politician, etc. It’s just a different atmosphere and everything is so much cheaper except for electricity.
hi, i can relate to what you mean. i also been away for only 3 weeks and i also miss the phil. how much more for people really living there. Well, it depends talaga if you really have a calling as a doctor. because if you have to study again, it will really takes pa a long time. if you are nurse, you need 5 years med school, boards then 3-6 years residency, another years 2-3 or more for a more specialized training. and after training, you won’t be earning naman agad, you need to buy stocks, rights to practice, in order to practice. some tells me it takes 3 years to establish your own practice depending on your pacing. ganun. kaya consider all those factors muna. earning should not be motivations for those who wants to be a doctor. but if is really a calling for you, then go ahead. let nobody stops you. just be wise on your earnings right now, invest it wisely, that will come in handy in your education if you pursue medicine as well as buying hospital stocks later on. thanks for reading.
Hello! Doc I wonder what are the finances we have to prepare for the residency, to specialty training, upto becoming a consultant? Considering we will only be pain about 15k in private hospital during the residency training. How much money we still have to prepare during the residency and specialty training. As a consultant, we have to buy stocks. How much money do we have to prepare for the stocks? I will really appreciate your response. Thank you.
start with emergency fund. that would be 3x – 6x your monthly expenses. Then save as much as you can for your long term goals, so that you can start as early as you can. Especially for retirement.
Can you please tell me if you did come back to study medicine in the phil? Same here RN in states and want to come back to med school. email: laureenadriel@yahoo.com
Is it encouraging for foreign students to study in Philippine? How good is the standard of living for Doctors compare to other occupations?
Hi,
It really depends on what are your intentions. Many foreign students are studying in the PHil because medical school is much cheaper in Phil compared to their own countries. But if you intend to earn as a doctor in the Philippines based on you question on standard of living, this would be another story. 🙂
Doc, how would I know if I really want to become a doctor? I want to become one but I also want to provide comfort for family as soon as possible and it would really take a long time to help if I will choose the med path. But, med!!!!! Huhuhuhu.
Hi Jesselle, that is good since you really want to be one of us. But the problem is, you want to provide for your family as soon as possible. Medical path is not that fast when it comes to providing for family, many of my colleagues an attest to that. When you go to medical school, that is after a 4 year course. Give it another 10 years or more before you can really provide for your family. So, better think not only twice but more. Tell me how can I help you more. 🙂 thanks for reading my blog. 🙂
Hi Dr.! I just started my private practice last year. Please advise me on how i can invest my money wisely and how to save for the future.. Thank you!
Hi Dra, I have PM for you in your email. If you did not received it, kindly email me at docpinky@myfinancemd.com Thanks
Can you kindly give me ideas / ways of investing , like what good insurance company can I enter or investments?thank you
hi Dorlyn, I have PM for you. if you have not received it, email me at docpinky@myfinancemd.com Thank you for reading.
doc, can you recommend an insurance best for a GP? thank you!
Hi have email for you dra
hello dr. i am currently reviewing for my medical boards. but i want to start investing (with the little money i have say less than 10k) keeping in mind the long process to becoming a practicing doctor. is there a company that you can suggest that can help me? thank you so much
Hi cessy, yes, if you leave your email or contact details privately. I can show you how. Email me in the contact me page. Thanks for your interest. That is very wise move. Saving and investing early on.
cessy i have PM for you in your email.. If you did not received it email me: docpinky@myfinancemd.com
Hi doc, i soooo agree that being a doctor is not a road to richness. What insurance company you can suggest to a married 32 y.o. GP with 1 baby , and what good investment can you suggest as well. I’m beginning to save for future investments, since i gave birth late last year.. but i don’t know how, where and what to invest. Your expertise and advice will be very much appreciated. Thank you po and more power…
Hi nina, i sent you a PM in your email. If you did not get it, you can email me at myfinancemd@gmail.com Thanks
Hi doc. Im from PLM 3rd year. by the way, full tuition of 1st-3rd yr is around 75+.. and 140++ for clerkship. But since I am a manila voter, I only pay 26k per sem. Those who went under a public college has a tuition of 10k+ only.
And one more question doc, Are we in any way related? hahaha. We came from Sto. Tomas Pampanga. :))
ohh im sorry, i just saw that it was your husband that is Intal hehe. :))
Pwede na rin. 🙂
Hi James, maybe, because my husband is from Pampanga. I’m also from PLM too. 🙂
Hi, Doc Pinky! Can you recommend an investment plan & insurance for me? I’m married with no kids yet. Currently practicing as a pediatrician.
Your input would be greatly appreciated.
hi dra, i sent PM in your email. Kindly check. thanks
Hi. I really can relate. I am a doctor working in a government hospital. I had a car accident teo months ago… and i cant afford to get myself hospitalized in a private hospital… i then realize how poor i am..
Please PM me ion what is the best life/health insurance with investment for a 43 y/o me with 2 kids ages 11&7, married to a 48 y/o doctor.
sent you an email po.
I’m a doctor’s wife and a few months ago,my husband died while on duty.It was a sudden death (bangungot) but good thing he was able to talk to Doc Pinky a few years ago and started investing.We didn’t have much savings since he just started practicing but he had insurance left for our baby. Doc Pinky was a blessing to us and after losing my husband ,I realized life is really short and I insured myself right away. Death is inevitable and it’s best to be prepared especially if we have families depending on us.
Thanks Tere. I am happy to be able to serve your family. God made sure you and baby Juno will be well taken cared of. I’m just God’s instrument. I’m just God makulit na friend ako ni Rowell. Thanks for this review. 🙂
hi,
I’m a cardiologist and already 45 years old. Can u suggest a very good retirement plan and/or an investment for me. Thanks
hi doc, i emailed you. Please see your email. Thank you.
Hello Dra!
I just passed the boards a year ago, and only right now i am beginning to see the difficulty on maintaining financial stability as a GP. Yet, you make it sound like it’s VERY possible! I would like to hear from you po. Thanks and more power to you!
Hi Glen, you can PM me in my contact page or here : docpinky@myfinancemd.com 🙂
hi dra pinky. Can you recommend a good investment plan and insurance for us? My husband and I are both practicing physicians with 2 kids. Thank you so much.
Hi Lyn, can you email me myfinancemd@gmail.com or text me 09258895433
Email sent.
Good day dra. Pinky! First off, I want to say thank you for being so generous with your blog. You’re helping a lot of people, especially your fellow doctors. I’m a fresh board passer who’s currently venturing into moonlighting for the meantime. I was so clueless with all the taxation/Bir/TIN stuff but your blog really enlightened me. So a big thanks to you doc! Second, may I ask for any advice you can give me with regard to starting my own investments? I wanna start investing this early but I guess I’d have to begin with small investments first since I’m not yet earning much. Any advice would be much appreciated! Thanks so much and God bless! :p
Hi doc Chris, can you text me 09258895433 or email me myfinancemd@gmail.com para we can talk privately? I will wait for your reply.
I received your comment in my website. How can I help you? You can email me here your concern.
hi chris, can you email me to myfinancemd@gmail.com or contact me here:
Mine is 09258895433 (sun) or 09175035839. 🙂 para we can talk privately and not here. 🙂
Hi Dra. Im in clerkship now and been already thinking of investing during my residency. I want to study about investments and financial insurance so when the time comes I know where to put my income. Do you of any investing and financial insurance company? Thank you and Godbless po
Yes Leslie, I’m glad you are already thinking about it even if nasa clerkship ka pa lang. Ang daming ibang doctors too late na. Can you text me 09258895433 or email me myfinancemd@gmail.com para i can guide you privately? 🙂
Hi leslie, yes i have. kindly email me to myfinancemd@gmail.com my number is 09258895433 para we talk privately and not here in the comment section 🙂
Hi doc i really need your help regarding my finances. How can i get in touch with you?
Hi Catdlee, you can send me text at 09258895433 (sun) or 09175035839 (globe) or email me: myfinancemd@gmail.com
Hi Dr!
Im a 37yo internist, mother to a 2 yo baby.
Pls advise me on the best insurance i should get for myself & my baby. I’d also like advise on a good investment, as I plan to pursue subspecialty training soon, and need to make sure my savings will be enough to support us for the next 2-3 yrs while Im on training.
Thanks much!
Hi Dra, I sent you an email kindly look at your email. You can also text me 09258895433 🙂
Hi Dra! I read your website page for Filipino Doctors Guide in Taxation and it truly helped me with my financial issues. Can you recommend an investment plan and insurance for me? I am a newly grad pediatrician, not married and have no kids.
Thank you and Good Day!
Hi Phoebe, can we talk privately? 🙂 txt me 09258895433 or email me in: docpinky@myfinancemd.com
Hi Pinky, would you recommend a must-read financial literacy book for beginners (like me)?
Hi Dra Manel, We talked na sa FB ha. 🙂 If you need anything else I am just a message away. And, if you want, we can also have a personal wealth coaching over decaf coffee, hehe, 🙂 I am just a message away. In the meantime, devour all articles that interest you in here. Enjoy reading. 🙂
Hello Dra. I just graduated from medical school and entering internship. I would like to start saving up and investing what little money I have. Im also thinking of getting a part time online job to add cos all my money pretty much goes into rent, elec, water and gas. I barely have any left for me. Any advice on how i can start up and save up? Thank you.
Hi doc, I don’t know the extent of your problem or the capability of your budget for investing. But by the looks of it, you need money for your everyday existence, right? If that’s the case, it may not be the time for you to invest. I cannot give more suggestions to you until I know a little more background. Please contact me here: http://www.myfinancemd.com/contact-me/ I will be glad to help you.
I’m really interested what insurance plans would you recommend a resident doctor earning meager salary monthly
Hi Michael, pls email me your contact information at docpinky@myfinancemd.com so I can contact you.