You may have a high rate of income as a medical professional, but do you have high net worth? There is definitely a difference between those two terms.
While you may earn a robust income, net worth is entirely different. It is the value of what you own, with the debt subtracted. It’s also something you can quickly work toward increasing through simple techniques.
We wanted to share more information on the importance of saving money. Sure, everyone talks about this as a step that ordinary people should take, and they are right! Still, if you already are earning a high income, you can take steps to build a platform for more net worth that will pay real dividends later on.
Why should you save?
You can’t start investing that money to build your wealth without robust savings. It’s important to start taking money that you acquire – whether actively or passively – and place it somewhere so you can do more with it. It’s a genuine building block to having a more secure financial future.
It’s also important to immediately save money if you aren’t a full-time investor. That’s the situation most high-income earners are in, so starting the savings as soon as possible is an important step toward financial freedom.
The power of velocity
When it comes to savings, there’s the idea of velocity to consider. Velocity is the rate at which you can turn money around and into the next deal that will accelerate your ability to grow wealth.
Here’s an example of this in action. If you are a physician earning between $400,000 and $500,000 a year, you can save 20%. Within a year, that is a $100,000 bank you can use for powerful wealth building.
Having the base from which to build greater wealth is vitally important. While it’s important to enjoy the lifestyle you are earning now, saving for the future is important.
Continuing your journey to financial freedom
Finding ways to reinvent how you experience wealth can lead to reinvention of your future. At Money Insights, we offer you a distinctive strategy built for your lifestyle.
We can show you how to maximize your tax-free income, put inactive money to work and utilize a safe and predictable investment vehicle to help you along the road to greater wealth. Find out more by visiting our website.
