posted in: Consumerism | 0
Hello everyone again. I just noticed something very interesting. Many doctors devote many years of their life to obtaining specialties, so by the time they finish their specialties they will be well into their thirties or close to thirty. There are many people who are making millions by the time they are in their late twenties, yet it takes doctors close to thirty years old to finally make that whopping (how ironic) six figure salary every single year. If you feel as though that is a lot of money, then you need to either be happy with the profession or reconsider what you mean to be wealthy. Making six figures a year by the time you reach thirty is an accomplishment for many people, but it is one of the slowest ways to "make it". I believe it was Henry Ford who in the early 1900s had amassed million of dollars via oil, and could have very well made billions. This was in the early 1900s! There are many Americans struggling to obtain just one million dollars when this man was on the verge of touching a billion.     Did Henry Ford go throughout the academic system and earn a PhD. and go through all these academic hoops to obtain his millions? I do not know of many academic people who amassed millions of dollars via academic means. Going to school is great avenue to obtain a career where you can possibly make millions of dollars, such as being a doctor. For example, you can go to school, obtain a masters degree and then apply to law school. From there, you obtain your juris doctorate (JD) and then become a lawyer, go to practice and then make up to a couple hundred thousand dollars a year. You have to purchase insurances, pay back your degree, get your houses, cars, pay for your children, have a good lifestyle, and all that jazz. Look at that. With all those expenses, it is quite easy to see how few lawyers ever become "millionaires". They earn over a million dollars in revenue, but they never really get to hold onto those millions. You could say "Oh they will make a million dollars in five years! That isn't bad!" However, that 200 grand is really just "Before-tax" revenue. If you remember revenue is the amount of money that comes in without costs being taken into consideration. After taxes, they may make anywhere from 130k to 150k. Regardless, that still is not cool, because that is at least a 25% pay cut.  Now look at the story. Even at the best situation, it will take approximately seven years to obtain a million dollars. That is not that bad, you might say. However, do not forget that the seven years means that he does not spend any of that money at all for seven years. This means that he is working and not spending. As we know, the lawyer needs to eat, so there is one expense. The lawyer cannot be homeless and must have insurances, so the amount of money that is saved goes down and down. The lavish lifestyle must be financed, so this is where consumerism falls prey. This does not only happen to lawyers. It happens with doctors, celebrities, plumbers, and other occupations. If you cannot manage money, you will not be wealthy. I am not applying the savings mentality to this as well. Just because you save 50k a year does not mean you are rich, because once your job ends, your savings additions end as well. The way to richness forever, is with good assets, not high-revenue jobs. It is a different way of thinking, but will last you a lifetime.