Medical Doctors = POOR?

"In the year of 1960 at the United States, when someone is excelling well academically, people will assume that this bright student will enroll in the medical school and becoming a doctor. This is because, back then, medical doctors is one of the profession with a promise of the greatest financial rewards. Today, doctors face financial challenges I wouldn't wish on my worse enemy: insurance companies taking control of the business,managed healthcare,government intervention and malpractice suits. Today, kids want to be famous athletes, movie stars, rock stars, beauty queens or CEOs because that is where the fame, money and prestige are" (Robert Kiyosaki, Rich Dad Poor Dad)

This is what happening in the United States where the profession of doctors is not consider as a great profession as it once used to be. Why is these things happening? Why do medical doctors faced financial challenges?

The answer is relatively simple. Medical doctors, just like any other profession, are lacking the financial literacy needed in order for them to survive and strive in the real world. These doctors do not realize the importance of financial education that eventually, will lead to their financial downfall later on in the future.

The same trend is repeating itself in Malaysia. For the past decade, most of the bright students in Malaysia choose to become medical doctors. It is a high demanding jobs that come along with the image of fame and money. However, these graduates failed to realize that medical doctors is one of the profession that are having great financial challenges in the future.

"Those who cannot remember the past are condemned to repeat it" (George Santayana)

True, they earned a lot. But the more they earn, the more they lose money. I will give one simple example. In order to become rich, you have to acquire asset. What is the definition of asset? In accounting we come across this equation Asset = Liabilities + Owner's Equity. Regardless of whatever the accounting concept is, to me the definition of asset is money that goes into your pocket. Liabilities is money that goes out of your pocket. Asset and liabilities could never be the same like the accounting equation above.

One of the mentality of the poor and middle income earners is that "study hard,work hard,get a good position and earn more". One thing they do not realize is that the more they earn, the more money they are losing paying taxes and liabilities such as house loans,car loans and others.

"Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets" (Robert Kiyosaki)

I am not only implying this only to medical doctors. Even those who graduate with a business degree holder are facing financial problems. However, I am focusing more on medical doctors because they are the group of people that through Malaysian mentality considered as rich.

I am trying to change the society perception of "Rich Doctors" by writing this entry. Medical doctors are not rich. If they do not know how to manage their finance, they will never be rich.