5/5
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Looking to read a book teaching you the basics of getting out of debt and investing money? Check out The Doctors Guide to Eliminating Debt by Dr. Cory S. Fawcett.
When Dr. Fawcett reached out to me to review his book, I was flattered. He even called me an “internet influencer.” Whoa, ya’ll. Cue selfie taking. But, when I sat down to read the book, I was really blown away. I had to write about it.
If I were in Harry Potter, Dr. Fawcett would be my patronus. Seriously, the book documents, in an easy to read way, everything I learned the hard way.
I wish I had read it way earlier in my journey to learn about finances. This is the book I would write if I turned this blog into a book. I highly recommend it to anyone trying to get started with understanding money.
There is just something about a book you can hold. New book smell anyone? Mmmmm.
The Doctors Guide to Eliminating Debt:
Writing Style
I love how Dr. Fawcett uses medical similes to explain difficult to understand financial topics.
For example, he used the example of a diabetic patient who had no idea his new shoes had caused a blister. As so often happens, the blister lead to an infection which lead to an amputation. He says,
“Debt is like poorly fitting shoes on numb feet. Your financial future is rotting away and you’re not even aware it’s happening.”
It is so important to turn the tables around and make compounding interest work for you instead of against you.
Serious Insight into Money Management
My absolute favorite part was the example of the effect of a home mortgage on an average physician.
Dr. Fawcett describes Dr. Morehouse. She purchases a $600,000 home with a 30 year mortgage and a 5.3% interest rate. She has a monthly payment of $3,332 in principal and interest adding up to about $1.2 million in payments at the end of 30 years.
But, in order to pay 1.2 million, Dr. Morehouse needs to pay 40% taxes on her income. So, she’ll actually need to make $2 million in order to pay for that house.
She’ll need to pay 50% overhead to her practice so her practice will actually need to make $4 million. But only 50% of her billings will collect.
“So, she’ll need to bill $8 million to collect the $4 million to pay the $2 million overhead to pay the $800,000 in taxes to net the $1.2 million she will need to pay off the $600,000 loan.”
Makes you kind of sick doesn’t it? No wonder she feels stuck!
I remember when I signed my first home mortgage paperwork, the real estate agent told me not to look at the final number I would be paying the bank (because it was double the value of the home). That’s hogwash. You’ve gotta look!
If, instead, Dr. Morehouse pays off her house in 7 years, she would need to pay $720,000 instead of the $1.2 million for a 30 year mortgage. Sounds much better.
Dr. Fawcett on Student Debt
“It’s a mortgage without a home.”
Yup. Agreed. Dr. Fawcett explains clearly WHY you could live like a resident to pay off your loans.
I especially love his advice to pack your lunch for work and invest the savings in your 401k. Sounds familiar!
Seriously, guys. This stuff works.
Dr. Fawcett is now enjoying an early retirement from a full time surgery career and does locums work to relieve overworked rural surgeons. We can do it, too.
Check out the White Coat Investor’s Guide to Student Loan Debt too for further reading. Travis Hornsby of the Student Loan Planner writes on Ms. Bonnie MD’s site about PSLF and your options.
Big Reasons to Pay Off Debt According to Dr. Fawcett:
Decrease stress
Gain free time
Be generous to others
Gain disposable income
Retire earlier than you might otherwise
Make a difference
Gain negotiating power
Be Free
Remember,
“The borrower is servant to the lender.” Proverbs 22:7
So, what are you waiting for? Gain some wisdom, son! This book is worth the money.
Givaway!
Just like the Physician on FIRE did with his, I’m going to pay it forward and offer my autographed copy of this book to any subscriber that wants it.
Subscribe, email me back, and I’ll enter you into the drawing!
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Standard Disclaimer: Not meant as individualized financial advice. This article contains affiliate links.
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