 Hey guys, like to apologize for my disheveled appearance. It's the end of the day. I just finished all my charts So all my patients I'm ready to go home for the weekend But I really wanted to record this video for you guys because I think this is a very important topic and a topic that Definitely interests a lot of people when they're going into a career field The topic is how do you make money? How much do you make and how fast can I become a millionaire doing this job? So that's what this video is all about. By the way, if you're new here, my name is Boris I'm a board certified physician assistant working in primary care and also medically supervised weight loss And like I said the topic of this video is how to become a millionaire as a physician assistant So if you're watching this video, you probably know what a PA is you probably know approximately what we make You know on average starting at around a hundred thousand can go up as high as like 200 or more in certain specialties such as cardiothoracic surgery and What else is there dermatology can pay quite a bit But usually we fall somewhere between a hundred and maybe like a hundred and twenty hundred thirty thousand dollars a year That is about the average for a physician assistant. We don't make as much as physicians Of course, we don't go to school nearly as long as physicians. So, you know, we're compensated well But not quite as much as a doctor. So how do you become a millionaire as a physician assistant definition of a millionaire is pretty simple You have a million dollars. So the way I'm gonna do this today is I'm gonna pretend that you start out with nothing You have zero and you just graduated physician assistant school. Let's say you're I don't know what the average is exactly But I think most of my class was about like 23 24 Maybe 22 when they started so they were about, you know, 25 26 27 when they finished PA school Of course, I was a couple of years older. I ended up going to the military, you know before PA school So that's what it was. I I ended up being a little older for my class But most people are, you know, 25 26 27 when they get out of PA school. So that being said, I'm saying your current age is 25 and then I already you see that I populated the numbers here I already played with this and I saw that if you invest about five hundred dollars a month Starting at 25 years old starting with absolutely no money It'll take you until you're 56 about 31 years to become a millionaire How did I get this number? So the fastest not the fastest the most reliable and the most common way that Americans Save for retirement and become wealthy is their 401k. It's really simple. It's really boring They just kind of take a portion of their paycheck every single month and they just contribute it to this 401k Basically a retirement account that you know is split up through certain funds and basically just makes them money While they do nothing so they put it away They save they're forced to save because it's just coming right out of their paycheck and then that money makes money year over year over year How is this number calculated? You might ask so I'm using Dave Ramsey's calculator. It's a retirement calculator We're not exactly using it for retirement. We're just using it to see how long it would take to become a millionaire And I'm saying five hundred dollars a month contributed monthly is pretty average I think that's definitely affordable for most physician assistants and it's between five and maybe eight percent of your monthly take-home pay Depending on how much you make as a physician assistant Whether you make like a hundred hundred ten or maybe hundred thirty hundred forty kind of later in your career as you get more experience So either way I think five hundred dollars a month monthly is definitely affordable for most physician assistants How is this calculated right here the annual rate of return? I use nine percent Dave Ramsey based on this research right here says Ten to twelve percent and this research is actually legit. I checked it out. It's right here this nyu.edu Study right here basically tracking the annual return of the S&P 500 Which is the average of the five hundred biggest companies in the United States that year how much they returned? To their tax holders or to their stockholders shareholders So you could see the numbers wildly fluctuate 45% return one year negative 8% another year negative 20 negative 38, you know This was obviously in bad few years Then kind of neutral and then boom 48% then minus 2 then plus 42 then plus 30 minus 37 It goes kind of crazy, you know So that's why you don't really watch your retirement account closely or you'll have a freaking heart attack You just kind of let it sit and over the course of 30 years is where he got this number between 10 and 12 percent so basically through the power of Constantly putting away money and through the power of compound interest at an average of 10 to 20 percent or sorry 10 to 12 percent Is how you get this number how your money grows? So I use 9% just to be extra conservative in case anyone had any qualms about these 10 to 12 percent I use 9 okay, so this is very very realistic based on the 30 year average return of the S&P 500 So as you can see $500 a month at an average of 9% annual return will get you to millionaire status starting from zero from scratch starting at age 25 Contributing until age 56 so 31 years you work for 31 years you contribute You have a very good lifestyle with your PA salary, and you just contribute this much and you become a millionaire So that's the the simplest and the most reliable way to do it There are definitely other ways to do it what you could also do is you can invest in other assets that pay you while You sleep, you know passive income you can start a business you can start a website You can start a YouTube channel that might get successful one day and like not you can Invest in real estate like I just said you can rent out houses you can buy houses that are always going up in value If you you know choose wisely you can start your own business, and I'm actually really excited to say that pretty soon I think next month or possibly the month after I'm gonna Interview a physician assistant who started her own practice, which is not very common But it's very doable, and so you know you start your own business you can scale that you're not the only provider You can hire other providers under you you know you can actually scale that you can build a big practice as a physician Assistant a lot of people don't know that so basically what am I saying this is kind of the slow more reliable way to do it But let's say you I don't know you have a side gig. Let's say you work at an urgent care Let's say you work at a wound care clinic Let's say you just pick up a couple extra hours every week or a few you know every other week or something And you make some more money, and you just throw that all at your 401k or whatever investment Tool that you want to use so let's say you know you make I don't know 300 extra dollars a weekend, and you contribute all of that to your 401k. All right, so that becomes 500 or sorry that becomes $800 monthly now So now if you do this for the same amount of time well now you're 1.6 million dollars in that 31 years But let's say you just want to know how long it takes to become a millionaire So let's keep playing with it keep playing with it and boom So now instead of 56 it's 51 so you just cut off five years By putting in maybe a couple hours a week of work If you get the right gig and putting in two three hundred dollars extra into your 401k you save yourself five years of your life by Becoming a millionaire sooner and that's assuming you want a million dollars to retire Most of us will probably want more because a million dollars just isn't what it used to be But whatever it's a good goal. So my point is compound interest continuously making more money. What happened here? Compound interest continually saving money not spending it not you know So coming to lifestyle creep and just constantly putting money away into reliable Vehicles for investment is how you become a millionaire very reliably and as a physician assistant you should unless your lifestyle is crazy You should have plenty of disposable income to at least a four You know five hundred dollars a month to contribute to a 401k. I know everyone situations very different Some people have big families. Some people have all kinds of student debt You know, I understand that this is not maybe realistic for some people Especially early in their career, but I just wanted to kind of drive the point home that yes as a physician assistant It's very very possible to become a millionaire actually quite quickly You know 30 years if you just do the bare minimum of five hundred dollars a month and much much faster if you can contribute much More and also let's is this is straight up just 401k. I'm not even talking about other assets So let's say you buy a house while your house is going up in value plus you're constantly getting equity in it every single time You make a monthly mortgage payment. So that's adding to your net worth, you know And that counts towards your millionaire status if you start a business it starts paying you more You know, maybe your income doubles triples who knows how much more you could make or if you just have lots and lots of other Smaller streams of income your income goes up. You could put more money away That will make this faster. So it could actually be much easier and quicker to become a millionaire if you plan these things Smartly, but also if you just do it, you know, like most people do the slow grind Just putting money away every single month and you know relying on the S&P 500 and index funds such as that or you know Some other reliable 401k Vehicle for investment you could become a millionaire as a physician assistant in as little as 31 years All right guys, I know money topics are definitely fun when you're considering your career You know, you're gonna put in all this time all this effort into becoming a physician assistant or whatever career you choose You want to know how much I'm gonna make how quickly can I become a millionaire or whatever my goal might be? Oh, and also just one quick thing here. So why is this million dollar mark so interesting and why is it so important? Well, here's why let's just pull out a calculator here and do some really quick math so One million dollars. It's definitely not enough to like live lavishly for the rest of your life But it's definitely enough to survive for the rest of your life. So one million dollars if you see my numbers here if You have one million dollars in the bank, I know right now rates of return for like savings account are basically zero They're useless, but if you use something such as this, you know, you put your money into a Reliable blue chip stock that pays a solid dividend first off that stock is also probably going up, you know Over time eventually But in addition to that, they also pay you every year in this case, you know, 6% 5% 4% 2% depending on which stock you pick They'll pay you that much Percent for having money in their company. So if you put that million dollars again, not financial advice Definitely don't put all your eggs in one basket, but this is just for the sake of simplicity If you put that million dollars in I don't know Hasbro Let's say you think that the toy market is not gonna go anywhere Hasbro is gonna be successful for a number of years and you think that they're reliably gonna keep this dividend up So let's say 3.5% dividend, right? So let's pull out our trusty calculator a million dollars times point zero three five That pays you thirty five thousand dollars a year for literally doing nothing except keeping your money in Hasbro stock so while your stock is probably going up, you know year over year sometimes going down But eventually going back up at that nine to ten percent range year over year You're also getting thirty five thousand dollars a year for literally just sitting on your butt now thirty five thousand dollars a year Is not exactly a million dollars a year. It's not a lot It's not a lot to live lavishly on but if you're not working if you're not doing anything thirty five thousand dollars a year Is quite a good travel budget. It's quite a good retirement budget Let's say you and your husband you and your wife whoever you want to get an RV and you'd want to just travel the country You know, that's your retirement plan I think thirty five k a year is definitely enough to do something like like that on assuming you already have the RV So like I don't know Just uh, just a way to put that into perspective if you have a million dollars at your disposal in the bank You could definitely stop working and just live your life and enjoy your life if that's your goal So that's why I think that million dollar mark is definitely a good one to shoot for. All right guys Anyway Finances are definitely a big passion of mine. I love talking about them to some people They're just like, you know white noise and they can't stand talking about it But to me it's really interesting and like I said if you're going to consider a career Especially one in which you work so hard like a physician assistant You probably want to know what it's going to pay you and future wise, you know What you can expect when you can expect to retire and you know live life the way that you want to So anyway guys, that's it for me for today. Have a great weekend and I will see you in the next video