 As a doctor, I was told my entire life don't go into medicine before the money, but the idea was perpetuated so much that no one actually ever taught me about money itself, so in today's episode I'm going to break down my favorite books about personal finance that I've ever read. Let's get into it. Book number one is Rich Dad Poor Dad by Robert Kiyosaki. If you're not familiar with the book, this book as well as all the books I will talk about in today's episode will be linked down below if you're interested, but really the story is of his two dads. One of them is his actual real dad who worked a government job really living from paycheck to paycheck and his idea of saving to not get burned later, and his other dad who is actually his friend's dad who owned a business and essentially allowed him to look at money very differently. My two biggest takeaways from Rich Dad Poor Dad is one, working to be 65 so you can finally enjoy the freedom after all of those years of hard work. It's an oversold idea and so instead you should ask yourself how can you make your money work hard for yourself and that really gets into concept number two which is just to look at things as assets versus liabilities. When you purchase something just to the sake of purchasing and having it, most of the time it's just a liability. For example, if we buy a car or a house, those feel nice and make us feel like we're growing in society but often they just cost us a monthly or a one-time big lump sum payment compared to something that would be considered to be an asset like buying a rental property, starting a business, investing in stocks that grow or pay you a dividend, essentially where your money is working for you, understanding the difference of what your dollars are doing and make sure your dollars are actually working and ideally more on the side of assets versus liabilities really helps me understand okay like what do I want to achieve, how much money do I want to have for myself and my family so we can have a lifestyle that we're comfortable with and then what do I have to achieve, how many assets do I have to accumulate over the next 20, 30 years to really help me do that and not have to wait till 65 to actually enjoy it. Book number two is the white coat investor. Now because I'm a physician, there is just so much financial knowledge that no one really teaches you but you suddenly have to know. For example, how to go into medical school, how to pay for it, what kind of loans you should be looking at, what interest rates you should be considering, how to actually pay off those loans, what my options are and then when I get into residency which is where I am now actually just three months away from graduating, what type of things should I be doing when I have my first salary, how should I be paying my loans off, how should I be investing, what other things should I be considering like things like liability and disability insurance both of which I have now thanks to that book really just helps give a nice game plan especially in your first few years in your medical career but then also talks about okay when I'm about to be in attending which is again in about four, five months where I'm about to make my first big boy physician salary, what should I do with it, how should I pay off my loans, how should I change my life insurance, what type of things should I be doing to protect myself, protect my family as well as living a life where my lifestyle is not creeping up just because my income is. The book really breaks down essentially every part of somebody who's on their medical journey and doesn't really matter if you're in medical school you can be somebody who's pursuing nursing or pharmacy or anything related to health care the book is going to be for you. It's a really quick easy read something that you can always come back and refer to you once you're at the next phase of your journey. So if you guys are interested that would link down below. Book number three is the richest man in Babylon. Now I'm a big fan of personal finance books that are told in the form of stories like Rich Dad Poor Dad because it's really just easy to understand concepts instead of having a bunch of graphs and figures and somebody throwing a bunch of numbers at you especially if you're not a numbers person but the richest man in Babylon is exactly that doesn't really feel like a personal finance book and nicely tells you the story of somebody who is essentially subtly focusing on the concept of paying yourself first and the benefits that they're able to accumulate throughout their life. So if you're interested it's a really quick easy read it's very fun but also allows you to focus on okay am I making sure that I have a dollar is coming into my bank account who is getting the benefit of that dollar first is it going to my bills is it going to paying other people or am I making sure that I am paying my future self in five 10 20 years first and different concepts that we'll talk about in the upcoming books really help you understand what to do with that money. Now book number four is total money makeover by Dave Ramsey now Dave Ramsey to put it lightly can be very polarizing on one end you can say I love his concepts on the other end you can say I totally disagree and it really just depends on how educated you are in personal finance on what side of the spectrum really his focus are people who are in debt really have no idea how to manage their money or how to grow their wealth for both themselves as well as upcoming generations that's who he focuses on and if you understand that then his books especially the total money makeover does a great job especially coming from somebody who has medical school debt if you're interested on how much my medical school education costs I will link down below that episode essentially as I'm making this video I'm a little under $200,000 medical school debt that I'll have to pay off in the next upcoming years and so his book was one of the first really breakdown what type of steps my wife and I have to do to make sure one that we're comfortable ready for any kind of emergency like car breakdown health care costs that we needed to pay and then to ready to pay off debts before we go down the line of looking for a house you know saving for retirement saving for you know our kids education essentially what steps are we needed to take now again these are very initial concepts but just like something like the white code investor it helped me break down the different steps that we needed to take so first thing that we did is we set up an emergency fund that is still available today in case so we have you know some kind of emergency like our car breaks down or we have to pay for some emergent travel across country etc so there is a fun setup for those and then we followed those relative steps now since we've learned the basics just like the white code investor then we've upgraded our personal finance knowledge of like okay what do we do with this extra money while we're trying to pay off her debt that's really where I get to the other side of the spectrum in the upcoming books but if you are somebody is like I don't really know what to do with my money I am in debt or I have credit card debt or I feel like my expenses don't allow me to save enough money but the total money makeover is a great book for anyone who is struggling with things like educational debt personal debt or if you feel like I don't really know how to actually save money because I feel like I'm always spending as much as I'm making it really talks to you nicely about it as well as two concepts I really enjoy including both the snowball and the avalanche approach of how to pay off any debt that you have including med school debt it's the same approach that I'm taking on how to pay off my med school debt on a monthly basis again there's more videos on personal finance here on the channel if you guys are interested but if you are on those initial phases of not knowing what to do with your money this is a great book to start and very easy to read now book number five is one rental at a time by Michael Zuber and now we're starting to make a transition from okay cool I understand the basics of personal finance I understand the concepts I should be aware of especially as me as a physician once you have that money what should you do with it I'm a big believer that you shouldn't just put all your money in one basket so it shouldn't just go on the stock market or starting a business or in real estate but you really have some type of specification and so one of the places that my wife and I very soon will be putting our money is into real estate it's also a tangible asset that you can see that you can pass on to your kids and upcoming generations but to understand real estate sometimes the books really get very nitty gritty with the numbers and one of the books I really again nicely breaks down in the form of a story is one rental at a time this is again the story of Michael Zuber essentially breaks down how him and his wife and his family started going from one house what they paid how much it cost what they did and then how they went from one rental to the next rental so if you're interested in real estate or just learning about what a possible future would look like this book is a very nice breakdown of what the numbers look like without getting too number heavy it's a very easy read and it's a book that I often come back to in my Kindle library so if you guys are interested that'd be linked down below book number six is profit first by Michael McCallowitz and this is technically a business book but you can actually still use it for personal finance now I got this book initially because when I was learning to manage the funds of the MD journey and other ventures that have running on the side the real question is how much of that money comes to me how much the money goes to taxes how much it goes to the employees that work on MD journey or other businesses and it really just helped me understand this concept of one you want to make sure that you pay yourself first begin going back to the concept of the richest man in Babylon but also exactly how to do that how much money should come to you how much money should go into a tax account as an example as I've been running the MD journey for the last six to seven years you know there's obviously income that comes to the ads the affiliates or students who decided to buy one of our books or work with us one-on-one that is income but not all that income is mine some of it obviously has to go to my employees other expenses but even the income that's left over still doesn't come to me I have to pay a tax every three months that is essentially a quarterly payment and then I have to pay a tax based off of my yearly income so I have to put money aside to count for taxes at the end of the year something you don't really have to do when you're just working a normal W2 job where your taxes are essentially taken out of your paycheck as a profit first book was a really nice breakdown of okay if a dollar comes in this is how much will go into a tax count I literally have a separate bank account that is meant for taxes this is how much will go into your expense account so enough to pay my employees all the software that we use etc and this is how much money will go into your accounts then you can use it on however you wish whether it be for groceries or other investments but it's a nice distribution now again it is technically a business book very nicely told in the form of a story so those are my favorites but I've used the same concept on how to manage my personal finance so every time we get a dollar whether it be my wife's job or my own job or income that we get from the journey or if I'm moonlighting in the hospital working extra hours that's extra income that's coming where do each of those dollars go and we've decided this is where our priority is this is how we're gonna make sure that we pay ourselves and grow our investment essentially snowball this is how we make sure that we have a budget that is going to cover for emergencies and this is going to be a budget that we're gonna make sure that we have to enjoy ourselves whether it be to buy clothes or buy food or go out to eat or by other equipment such as cameras and laptops and computers we essentially have a direction for each of those dollars and so in a way we've designed our financial life for each dollar is almost like a personal employee and it's going to work for us in different avenues and so if you're interested on how to do that how to break it down definitely check out the profit first book essentially the entire way that my wife and I do reverse budgeting other concepts that I talked about here in the channel are used through this book so if you guys are interested that'll be linked down below now book number seven is lifestyle investor by Justin Donald now this is a book that really just kind of changed the game in terms of what I saw as a possibility obviously when you're working a position you have a very nice comfortable salary that can pay for your family you know yourself and then future investments but the lifestyle investor was really a light bulb moment for me because I got away from thinking about just stocks and real estate and saving money here and putting money in a Roth or a 401k but really thinking about what investments can I have that work for me so then I am having the life that I want kind of going as essentially accumulation of all the principles that we've talked about from the past few books but Justin Donald just to kind of bring down his story essentially just in a few years was able to make enough income from various different investments to essentially have an eight-figured net worth between both his wife and him and so now he essentially just uses his time to work on different investments and projects that he wants to which sounds like the exact life that we want but he's nowhere close to being sixty five and so if you're interested in different breakdowns of different deals different investments that he looks at again this may be a few years down the line for me in terms of where I even get to that position where that's a possibility it still allows me to say okay this is where you ultimately want to be where maybe you're 50 or 55 and your kids are you know in their teenage or mid 20s age you want to be able to spend as much time with them not be trapped and I still need to work X amount to be able to save for my retirement so this is a nice book of really talking about future planning but also things that I can do at the moment so if you want a book that can really inspire you of what your financial future can look like without feeling like here is my Lambo or here is my yacht he doesn't do any of that in the book knowledge it is a nice again story told financial personal finance books of you guys interested that'll be linked down below it also has a very engaging podcast that I often listen to on my runs or my drive into the hospital essentially bring in people who are essentially going from nothing to have these kinds of lifestyles where they can invest in the things that they care for and work on those projects while still focusing on their family philanthropy efforts or other projects that they're interested in book number eight is the random walk guide to investing now when I say that this is the one book that changed my entire perception of personal finance this is it actually still have this copy I give it to friends to read if they don't understand anything about money this is the book that I read in college essentially where I was managing my own money and had a job for the first time and said what should I in the world should I do with this and I randomly just grab this on Amazon and the book just broke down some of the most basic principles that over the span of my college days now you know seven years into my medical journey I've easily been able to save anywhere from fifty to a hundred thousand dollars in various different accounts using various simple principles ideas such as where should you put your money how should you look at investing in the stock market how should you look at a financial advisor things like fees and how to consider them as well as most basic principles like what the hell is a bond what the hell is an index fund the hell is a stock versus a dividend stock and really nicely break that down without getting overly complicated really the last few chapters are really the principles I still use today which is just making my investing in terms of stock investing super simple in the form of index funds so if you have no idea what I'm talking about and you just want a book that says I'm going to read this I'm going to commit to this and it's made a difference in somebody else's life hence being me first few chapters will get into the idea of what you shouldn't do with your money in the last few will talk about actually what you should do are you both are equally important so if you have no idea what to do with your personal finance and you want to make sure they providing for yourself and your family and your upcoming future definitely consider checking out this book I'll link it down below if you found this breakdown helpful and you want my breakdown of other strategies and lessons on how to get better grades how to be more productive manage your time manage your stress go ahead and click the link down below to get access to the absolutely free med school success handbook down there in the descriptions you also find links to our free as well as paid programs in case you're interested and if you enjoyed today's episode all I really ask is you hit that like button in the form of some support if you haven't consider hitting that subscribe and notification bell to be notified when new videos are going out as you're listening to this on a podcast definitely consider hitting that subscribe or follow on your favorite listening platform as well as just taking a second to go to iTunes and leaving an honest review but as always my friends if you have any questions if you have any thoughts go ahead and drop in the comment section down below and if you did enjoy this episode you'll definitely enjoy this episode of my full breakdown of exactly how much it costs me to become a physician my entire medical journey as well as this episode right here on how much the average doctor in the United States makes hopefully you guys enjoy those but as always thanks for being a part of my journey hopefully I was a little help to you guys on yours I'll see you guys in the next one peace