#4 Introductory Thoughts on Finance for Physicians 

I am now over 20 years out from my surgical oncology fellowship, and overall I feel the training I received to become a surgical oncologist was outstanding. Surgery is taught predominantly using an apprenticeship model, and I am greatly thankful to the surgeons (many of them giants in the field) who taught me how to operate and take care of patients. 

One great deficit in my surgical training was in personal finance. What does personal finance have to do with surgical training? Your personal finances have a great bearing on your career. How much debt you graduate with will influence which medical specialty you choose. How much your first job pays will impact which job you chose and your life and family outside of work. How much you save will impact which jobs you choose in the future and when you retire. I wish I knew then what I know now. Did anyone ever tell you that if you lose a malpractice case in excess of your malpractice coverage, you are personally liable for the difference? 

Knowledge is power, and a strong foundational knowledge in personal finance is essential. I have obtained this knowledge through reading many books, listening to many podcasts, and watching many YouTube videos. I’ve also made many financial mistakes, and I estimate these mistakes have cost me in total over $1 million.  Then why listen to me about personal finance? Well, the FIRE (Financial Independence Retire Early) community has a general rule that you have reach financial independence when your net worth reaches 25 times your yearly expenses, and I reached that a couple years ago in my mid-fifties. Thus, I think I have done fairly well despite my mistakes.  

I have many things to say about personal finance for physicians. I will start by recommending 4 books which all sit on the bookshelf next to my desk at home.  

1. The White Coat Investor: A Doctor’s Guide to Personal Finance and Investing by James M. Dahle, MD 

To be honest, this book is not my favorite. This book discusses some rudimentary concepts such as how much to save and where to invest. However, this book will introduce you to the White Coat Investor ecosystem (website, podcasts, courses, etc.) which is an invaluable resource. 

2. The Simple Path to Wealth: Your road map to financial independence and a rich, free life by J.L. Collins 

This very popular book is mentioned by many personal finance experts and provides a simple road map to achieving financial independence. 

3. The Little Book of Common Sense Investing by John C. Bogle 

Jack Bogle is a hero to many including me. Although he sadly passed away in 2019, this founder of Vanguard has a loyal community of followers called Bogleheads. Bogle invented the first index fund and pioneered the concept of investing in broadly diversified low-cost index funds. If you cannot be convinced that this is the right strategy, you can stop reading my blog. 

4. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel  

The 13^th edition of this book was published in 2023, 50 years after the original publication. To get through this book, you need to be interested in economics and financial analysis. Otherwise, the book will seem a bit dry. I’ve read this book three times. If you are not already convinced that you should not try to pick individuals stock and you should not try to time the market, you need to read this book.