5 Physician Finance Books I Recommend

Here are 5 physician finance books I recommend for those starting their journey towards financial freedom

Here is a relatively short post I wanted to share that concerned the 5 physician finance books I recommend to those beginning their journey towards self-education about personal finance.  I want to make clear that this is not a “Top Five” List, nor is this list in order of importance, just a list.  I wanted to show that there were some books that helped fan the flame of interest early for me. 

I do think that it is important to maintain some regularity in your education.  For me, I try to read at least four financial books a year.  Often, I will find myself cycling financial books with fiction/non-fiction reading to break up the monotony.  Some financial literature is well written, straight-forward, and captivating.  However, I fully recognize that many financial books can feel like a grind.  For this reason, I think there is benefit to doing research before you select a book.  Your selection should hold your attention and be geared toward your financial goals. 

What follows below will be a brief description of each work, the number of pages, and the overall theme.  I will include a link to the website where these books and e-books can be purchased.  I will do my best to offer a review of the work as well as its ease of reading.  Without further ado, here were some of my early (financial) literary recommendations.

1. The White Coat Investor

Author: Dr. James M. Dahle

Page count: 159

Honestly, I would be surprised if most physician financial reading lists did not include this resource. 

The White Coat Investor has become a commonly referred to text recommended to medical trainees and graduates alike.  If you ask me, this book should be handed out alongside medical diplomas.  I am not trying to imply that this is the end-all be-all physician financial guide, but given its relatively short length and focus towards the medical (and dental) doctor, it is likely one of the best we have currently. 

Dr. Dahle has found success by tapping into a financial educational void commonly found in the physician population.  In this text, Dr. Dahle walks the reader through important building blocks for financial success.  He acknowledges that the readership is unique because the majority of physicians go from mountains of debt to leaps in income, all while factoring in delayed gratification.   He has helped coin budgeting lifestyles like “live like a resident” and “you can have anything you want, but not everything you want.” 

This was a critical read during residency because it helped highlight many common financial blind spots.  Each subsequent chapter has a well written and concise theme, and the book covers broad topics from retirement planning to savings and investing.  Please, do yourself a favor, grab a copy and read each chapter individually.  I promise you will use this as a reference piece, often returning to it as you re-evaluate your retirement accounts, or discuss life insurance policies, etc.

Purchase The White Coat Investor

2. The Millionaire Next Door

Author: Dr. Thomas J. Stanley and Dr. William D. Danko

Page count: 272

Here is an oldie but goodie.  The Millionaire Next Door was a book that had been on my list well before I began my journey towards financial independence.   It has a reputation that clearly reaches far beyond physician finance.  However, given the unique financial position so many physicians find themselves in, it seemed directed toward our profession. 

The book is rooted in large population studies and, in a way, “speaks our language.”  Seeing graphs and excerpts from large retrospective and prospective studies helps reinforce their characterization of the “millionaire next door.”  This work focuses more on the habits, character traits, and financial choices shared by those who maintain a net worth of one million dollars…and it is not what you would expect.  I found this data oddly comforting. 

What Drs. Stanley and Danko are able to do with 272 pages is reinforce the mindset that perseverance, dedication, intelligent long-term investing and living below your means is the key to life-long financial success.  I do not want to spoil too much, but if anything, I want to convince you that this read will help you form a “forest from the trees” view of your financial endgame and what it takes to get there.   For me, this book was enjoyed as an audiobook.  I was able to break it down by chapters that I could fit into drives to and from work.  

Purchase The Millionaire Next Door

3. The Only Investment Guide You Will Ever Need

Author: Andrew Tobias

Page count: 336

This work by Andrew Tobias has already been well received by a wide audience.  Again, very similar to The Millionaire Next Door, this book is not directly geared towards medical professionals, but has many important takeaways that are applicable to all.  From Emergency fund savings, retirement accounts, taxes, and investing strategies, Andrew Tobias is able to offer an all-encompassing guide to cultivating financial security.

This book was an easy read, and despite the length, did not feel like ~300 pages.  Each chapter is concise, has a targeted point, and does not belabor those points.  Much like The White Coat Investor, this book has become somewhat of a reference material for me.  I often include this as a resource I return to when I am reevaluating my financial plan.  I recommend this book to my colleagues in the healthcare profession.  This would likely be the work I would recommend for an individual who is starting their financial journey.  This would be a great first read for anyone wishing to build a solid foundation of knowledge.  I highly recommend it.

Purchase The Only Investment Guide You Will Ever Need

4. The Bogleheads’ Guide to the Three-Fund Portfolio

Author: Taylor Larimore

Page count: 112

The Bogleheads’ series really is more of a niche read.  I ended up gravitating towards this short book for two reasons. 

The first was I was a novice when it came to investing.  So much literature for high-income professionals discusses passive-income investing.  However this text goes further to emphasize index funds specifically.  I won’t focus on the ideology and economics behind this method of investing, but it intrigued me and the practicality of it seemed to fit my lifestyle. 

The second reason presented itself as I delved deeper into understanding diversification in the index-fund world.  Early in my financial literacy I was not sure how to navigate Vanguard (the online investing platform I use).  As many know, Vanguard founder Jack Bogle (the godfather of index investing) has quite a following, and the Bogleheads’ series revolves around philosophies of investing that spawned from his ground-breaking work.             

This text was a very quick read and has one essential purpose; to convince you that three specific Vanguard index funds offer enough diversification (between indexed American stocks, bonds, and international stocks) to place you on the simple path to passive income investing.  Their method works to prove that a nominal time commitment can have drastic effects on your long-term financial success.  They make some very astute points.  They are incredibly convincing regarding why this straightforward “set it and forget it” strategy is so effective.  I currently use this approach and it has lived up to my expectations in every way.  Check it out, many of you could probably read it in a single sitting.

Purchase The Bogleheads’ Guide to the Three-Fund Portfolio

5. The Doctors Guide to Eliminating Debt

Author: Dr. Cory S. Fawcett

Page count: 170

Last, but not least, we have a book from the “Doctor’s Guide…” series.  Dr. Cory Fawcett has built a career around short reads aimed at the medical professional.  His many works cover debt elimination, early retirement, real estate investing, etc.  All of his writing is directed at physicians and are very easily digestible.  Honestly, no matter how you search when entering terms like “physician” and “finance,” one of Dr. Fawcett’s works will be recommended.  I finally decided to give one work a try. 

Obviously, eliminating debt seemed most appropriate and I do not regret the decision at all.  I was able to read this work as an e-book on my Kindle. The book was inexpensive and worth every penny.  The advice is very similar to what you will hear from the prior literature mentioned above, but all from the perspective of a fellow physician. 

The Doctor’s Guide to Eliminating Debt maintains the theme of debt reduction for the entirety of the book.  This would be a great recommendation to those of you making debt reduction and financial independence your top priority.  Dr. Fawcett offers targeted perspective as he suggests lifestyle changes to minimize spending.  His recommendations are welcomed as all of us could afford to be reminded that the sacrifices we are making, even after completion of training, are to expedite our ultimate goal of financial freedom. 

Purchase The Doctors Guide to Eliminating Debt

Take home points

There you have it! The 5 physician finance books I recommend. Those were some of the early financial reads that started me on my journey towards financial literacy.  Each of these books offers a slightly varied perspective on personal finance.  They seek to describe the choices and habits that, if incorporated, will lead to your individual success. 

Overall, the underlying theme is the same. That theme is one of perseverance, living below your means, being attuned to your finances, while making sure you still have a palatable quality of life. 

I hope you enjoy these works as much as I did.  These works were a springboard for subsequent financial reads; ones that investigate the deeper nuances of physician finance.  I will work to write a post on my subsequent readings in the future. If you liked this article, make sure to check out The Best Personal Finance Blogs, as well as The Best Physician Finance Blogs! As always…

Stay motivated!

The Motivated M.D.

I hope you enjoyed the 5 physician finance books I recommend? Have you read these before? If you have other recommendations, or have other thoughts on the books mentioned above, let me know in the comments below. I would love to hear from you!

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