Achieving Financial Freedom: One Physician's Algorithm

Explore one physician's personal algorithm for achieving financial freedom, offering insights and strategies for managing finances effectively in the medical profession.

By: Joseph Saveika, MD MBA

Published: Jan 16, 2023

📂 Physician Perspectives

Written for:

✅ Early Career Physicians

✅ Mid Career Physicians

✅ Established Professionals

Dr. Joe Saveika is a physician who has achieved financial freedom and wants to share his advice and experience with others. Dr. Saveika has been working in the medical field for over fifteen years and has used his knowledge and skills to reach financial independence. He hopes that by providing his insight and guidance, he can help other physicians make their way to financial freedom as well.

The idea of financial independence is something that many of us strive for. Unfortunately, many physicians are held back by lack of knowledge, disinterest in financial affairs, or both. But with the right guidance and information, it is possible to achieve financial independence. Here is a step-by-step guide on how to reach financial freedom, as told by a physician who has been there.

Step One: Educate Yourself

The first step in becoming financially independent is educating yourself. Invest some time and energy in learning more about finance, economics, and money management.

  • "A Random Walk Down Wall Street" by Burton G. Malkiel - Malkiel’s book provides an introduction to all the major topics in finance and investing. It is particularly helpful for those who want to understand the basics of investing in stocks, bonds, mutual funds, and other financial instruments.

  • "Your Money or Your Life" by Vicki Robin and Joe Dominguez - This book helps individuals explore their relationship with money, looking at their financial behavior and what drives their spending.

  • "The Millionaire Next Door" by Thomas J. Stanley and William D. Danko - This book helps to dispel the myths about who becomes wealthy and how. It offers valuable insights into the habits, behaviors, and attitudes of millionaires.

  • "The Four Pillars of Investing" by William Bernstein - Bernstein's book is a comprehensive guide to portfolio design, management, and performance is particularly helpful for those who want to better understand how to diversify their investments and maintain a long-term focus.

Step Two: Live frugally and within your means

The second step in achieving financial independence is living frugally and within your means. This helps to ensure that all available resources are being used wisely and that individuals are making responsible financial decisions. Live simply and within your means and this will set the foundation for financial independence and peace of mind.

Step Three: Maximize Retirement Accounts

The third step in becoming financially independent is maximizing retirement accounts. Make sure to max out your employer’s 401(k) plan and take advantage of other tax-advantaged accounts, such as an IRA or SEP-IRA.

Step Four: Build an Emergency Fund

The fourth step in achieving financial freedom is building a strong emergency fund. Having an emergency fund is a necessary component of a financial security plan and can help individuals weather economic downturns and economic shocks. Aim to have at least $25K saved in an emergency fund.

Step Five: Pay off Debt

The fifth step in achieving financial freedom is paying off debt. It is important to tackle any high-interest debt first and then work your way down with all other debt. Paying off debt as soon as you can will greatly reduce the amount of money that goes towards interest payments, freeing up more money for investing.

Step Six: Open a Brokerage Account

The sixth step in financial independence is opening a brokerage account. Doing so will allow individuals to start investing in the stock market and potentially enjoy more long-term growth. However, it is important to note that investing in stocks can involve substantial risk, so always exercise risk management and never invest more than you can afford to lose.

Avoiding Common Mistakes

When pursuing financial freedom, it is important to stay vigilant and avoid common mistakes:

  1. Spending too much on non-essentials - Avoid making unnecessary purchases and focus on saving more

  2. Taking on more debt than you can manage - Credit cards and other forms of debt can quickly become unmanageable and should be paid off as soon as possible

  3. Investing too conservatively - While it is important to manage risk, it is also important to invest with an eye towards the long term.

Disclaimer: Every individual’s path to financial independence is unique and should be tailored to their own values, financial situation, and goals. The content of this presentation is provided solely for informational purposes and should not be taken as financial advice. Additionally, investing in stocks can involve substantial risk and may not be suitable for all investors. Never invest more than you can afford to lose.

Joseph Saveika
Joseph Saveika
Joseph Saveika

Joseph Saveika, MD, MBA ⇨

Member, Andwise Medical Advisory Board

Dr. Joseph Saveika, MD, MBA, is a multifaceted professional who has successfully combined his medical expertise with leadership and financial acumen. As the Medical Director of Norman Regional's Inpatient Rehabilitation Center, he brings his comprehensive knowledge of Physical Medicine and Rehabilitation to oversee patient care and program development. He earned his medical degree from Eastern Virginia Medical School and completed his residency and fellowship there as well. Dr. Saveika is board certified by the American Board of Physical Medicine and Rehabilitation and is a Fellow with the American Academy of Physical Medicine and Rehabilitation.

In addition to his medical career, Dr. Saveika has an interest in financial independence for physicians. He has shared his insights and experiences to guide others towards achieving financial freedom, emphasizing the importance of self-education, living within means, maximizing retirement accounts, and investing wisely. His educational journey includes not just his medical training but also an MBA from OU Price College of Business, which underscores his dedication to integrating medical practice with business leadership.

Dr. Saveika's career journey is quite unique as he began as a pipefitter's apprentice before transitioning through customer service and engineering, eventually finding his calling in medicine. His broad licensure across multiple states and his diverse skill set, including healthcare innovation and algorithmic care management, highlight his ability to lead and innovate within the healthcare sector. His philosophy centers on prevention and exercise as the best medicine, showcasing his holistic approach to healthcare.

Ready to take the next step? Financial Education Consultation

With Tanya Frias, CFP®, ChSNC 🟢

1. Schedule a time that works for you

2. Address any burning financial questions with clarity

3. Experience a clearer, brighter financial future

Choose a Time 🚀

Physicians face unique financial challenges, from managing student loans to planning for retirement. At Andwise, we understand these challenges and are committed to guiding you through every financial milestone with the help of Tanya Frias, CFP®, ChSNC®, our Director of Financial Education and Empowerment.

Tanya Frias brings over twenty years of financial services experience to Andwise. With her extensive background as a Certified Financial Planner and her dedication to making financial planning accessible, especially in underserved communities, Tanya is a key asset to our team. Her qualifications include a B.S. from the City University of New York, CFP certification from NYU, ChSNC certification from the American College, and she is currently advancing her knowledge with an Executive MBA from Kellogg-Northwestern.

Read more by Joseph Saveika, MD MBA

Stay In The Loop

Join 1300+ physicians who receive our monthly newsletter and stay up to date on our community events, resources, and tools.