I read a really interesting article the other day that showcase the difference between the net worth of a plumber and that of a doctor and the results were actually pretty surprising.

Who

actually ends up having a higher net

worth and at what age both careers

balance out in terms of wealth and the

result is likely not what you’d expect

so before I get into that as always if

you enjoy videos like this make sure to

smash that like button smash that

subscribe button and then if you have

any ideas for future videos make sure to

comment down below let me know what your

ideas are and I’ll make sure to

incorporate them in future videos so

let’s get to it

okay so here’s the experiment you have

two people both starting off at the age

of eighteen one wants to be a plumber

one wants to be a doctor who is going to

end up having a higher net worth all

things considered now to do these

calculations for congruence we’re going

to assume that each profession saves and

invests 50% of their take-home salary

we’re also going to assume that the

money that they invest is going to be

getting an 8% return I’m also

considering that each profession has pay

increases that also increase with

inflation so let’s start out with the

plumber first the plumber starts out at

the age of 18 making $12 an hour working

as a plumber’s apprentice we can also

assume a 50 hour work week at $12 an

hour meaning that our plumber is

probably going to be pulling in about

$2,400 a month or $2,000 a month after

taxes if he invest 50% of that we can

assume that the plumber in the very

beginning is able to invest $1,000 per

month now because the plumber never went

to college there are no student loans

there’s no debt and the plumber could

begin making and investing money right

off the bat

so now let’s flash forward four years

our plumbers now 22 years old and making

$5,000 a month before taxes or $4,000 a

month

after taxes meaning the plumber is going

to be able to invest $2,000 per month

then let’s flash forward 10 years the

plumber is now 32 years old making

$100,000 before taxes $70,000 after

taxes and can save and invest $3,000 per

month so let’s start here at the age of

22 our plumber should be worth almost

$60,000 and that’s

four years of investing $1,000 per month

at an 8% return then at the age of 28

our plumber should be worth almost two

hundred and ninety thousand dollars this

is the base $60,000 that the plumber was

worth at the age of 22 plus then

investing two thousand dollars a month

over the additional few years at an 8%

return now let’s flash forward and the

plumber is now 50 years old the plumber

is now worth 3.8 you ready for this

million dollars this is the plumbers

$290,000 base plus three thousand

dollars per month invested over twenty

two years at an 8% return let that sink

in for a second a plumber worth three

point eight million dollars just by

saving and investing over the course of

his career so our 18 year old plumber

became a 50 year old multi-millionaire

so now let’s compare this with our

doctor now the doctor is a little bit

different because the doctor doesn’t

start saving and investing until much

later in life so let’s assume that her

doctor has four years of an

undergraduate education that cost twenty

thousand dollars a year and let’s also

assume that the doctor pays down the

student loans before investing anything

so this means at the age of twenty-two

after four years of a college degree our

doctor is going to be worth negative

eighty thousand dollars then after this

four years of undergraduate the doctor

is then gonna have to go to four years

of medical school let’s then assume that

each year medical school is going to

cost this doctor fifty thousand dollars

per year this means that at the age of

twenty six after four years of

undergraduate four years of medical

school the doctor is going to be worth

negative two hundred and eighty thousand

dollars this is without earning or

investing a single dime now I’m not

including interest payments on the debt

or cost of living just to keep this

simple then after eight years of school

and two hundred and eighty thousand

dollars of debt the doctor is then going

to go between three and five years of

residency so let’s assume four years of

residency and each year of residency

pays sixty thousand dollars before taxes

or fifty thousand dollars after taxes

soon I’ll flash-forward our doctors

thirty years old our doctor has

completed four years of undergraduate

four years of medical four years of

residency and during those four years of

residency the doctor was able to pay

down the student loans by $100,000

leaving his total net worth at the age

of thirty as negative one hundred and

eighty thousand dollars but after

residency the doctor all of a sudden

starts earning a lot more money at the

age of 31 now remember our plumbers the

same age and making $100,000 before

taxes

our doctor on the other hand is going to

make three hundred and twenty thousand

dollars before taxes or two hundred and

fifty thousand dollars after taxes now

remember of that two hundred and fifty

thousand dollars after taxes half of

that is going to be going to pay down

the student loan so with that math at

the age of 32 our doctors gonna have all

the student loans paid off and a net

worth of seventy five thousand dollars

so now at the age of forty assuming the

doctor is still making three hundred and

twenty thousand dollars a year before

taxes and investing half of his

take-home pay the doctor will then have

a net worth of 1 million five hundred

and seventy five thousand dollars and

keep in mind this is at the age of 40 so

now let’s say at the age of 40 our

doctor gets another pay raise from three

hundred and twenty thousand dollars to

four hundred and fifty thousand dollars

a year before taxes now let’s assume

that’s three hundred and fifty thousand

dollars after taxes and the doctor

continues to invest half of it

by the age of fifty years old our doctor

is going to be worth six point 1 million

dollars or two point three million

dollars more than the plumber now this

is where it gets super interesting the

break-even point between when the

plumber and when the doctor are worth

exactly the same is at the age of 42

this means that both professions that

took wildly drastic paths are worth

exactly the same at this point now there

are some variables here that could

impact things drastically like the

plumber could have started their own

business and made even more money and

invested even more money the doctor

could end up with way more debt that

takes way longer to pay off or the

doctor could have ended up earning way

more money than three hundred and twenty

thousand dollars the doctor could maybe

earn five hundred thousand dollars per

year

so either profession could really swing

wildly in each direction I also

understand that the doctor could have a

higher quality of life with a lot more

discretionary income to spend but this

doesn’t really include all the hour

worked as a doctor and how that might be

a lot more demanding than that of a

plumber or all the unpaid time in

medical school that the doctor has spent

studying and working so there are some

variables between the two that could

swing things either way now I also

understand that most people to go into

medicine don’t do it for the money and

they do it because they really enjoy it

and they enjoy helping people but there

are people out there that just think

that becoming a doctor is gonna be a

surefire way to make the most money

possible and this isn’t always the case

although the entire point of this video

is just to illustrate that the prestige

of a career has less of an impact than

just saving and investing consistently

early on and how that really has the

biggest impact it doesn’t really matter

what you do or where you went to school

you still have the potential to be

wealthy and financially independent

later on in life so as always you guys

thank you so much for watching now if

you haven’t already subscribed and my

analytics show that 56% of you watching

are not subscribed come on you guys

click that little subscribe button just

click it just click it you won’t regret

it

promise promise alright thanks for

subscribing if you enjoyed this video to

make sure to leave a like I really

appreciate it I love I love seeing all

the likes and stuff like that and feel

free to comment too I read every single

comment I do my best to almost respond

to everybody so make sure to comment

down below also feel free to add me on

snapchat and Instagram I post there

pretty much daily so if you want to be a

part of it there feel free to add me

there as always thank you again for

watching and until next time