VIDEO: The millionaire dentist, Part 3: How to realistically become one

August 16, 2014

Two thirds of doctors are income statement affluent with low net worth, according to Tom Stanley, author of several

Two thirds of doctors are income statement affluent with low net worth, according to Tom Stanley, author of several Millionaire Next Door books.

Many doctors own million dollar homes, on which they often spend 5% per year in upgrades. That can total $50,000 or more annually. Meanwhile, those with $500,000 homes spend geometrically less on upgrades, normally in the 2% to 3% range. This will consume closer to $15,000 per year. That $35,000 annual difference will buy a lot of retirement savings and net worth.

RELATED: Read and watch Part 1 and Part 2 of this series

Dr. Carlsen’s neighbors spent $75,000 last summer on re-grading 400 square feet of their backyard, installing lovely brick tile with a fire pit, Fire Magic BBQ, and some lights. They didn’t even get a water feature for $75,000!

What can doctors, who have bought expensive homes, expensive cars, and thrive on entertaining their high-class friends, do to cut back yet maintain their identity?

You are not going to sell your home or start buying Corollas! Dr. Carlsen shows easy changes that can literally save tens of thousands of dollars per year without sacrificing your high-level identity.

More from Dr. Doug Carlsen: Your retirement number in 7 minutes

How can you keep that $1 million+ home, yet not spend a fortune? How may you pay less for a premium auto? How can a doctor entertain for much less than $100 per person? Why are private prestigious universities not your best bet? Dr. Carlsen names schools that are tops for prestige, yet cost $20,000 or more less than the privates.

For young doctors, what neighborhoods will provide the most wealth long-term?

And by the way, in the end, Dr. Carlsen is fine with Rolex watches ... but please don’t collect them!

Watch more of Dr. Carlsen's thoughts below...