If you want to become financially independent as a nurse practitioner, you need to understand how to build wealth. Your job as an employee NP will help you earn some cash, but a yearly salary may not be enough to accumulate significant capital. Instead, you need to focus on strategies that will likely build wealth.

Why investments may not be enough

Your investments will probably not make you rich. Very few people become rich off their 401k, IRA, rental properties or off a lucky spike in a risky stock. Investments should be used to safeguard your money and help it grow slowly so it can keep up with inflation, nothing more.

Investments are primarily based on speculation. There are many parallels between gambling and investing. Bitcoin is a gamble. Most penny stocks are a gamble. These things are not guaranteed to help build wealth.

What are some safe ways to build wealth?

Real wealth generation occurs through your day-to-day work. Your W-2 job at an urgent care will not make you wealthy unless you live an extremely frugal lifestyle, save every dollar, and invest it in real estate. But this can take a very long time, and may mean you will be stuck in the healthcare rat race until retirement.

Investing in rental properties, gold, and the stock market will generate wealth over the long term. These investment classes are meant to protect your money while slowly growing it. You must investment your money. Having a large supply of cash that is not working for you is not smart.

Real estate wealth building

The first step in building long-term wealth is understanding how to invest your money. Research shows that real estate investment can generate significant profits. Rental real estate diversifies your income streams, protects you against recessions, and is an amazing way to lower your taxes. The same cannot be said for the stock market, which is heavily impacted by economic downturns and upswings.

Starting a business

However, unless you have a million dollars sitting around to invest in dozens of rental properties, you need to make the money first. If you want to build significant wealth quickly, you need to start a business and scale it. Many self-made millionaires generated their wealth through their own business. The more your business expands, the higher your net worth will become.

Scaling a proven business model will make you rich. Scaling a business does not require a significant amount of capital like a rental property does. It can be done cheaply, effectively, and fast once you have worked out all the nuts and bolts within it. Once you have established a niche practice, you can begin to set down roots and broaden your horizons.

Elite NP founder Justin Allan says, “I have almost perfected the systems within my men’s health clinic. This is the year I began to scale it. I want to open two more locations this year. This will cost me anywhere between $20,000 to $30,000 to do so. That would be one rental property if I invested it instead. Which avenue do you think will generate more money? The men’s health clinic.

I can scale this business by opening location after location at an accelerated rate. Once you begin generating income through each location, it becomes easier and easier to open other locations because you have an enormous amount of working capital. This also assumes you are living below your means. Before you know it, you could have 10 to 15 locations that are generating $10,000 to $20,000 each month. That is over $2 million/year in revenue. I would estimate that approximately 40% of that revenue would be profit in my pocket. That is almost $1 million every year. How many nurse practitioners make that? Only an elite few.”

You can build wealth even quicker by running cash practices that operate under The Elite NP Model. Each cash transaction generates cash flow that goes directly to you. That revenue also goes towards building the business’ net worth.

Boosting net worth

Your business has its own net worth, just like people do. You cannot sell your W-2 job at an urgent care. You are paid a flat $120,000 per year to work for another person’s business. Once you leave, you must sell yourself again for a fixed rate to another practice. By working under a privately owned practice, your net worth goes straight into the business owner’s pockets.

Conversely, you can sell your income-generating business to someone else. Your business will be valued on the revenue it generates. If you operate under an ambitious and aggressive business model, you can sell a practice within five years and make a healthy sum of money.

Deliver a niche service that people value. This is the key to creating a successful business. Start a few small side businesses that generate multiple income streams. This will build your cash reserve. Listen to the world and scale the business that is doing the best. This will increase its revenue exponentially. Then use that money and invest it in real estate, the stock market, and gold. This will protect it and allow it to grow slowly.