who is Dev Raga?
Dev Raga is the host of the my millennial money professional podcast, a podcast that makes money concepts simple for busy professionals. But how has a doctor ended up in personal finance? Great question! We asked Dev this and other questions to get to know him better and see how the worlds of medicine and personal finance have blended. Subscribe to my millennial money professional if you want to get more informed for your own situation!
Also, have a listen to the episode where Glen James and Dev chat about a number of investing and money related topics:
You’re a doctor based in Melbourne. When and how did personal finance become something you’re passionate about?
I am a practising clinician. The main reason I started this podcast was because I wanted to leave a blueprint for my family in the rarer event I am no longer around. When I started talking about first principles of money/finance, it resonated with the medical community who encouraged me to continue. Doctors do not learn or get taught about finance, despite being one of the highest income earners in AUSTRALIA and its very common for doctors to not build wealth successfully, and fall into the trap of lifestyle creep. It is also a real problem that doctors often mistake income for wealth, but they are two very different concepts.
I come from a middle class first generation immigrant family, and we do not have legacy wealth. So it was incumbent on myself to work hard, and learn about money concepts and principles myself so that I can become more financially independent at an earlier age.
I consider money as just a tool. I want to use it as a tool to enjoy life, and hopefully make a difference to those that are around me.
What do you prioritise in your own finances?
I follow the "pay yourself first" approach. I take at least 20% of my after tax income, and invest it the same day I get paid. This process is automated. This is fundamental to what I do in my personal finances. When I first started investing, I had a very high "pay yourself" rate of 50-70%. Nowadays, I have at least a 20% rate, but sometimes more. I have kept my finances very simple. I don't borrow too much money, I don't borrow any consumer debt, and I try to keep my investments simple. Over the years I have followed these 5 simple steps:
a) Pay yourself first
b) Invest it (in something you understand or want to understand)
c) Always reinvest dividends
d) Do it forever (long term = at least 20 years in my view)
e) Automate as much as possible.
I have been doing this for 12 years now, and will continue to do it forever. It has proved very effective as a wealth building strategy.
Is there a book, resource or person that’s inspired you in personal finance?
I am not a great reader. Most of my interest in personal finance has stemmed from coming from a middle class family, and not having legacy wealth. Perhaps as a teenager a defining moment was when I was in Adelaide - I remember the moment very clearly. When we visited shops like David Jones or Myers, purely for window shopping, I was fascinated with electronics and technology products. In the 90s, computers were being popularised, as were plasma TVs. I was just roaming around the TV section when I saw a brand new, first-of-the-first, plasma TV for sale - costing $40,000 (roughly). Right at that moment, I heard a customer walk up to the salesperson and buy it. I thought to myself, how is this possible? How can anyone afford this? This was in the 90s, so $40,000 was a hell of a lot of money.
I thought to myself, one day I want to be able to do that. I wanted to be able to not think about money, and just buy things when I wanted. Of course being a young teenager, I didn't understand the concept of money much, except to know it would solve most problems. Nowadays, I think of money as just a tool, and buying things doesn't make me any happier. But the overall inspiration really started back then, as superficial it may be sound.
What’s your investing strategy?
I have kept my investing very simple, to the point it's reproducible on an A4 piece of paper. I have a well diversified super where it's invested locally, and globally. Then I buy the ASX300 Vanguard index fund. I have done this for a long time. It has worked, and I don't see why it may not work in the foreseeable future.
You also have a family - how are you teaching your kids about maximising their money?
I think kids are passive learners. They are watching and learning from their parents. This goes for most things including the way we behave in public or at home, the way we drive our cars, the way we manage our money. There are some fundamental concepts I want my children to learn:
a) Money is important, but it's not the MOST important thing in your life.
b) Money is just a tool, it provides options - use those options to make your life better and the lives of people around you better.
c) Money does not automatically appear in the bank account, although nowadays it's not tangible. So you have to work hard and earn it. Don't believe people when they say "you don't have to work hard for money" - you do.
d) We are not privileged, so never forget that all of what we have can be taken away in an instant through a family tragedy or misfortune - so when you see people who are "poorer" than us - it may be because they worked hard but it was taken away from them due to an unfortunate circumstance.
e) Learn the difference between "buying stuff" and "owning stuff".
f) Learn the difference between income and wealth.
g) Own possessions and don't let possessions own you.
So our default position is making sure the children understand we have worked hard for our money and wealth. It's ok to be a high income earner, and be wealthy, but it's NOT ok to flaunt it, nor to put down others who may not have the same fortunes as us.
We also make sure we don't splurge on things which don't bring much value. For example: we spend a lot of money on our children's education, but despite my high income - we don't live a flashy lifestyle, and I don't have a $300,000 car, nor do we eat at fancy restaurants. We value travel, quality spending, and also education - that's where most of our expenses go these days.
How did you find yourself in personal finance podcasting?
I started this podcast as a blueprint to leave for my family in the rare event I wasn't around for my family. From there, others listened and found it useful. I only talk about personal finance concepts, and do not discuss specific products. I am more of a systems person, so I look at things as much as possible as a systems issue. Learning systems, having systems, mastering concepts/principles is what will be useful for more people rather than discussing specific products. I want listeners to feel that my podcasts are timeless. I want them to come back to it in 10 years and recommend it to their children, or grandchildren - and I want it to still be relevant to them. Concepts like paying yourself, investing, reinvesting dividends, doing it forever, and automating as much as possible are timeless concepts, the rest of it is just "noise" - ignore it.
Who would get value from your podcast, my millennial money professional?
I think the minimum age would be teenagers, people of any profession, anyone who is trying to learn financial principles and anyone who wants to apply them to their life. I initially started it for my family, then it migrated to doctors/health care workers but now - it's practically for anyone. Fundamentally, I want people to understand that if they don't manage their money, then money will manage them.
Have you noticed a trend of health professionals in particular loving personal finances? What are you seeing from professionals in that industry?
The problem in healthcare is:
a) It’s diverse, intense, and it takes a long time to become a healthcare worker on average compared to other professions.
b) The focus is predominantly not on finances.
c) Most health care workers don't do it for the money, and if you hear this - it's complete nonsense.
d) I want to help people in healthcare (and any profession) to just pay attention to their money, and ensure they understand the basics.
e) You don't need to be a financial genius to master your financial health.
f) Many of the principles that apply to caring for patients, actually apply to personal finances. Foundations, prevention, execution, keeping costs low, and automating them.
If you could offer 3 pieces of advice to someone who has just started sorting out their personal finances, what would you share?
a) Don't borrow too much money and don't listen to people who justify this. It's immensely easy to fall into this trap.
b) You MUST pay yourself first. Without this, you can't build wealth. Investing/paying yourself first is really important and it can't wait.
c) Wherever possible, keep costs low and automate your personal finances/investing - I cannot stress this enough, because LIFE happens and you will forget or delay your investing journey.
What would you tell 20-year old Dev if you had the chance today?
I was a medical student then, had a part-time job, was on a scholarship (federal) which provided me with income. I mastered savings, and kept costs low, but I didn't start investing then. That's what I should have done. I started when I graduated from medical school. I will tell my children to save, keep costs low, and invest as early as possible - ideally start at that 18-20 year old stage when you have some part-time income. Finance is mostly behavioural. Keep those habits up, and start early.
And finally, what’s your favourite sweet or savoury treat?
Sweet: I love chocolate - if you listen to my episodes, I refer to Cadburys Hazelnut chocolate - I love it. So Cadburys, if you are reading or listening - happy for you to sponsor my podcast, I am a devout customer.
Savoury: Pizza Hut’s jalapenos vegetarian pizza (I think they call it hot and spicy) - ever since I was a 90s child, I have been a huge Pizza Hut fan. I used to eat their 90s buffet, it was a cult phenomenon around Australia and unfortunately has died down. Can't go past pizza at Pizza Hut!!! (131166 Pizza Hut deliverrrryyyyy - the tunes of the 90s).
