Savings Rate: The Key to Financial Independence

Coming to Australia Surrounded by Scarcity

My eight years as a poor medical student sharpened my frugality and ultimately inspired The Frugal Doctor. I arrived in Australia at 18 with a one-way ticket and a weight of expectations from The Motherland. No one in my family had a university degree, let alone a medical one. My income was small because my time was limited. Between long lectures, clinical placements, and part-time work (restricted to 20 hours a week by my visa), every dollar had a purpose. I learned early how to stretch a small income as far as possible.

Early Lessons in Frugality

As a medical student, I often had to make do with less or without. I survived on home-brand food. I walked long distances to placement in worn-out shoes. I delayed every purchase that wasn’t essential. As an international student, funds were limited, and I couldn’t afford to travel home. In eight years, I only returned to The Motherland once: to interview as one of three finalists for a Rhodes Scholarship. I didn’t get it, but the experience reinforced my drive and resilience. Back to the grind it was.

Migrant Doctor Earning an Income

When I finally started earning as a junior doctor, it felt liberating. Yet I was determined not to fall into the trap of lifestyle inflation. After years of living with little, saving came naturally. A decade later, when I returned to The Motherland, the village celebrated its very first doctor. Singing and dancing over many nights, the only way they knew how to celebrate. “Congratulations, Doctor from Australia!” they cheered. With pride came more weight of expectations.

Saving Income and Delaying Gratification

I was driven to save and build wealth. Without even tracking, I consistently saved 40–50% of my take-home pay. My goals were clear: buy my first car, save for a home deposit, travel and invest in shares. People often asked, “You’re a doctor now, why not get a car loan or a novated lease?” But I wanted to pay cash for my car, invest in shares, and own a home debt-free. By 29, I had purchased my first car. By 34, had bought my first home and started investing. Yet despite my discipline, something was missing. I had mastered saving but not investing.

The Turning Point

In February 2021, I reviewed my finances. The numbers told an interesting story: I was house rich but asset poor.

• $30,000 in shares
• $98,000 in superannuation
• $17,000 in cash
• $240,000 sitting in my home loan redraw

I was saving diligently, but not investing strategically. My money was sitting idle, safe, but stagnant. That’s when the light bulb moment came: Saving isn’t enough: you have to invest your savings. Around the same time I came across Mr Money Mustache’s classic post “The Shocking Simple Math Behind Early Retirement.” Suddenly, everything clicked. The path to financial independence wasn’t about working harder. It was about letting my money work for me. I knew exactly what I needed to do: shift from simply saving to intentionally investing and building wealth with purpose.

From Saving to Building Wealth

From that point on, I decided every dollar I saved had to be directly invested into income-producing assets. Primarily index funds or exchange-traded funds (ETFs). Following J L Collins The Simple Path to Wealth, I realised that simple, low-cost investing will quietly build financial independence in the background.

For me, savings rate = investment rate.
If I save 50%, I invest 50%.

Saving was the foundation. Investing became the catalyst. And together, they built the framework for financial independence: one intentional step at a time. And one more important lesson: I don’t count my home as a wealth-building asset. It doesn’t bring me an income.

Time Rich Reflection

Becoming The Frugal Doctor wasn’t just about earning more or saving hard. It was about learning that money should work for you, not sit still. Frugality gave me the discipline. Investing gave me freedom. But Time Rich FI is about more than the numbers. It’s about using money intentionally: as a tool to reclaim time, to choose meaningful work, and to live life on your own terms. Saving built the foundation. Investing built the future. Intentional living made it all worthwhile.

What about you? Are your savings sitting idle or are they quietly working toward your Time Rich life?

Your Turn: Build Your Own Time Rich Future

What’s your savings rate right now? If you’re not sure, take a moment to calculate it: it’s the first step toward financial independence. Then ask yourself: Are you simply saving, or are you also investing in your freedom? Start small. Stay consistent. Let your money quietly build your Time Rich life in the background.