From student loans to managing a dental practice, dentists face big financial decisions that can make or break their net worth as professionals. As we aim to help dental and medical professionals become successful, Carolina Dental Advisors would like to give some tips on how dentists can achieve financial independence.
In this guide, Lamar Hull, founder of Med Rank Interactive, and Brian Swilling from NaviPath Financial discuss how dentists can leverage their high-income potential to build their net worth. They also tackle the usual financial hiccups dentists face throughout their careers.
How your mindset affects your financial decisions
In the article, The Shift From High Income To High Net Worth featured in Dental Entrepreneur Magazine’s spring issue, Brian Swilling shares that what sets high net-worth dentists apart from high-income dentists is their behavior around money.
Financial life advisors help dentists in their financial journeys by implementing strategies around their lives. More often than not, their personal and career goals, desires, and the idea of a fulfilling life are usually financially related.
Common financial scenarios of dentists
Brian Swilling has been in the financial industry for 17 years and came from a family of dentists. In his years of practice, the usual trend around dentists in terms of finances is the wrong perception or mindset of how money works.
The limiting mindset of some dentists around finances makes it hard for financial life advisors to suggest new financial strategies that can contribute to their financial independence.
Many dentists consult financial advisors to see things in a bird’s eye view and seek advice in making big decisions. In most cases, these decisions are not financially related, like personal and psychological aspects of their lives. Getting an expert’s take on their concerns gives them a checkpoint if they’re making a good or bad decision for their lives in general.
Tips on building your wealth and living a fulfilling life as a dentist
In his article, Brian Swilling emphasizes that your financial goals as a dentist can change over time. So, it is essential to set room for detours as you build your financial plan to gain wealth on either experiences or finances.
In his mission to help more dental professionals become more financially independent, Brian Swilling shares the following steps towards a financially fulfilling life:
- Assess your financial literacy: It’s easy to fall into the trap of a false sense of security with your cash flow if you are a high-earning dentist. Check your income and expenses and see if you are spending your earnings efficiently.
- Focus on your goals to avoid mistakes: Focusing on your goals allows you to avoid the following common mistakes with money:
- Spending more than what you earn
- Prioritizing on paying a low-interest debt
- Not asking for an expert’s advice
- Following the hottest investment trend in the dental industry
- Prioritize retirement savings: The earlier you save, the longer the money works for you.
- Invest in yourself: Owning a practice can help you earn more and have it as an asset you can sell at the end of your career.
- Diversify your investments: Start a flexible account so you can save for your short-term goals without using your retirement savings. You may also invest in other assets, but you must weigh the risks with your financial advisor.
- Bring people with you in building your wealth: Your family, friends, colleagues, and employees can help set you up for success.
Read more about the article, The Shift From High Income To High Net Worth, here.
The best investment for dentists
You have already invested in yourself throughout your years in dental school. However, your investment in yourself doesn’t stop after you become a dentist. Being a dental professional comes with an investment progression. However, above all the investments you can have in your lifetime, you are your best asset and investment.
The market can go up and down, but if you [really] invest in yourself and are successful in it – that can be your biggest investment.
Learn how to make financial decisions that can set you up for success with Carolina Dental Advisors
Get more valuable insights in managing your practice and level up your life as a dentist through our blogs.