Profit First for Dentists

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Reducing Debt...Especially Bad Debt

Dentistry is an expensive profession.  It’s costly to go to dental school. Then to either open or purchase a practice is another significant investment.  It’s very likely that debt will be incurred in this process. 

Most dentists I work with are still paying on debt. These monthly payments can become drudgery in a short time. It can seem never ending!  And on top of practice debt, there’s personal debt.  Whew! The pressure to produce is real. 

With the profit first model, debt can be factored in when considering profitability. What I mean is this. A portion of the Profit Account distributions may be used for some additional debt reduction if that is the goal of the owner. A system may be put in place with a plan to eradicate debt sooner. 

First, begin by taking stock of all debt. What exactly are you paying out in payments every month? What percentage of collection is this?  Is any of this bad debt, like credit card debt that...

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How to Use Profit First to Pay Down Debt

Hey, everyone!

I’m here today to show you how to pay down your debt faster. First, you have to take stock of the debt you do have and categorize it into categories called “good debt” and “bad debt.” Bad debt is high-interest debt like credit card loans, lines of credit, and student loans. Good debt is real estate loans or private practice loans. These loans are for a longer time period and have better interest rates.

Now, you have to decide which bad debt you’re going to eradicate first!

Also, make sure you have a profit savings account and that you’re allocating a percentage to each week. I have a video on YouTube that can help you if you’re unsure of how to do this! The best way to handle this is to stretch yourself as much as you can handle. It would help to financially plan out each month so that you’re able to take care of yourself while tackling that debt. Bad debt is what you want to go after first because of the bad...

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