Financial Planning for Your Future
Financial planning can seem like a daunting task. Sometimes it’s difficult to know where to begin, how to do it and what the steps are to getting it right. At Bankers Trust, we know a thing or two about financial planning, especially for dentists. Let us walk you through the steps for creating your unique financial plan.
- 1. Find out where your money is being spent now
Before you can create a financial plan for the future, you need to know where your money is being spent today. We recommend looking over your credit card statements, any student loan debt, your checkbook, and receipts you have saved. If this doesn’t give you a clear enough picture, spend about a month recording where you spend money and how much. Another key aspect of identifying your current spending habits is looking at any debt you’ve accumulated. For example, according to a statistic found in Dentaltown, dentists attending public institutions often graduate with more than $200,000 in student loan debt, while those attending private schools often end up owing $400,000. You need to be sure to include any of your student loan debt in your spending snapshot because you will want to include it when setting up your budget.
- 2. Set financial goals
Where do you want to be financially in five years? Ten years? Set clear and achievable goals for yourself. For many dentists, this could mean owning your own dental practice or becoming a partner. This could also include owning a house one day or being completely debt free. Set the goals that are right for you and your long-term aspirations.
- 3. Create a realistic budget that helps you meet those goals
Next, you need to create a budget that will help you maintain your current lifestyle while simultaneously focus on paying down your debt and reaching your financial goals. This budget should include specifics like how much you can spend on certain items each month and what amount you are saving for your dental career aspirations. Be sure to also include allocation for an emergency fund, any insurance needs and investments.
- 4. Consult an expert
Still seem a bit overwhelming? That’s okay! There are plenty of resources out there to help you with financial planning. Working with a banker or financial planner can also be a great step. Be sure to look for a financial expert with experience working with dentists and helping them reach their financial goals.
For more information on how you can prepare to grow your business, contact the Business Banking team at Bankers Trust.
The Bankers Trust Education Center contains resources to help you start, grow and manage your business with a strong financial foundation.View posts
0218-01 | Dental Program | Bankers Trust