When Will You Start Making Money As A Dentist?

By Thomas Thompson 7 days ago

Although some dentists with a thriving practice, growing income, and continued success might appear to have it all, the reality is often very different.

Despite their apparent success, dentists often feel as they still haven’t quite ‘arrived’ yet; as if their achievements and their financial status are somehow not enough. Although working with dental practice accountants can help with the financial management side of things, if you’re still not feeling satisfied as a dentist, it could be due to the fact that income doesn’t necessarily equate wealth.

Let’s take a closer look:

Income and wealth as a dentist

Making a good amount of money and feeling as if you’re wealthy as a dentist, are two very different things. Your paycheck may well be substantial, but if you still feel broke, it could be because of the following:

  • The majority of your income after-tax, goes straight to paying off debts
  • As your income grows, so does your lifestyle
  • You don’t have any room for unexpected expenses

It may be simple to measure how much money you make, but holding on to that money and using it to build financial security, takes a lot of skill.

What does it take to actually ‘make money’?

When you’ve hit the milestones below, that’s when money stops being something you stress about, and starts being something that can help you achieve financial freedom:

  • When it comes to generating income, your investments are more effective than you are
  • Your savings flourish at a faster pace than your lifestyle
  • You work because you have a desire to, not a need to

A timeline to wealth as a dentist

Although this may vary for each dentist, the following timeline can give you an insight into how long it will take for you to feel as if you’ve ‘arrived’, financially:

Survival mode

Years 0 to 5

At this stage in your career, you’re trying to put a dent in your debts, learning vital clinical skills, and asking yourself if it was all worth it!

The invisible climb

Years 6 to 10

At this stage, your income has likely risen significantly – along with your taxes and expenses – and although you’re making more money, you still feel as if somehow, it isn’t enough.

Building up momentum

Years 10 to 15

Having been in the business for more than a decade now, you’ll notice your debt load increasing and your savings starting to compound; finally, you’re getting a taste of what it feels like to be financially free!

The jackpot – true financial freedom

Years 15+

Now, as a seasoned veteran of the dental world and with specialist dental accountants having loyally guided you for so long, your money is working harder for you than you are! You’re feeling less stressed, and your choices are now being driven by desire, rather than need.

Although the first decade of your career as a dentist may be hard to endure, surviving this period without having allowed debt and lifestyle choices to take over, will almost certainly be worth it.

By getting your finances organized, automating your savings, and controlling your lifestyle, you can enjoy financial freedom, and who knows, you might even end up at the helm of a dental empire!