Finances

How to save for the future while in dental school

It has been awhile since we talked about savings and how to save while incurring large amounts of debt in dental school.  Typically, it is recommended that everyone has an “emergency fund” to cover at least 3-6 months of their fixed costs in case they are unable to work or have an immediate family need.  How can you make this happen while still in dental school?  It may not be easy, but you can get a jump start on savings post-dental school while you are still IN dental school.  You may be taking out student loans to cover living expenses while in dental school.  By “trimming the fat” and limited personal expenses while in dental school, not only will you keep student debt to a minimum, but you will be keeping the interest on student debt down as well.  By keeping extraneous spending to a minimum while in school, you will have that much extra to put into your savings account when you are out of school and working.  With lower student loans and interest payments, extra cash flow can be directed to a savings account each month.  Whether you can afford $20/week or $100/week, any amount will help reach your goal.

So, what costs should be included in your “emergency fund?”  You want to save for your fixed costs, or costs that MUST be incurred each month.  This includes, but is not limited to, student loan payments, rent payments, basic grocery and home costs and utilities.

Where should you save this money?  A savings account is a great option because you will have access to this money right away.  A high yield checking account is also a great option.  Online banks, such as Ally and Everbank, offer higher interest rates on high yield checking and savings account than many traditional bricks and mortar banks.

~Megan Mathers, JD, Mathers Law

Megan Mathers

Megan is an accountant and tax attorney with Mathers Law, a firm focused on providing accounting, tax, business advisory and legal services to the dental and medical communities. Megan earned her Bachelor's Degree in Accounting from Marquette University and her law degree from Loyola University Chicago School of Law. Megan's practice focuses on tax compliance, tax planning and wealth and estate planning.

You may also like ...

3 Comments

  1. Rakesh says:

    6 months? That’s like having an extra $7 to $10 thousand. Taking that at 9% interest that is basically compounding can mean close to a thousand in interest per year.

    1. Megan Mathers says:

      Hi Rakesh, You are very right! However, the point of an emergency fund is to have a SAFE bet for an emergency. If you have excess funds over this, by all means put it away for retirement and invest or invest excess personal funds! While you MAY make 9% interest, you may LOSE as well. For an emergency fund, we typically want to see money placed in an account that is liquid with quick access to a specified amount. Of course, you can always do whatever you think fits best with your desired level of risk. This is the moderate approach to take, though.

  2. MARY says:

    looking for students from dental clinic to perform Dental Implants

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.