As dental students, we rarely have time to take for ourselves, let alone to devote to a side job. Long eight-hour days, combined with the need to study for yet another exam, makes free time a precious commodity. However, there are a few ways to make some extra cash on the side without sacrificing too much time and effort.
Saving for retirement, paying down debt, buying a home or building liquidity — when extra money is tight, where should your dollars go first? At the beginning of a budding career, nothing seems farther away than retirement. It can be difficult to focus on saving for an event 40 years in the future, when today’s needs and desires seem much more urgent.
According to the American Dental Education Association (ADEA), in 2018, indebted students left dental school with an average amount of $285,000 owed. As the cost to attend dental school continues to rise, many prospective students are looking for opportunities to avoid taking on debt, while still gaining valuable experience. One way is through the Health Professional Scholarship Program (HPSP).
Most dental students know what it’s like to live on a budget. After graduation, money will stay tight when student loans come due. Before long, a new dentist will want to buy a practice, buy a house or start a family. As your dental career begins, your financial planning skills will be just as critical as your treatment planning skills.
With the rising costs of dental school and education, getting student loans are a common reality for many dental students. It is important to understand the terminology that will allow for better communication between you and your lender, especially before signing the promissory note. Additionally, this knowledge will help you effectively advocate for initiatives at the local, state and national levels that alleviate the student debt burden.
What is a personal budget? It is a plan that allocates future income or cash (whether from working, loans, gifts, etc.) toward personal expenses, saving and loan repayment. To create a personal budget as a student, we focus on expenses, both fixed and variable.
As a dental student, you may already be carrying significant student loan debt. Paying down that debt requires income — cash flow that may best be generated by opening or buying into your own practice upon graduation. New dentists and those about to graduate often feel caught in a vicious circle when they perceive that debt may deny them a practice loan and prevent them from moving forward in their career.