The rise in student loan debt is one of the most significant challenges for a new doctor. It’s not uncommon to meet recent graduates with loans that exceed $500,000, with interest at 7 percent or more. New doctors and residents almost always start their careers with a goal of working for several years while paying down burdensome debt.
Navigating dental school is challenging. Between the long hours in the classroom and training, there’s little time to think about your finances. However, now is the best time to start saving. Whether your goal is to pay off debt, increase your savings or start investing for the future, there’s no time like the present to get started.
How long do you plan on practicing dentistry? Although we haven’t officially started our careers as licensed dentists yet, it is never too early to plan ahead for retirement. Saving your hard-earned money as a dentist after graduation doesn’t seem as glamorous as treating yourself, but saving and investing will allow you to have more control and freedom later in life. The futures of Social Security, tax rates, inflation, and the economy are uncertain, but the one thing you can control is your savings.
Many students in school or right out of school are afraid to invest their money. With not much knowledge in the area, it can be a daunting prospect. However, if you have a brokerage account or an IRA started while you are in school, there is one way that you can invest money without having an investment background. Dollar cost averaging is a method used where you invest a set amount at set intervals over time. Not only does this method spread risk, but it is easy to budget for the amounts invested. Read on for an example.
