Do you know how much of your income goes toward practice debts? Investments? Summer vacations? And have you ever wondered how much money should be going where? Watch this short video to learn how to categorize the money you spend and make the most of what you earn.
Hi, I’m Reese Harper, CEO of Dentist Advisors, and I have a question for you: do you know where your money goes? You should know what percentages of your income goes toward your practice debts, taxes, investments, mortgages, and even summer vacations.
Why? If you don’t know where each dollar goes, you’re probably not making the most of what you earn – and you’re probably not adequately preparing for retirement either.
Every dollar you spend falls into one of the following 4 categories:
Savings Rate (Sr) – the percentage of your income that is put into savings
Tax Rate (Tr) – the percentage of your income that you pay in taxes
Debt Rate (Dr) – the percentage of your income that you use to pay down debts
Burn Rate (Br) – the percentage of your income that you spend on living expenses
Putting the optimal amount toward each category helps you grow wealth consistently and, ultimately, determines your retirement.
Plus, because the formula is based on percentages, it applies no matter how much you make – it scales up as your practice grows.
If you need help figuring out where your money is going – and where it should be going, schedule a free consultation with an advisor and accelerate your progress today.