Debt Free Dr

To help other dentists obtain financial independence within 5-7 years by investing in passive real estate investments.

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DebtFreeDr

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Dave Ramsey has been instrumental in helping millions of people, including myself, early on in my practice to get out of debt. But at what cost? Let me explain. Dave Ramsey's teachings typically cater to most people living paycheck to paycheck who have little to no financial education, much like many doctors and dentists. Why? Because we're constantly taking all these classes and education to learn how to treat patients, so we don't have time to learn about our finances. In the back of our minds, we're thinking, 'Well, we have all this student loan debt, but we're going to make good money, so I don't really have to worry about money because society thinks all doctors are rich, right?'

But let me tell you how I changed my perspective and thinking about money. I was born into a household where money was scarce and limited. We had to hold on to every penny, save diligently, and pinch where possible. We couldn't afford this or that. For the first 20-30 years, that's all I heard. After dental school, I started making good money, but in the back of my mind, I still had that scarcity mentality. I listened to Dave Ramsey, who essentially said, 'Avoid debt at all costs.' He considers things like vehicles and houses to be liabilities. Why? Liability takes money out of your pocket, while assets put money into your pocket.

I thought I should spend my entire life paying cash for everything, just like Dave Ramsey suggested. When I used to drive vehicles and pay cash for them, the thought was, 'Oh, it's a great feeling. I'm driving a paid-for vehicle with no car payments!' It was a great feeling to have. But then I started listening to other people's perspectives, like Robert Kiyosaki and Grant Cardone. When you hear different opinions, you can form your own based on your situation.

There's no single 'right' way to handle finances. My initial approach was to focus solely on myself to pay for my liabilities. I'd feel like I had no payments on this truck, which felt great, but that meant I had to go treat patients to pay for my vehicle. What if we changed our perspective and started using OPM (Other People's Money), something we were never taught in dental school?

With cash-flowing assets that build wealth and pay for liabilities, you aren't just saving for a truck. Instead, the asset itself generates money, so you're not trading your time for money. Let's say it takes six years to pay off a $50,000 truck, but it's now worth $30,000 due to depreciation. However, by leveraging a cash-flowing asset, you still have an appreciating asset that's generating rent and can continue to cover other liabilities.

There's no right or wrong way to manage finances, but it's essential to understand the value of your time. Your time should be spent with your kids, on vacations, or simply enjoying life. Dave Ramsey's method may work for those starting out, but for others, using good debt and leveraging OPM can help free up time. I hope this helps.