Debt Free Dr

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

Blog By:
DebtFreeDr

When I first heard the term “FI,” short for financial independence, I was still working full-time as a periodontist. I had already paid off my student loans and built some savings, but I realized something important: being debt-free isn’t the same as having FREEDOM.

Like many doctors and dentists, I had a great income but no freedom with my time. That’s when I discovered the FIRE movement (Financial Independence, Retire Early). The idea was simple: build enough money so you can choose what you do each day instead of being forced to work.

Originally, I started off using Dave Ramsey’s 7 Baby Steps. Those steps put us in a strong financial position, but after a wrist injury ten years into practicing, I realized something needed to change. That experience became the turning point that led me to pursue true financial independence and not just debt freedom.

Over time, I developed my own version of the process called the 7 WOW Steps—short for Work-Optional Wealth. These steps go beyond saving and investing. They show you how to gain control of your personal finances, build passive income, and make work truly optional.

WOW Step 1: Get Financially Clear

The first step toward financial freedom is clarity. Most people can’t reach FI because they don’t know where their money goes each month. Start by tracking every dollar that enters and leaves your bank account.

List your annual expenses, break them down into monthly totals, and look at your savings rate—the percentage of your income you actually keep. Use your credit card and checking statements to see spending patterns.

Knowing your numbers gives you control. It helps you make small changes that create big results over time. This is the easiest way to find money leaks and free up cash for investing.

WOW Step 2: Create Your Emergency Buffer

Before chasing investments or early retirement, you need a cushion for peace of mind. Build an emergency fund equal to three to six months of your monthly expenses. Keep it in a high-yield savings account and not the stock market.

This account isn’t about growing wealth; it’s about protecting it. Life throws surprises like car repairs, dental emergencies :), and a slow business month. Having this safety net keeps you from relying on credit cards or loans.

Once your emergency fund is in place, you’ll sleep better knowing you can handle almost anything without touching your long-term investments.

WOW Step 3: Eliminate Toxic Debt

Debt is the enemy of freedom. List all your debts, from smallest to largest balance. Make minimum payments on each, then throw every extra dollar at the smallest debt until it’s gone. This builds quick wins and motivation.

Once that’s paid off, move to the next one. This is called the debt snowball method, and it works because it keeps you emotionally invested.

Start with high-interest credit card debt, then tackle personal loans and any leftover student loans. As each balance disappears, your confidence grows and so does your cash flow.

Every dollar you no longer owe becomes fuel for your future.

WOW Step 4: Know Your Freedom Number

Once your debts are under control, it’s time to figure out your Freedom Number—the amount of monthly passive income you need to cover your personal expenses so work becomes optional.

Start by adding up your total monthly expenses, such as mortgage or rent, utilities, groceries, insurance, subscriptions, everything. Multiply that number by 1.1 to include a small buffer for inflation and unexpected costs.

That number is your target. It’s not about saving a certain amount in the bank or trying to guess how long your nest egg will last using a “safe withdrawal rate.” The goal isn’t to spend down your wealth—it’s to build income-producing assets that pay those bills for you every month.

Every dollar of rental income, dividends, or cash flow from real estate syndications replaces a monthly expense. The more expenses you replace, the closer you get to true financial freedom.

Your Freedom Number is the moment your money starts working harder than you do.

WOW Step 5: Build Your Passive Income Snowball

Once you know your target, start replacing monthly expenses with passive income. This could come from rental property, real estate syndications, dividend-paying index funds, or even a side hustle that runs without your daily involvement.

When I started investing outside of traditional retirement accounts, I focused on RV park investing and mobile home park investing. These are tangible assets that generate consistent rental income and come with powerful tax benefits.

Each stream of cash flow you add brings you closer to your FI number. It’s the same concept as the debt snowball, but in reverse, as each new income source removes another monthly expense from your life.

You can also explore dividend-paying ETFs, index funds, or a small side gig for extra income while you build your portfolio. The key is to make your money work harder than you do.

WOW Step 6: Make Work Optional

When your passive income equals or exceeds your Freedom Number, you’ve reached the point where work becomes optional.

This doesn’t mean you stop working—it means you gain control of your time. You can reduce clinical days, drop insurance plans, or spend more time on recreational activities and family. You might even start a passion project or part-time work that excites you instead of drains you.

During this phase, meet with a certified financial planner to review your asset allocation, optimize your tax-advantaged retirement accounts, and ensure your nest egg can sustain the first year of retirement and every subsequent year after.

True financial freedom isn’t about never working—it’s about never having to.

WOW Step 7: Leave a Legacy

Once you’ve reached FI, the final step is building something that lasts. Protect your wealth through smart estate planning, trusts, and insurance. This ensures your assets—your home, rental property, and investments—are passed on efficiently.

Teach your children how to handle personal finances. Show them how saving in a savings account or investing in index funds compounds over a long period of time. Let them see how discipline and hard work lead to financial success.

Leaving a legacy isn’t just about money; it’s about modeling the habits and mindset that built it.

The FI Journey in Real Life

When I started my FI journey, I thought the stock market would be the answer. I invested in index funds and traditional retirement savings accounts. But I soon realized I was still relying on my day job to fund everything.

That’s when I discovered real estate—specifically, passive syndications that created consistent income and long-term appreciation. It became the bridge between saving and freedom.

If you want to learn how to use real estate to speed up your FI journey, join my Passive Investors Circle to see how hands-off investments can replace active income.

Final Thoughts

Learning how to FI isn’t about chasing early retirement; it’s about creating options.

By following the 7 WOW Steps, you’ll build a solid foundation for financial stability, reduce high-interest debt, and create enough money to live life on your own terms. Whether your goal is to work less, spend more time with family, or travel freely, these steps give you the roadmap to get there.

The next step is up to you. Start by knowing your numbers, building your emergency fund, and investing in assets that create freedom. Over time, the momentum grows—just like it did for me.

Work optional wealth isn’t a dream. It’s a decision.

Want to learn more about my favorite passive income investment? Watch this video: