Dental Financial Planning: Turning Chaos into Financial Freedom - Part 3

Dental Financial Planning: Turning Chaos into Financial Freedom - Part 3

2/5/2026 5:13:16 AM   |   Comments: 0   |   Views: 51

Turning Chaos into Financial Freedom - Part 3


View More Episodes: https://podcasts.apple.com/us/podcast/the-dental-boardroom/id1518344747

Welcome back to The Dental Board Room Podcast! In this episode, we continue our multi-part series on financial planning for dental practice owners. Phase 1 covered building the right financial team. Now in Phase 2, we shift the focus from the business to you personally — developing a Personal Plan for Financial Independence.

In today's episode, we deep dive into Step 2 of Phase 2:
Creating a Personal Spending Plan – or how to design a smart, sustainable approach to how you use your money today.
You’ll learn how to separate your business cash flow into short-term personal spending and long-term savings, why most dentists mistakenly reverse this process, and how you can proactively plan for both your current lifestyle and your financial future.

Key Points:
1. Phase 1 was about constructing your financial team.
2. Phase 2 is focused on your personal financial independence, not the business side (which comes in Phase 3).
3. Step 1 of Phase 2: Create a long-term financial plan (covered in the previous episode).
4. Step 2: Complete a Personal Spending Plan to manage today's spending.
5. There are two main outflows from your business checking account:
 ? Personal spending today (checking account)
 ? Future savings (investment or savings accounts)
6. Dentists often save what’s left after spending — but this should be reversed. Prioritize savings and plan spending based on what remains.
7. Understand your business cash flow:
 ? Collections ? Minus Overhead = Profit
 ? From Profit, subtract Debt, Taxes, and 401(k) contributions
 ? What's left is your take-home amount
8. Owners (S Corp) take money out either via W2 (payroll) or owner draws/distributions.
9. Importance of separating operating costs from debt payments and understanding the tax implications of draws vs. dividends.

Want more podcasts from The Dental Boardroom? - https://podcasts.apple.com/us/podcast/the-dental-boardroom/id1518344747
Want more podcasts from The Dental Sales? - https://podcasts.apple.com/us/podcast/the-dental-practice-sale/id1677648235

Discover Your Complete Financial Team: https://practicecfo.com/
Discover The Best Marketplace to Buy or Sell a Dental Practice: https://practiceorbit.com/

PracticeOrbit:
Facebook - https://www.facebook.com/profile.php?id=61559125754834
LinkedIn - https://www.linkedin.com/company/practiceorbit/

PracticeCFO:
Facebook - https://www.facebook.com/PracticeCFO
LinkedIn - https://www.linkedin.com/company/practicecfo

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