Money Matters Issue #45

Matthew 13:12 reads "Whoever has will be given more and they will have an abundance. Whoever does not have, even that which they have will be taken from them". The Finance Act 2024 will come to pass, we are told, with or without public participation. These are interesting times for me and my followers. If you are keen you will note that I work with outlier dentists. Some are wealthy, some are rich and some are wannabes. Ambition never hurt anyone. Indeed we may just get better services because an ambitious dentist took time out to upskill.

This week one of my clients who is a Dollar millionaire with a high interest Fixed Deposit Account remarked that his bank has warned him that they are going to soon reduce the interest on his FDR but were offering him a low(er) interest loan using his FDR as security!! Easy pickings for them but he is not biting. However this article is not about Banks. It is about every dentist/human being growing a savings and investment portfolio. Let us say you are in your thirties by the time you get into private practice. After your start up costs which will take about KES 5M and a teething phase of upto 3 years you may get round to thinking about retirement plans. I posit that you need to think about an exit strategy from the get-go. A modest pension fund to aim at is about KES 50M. In your old age you need to be liquid. Ask me about it? Your health care needs go into overdrive and you may even need a dental implant or two!

How do you start? Leverage on compounding; save a little bit every month in a savings plan and an Independent Pension plan, not forgetting to maintain an Emergency Fund and an Opportunity Fund. Tough times demand tough souls. Spend frugally as you practice delayed gratification in this microwave generation.

Happiness is much sought after but things don't make you happy as the story of King Midas taught us. Work on your relationships with your family first and then all the others you serve. The rest of the world can look after themselves because trust me they will not be there in your sunset years.

You are the most important asset in your dental practice. Look after yourself well. Manage risk as you add value to others. Save and invest, growing your portfolio and pension fund. Your family and society will thank you when you have hung up your gloves for the last time.

Offers

1. Join my Aligning for success in the dental industry program for dentists. For more information type in AFS4 after clicking here.

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The views expressed in this newsletter are the opinions of the author. If you found this issue interesting and informative, please do one, two or all of the following: subscribe, comment, like, share, follow and connect with me