Page 116 - The Dental Entrepreneur

The Dental Entrepreneur

In year number 1, you paid 4033.07 in total principle. This amount is added to the asset side of
your financial statement. You paid 11,167,.49 in interest on your loan the first year. The total
amount of the payments was 15,200.56. At the end of year 1, you still owe $245,966.93.

Now lets talk dental collections and see how much dentistry it will take you to make these
payments. There are two equations that you may use to calculate some of the many different
scenarios you will look a.

Collections x True Profit = Your Money

Your Money/True Profit = Collections Needed

To make the $4033 in principal payments will require you to collect:

Principal $4033/ 15% = $26,887 in Collections

To make the $11,167 in interest payments will require you to collect:

Interest ($11,167) / 30% = $37,224.96 in Collections

30% is used here because interest is tax deductible.

So to make your first years total mortgage payments of $15,200 will require $64,112 in
collections.

If your fee for a one surface composite is $150, you will need to do this procedure over 427
times to make those house payments alone. In the first ten years of your loan your net worth
will increase by about $50,000 but it will take nearly $650,000 in dental collections to do it. Do
find this nearly unbelievable. I certainly did when I discovered it. Are you starting to get the
picture of how I used the word “servitude” to describe debt scenarios. It is serious stuff

It is simply unacceptable for you to be financially uneducated your entire life. It can cost you
literally millions of dollars. If you think that mortgage scenarios are bad you would not believe
the financial workings of a credit card and to take top that off, one of the biggest scams I have
ever witnessed are the fees on 401k retirement plans.

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