Is Interest Working for You or Against You? Financial Tip by Financial Freedom for Dentists - Reprinted July/August 2024 LCDS & SWDS Newsletter

Is Interest Working for You or Against You?

Financial Tip Provided by Financial Freedom for Dentists

Compound interest can be a key for dentists to generate long-term wealth, however, it can also be a hindrance to wealth generation when you take on large amounts of debt early in your career. Here are 5 ways to minimize the impact of interest on your debt:

1. Obtain a fixed rate. This eliminates the risk of rates continuing to rise.

2. Compare your Annual Percentage Rate (APR) and rate of compounding. This is how you can compare what you will be charged in interest rather than just looking at the simple rate.

3. Shorten loan terms. This will directly save money on interest, but payments may be higher.

4. Increase your payments. By making extra payments you will directly save on interest.

5. Pay with cash whenever possible. For example, buy cars with cash and carry credit card balances.

Read more about this and other strategies at www. financialfreedomfordentists.com/insights Advisory services are offered through Financial Freedom for Dentists, LLC, an SEC Investment Advisor. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services where legally permitted.

All content is for information purposes only.