The Influence of Debt and Income on Future Optometric Practice

[Samuel Spoto, O.D.]

You can view the page at http://www.odwire.org/forum/content/...etric-Practice

[Michael I. Davis]

Welcome back Sam. Who poked you with a stick and woke you up?

[AdminWolf]

Welcome back Sam. Who poked you with a stick and woke you up?

Hi Michael,
I'm reposting the articles to a dedicated article section, starting with the oldest first. That's why the thread came up

(though i will note looking at his profile that he has logged in recently! Just not posting i guess)

Adam

[Mike Sandy]

As an example, let us assume you have a $1000 monthly payment on a student loan. You will need to take in between $3000-$4000 per month in extra business, plus an additional amount to pay for the taxes you owe on that extra business, just to have enough net dollars to make that payment.
This amount of extra business will be needed every month, for as many years as you are carrying that loan. As you can imagine, carrying a debt that lingers effectively reduces your disposable income, as though you have a continual financial drain on your assets.

If you’re practicing in a commercial setting with a 95% net, you can easily see that the dollars you earn can go a lot further in reducing your debt. Practically every dollar coming in goes straight to the bottom line, as net income. Even after you pay taxes on your income, you will have a lot left over to use toward your personal financial obligations.

And really that's the bottom line driving commercial practice.