New dentists should start saving now for these 5 things

By | November 16, 2016

Editor’s note: This is the eighth article in a fall financial series of New Dentist Now blog posts from Darien Rowayton Bank, which provides student loan refinancing and is endorsed by the American Dental Association. Qualifying ADA members receive a 0.25 percent rate reduction to DRB’s already low rates for the life of the loan as long as they remain ADA members. View rates, terms and conditions and disclosures at


DRBAfter so many years of training, it’s such a thrill to start making a steady paycheck. Especially when you’re just launching your dental career, there’s a temptation to spend any money that’s not going toward paying bills or knocking down your student-loan debt. You deserve to enjoy yourself, but it’s also important to save money for when certain life events happen. Even small amounts add up quickly and can make a big difference.

Here are five things to start saving for now:

Emergency fund

This is your nugget for unexpected costs—medical expenses, home or car repairs, unforeseen moves or career changes. These are the things most people never plan for but are inevitably faced with at some point. You’ll save yourself a lot of up-at-night anxiety if you have some savings in place. The target amount for your emergency fund will vary based on the size of your family and other factors, but a good rule of thumb is to have three to six months of expenses saved at all times.


At the beginning of your career, it can be hard to wrap your mind around the idea of saving for retirement. But the sooner you start portioning some of your paycheck toward retirement, the less stressed you’ll be down the road. Prioritizing retirement savings early is especially important because of the compound-interest effects of many retirement investments. Whatever you put away now can grow significantly over time. Most experts estimate that you should put about 15 percent of your income toward retirement, but you can use a retirement calculator to determine what’s right for you.

Home down payment

Even if you’re not quite ready to be a homeowner, start saving now. Having a sizeable down payment not only helps prevent a last-minute scramble to stockpile money for a home, but it also puts you in a better negotiating position for a mortgage. It can help with getting a better interest rate and avoiding expensive private mortgage insurance. Most lenders want to see at least 20 percent down to approve you for a mortgage, so based on home prices in your area, you can determine a down payment savings goal.


You work hard. You deserve a vacation sometimes. But leaving town, especially when it’s for an international trip, can get pricey. If you don’t set aside a vacation fund, it can be difficult to ever feel justified in spending a few thousand dollars on leisure time. The cost of a vacation varies depending on the size of your family and your travel ambitions. Spend some time thinking about your vacation goals, then figure out how much you need to save each month to reach your destination.

Kids’ college

As you know all too well having recently finished dental school, the cost of higher education is astronomical—and increasing every year. If you have children or plan to have them, it’s never too soon to start a college fund on their behalf. With college costing what it does, it’s becoming increasingly prohibitive for parents to pay for all of it, but whatever you can tuck away for your kids will be helpful in decreasing their student-loan debt.

There are many things worth saving for in addition to the ones mentioned here. The bottom line is that saving money is important—it brings peace of mind and expands your options in the future. So, decide on your priorities, create savings goals, and start stashing away!


About DRB

DRB (Darien Rowayton Bank) is a national bank, marketplace lender, and the fastest lender in industry history to reach $1 billion in student loan refinancings. FDIC insured and established in 2006, DRB Student Loan has helped thousands of professionals with graduate and undergraduate degrees across the country to refinance and consolidate federal and private student loans, saving these borrowers thousands of dollars each.

DRB’s student loan refinancing program has been endorsed by the ADA. For more information about the student loan refinancing program, visit

11 thoughts on “New dentists should start saving now for these 5 things

  1. A Travis

    One big ticket is the cost of education, that looms over many students and practitioners for years to pay off. Educating students about applying for grants, scholarships and the expanding realm of Private scholarships can provide a big relief. Financial aid offices really need to help do a better job here.

  2. Dr Christie Martinez

    I am a new dentist in the house and also a better practice to assist you prepare for retirement. Many dentists are dependent on the sale of their practice to fund their retirement. Having some investments and revenue outside of your practice can provide you more flexibility when retirement comes around.t in the house.

  3. Dental Clinic

    Nice Blog. Buying or Renting mobile dental clinic is the best way for the people who even not able to apply this tips for their dental practice.

  4. Den Joseph

    Thanks for the tips, I want to add one more point in making dentistry more reliable and profitable. In my opinion in-house patient financing is also a good way to earn steady income because everyone can’t afford to go with dental insurance or care credit. Dentist can save more money by charging interest of his own, patient can save more on treatment by cutting out the middle man.

  5. Diana

    Saving money is a key to success, but it takes consistent discipline. The temptation of spending money can be reduced by automatically transferring your paycheck into your savings account rather than a checking account. This will enable you to meet your living expenses out of a planned allowance, rather than just having all your income available to spend. You may not think you have the money to spare for savings, but if you start by saving most of your next pay raise, you can save money without impacting your lifestyle. This kind of simple habit, applied consistently, can add up to significant savings.


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