Periodontists face financial challenges from school to practice, but having an understanding of personal finances and ways to improve or invest in yourself can make all the difference. In this article, we share how these financial challenges may affect you as a periodontist, what you can expect in a salary, and what you should know when considering practice ownership. 

Financial Challenges for Periodontists

How does a periodontist’s career path affect their personal finances?

Your training as a periodontist requires a significant commitment, both time and money. The average dental student graduates with $292,169 in student loan debt, according to the Education Data Initiative. 83% of all dental students (both general and specialty) graduate with student loan debt. 

As you probably know that unlike medical residencies, many dental specialty residencies charge tuition. Some charge as much as $70,000-$80,000. Periodontal residents may receive a stipend but usually not enough to offset the tuition and costs of living. 

Between steep student loans and lack of pay during residency, you may face significant financial setbacks early in your career…but all is not lost! 

Budgeting tips for periodontists

In every career stage, financial stress can negatively impact your schooling or patient care. But creating a budget can give you greater control of your spending and greater confidence in your long-term financial goals and help you overcome the challenges faced while in training.

We have a guide to budgeting you can check out here, but here are some simple tips to help you get started:

• Pick a budgeting tool. Tools like Mint, You Need a Budget, Tiller Money, or Money Patrol can make budgeting simpler by syncing to your bank and other accounts. 
• Compare income to expenses. Seeing your monthly income vs. expenses can be extremely beneficial. If you have more expenses than income, you will want to assess what areas you can cut back on.
• Automate your payments and savings. While seeing patients, the last thing you want to worry about is paying your bills. Automating your payments prevents you from forgetting to pay your electricity, rent or other bills. Automating your savings helps you make good habits without significant effort.

Salary

What is the average salary of a periodontist?

As we mentioned, the costs are high to become a periodontist, but once you do, the pay is good! According to ZipRecruiter, the national average salary for a periodontist is $245,809. This is significantly more than the average salary of general dentists, $173,117.

What are the highest paying states for periodontists?

There are 11 states that pay above the national average salary for periodontists. Here are the top five (but realize a lot of the pay difference here is due to the high cost of living in these states): 

• Hawaii $280,031
• Nevada $275,615
• Massachusetts $274,245
• Rhode Island $268,713
• Oregon $266,752

What are the lowest paying states for periodontists?

There are 39 states that pay below the national average salary for periodontists. Here are the bottom five:

• Louisiana $174,361
• Georgia $174,365
• Florida $188,540
• Mississippi $191,732
• North Carolina $193,034

Practice Ownership

Should I become a periodontal practice owner?

Whether early in your career or a tenured periodontist, practice ownership could be a great next step in your career journey, but it all depends on your goals. We created a full article detailing the current benefits of and trends in dental practice ownership, which you can find here, but here are some highlights we think you should know.

Practice ownership can be financially lucrative! According to DentalPost, across all years of experience, owners in dental practices average $100,000 more a year and are more likely to receive pay increases than associate or employed dentists. Additionally, owners have significantly more job stability than associates, with most owners staying at their current practice for more than 15 years.

Especially early in a dentist’s career, it can be intimidating to pursue practice ownership and take on even more debt, but becoming an owner can actually be extremely beneficial financially. Practice ownership can allow an individual to accumulate equity and increased earnings while paying off their loans.

How do I finance becoming a practice owner with significant student loan debt?

Having hundreds of thousands of debt can cause difficulty when pursuing practice ownership. Many lenders do not look favorably on a high debt load, even though student loan debt and the prospective additional debt will likely allow you to make more money and may allow you to pay off your debts sooner.

Working with a lender who understands the unique needs of periodontists and other healthcare professionals means you won’t be met with an automatic “no” based on numbers alone. If you are considering practice ownership and want to speak with a bank that understands your needs, Panacea Financial can help you. Visit our Panacea Practice Solutions page to learn more.

Before you go…

Periodontology is a complex career from the career path to the procedures, and financial challenges and lack of planning can make it even more difficult. Don’t let your finances hold you back from achieving your goals and being financially healthy.

We at Panacea are here to help. If you need to get on the right track, we can connect you with financial advisors to assess your debt, income, investments and more to determine how you can improve. Visit our Build Your Team page to get connected to trusted professionals for free.

To find other article to assist you on your financial journey, visit our Resources page or check out the curated list below: 

• Finding a Practice Lender & Bank: Choosing Wisely Today for Your Practice Tomorrow
• A Doctor’s Guide to Building an Emergency Fund
• Pros and Cons: Starting a Dental Practice vs. Buying an Existing Practice
• Owner vs. Associate: What to Know When Considering Dental Practice Ownership