I was arrested once. Yes, I’m not to proud to say it. Although it was many years ago, I still remember the embarrassment of having the officer snap handcuffs on my wrists. Being handcuffed creates a real immediate problem and leaves a lasting impression. Handcuffs take away freedom, and freedom is the key to becoming who and what you want to be.
Debt is a lot like handcuffs that limit you from taking opportunities when they arise, opportunities that directly impact what your career in optometry will look like.
Debt handcuffs you in these three areas:
- Buying an optometry practice – Many graduating optometrists want to buy a practice or be part of owning an optometry practice, but many are handcuffed to school loans that require a $3,000 or more monthly payment. With those large regular payments, many don’t feel they can put any extra towards the principal and pay off the loan early. Or, they would rather not live as poor college students while doing so. However, keeping your college loans around for 10 or more years gives you no margin to take advantage of great buying opportunities.
- Investing to generate non-optometry related income – Most everyone dreams of someday being financially independent. If not having the money to retire, at least having the freedom to take time off to raise children or follow a personally fulfilling passion. Leveraging debt could allow this, but usually ends up handcuffing us much longer than we initially calculate. If you do not have debt 10 years out of optometry school, think about having the finances to purchase the building you practice optometry in.
- Growing your optometry business – Whether you are in solo practice or part of a group, there will be a limit to how much you can realistically leverage for practice growth. Individual debt choices directly impact business decisions amongst partners. The partner (or partners) who are debt free may want to move ahead with practice acquisitions or bringing in an associate. Those partners may want to pay cash or acts as their own bankers, while the debt-handcuffed partner cannot get on board due to personal limitations.
Going back to my brush with the law: Fortunately, when we arrived at the police station, I was uncuffed and released. My two buddies, however, did get in trouble for underage drinking. I had been the designated driver so my record was cleared and my father did not kill me. The whole incident serves as a great reminder that during my life I want to keep my freedom.
Debt is unavoidable in getting an optometry degree, but the length of time that you choose to stay in debt is completely under your control. New grads are choosing to pay off loans of $220,000 and more in five to seven years and creating huge opportunities for themselves after debt. If you think this is unrealistic, start talking to those outside your social circle.
