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The Millennium Bug |
Protect Yourself from Financial Chaos |
by Tyson Steele |
According to some experts, the new millennium could bring about the greatest economic collapse the world has ever seen. They say that a ticking bomb charged with the Y2K computer bug, the Asian and Russian economic crisis and an over-valued stock market could soon explode.
Here's what some experts say could dramatically impact your practice:
- A world-wide stock market crash
- Massive payment delays by insurance companies
- Brief power outages
- Freezing of bank direct deposit systems
- Failure of patients to pay their bills
- Temporary food and water shortages
Although responses to these warnings range from disbelief to "holing up in Montana with a generator and small arsenal", most experts do expect some temporary inconveniences. Even Social Security district manager Steve Dymale points out that, "while Social Security has led the field regarding Y2K compliance, starting work on the problem back in 1989, some small banks may not be properly prepared to handle direct deposits to people's accounts."
Y2K and Your Practice
Even if the consequences of the Y2K bug turn out to be relatively moderate, they could have a pronounced effect on your practice. Those of you caught in this year's snow storms know that even temporary practice closures can erase a whole month's profit. And media reports of Y2K stock market "crashes" could easily lead to canceled treatment and delayed patient payments.
Besides, even if Y2K has no effect at all, some insurance companies will use any excuse to pay you late. Why not Y2K?
Of course, you can't be certain that financial chaos is just around the corner, but you can prepare wisely for any potential adversity. By reinforcing your financial defense now, you can shrug off financial worries later.
The Great Depression: A Survival Guide for Financial Chaos
In 1937, at the height of the Great Depression, America was ravaged by economic chaos. Bankruptcy, starvation, even suicide became commonplace. In this atmosphere, one of the greatest financial books of this century was written.
Based on written financial strategies dating back nearly 3000 years, George S. Clason's "Gold Ahead" provided great insight for those who desired to create wealth in a period of economic adversity. Clason postulated that although financial markets may rise and fall, the key to financial success remains a constant.
In fact, the following principles, based on Clason's research, will help you handle future financial worries with ease -- whether from the Y2K bug or any other adversity.
- Act Now
A long journey starts with a single step. Yet, many of us fail to take that first step, preferring to daydream of our future prosperity rather than take action today.
Knowledge of these strategies is not enough. If you are to effectively handle economic adversity in any form, you must take small steps daily, starting now.
- Eliminate Consumer Debt
Make no mistake, those with a high amount of consumer debt will be most deeply affected during any economic downturn. Dentistry is the fourth most profitable profession in the United States. And yet, few dentists could go three months without income from their practice. Often, this is due to the high amount of consumer debt dentists carry.
Imagine for a moment that you had no consumer debt -- no credit cards, car payments, house payments, nothing. Could you handle a short term drop in practice profits? Could you weather almost any economic adversity?
Although you may not be able to eliminate a lot of debt before the end of the year, you should avoid adding any consumer debt whatsoever in 1999. Also, look into consolidating debt, selling assets to pay off debt (boats, jet skis, cars, etc.), or any other ways you might reduce your debt burden this year.
- Start a "Rainy Day Fund"
Each time you take a draw, distribution or salary check from your practice this year, immediately write yourself a check for one-tenth of that deposit. Place the money in a standard savings account and let it build. This will be your "rainy day fund."
Do not pay anyone else until you have funded your rainy day fund. Your lifestyle will adjust automatically, and you will soon live comfortably on the remaining 90% of your normal earnings.
By the end of the year, you should have at least one month's earnings in your fund. If you're frugal, this should sustain you through any short term crisis.
- Beware of Get Rich Quick Schemes
Thanks to the current uncertainty about the future, dentists are being bombarded by many "get rich quick" schemes. If you read your junk mail, you'll find outrageous claims that you can "make millions this year" in the stock market, real estate, and your dental practice.
Don't be fooled by these con artists. The fast track to wealth is littered with the bodies of their victims -- people who thought there had to be an easier way, people who handed their hard-earned money over for a "secret" that isn't worth the paper it's printed on. Remember, if it sounds to good to be true, it often is!
Weathering the financial storms of life requires more than a bottle of the latest snake oil cure. It takes a working knowledge of the fundamental keys to financial prosperity -- no secrets, no miracles, just time-honored fundamentals.
- Increase Your Practice Profit
Although no miracle cures exist, diligent efforts to consistently increase practice profit will pay off, providing you with an important financial cushion. Set reasonable goals, such as increasing profits ten percent, and establish a plan of action.
Your Best Defense Against Financial Chaos
Although no one can be certain what will happen on January 1, 2000, you never know when financial chaos might strike. By heeding the financial principles presented by George S. Clason during the Great Depression, you can protect your family from any adversity.
So, start now. And remember, your destiny is shaped not by knowledge, but by action. |
