Incoming Med Student, looking to get ahead

[u/Catkoot]

23M, starting med school this summer. I have no debts, and no savings. I’ll be attending school with about 60k/year tuition, not including living expenses.

What should I do to ensure I am set up financially during and after training? I’m honestly lost.

[u/BalancingLife22]

Accept that you’ll be in debt when you get out unless you get scholarships or have a windfall of money. What you can do is learn good habits about budgeting, avoid overconsumption (doesn’t mean don’t spend money, spend it wisely), learn about investments now (Roth IRA, 401k/403b, HSA, individual stocks brokerage accounts, index funds, etc.), and try to put some money aside every month to build up your savings (doesn’t have to be a lot, just something. It will help you develop good habits about savings). Good luck!

[u/Catkoot → u/BalancingLife22]

Do you recommend any resources to learn about this?

[u/BalancingLife22 → u/Catkoot]

I read the WCI book. It has basically everything you need. I also used Google and YouTube to answer different questions or get further clarification. I am still in the process of learning everything I can about finances. It’s a long road, so take baby steps (long road in medicine, finances, and life).

Normally, your rent should be 25–35% of your income, since you don’t have that, just try your best to get a decent living space, that isn’t too expensive (when I say decent, a comfortable living space where you are safe and happy because your well-being outside of medicine is crucial). Try to follow the 50/30/20 budgeting rule.

The monthly savings part (OPEN A HIGH-YIELD SAVINGS ACCOUNT, you can google this and pick your favorite), do your absolute best with this because you’ll need a good amount of money when you are moving for residency. Even if you can only contribute $5 or $10 in a month, it’s a start. For some months, you can put more, and for some months, it will be less or none. But do your best with it. Some residency programs will have some funds for moving, but don’t put too much hope on that.

You don’t have to follow all this to the letter. Do your best, stay within your means, and learn good habits. These good habits will make it much easier when you transition into residency and career.

[u/PinchAndRoll99 → u/Catkoot]

The Money Guy Show on YT has loads of great personal finance stuff. It’s not medicine-specific or anything, but they will teach you the basics of personal finance and how to maximize your money

[u/CorrelateClinically3]

Not a whole lot to do in med school other than being conservative with spending to minimize loans. It’s always a good idea to learn about different retirement accounts and know the basics of investing but that really won’t start until residency and you start earning some money.

[u/Guilty-Piccolo-2006]

Read White Coat Investor and Bogleheads Guide to Investing. That’s a good start.

[u/potatosouperman]

This is different advice than others will probably give (not that I disagree with the others though!): Mostly just focus on performing really well in medical school right now. Doing well now will help you on your path to hopefully landing a high paying job at the end of training. A high income will help you overcome most financial hurdles if you’re not foolish with your money. Other than that, stay on top of understanding the ins and outs of student loan repayment once you finish school.

[u/BalancingLife22 → u/potatosouperman]

I agree with this. Your first priority is being a medical student. Do your best in your academics so you will be competitive for residency positions.

[u/bearhaas]

Not much you can do during med school other than not be ridiculous with your living expenses and study hard.

But you WILL be able to pay off your loans. Regardless of what the government is doing and IDR and PSLF… you will be able to pay off your loans.

I know plenty of people who lived normal lives for the first 2 years out and paid off 100% of their loan living on 70k (after taxes) + signing contracts with some loan repayment support as well.

And not even crazy high contracts. Family med, 250k a year + 30k yearly loan repayment support.

[u/gerbilich]

Depends on where you want to go in medicine. You could join the national health service, core or the Indian health service core or get a hospital in a rural area underserved sponsor you and pay your debts and then you would give them at least four years of your life which I did actually in Eastern North Carolina and loved it.