Financial Survival During Residency by Kristen Math
When my husband started residency, the last thing on our minds was balancing our checkbooks. With the stress of q3 call looming over our heads and the challenges of being parents to small children, we embraced the attitude “we will get by”. Of course, it’s true that we all find a way to navigate the financial challenges that arise during residency and fellowship. With the cost of interviewing, moving and medical board exams and state license fees that approach $1000, just getting by can be tough, particularly if you are counting on just one salary.
I feel almost hypocritical offering advice on keeping your head afloat financially. This article should probably be titled “Do as I say, not as we did!” or “Learn from our financial mistakes”. Be it as it may, here are some financial survival suggestions from a family who has been there….and made a lot of mistakes:
1. Resist the many credit card offers that you will get during training. While it is true that your salary will eventually increase once you are out of training, the interest rates can be very high. In addition, when you are spending money that you don’t already have, it seems to spend itself more quickly! Consider the interest rates and budget instead for what you want or need. Choose one card and lobby for you credit limit and interest rate on that card.
2. If you are really struggling because your debt load is high, consider a physician consolidation loan. Many banks offer loans that can be deferred until training is finished. SunTrust Physician Loans will let you pay interest only until you are one year post-training. If you use the consolidation loan to pay off high interest credit cards, be sure and cancel the credit card accounts. Old habits die hard!
3. Cut back on the unnecessary expenses. Drive one car and wait until training is over to buy new furniture. Visit quality second-hand stores to find children’s clothing, and furniture. Avoid making large purchases and putting them on credit cards!
4. Reward yourself. You work hard and that needs to be recognized! Set aside the pennies and splurge occasionally. This might mean saving up for a weekend getaway without the kids, a night out on the town, or that CD that you’ve been wanting. If you don’t reward yourself for your hard work, you may end up feeling frustrated and resentful.
Managing your finances during residency will have its challenges. Keep in mind that residency is temporary. If you make wise financial decisions during training, you will begin life after training with less debt.
