Do you live within your means?

I figure this is the only place that I can discuss this issue without looking strange to our friends who aren't in the medical field. Do you live within your means during residency? We don't and I sometimes feel guilty about that. We certainly don't run out and buy H2s or install fireplaces or anything. . .but we do eat out more often than we should, we (or I should say "I") buy clothes for myself and the baby (at BabyGap even. . .when I "should" be shopping at WalMart), we buy things for the baby, etc, etc. When if you look realistically at our budget, we are in the red every single month. We are doing all of this on our credit cards and I think the only reason we are doing it is because we know that after this year, we'll have more money and we can pay them off quickly. But does this make it OK? I'm puzzled about this and am wondering if we are the only ones guilty of living the lifestyle we wish we had right now.

[samssugarmomma]

We live within our means for the most part (thanks to our financial planner) but every now and then we get on a roll and blow our budget. But, we quickly pay off our shopping binges within one or two months. We figure that I work hard and DH studies hard, so we deserve to live large every now and then. 8 )

[SueC]

I try, but no, we do not live within our means! We got a new automobile in September (dh freaked out about baby #3 and bought a bigger vehicle) and we are still waiting for his moonlighting to get set up so we can pay for the damn thing! And we eat out too much. I mostly try to stick to a budget and now that my business is doing better, I've been able to pay the bills for about 2 months in a row, but Christmas will go on the credit cards this year since I didn't plan ahead and there just isn't money left over in the bank. I cut back where I can, like ironing my husbands shirts instead of sending them to the dry cleaners, I buy store brand almost everything, and I buy most of the girls clothes at Target, but we still sometimes have trouble depriving ourselves of things we really want. I know we are thinking that it won't matter because we'll be making the big bucks in 1.5 years, but I know plenty of the other spouses here that are out of training have said they still struggle financially after residency or fellowship is over.

Yes and no....on a month to month basis, we stay on our monthly budget. But any big expense is more than we can absorb. For example, when the residency interviews were on our credit cards for a while (since it was the second residency and done during intern year we couldn't take out loans). We sort of smooth everything out with my income and stash away what we can. Working as a consultant means that my income is not predictible. Some months it's great but I can go for a few months without bringing anything in.

I have a baby gap addiction too. And gymboree. But I can stop anytime I want.

[migirl]

We actually do live within our means, but that is primarily due to two factors: 1) we do not have any children (yet), and 2) we are both freaks when it comes to our finances. I refuse to pay interest on credit cards (it just seems like a huge waste of money to me) so they get paid off every month, so that alone is incentive for us to keep our expenses down. The only debt we owe is our mortgage and DH's medical school loans, and we don't really indulge in expensive 'stuff' or extravagant vacations. Once we start having children, though, that becomes another story. I really don't know how all of you with children do it; we have just enough money right now for us to live comfortably and save a little bit. I've been half-heartedly trying to figure out a new budget for us that includes a little one, but it's difficult.

[Michele]

We're in the same position as Jane. We live within our means....if you count loans. We have student loans that we are both taking out and we have a mortgage, but no credit card debt. We have extra left over each semester that we use to either splurge with or to invest...this year we're going to invest....we could take out less....but we figure with the low interest on the student loans we should make 3x back to pay it back later. Russ is big on investing and planning...sometimes I think he should've gone into financial advising instead of medicine!!

[DCJenn]

We pretty much live within our means.

Our first priority is to make our contributions to our retirement plans each month. We also have a Roth IRA and I make our annual contribution to from Rick's October bonus.

We use credit cards but try very hard to pay them off each month. I have one from American Airlines that I pay off oevery month so that I can use it again the following month (gotta get those miles to go to Russia after all!)

We eat out once a week or so, but I'm not home that much during the week. We try to have meals together because 1) they're less expensive than eating out and 2) it's an oportunity to spend time together at home.

I joined a gym but Rick has access to the gyms at the hospital.

We also have an automatic weekly deduction to our savings account from the checking account which make it easy.

Once we bring home this baby from Russia, I will stop working (my contract is up in two years anyway) so we're trying to get everything paid off and really increase the savings account. My car still hasn't sold so we're going to take it to CarMax this weekend and take the loss on it- it's still better than making monthly car payments and paying for car insurance for three cars!

I lived off credit cards once in my life and that's the last big thing we're working on paying off. I would really NOT recommend that lifestyle- I am paying for things that I bought 15 years ago. It's just annoying. I am paying $1500 a month on ONE card just to knock it down quickly. I can think of about 1500 things I'd rather be doing with that money, I can tell you.

Jenn

[houseelf]

Um, yes and no.

At the end of this month, we will be credit card debt free. We pay $900 a month in student loans which seriously impairs our savings, but we are not going into further debt. We have small IRAs, a small 529, and small life insurance policy. I feel like the most accurate description would be to say that we are "treading water" more than getting behind or getting ahead. If anything major happened, we'd have the weinie.

Kelly

[Auspicious]

If anything major happened, we'd have the weinie.

Is this an expression?? I've never heard it before.

[houseelf]

We've had the weinie? It might be a midwestern-ism. My parents used to say this when I was little and I assumed it was common parlance. I think that it is a semi-inoffensive way to say something more vulgar.

Kelly

[Auspicious]

I'm from the midwest!

[Auspicious]

Oh! Like "we'd be screwed." I get it. Sorry, I'm slow.

[SueC]

Don't feel bad Julie--I'm a midwesterner as well and I didn't get it either! Maybe I can work that phrase into my vocabulary!!!