Hi everyone, I'm new here! I am a rising second-year medical student who recently discovered WCI, among other finance sites, and am trying to slowly build my own financial literacy. I wanted to present my current financial situation and ask about what good next steps for me would be during medical school, once I enter residency, and after I finish residency.
I was fortunate enough to enter medical school with no undergraduate or other debt thanks to my parents, who are also very kindly paying for my living expenses right now. As for tuition, I am borrowing a total of about $80,000 from my parents at no interest, and the rest of my tuition is/will be paid by federal direct unsubsidized loans, with the following distribution:
Right now I am completely dependent on my parents financially. My bank and credit card accounts are all held jointly under my and my mother's name, and because I have never had a job, I have no retirement accounts or other long-term savings or investments. I have a good relationship with my parents, but the lack of independence worries me a little. I realize that I am very lucky to have my parents paying for so much of my education, and I am very grateful for that. However, I don't know if there is anything I should do especially once I become a resident and have to start paying off my debt with my own income.
Is there anything I should do or change right now regarding my financial situation? How can I set myself up for financial independence when I enter residency? When I have a resident's income (or even before?), what should I put money toward first regarding long-term financial planning: emergency fund, loan repayment, retirement, or something else?
I was fortunate enough to enter medical school with no undergraduate or other debt thanks to my parents, who are also very kindly paying for my living expenses right now. As for tuition, I am borrowing a total of about $80,000 from my parents at no interest, and the rest of my tuition is/will be paid by federal direct unsubsidized loans, with the following distribution:
- 2016: $20,000
- 2017: $20,000
- 2018: ~$40,500 (estimated; basically, whatever the maximum amount for direct unsubsidized loans will be)
- 2019: ~$40,500 (again, estimated)
- Estimated total at graduation in 2020: $121,000, not including interest
Right now I am completely dependent on my parents financially. My bank and credit card accounts are all held jointly under my and my mother's name, and because I have never had a job, I have no retirement accounts or other long-term savings or investments. I have a good relationship with my parents, but the lack of independence worries me a little. I realize that I am very lucky to have my parents paying for so much of my education, and I am very grateful for that. However, I don't know if there is anything I should do especially once I become a resident and have to start paying off my debt with my own income.
Is there anything I should do or change right now regarding my financial situation? How can I set myself up for financial independence when I enter residency? When I have a resident's income (or even before?), what should I put money toward first regarding long-term financial planning: emergency fund, loan repayment, retirement, or something else?
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