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Taking out private loans during residency

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  • #16
    Does your residency not provide you food? Our grocery bills were so low back then because I ate 75% of my food on the residency dime.

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    • #17
      Originally posted by Lordosis View Post
      Does your residency not provide you food? Our grocery bills were so low back then because I ate 75% of my food on the residency dime.
      Theres residency in the NE and westcoast that don't provide any food to their residents, blew my mind when i talked to some docs from New York.

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      • #18
        You're spending $72,000 per year, on a resident salary of like $60k before taxes?

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        • #19
          Originally posted by Lordosis View Post
          You almost spend more then we do and we are a family of 6!!!

          I just looked over last year and we only spent 400/month eating out!

          What is shopping? Do less of it!!

          Can you decrease car costs?

          You are not rich yet! Live like a resident!!!
          If they think that's living like a resident, maybe they need to live like a medical student lol

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          • #20
            Originally posted by BrownsFan2021 View Post


            Thanks! I've been using the app PocketGuard to track our expenses over the past few months. Here is a breakdown of this past month:
            • Rent: $1,400
            • Health/Medical (advance payments for pregnancy/delivery costs): $600
            • Eating out: $612
            • Groceries: $610
            • Shopping: $567
            • Bills (phone, private loan repayments, credit card charges): $540
            • Automobile (car loan, gas, repairs): $513
            • Entertainment: $259
            • Electronics/software (netflix, youtube monthly fee, apple tv charges): $191
            • Gifts/donations: $180
            • Insurance (life, disability): $143
            • Pets: $80
            Altogether, this was around $5,700. My wife and I typically spend between $5,500-6,000/month total so this was about average. Any idea where we can cut out extra expenses?

            Thank you all so much
            I'm not really one to criticize as I spend with wild abandon and don't even really budget anymore other than to track cash flow. But we've been in every tax bracket during our lives (in fact, during our attending lives) so I do have some useful experience even if it was long ago. Here's what I'd be looking closely at:

            Rent (is it really as good as it gets? There might be $200 a month here without much change in standard of living).
            Eating out (Stop it. Bad habit. This is a luxury. You're renting out a restaurant with its dining room, kitchen, cooks, and waitstaff. Eating out isn't for food, it's for celebrations.)
            Shopping (I don't even know what this is. If it is shampoo and vacuum cleaners fine. If it is retail therapy then knock it off.)
            Credit card charges? (Again, if this is just how you buy shampoo, fine. But if you're paying interest on credit cards, there's a real issue here. )
            Car loan (Can you sell the car and buy something cheaper that won't require a car payment? The cost of reliable transportation has gone up recently, but you can still get it for $7K)
            Entertainment (Find cheaper stuff to do)
            Subscriptions ($191! Are you insane!? Seriously, cancel all three and get to know your local library and redbox.)
            Gifts/donations: (Giving to charity has always been important to me so I can't really criticize here. But if it isn't important to you, there's $180 a month)
            Pets: (If you have a pet you have different feelings on pets than I do, but getting rid of the pet will not only save you $80 a month, but may also decrease your rent. Something to think about.)

            Heck, if you just cut all of that stuff (besides rent) in half you'll save over $1,000 a month. Go read some of the FIRE blogs written by non-docs and you'll get some more ideas and encouragement. This post might help too:

            https://www.mrmoneymustache.com/2012...-an-emergency/
            Helping those who wear the white coat get a fair shake on Wall Street since 2011

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            • #21
              Props to even knowing what you’re spending. Most in your shoes don’t even know this.

              I’d recommend sitting down with your partner with a glass of wine to discuss where to cut spending, with the understanding that this is an exercise that will lead to future wealth. You don’t need to give or save right now- you just need to be able to live on what you make. Getting a private loan so you can pay for YouTube tv seems silly.

              There are plenty of places to tweak in this budget (eating out, entertainment, just picking one subscription service instead of three). If you can learn to live on what you make now, become wealthy on an attending salary will be easy! Getting your partner on the same page is key.

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              • #22
                Oof, I was thinking about posting my budget but I better not… lol

                definitely tougher to live like a resident with a family and single income but I think you should be able to do it. I probably wouldn’t worry about saving for retirement and just avoid more loans.

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                • #23
                  Originally posted by BrownsFan2021 View Post


                  Thanks! I've been using the app PocketGuard to track our expenses over the past few months. Here is a breakdown of this past month:
                  • Rent: $1,400
                  • Health/Medical (advance payments for pregnancy/delivery costs): $600
                  • Eating out: $612
                  • Groceries: $610
                  • Shopping: $567
                  • Bills (phone, private loan repayments, credit card charges): $540
                  • Automobile (car loan, gas, repairs): $513
                  • Entertainment: $259
                  • Electronics/software (netflix, youtube monthly fee, apple tv charges): $191
                  • Gifts/donations: $180
                  • Insurance (life, disability): $143
                  • Pets: $80
                  Altogether, this was around $5,700. My wife and I typically spend between $5,500-6,000/month total so this was about average. Any idea where we can cut out extra expenses?

                  Thank you all so much
                  I'm glad to hear you are tracking expenses, that is a great place to start! But now you need a budget. And one you can stick to! So you look at what you have been spending and think about your values and priorities. Are you spending most on the things you value or are you wasting money on things you don't really care about? And you have to be practical too: what is your current and future income? If you don't actually bring in 5.5-6.5k/ month it doesn't matter how much you value certain things, you have to make cuts everywhere. So it's a little hard to make suggestions without more information. But the big things have been mentioned- eating out needs to be significantly reduced. It's not really fun with an infant and if you're doing it out of convenience, you and your partner need to come up with a list of frozen meals you like or things that don't take long to make- sandwiches, breakfast for dinner, crockpot meals, etc so you can grab and go or make even when tired/busy.
                  For subscriptions, pick one/month and rotate.
                  Shopping should probably be tracked more closely and cut down on.
                  Cell phone could be switched to mint mobile or something similar.
                  You also only account for about 5k in your list of spending but said you are spending another 0.5-1k more/month. So you need to account for where money is leaking out if you want to plug the hole in the budget.
                  I think this is your first child, is your partner currently working/will they work post delivery? And how will that all impact household income and budget?

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