How to budget during medical residency

Residency Program Insider, August 17, 2018

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Budgeting can be a challenge for anyone, and medical residents are no exception. Here’s five tips for easy budgeting during the stressful time of residency:

  1. Know your income. Looking at your salary is not the same as knowing your income. It is essential that you factor in taxes and employer deductions in considering how much money is truly at your disposal.
  2. Have a budget. Create a realistic budget, and make a genuine effort to stick to it each month.
  3. Don’t favor student loans over other debt. It is important to pay off student loans quickly, but the priority should always be on debt with higher interest rates, such as a mortgage or car loans. Always make the minimum payments on your student loans, but don’t forget to build up an emergency fund and pay off higher interest loans.
  4. Be willing to make sacrifices. Would driving a brand new car be nice? Sure. But driving a used model might cut your car payment in half, allowing you to save more money and stay within budget. It’s important to understand that in order to adhere to a budget, you can’t always have your first choice of everything.
  5. Remember your future. Retirement may seem far away, but it’s important to invest in it as soon as possible. Even if you can only tuck away a little bit each paycheck, putting anything into a 403(b) will eventually add up.

Source: AMA Wire

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