Tackling Budgeting on a Resident’s Salary, Ep #1 скачать в хорошем качестве

Tackling Budgeting on a Resident’s Salary, Ep #1

Welcome to the first episode of Physician Cents! We’ve designed our podcast specifically for physicians to simplify complex finances and help you navigate your financial journey alongside your medical journey. Our first episodes will cover a lot of the conversations you typically have once you've been matched with your residency. In this episode, we’re going to tackle budgeting, and the steps you’ll need to take to pay off Federal and private student loans. You have a lot of big decisions to make about your financial future as you begin navigating life as a new resident. Let us be the ones to simplify the process for you. You will want to hear this episode if you are interested in... Itemizing expenses that you know are coming [2:24] Budgeting for a resident’s salary [7:57] Start tackling Federal student debt [15:14] Navigating income-driven repayment plans [26:40] Paying down private loans [28:57] Itemize expenses that you know are coming Budgeting, or as we like to call it, “Cashflow management,” is difficult in every stage of life and especially when you’re finishing medical school. You’re likely still living off of loan disbursements. Hopefully, you just got your match. Now that you know where you'll be working, you may know when you’ll get your first paycheck. It could be as late as August 15th. That means you have a gap that you have to fill. You not only have to cover living expenses but likely moving expenses, a down payment on an apartment, and licensing fees. Not an ideal situation, right? You need to have a plan in place. That’s why our #1 rule is to itemize expenses that you know are coming. I tend to place them in three categories: The things that you have to pay for every month (car payment, insurance, subscriptions) The second category covers variable expenses like food, gas, etc. The third category consists of one-time expenses like a moving truck, a deposit on your apartment, etc. What will you need to pay for between now and the end of July? It may be upward of $10,000 just to get from point A to point B. That’s okay—but you need to know. Your program might have preferred providers for some of these moving expenses, especially when it comes to apartments or home rentals. Some properties will give residents a deal on their security deposit. What do you do once you get your first paycheck? We cover some details you may not have thought of in this episode. How to start tackling Federal student debt 87% of graduating medical students have student debt of some kind. It’s not uncommon for a post-match physician starting their intern year to have between $250,000–$500,000 in medical debt. It’s a lot of debt and nothing to be scoffed at. However, in the long run—once you know what we know—you’ll know it isn’t the end of the world. But where do you start? If you’re single and made less than $30,000 or married and made less than $65,000 last year, log in to StudentAid.gov and apply for Federal student loan consolidation to skip the six-month grace period. Why? So you can get public service loan forgiveness (PSLF) payments started as early as August (The only time we wouldn’t recommend this is if you know you won’t qualify for PSLF). Six months of payments when they’re likely at their lowest (versus six months at the end when they’re at their highest) can make a huge difference. You need to file a tax return before applying for PSLF. The form asks you to link to your latest tax return through the IRS. If you didn’t file, they may ask for your pay stub, which would likely increase your payment. What else do you need to consider about filing taxes? What happens once your PSLF application is approved? Listen to hear the different factors to consider. Paying down private loans If you have private loans, they likely have a high interest rate that needs to be addressed. If it moves into a standard-term repayment plan, the monthly payment can be prohibitive. You may have a short grace period or deferment options. But you will accrue interest. Look at the terms of your existing loan to figure out your best next steps. What can you do to have a comfortable payment? A comfortable payment at a longer duration allows you to tread water until your income jumps. We’d advise you to routinely check on interest rates. If they drop, that may be a good time to get a quote for refinancing. SoFi offers a great resident loan program that allows you to refinance at a better interest rate and it doesn't cost you anything. Listen to the whole episode as we unpack and simplify the first steps you’ll need to take as a resident physician.