Making it through medical school and residency on a very limited income is one of the many challenges of life as a physician in training. But careful planning and following advice from physicians who have successfully completed that phase of their careers can help turn personal finances during training into less of a worry.
Laura Ditkofsky, the wife of a physician who recently completed residency, offered insights from their years in training in a post for AMA Alliance publication Physician Family:
- Know your prices. Groceries can eat up a significant part of your monthly budget if you aren’t careful about what you buy and where you buy it. Ditkofsky recommends memorizing or writing down prices for every item you buy. That way, you can compare prices between stores for the best buys and stock up on particular items when they go on sale.
- Plan your meals. It may sound like more work, but thinking ahead about what you’ll eat for the week can save you from last-minute scrambles and drive down your grocery bill. Meal planning around foods that are on sale that week can ensure you get the best deals. It also will keep you from purchasing things you don’t need or having food you don’t get to prepare go bad, Ditkofsky said. If you’ve never done meal planning before, you can easily find recommendations to suit your tastes and needs. There are plenty of mobile apps and weekly recommendations from online sources that focus on healthy menus, special diets and kid-friendly options.
- Use coupons. Couponing can be as basic as using your store’s weekly ads, but there are also plenty of opportunities to print, clip or download manufacturers’ ads. Ditkofsky also recommends checking out Groupon and Amazon Local for deals on date night dining.
- Prioritize little splurges. “Most of us, no matter how poor, will splurge on something,” Ditkofsky said. The key is to make sure your splurges aren’t routine and that you realistically prioritize those things that you want versus the things that you need. If you have a spouse or partner, also be sure to talk about and agree upon what those things are.
- Live off your current income, not your earning potential. Although you may be working toward practicing in a field that could offer a very comfortable income, it’s wise not to accrue more debt than necessary. Once you’re in practice, you’ll have med school loans to pay off, retirement and children’s educations to save for, not to mention higher income taxes and other practice expenses.
- Share your car. If you have a spouse or partner, Ditkofsky recommends working your way through training as a one-car household. “We live in a very car-oriented society, and we often assume that we need our own car,” she said. “But sometimes we need to stand back and reassess whether two cars is a necessity or merely a convenience.” In addition to the cost of buying your car, savings include insurance, registration and maintenance.
“Being frugal is hard work, but if you communicate with your spouse, set realistic expectations and develop healthy habits, living frugally will eventually become second nature,” Ditkofsky said.
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