| Saving money while in med school |
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If you're like me and don't have a rich uncle who is paying your way through medical school, you probably get a little uneasy on occasion when you contemplate the final bill that is going to be due roughly 6 months after you finish residency. Unfortunately, I don't have any words to offer here that will keep that inevitable day from eventually coming, however, I can offer some advice on things you can do right now to keep that final bill from being more burdensome than it has to be.
Avoid unnecessary debt
They sure don't. They stay awake 24 hours a day calculating interest on the money that you owe them. Credit cards generally have high interest rates, agressive fees, and annoying collection practices. They can be a huge financial pitfall to the struggling medical student as well as those with a generous income. My advice is to anyone who owns a credit card is to completely avoid putting anything on it that you aren't going to be able to pay off at the end of the month. As shocking as it may sound, a credit limit is not free money. It is money that has to be paid back. There is a way to use credit cards wisely. I have two credit cards that I use for purchases, both of which help raise my credit score and both of which have given me roughly $700 in cash during the last 5 years I have been using them. How much have I paid them in interest, late fees, and other penalties? Absolutely nothing. I have yet to pay a single dime to a credit card company for personal expenditures. How is this possible you ask? It is actually quite simple and I am confident that just about anyone reading this has the ability to do the same. It isn't because I'm rich. It isn't because mommy and daddy pay my credit card bills. It is because I don't buy things I can't afford and I don't put anything on a credit card that I know can't be paid back by the end of the month. If I don't have the money for something I want, I don't buy it.
Budget Create a monthly budget. Start by making a categorical list of everything you spend in a typical month. Estimate how much money you need for each of those categories and work each month to stay within those limits. Add up what you spent at the end of each month and see how you did. It sounds like a lot of work but it really isn't. If you've made it this far in your education, you should be efficient enough with how you do things that the whole process should take about an hour a month. Even the gunners have that kind of time.
Take only what you need If you have been keeping close track of what you spend each month, you should be able to get a rough estimate of how much you need each disbursement of student loans. Try to avoid taking out more than you need. Give yourself a little extra in case of emergencies so you don't have to use a credit card when your car breaks down but don't take out $20,000 every six months if you know you can get by with much less.
Mystery shopping This is an easy way I have found to make a little side cash while in school. Granted, it doesn't provide much but every little bit counts. Shopping is something have to do anyway, why not get paid for it? Just be aware, there are a lot of mystery shopping scams out there. You should never have to pay for a mystery shop. The reputable companies are all free and never ask for a dime from you. One company that I have used frequently is Corporate Research International. I've mystery shopped with them for several years and have never had any problems. They have clients like Papa John's and Aeropostale as well as several grocery stores. Other mystery shopping companies can be found free of charge on the Mystery Shopping Providers Association website.
Money market accounts Another money saving practice is putting student loan money in a money market account and making monthly withdrawals. Bankrate.com provides a list of banks who offer MM accounts and their corresponding interest rates, minimum balance, fees, etc.
The Millionaire Next Door The best book on finance I have ever read, possibly the best ever written. Lots of insightful research into what it takes to become wealthy, and contrary to what you might think, it takes more than simply having a high income. Costs $10 on Amazon.
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