#470

Romeo and I got to talking about planning residency finances today, and I thought I'd share some helpful financial tips/sources. (Yes, I realize that I just walloped my credit card yesterday with my shopping spree, so that grain of salt is expected. This is kind of a "do as I say, not as I do" kind-of-post.)


1. Suze Orman's The Money Book for the Young, Fabulous, & Broke. Say what you will about Ms. Orman and her complete disregard for commas, her eyes, and shiny teeth (c'mon ye medical students - thyroid issues or not?), but her slogan is a killer: "First people, then money, then things." Amen. I have not read this book, but Tom and I have resolved on a few occasions to borrow it from the library. Having watched her show, I am confident this is full of sane, practical, realistic, achievable advice.



2. The Get Rich Slowly blog. I was an avid reader of this blog the year before I started medical school. Most blogs have a "cycle," so after about a year the topics felt repetitive. However, this is an amazing resource for achievable financial advice. I still visit it from time to time and highly recommend it. It will inspire you to pay off your debt using the "debt snowball" and to save, save, save.

3. Monthly budget calculators, like this one from the folks who run the federal student aid program. This is helpful for generating a realistic list of what your monthly expenditures should include, and what percentage of income should be devoted to each category.

4. I liken my relationship to money as similar to an eating disorder: binging and purging. (See post #469 for evidence.) But I always have a sense in my head of where I stand financially. For people who like to write things down (or simply like gadgets and software like Tom), many people swear by Quicken (including Tom) or the Mint app for smart phones.



5. If you can afford it, spend some time with a financial adviser. I once met with one that was provided free by American Express (proud card member since 2001!). That was a strange experience in that I had negative income and was looking for advice on how to afford a wedding, but I could see this being invaluable if you a) have an actual income, and b) have some savings you're looking to grow. For the medical students out there, Medical Economics is an interesting magazine geared towards the business side of medicine. I haven't figured out how to use it yet, but I think it's worth exploring and knowing about for later.

6. Establish a certain amount for savings every month, however much you can safely afford, then open an online ING account (the best interest rates by far) and set up an automatic monthly transfer. In other words, as everyone and their mother says, "Pay yourself first."

7. Along with the concept of a savings account, establish an emergency fund. This should be used for unexpected car repairs, medical bills, flights home, acts of God, etc...Flat-heeled equestrian boots, no matter how lovely, do not constitute an emergency.

8. Manage your credit score by paying bills on time. Period. I will skip the advice about cutting down on your morning latte because everyone's necessary luxuries are different. And I have come to believe in necessary luxuries as I've aged. There are times in life when a splurge is called for, be it after finishing a grant proposal or celebrating a birthday. But make sure you carefully define those times, as waking up in the morning is not grounds for a splurge. And "splurge" can mean anything from an extra chocolate bar to a new haircut to a (free) afternoon in the park. Rewards are what keep you going. I will also refrain from advice about low-interest credit cards as I think the credit industry is going to change in the near future.

9. Learn to cook, do basic home and clothing repair, and invest in healthy habits. (By which I mean, follow your doctor's advice! Preventive medicine is always cheaper than catastrophic care.)




10. Finally, don't forget about the people known as your parents. I'm not advocating becoming a customer of the "Bank of Mom and Dad." Rather, understand how your early life experiences have informed your approach to money. There's a reason why I have a money disorder. And knowing that reason helps me anticipate my responses to things and to form a plan to overcome them. But most importantly, appreciate the hard-won financial savvy your parents have. Ask them for advice. Money is a touchy subject for everyone, but your parents have a lot more experience with it than you do. They were once starving students, too, and are sure to be more invested in your well-being than anyone else in the world, save your spouse.