Poor, Poor, Resident

[OMSGuy]

I feel like this may have been covered before, but I couldn't find much information. I'm sure this isn't a problem unique to me, but as a new PGY1, I'm finding myself short on money each month. I'm curious to find out what, if any, supplemental income/lending options are out there for residents.

Moonlighting isn't really possible due to time. Finding a long-lost, wealthy, philanthropic benefactor - probably not going to happen. After 4 years at a relatively expensive school that forced me to take out private loans (some of which require payments) and now looking at 4 more years in an expensive part of the country, I'm at a little bit of a loss for ideas. I don't see myself living a frivolous lifestyle, but with a lowly resident's income, I'm in the red on a monthly basis.

I guess I'm hesitant to look at additional loans as an option, but at this point I'm considering it. As long as I can make it through the next few years, it should be fairly realistic to get everything (at least the higher interest stuff) paid off relatively quickly. I'm just not sure what my options would be. Any help and other ideas are really appreciated. Thanks

[dragonfly99]

As you point out, you don't have time to moonlight right now.
Some moonlighting might be an option as early as your PGY2 year, depending on your specialty (Im or psych, for example).
I am confused as to why you can't make ends meet. Do you have a spouse or kids you are providing for? Are you making student loan payments?
Maybe you can give us a breakdown of your major expenses (i.e. rent, car payments, etc.) to help us figure out where your money is going. I just don't get it. Even if it's NYC it seems like you should be able to scrape by. If you can't make it, then you need a roommate and/or to sell your new car and get an old junker. I think more loans are a VERY bad idea unless you truly have NO other options.

[mshheaddoc]

Well if you read what he said, he has private loans he has to pay for. Living in an expensive area = higher cost and paying back private loans (usually at higher interest rates) can be quite costly.

I can relate with the money issue but your options are quite limited. While you claim not to live frivolously it sounds to me as if you needed to you could cut back. I'd suggest doing that. Might be extreme but if you need to do that to survive I suggest you suck it up and do it. Do you really need all your utilities? As for taking out a loan during residency, supposedly these loans were around for a bit but I am not sure if they are anymore. You can check with various lenders but how much are you really in the red each month? Have you worked out a budget and tried to stick to it? Since you're claiming you have a 4 year residency, I'm guessing its not one of the few that allow you to moonlight relatively early. I know we have considered ditching cable and our landline but right now we have cable/internet/phone in a bundle so its relatively inexpensive. Also, I looked for better deals in reevaluating our cellphone provider as well as our plan. Cingular is great with rollover minutes I do have to say. Also, your work might have "discounts" that as a resident you can take advantage of. We just did for a 15% discount per month on our cell bill. I'm being more active about monitoring food costs and browsing for coupons. We don't go out hardly at all and when we get together with friends, we try to do it at someone's place or maybe an afternoon movie and ice cream. I see plenty of single residents waste money on trying to have a "life" during residency. You have to do what you want but many might not be accustomed to making the "budget" cuts necessary to actually live in the black rather than the red. And don't assume i'm talking about you, you might not be one of those people but if others read this thread (or you are), they know what I mean and will probably be offended that I mention it. Just because you're a doctor, now is NOT the time to live large. That's when you get your first paycheck once you're done residency/fellowship (or even splurge a bit with your first moonlighting pay). While I could rant about pay vs debt for medical students (which is absurd at the moment since med school cost is increasing exponentially!) please note, that things are ONLY GOING TO GET WORSE for those that are graduating this year and those that won't be able to defer by June 2009. You will have to start making payments of approximately 15% of your salary (calculated but this little formula I talked about here).

Ok I'm stepping down off my soapbox. Please know you are NOT alone on this matter but what will help you is taking a hard look at your expenses and figuring where things can get cut. Best of

[OMSGuy]

Thanks for the thoughts so far and sorry for not getting back sooner. I just wanted to address some of the points brought up - mssheaddoc, you had the basics correct. First off, as could be said for anyone, I'm sure I could live more frugally. I'm definitely have tried to make cuts where I can as well as continuing to look for others. I do not have a roommate, and rent is definitely a big hit (Chicago). I try to save on utilities. Basic cable is $10. I only have a cell phone (ATT as well). Giving up internet isn't an option. I don't waste too much water and I turn off light bulbs when I leave the room.

Other expenses include renter's insurance - $30/mo, disability insurance - $110/mo, gym membership - $50/mo, car insurance and maintenance, gas, food (I don't go out much and try to make my lunch as often as I can to save, but a guy's got to eat and that definitely adds up). I will admit, I'm not a coupon clipper, but I shop primarily at a discount grocery that doesn't have much in the way of additional savings options.

Throwing in private loans and some credit card debt, that I've been pretty diligent at paying down (until recently) puts me over. I'm definitely not TRYING to live over my head, but that definitely seems to be where I am at the moment. I'm not anxious to take out another loan (not knowing if it's even available), but I do feel like managing the next four years is my only real goal. I have no problem living somewhat modestly and putting off the lexus for a year or two after I'm done if need be.

Thanks again. If anyone knows anything about what, if any, loans while in residency are available, I'm at least interested in learning more.

[dragonfly99]

OK,
so the problems are
1) you are in credit card debt (badness!)
2) you live in an expensive city and don't have a roommate. What is your rent? Is it more than $900-1000? That would be the problem.
3) you aren't saving much on your incidental expenses (i.e. $50/month gym membership). Can you work out at your apartment, or at the med school/hospital? Is there a free or discounted gym there? Just trying to give you some ideas.
4) renter's insurance? I don't have anything in my apartment that is worth insuring...but that's just me I guess.
5) I guess disability insurance is a good buy...though my residency gives me that. I guess if you are a surgeon or something, it's good to get "own occupation" disability insurance in case you hurt your hands or something...still, if I was in credit card debt I might be ditching all these extra insurances and putting that $140/month toward paying down my credit card debt.

[mshheaddoc]

OMS - sounds like you are like the rest of us just trying to get by. I've had a few people come in here and complain and they were completely living above their means, and I'm sure you know people like that as well.

Sadly right now its a vicious cycle (and one that I share). Your options are trying to find a roommate or what about renting out a couch to med students? I wish I had more advice but we're trying to dig out of credit card mess from 4th year and probably will be. I've done some not so good things (savings) to pay down the debt which has helped but still not solved the problem. The best I can offer is suck it up for the next few years and dream about the ability to pay all of it off with your first pay check (or maybe first few!). If I find any good quality money trees, I'll post it here on how to get one. Or wait, I'll probably buy in bulk and make a killing on here!!

[EM2BE]

How did you guys live in med school? Were you allowed that much in living expenses or is there something hidden (bills) that I am missing?

[financeguru09]

I have a couple of friends who are doing some type of health professions scholarship through the Air Force for med school; and another is doing the financial assistance program through the Air Force for his residency. It's pretty good because it pays all tuition, books, and fees for med students and it also pays them $1907 per month for living expenses. All he has to do is go to school. The resident is doing a civilian residency program and getting something like $67,000 in addition to the pay from the hospital. Sure, they have a commitment with the AF afterward, but it's a minimal one and they have a guaranteed job and good training. I'm seriously considering it and have been researching it for a couple of years.