saving money as an early career psychologist

[drjuliuserving]

So we get our doctorates but many of us have modest incomes early in our career. How do you all make ends meet? I'm going this can be a place where we brainstorm tips. I don't know many tips myself but a friend of mine told me a good place for CEs when I needed to complete my pre-licensure courses for California. It's ce4less.com. then I went on retailmenot.com and found coupon codes.

As far as loans, I know there are loan repayment programs but sometimes they require that you move. Here's one in California:http://www.oshpd.ca.gov/HPEF/MHLAP.html

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[drjuliuserving]

And a national one:https://nhsc.hrsa.gov/loanrepayment/

 

[drjuliuserving]

Am older article but hopefully still relevant


http://www.apa.org/monitor/may07/debtrelief.aspx

 

[erg923]

2 income household helps.

Get a financial adviser. Its well worth it.

Save something every month; Use tax sheltered accounts for long-term things like kids school tuition, cars, etc. Max your 401k match but dont go over it.

Get free weights and run instead of going to gym. Eat out less often. Internet through you phone rather than being ripped off by cable company.

Find side work you can do from home.

Its worth noting VA provides all my CEUs on our training days once per month and has loan repayment program up to 60K.

 

[Spydra]

All of the early career psychologists I've talked to have said continuing to live like a college/grad student is very helpful. That could mean having roommates, wearing out your crockpot, using public transportation/carpooling, etc. They've also said a side job is a great option. When I asked what side jobs they were doing the most common responses were adjuncting, tutoring, teaching SAT/GRE prep classes, scoring for SAT/GRE, or grant writing. If you're a member of anything use their discounts whenever possible....AAA, alumni association, credit union, etc.

Here's my own suggestion even though I'm not an early career psychologist yet. If you still have your student ID and it doesn't have a clear expiration date on it then you can probably still use it to get discounts as well. I have been using the one from my Master's program for all sorts of discounts even though I just graduated in Spring. I've found most places barely look at it and I'm definitely still living like a student so its ok in my book.

 

[Therapist4Chnge]

All of the early career psychologists I've talked to have said continuing to live like a college/grad student is very helpful.

Good advice.

I tried to live on my fellow salary during my first year and it was doable (almost all of the 'extra' money went into my pension/retirement). During my second year I loosened things up a bit as my income went up, but I was still able to keep spending down. It definitely put me in a better position than if I bumped up my lifestyle too quickly. I still enjoy myself though...just in moderation.

 

[smalltownpsych]

I asked for and got more money each year or I left and found another position that paid more. Also, I went with the lowest possible student loan payment plan, then three years post-licensure secured a NHSC loan repayment slot. I also moved out of California to find a lower cost of living and a higher compensation package. Also, I worked as an adjunct faculty teaching one or two classes in addition to a 40 hour job. It was doable and the extra lump sum checks that I would get for that always seemed to come at just the right time. When you are making 40k getting a $1500-2500 check every few months is really nice.

 

[tpink]

I'm beginning my internship now, but I have found couponing to be one of the best and quickest ways to save money. While I am definitely not organized enough to be on Extreme Couponing, just taking sometime once a week to flip through weekly ads and clip coupons online and in newspapers has saved me money. I typically stock up on the items I know I'll need (toilet paper, toothpaste, shampoo etc). I typically save 50-60% each shopping trip.

 

[Therapist4Chnge]

Cutting corners and scrimping only goes so far (realistically). Now I'm working on efficiency. I trimmed my panel participation, tweaked my pt mix, protect my non-billable time, and track every dollar I bill. The billing stuff was the most frustrating, but I make more w those changes than anything I try and "save".

 

[MCParent]

Go academic. Having no time to spend your money nets big savings.

 

[CaliMac]

Anyone tried the envelope system? In essence, you put cash for expected expenditures in envelopes. When the envelope is empty, you stop spending $ on that expense.

 

[Therapist4Chnge]

That's how I do Vegas (seriously). I'm not sure about monthly expenses, but it is a great method for trips.

 

[CaliMac]

It's great for saving for the trips, too. Put in a $20...

It entails making a budget to decide how to allocate your cash, withdrawing cash instead of using a debit card and actually watching and feeling the green money leave your possession. Makes you think twice.

 

[oathkeeper]

http://www.apa.org/apags/resources/loan-repayment.pdf

 

[drjuliuserving]

2 income household helps.

Get a financial adviser. Its well worth it.

Save something every month; Use tax sheltered accounts for long-term things like kids school tuition, cars, etc. Max your 401k match but dont go over it.

Get free weights and run instead of going to gym. Eat out less often. Internet through you phone rather than being ripped off by cable company.

Find side work you can do from home.

Its worth noting VA provides all my CEUs on our training days once per month and has loan repayment program up to 60K.

That's all great advice! Thanks! I have also been using free weights and we'll finally have a second income in the household. I've also gotten a financial advisor, too. Lol it's weird being a grown up now.

 

[PsyDr]

live below your means. Create an autodraft to put in your retirement. Save something, anything using a similar autodraft system. Pay of high interest debts first. Create a budget, stick to it. Allow for fun stuff in that budget.

When I first started, I took $50 per paycheck and put that in a taxable stock account. That initial $1300 is now much, much more.

There is a tendency to want to inflate lifestyle due to obtaining some status in the profession. Like anything, it would be wise to ascertain the logical outcomes of the financial choices one makes. Some of my friends in the profession assume that there are always jobs in this field. I do not share this sentiment.

 

[LMK]

Anyone tried the envelope system? In essence, you put cash for expected expenditures in envelopes. When the envelope is empty, you stop spending $ on that expense.

I did that in undergrad and it worked really well.

 

[Therapist4Chnge]

Some of my friends in the profession assume that there are always jobs in this field. I do not share this sentiment.

I think it is very geographically and speciality dependent. Sometimes it can feel like "Chicken Little" on here (my posts included), though there is also the other side of the coin where things can work out. People should definitely be smart about their investments and job choices, though we aren't quite a Betamax industry. Do good work and hopefully some people will notice if/when you look to change jobs. Those in private practice and/or contract jobs should be more concerned, but much of that is the nature of that kind of work.

 

[PsyDr]

I think it is very geographically and speciality dependent.

Undoubtedly. The SDN forum has a wide swath of opinions and experiences here. The academics and VA people seem like they feel very secure. Some PP do also. Some do not.

My personal concern is market saturation and difficulty with portability/moving to a new area/starting over. But, my income probably skews my perception. I really like what EddieB 's has said about this.

 

[Therapist4Chnge]

I make sure to have a Plan A and Plan B…with a Plan C lurking, just in case!