Budgeting for Med School

[Andnosoupforyou]

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As we approach the Fourth of July weekend, I can heartily say that I feel more American than ever, thanks to that $72,000 loan I will be borrowing for my first year of medical school. But part of me still wishes to remain frugal, and so I was wondering...

What is your budget for living expenses for a year of medical school?

Rent: $
Food: $
Transportation: $
Med School Expenses [Books, etc]: $
Necessary Personal Expenses [cellphone, clothes, medicine, etc]: $
Unnecessary Personal Expenses [movies, bar nights, swords, etc.]: $
Anything else: $
-------------------------------------------------------------------------------
Total: $

If you could fill in your data as below, that'd be great. Obviously some of the categories overlap, so feel free to shuffle them, change them, etc. I'd just like to get a rough idea of how much money it'll take to live reasonably during med school.

Thanks!

 

[iniquus]

It's so location-dependent. A lot of the suggested budgets are on school financial aid websites.

Rent: $700-900/month
Food: $800/month
Transportation: $5000
Med School Expenses [Books, etc]: $2000
Necessary Personal Expenses [cellphone, clothes, medicine, etc]: $3000
Unnecessary Personal Expenses [movies, bar nights, swords, etc.]: $1500
Anything else: $1000

 

[NickNaylor]

Agreed with the above. These values are calculated based on the cost of living for the area your school is in. Posting budgets from different schools/areas won't be very helpful to you.

 

[mauberley]

It's so location-dependent. A lot of the suggested budgets are on school financial aid websites.

Indeed. Your school's budget is a better predictor for your individual situation than trying to make sense of the information you'll get here, which will vary widely depending on location as well as personal preference. (also what NickNaylor said.)

 

[Iso4ane]

It's so location-dependent. A lot of the suggested budgets are on school financial aid websites.

Rent: $700-900/month
Food: $800/month
Transportation: $5000
Med School Expenses [Books, etc]: $2000
Necessary Personal Expenses [cellphone, clothes, medicine, etc]: $3000
Unnecessary Personal Expenses [movies, bar nights, swords, etc.]: $1500
Anything else: $1000

$800/month for food?! Thats a little high, but after considering my own budget, most of those other values seem to be pretty reasonable.

 

[NightGod]

$800/month isn't a whole lot less than people I know pay for groceries for a family of 5, including two teenagers and multiple pets. Are you eating every meal out or something?

 

[iniquus]

$800/month isn't a whole lot less than people I know pay for groceries for a family of 5, including two teenagers and multiple pets. Are you eating every meal out or something?

Let's just say I eat A LOT. In retrospect, I won't carry my undergraduate habits over to medical school. I need to lower my cholesterol anyway. I guess $500 is a more reasonable estimate for food with a significant cushion.

My transportation is so high because I will be driving, maintaining a car, paying autoinsurance. I'm sure that would drop dramatically if I lived on campus. I overestimated a lot of things because any money left over could rollover to next year.

 

[startswithb]

$800/month for food?!?! Whoa...whoa...srsly...I am tempted to say that is impossible. I spend around $150/month and our school budgets $250.

They also budget $530/month for rent and $175 for utilities. I'm spending $690 for rent + utilities.

Anyone else with a long history of working worried about having trouble adjusting to the lack of disposable income??

 

[mauberley]

Anyone else with a long history of working worried about having trouble adjusting to the lack of disposable income??

I'm not worried. I'm already having trouble adjusting to it -- and I still have a couple of paychecks to go.

 

[RogueUnicorn]

i'm not worried. I'm already having trouble adjusting to it -- and i still have a couple of paychecks to go.

+1

 

[DoctwoB]

Rent + utilities: 600/month
Transportation: 0$. If you count vacations then 1000/year.
Food: 200/month
Entertainment: 40/month
Non-tuition med school expenses: ~400 first year (equipment), ~1300 2nd year (step1 + qbanks + NBMEs + books)

 

[StephanieZ]

Anyone else with a long history of working worried about having trouble adjusting to the lack of disposable income??

Maybe this is insane but if you're getting a loan, can't you just use whatever's left over as spending money? That's what I plan to do. But then, I've never been used to having a lot of money lying around, so a couple grand a year in disposable income is plenty for me, and I would plan to just tack it on with all the other expenses of medical school, see if I can get a loan for the whole lot and plan to pay it back later. I plan to be frugal, but I don't have to be a saint 🙄

 

[startswithb]

I'm not worried. I'm already having trouble adjusting to it -- and I still have a couple of paychecks to go.

Yeah... haha. I have since started forcing myself to simply NOT SPEND ANYMORE MONEY. No Starbucks, no lunch out, no new comforter or bookcase....*sigh*. I've been living on my own for 2 years and with starting school I'll be paying about the same in rent but have several hundred less each month to live off of.

 

[TheMightySmiter]

I like having a lot of disposable income. I'll probably be one of those people who takes out the maximum in loans and spends half of it on unnecessary things.

 

[mauberley]

Maybe this is insane but if you're getting a loan, can't you just use whatever's left over as spending money? That's what I plan to do. But then, I've never been used to having a lot of money lying around, so a couple grand a year in disposable income is plenty for me, and I would plan to just tack it on with all the other expenses of medical school, see if I can get a loan for the whole lot and plan to pay it back later. I plan to be frugal, but I don't have to be a saint 🙄

Loan money isn't really disposable income. Obviously, one's budget should make some allowances for fun and entertainment, but you're anticipating paying for it with earnings that have yet to materialize.

 

[startswithb]

Maybe this is insane but if you're getting a loan, can't you just use whatever's left over as spending money? That's what I plan to do. But then, I've never been used to having a lot of money lying around, so a couple grand a year in disposable income is plenty for me, and I would plan to just tack it on with all the other expenses of medical school, see if I can get a loan for the whole lot and plan to pay it back later. I plan to be frugal, but I don't have to be a saint 🙄

Well we get our loans disbursed in August for the 5 months of fall semester in a lump sum. They take out tuition and fees of course, and then whatever is left is our living/personal money. This is why budgeting is so important; no more income coming in for 5 months. I'm almost considering a separate account for fixed expenses (rent, utilities, car insurance, etc) so that it's guaranteed to be there. Then, leftover is for flexible spending (food, entertainment, gas). Or, I could just make an extremely detailed and rigid spreadsheet. Not having rent money in December would be BAD as our next semester loans are not disbursed until January. In other words, it's going to be a huge adjustment from having a steady flow of income coming in.

 

[RogueUnicorn]

I like having a lot of disposable income. I'll probably be one of those people who takes out the maximum in loans and spends half of it on unnecessary things.

your perspective will likely change when you actually have to stare these loans down and think of the monthly payments you need to make later.

 

[ButImLETired]

As we approach the Fourth of July weekend, I can heartily say that I feel more American than ever, thanks to that $72,000 loan I will be borrowing for my first year of medical school. But part of me still wishes to remain frugal, and so I was wondering...

What is your budget for living expenses for a year of medical school?

Rent: $
Food: $
Transportation: $
Med School Expenses [Books, etc]: $
Necessary Personal Expenses [cellphone, clothes, medicine, etc]: $
Unnecessary Personal Expenses [movies, bar nights, swords, etc.]: $
Anything else: $
-------------------------------------------------------------------------------
Total: $

If you could fill in your data as below, that'd be great. Obviously some of the categories overlap, so feel free to shuffle them, change them, etc. I'd just like to get a rough idea of how much money it'll take to live reasonably during med school.

Thanks!

It's so location-dependent. A lot of the suggested budgets are on school financial aid websites.

Rent: $700-900/month
Food: $800/month
Transportation: $5000
Med School Expenses [Books, etc]: $2000
Necessary Personal Expenses [cellphone, clothes, medicine, etc]: $3000
Unnecessary Personal Expenses [movies, bar nights, swords, etc.]: $1500
Anything else: $1000

Also consider what kind of allowances you want to make for yourself. I'm spending more than that per month on rent to live two blocks away from school, but my transportation costs thus far have been maybe 500$ a year total. You can also get away with spending way less than that on books if you get used ones from upperclassmen or if your school has some kind of "big/little sibling" program like mine does, where most of us give our books to the younger folks. Food is tricky and in my experience most people underestimate because they realize that when they're studying for a test they don't want to go grocery shopping or cook, so they start living on takeout or cafeteria food, which really adds up. Not to mention my Starbucks budget...
It also varies by year, btw. Third year is expensive because you don't have time to go home and eat, and you have to buy nice patient clothes if you don't have enough of them. Also, if you have a rotation farther away, that ups your gas money. Oh yeah and if you think you'll need a new computer in the next couple of years, try to get one now when the school allows you a new computer budget (usually first year). I didn't, and now my computer is broken and can't take any extra out.

 

[startswithb]

I like having a lot of disposable income. I'll probably be one of those people who takes out the maximum in loans and spends half of it on unnecessary things.

The maximum in loans still isn't very much. The school sets the Cost of Attendance and you can only take out that much money. Raising your COA is difficult, and for getting more loan money they expect you to give them documents proving why you need the money. For example, there is a laptop budget addition, but you must give them the receipt for proof of purchase and you have to buy it after August 1st.

IF you want more spending cash, you would just have to work it in your allotted budget by living in a box and eating ramen. Whatever is leftover from your living expenses is yours.

And by the way, find a loan interest calculator. You will soon realize that whatever you take out will double across the life of the loan (after training and 10 years repayment).

 

[TheMightySmiter]

your perspective will likely change when you actually have to stare these loans down and think of the monthly payments you need to make later.

Truth. 🙁

 

[bubbadoc]

Well we get our loans disbursed in August for the 5 months of fall semester in a lump sum. They take out tuition and fees of course, and then whatever is left is our living/personal money. This is why budgeting is so important; no more income coming in for 5 months. I'm almost considering a separate account for fixed expenses (rent, utilities, car insurance, etc) so that it's guaranteed to be there. Then, leftover is for flexible spending (food, entertainment, gas). Or, I could just make an extremely detailed and rigid spreadsheet. Not having rent money in December would be BAD as our next semester loans are not disbursed until January. In other words, it's going to be a huge adjustment from having a steady flow of income coming in.

Yes indeed, the hard part about loans is remembering there's no more coming when you see those zero's in your bank account.

Is it just me or wouldn't it seem wise to pay your rent for the semester up front? Then that would leave you with an actual figure to work with in terms of the rest.

 

[RogueUnicorn]

Well we get our loans disbursed in August for the 5 months of fall semester in a lump sum. They take out tuition and fees of course, and then whatever is left is our living/personal money. This is why budgeting is so important; no more income coming in for 5 months. I'm almost considering a separate account for fixed expenses (rent, utilities, car insurance, etc) so that it's guaranteed to be there. Then, leftover is for flexible spending (food, entertainment, gas). Or, I could just make an extremely detailed and rigid spreadsheet. Not having rent money in December would be BAD as our next semester loans are not disbursed until January. In other words, it's going to be a huge adjustment from having a steady flow of income coming in.

this my plan as well, but for everything. i'm going to dump all the money into a savings account, with the monthly budget transferring in at the first of every month

 

[mauberley]

this my plan as well, but for everything. i'm going to dump all the money into a savings account, with the monthly budget transferring in at the first of every month

Same with me as well, though I'm using an interest-bearing checking account to hold everything.

 

[bassvp]

And by the way, find a loan interest calculator. You will soon realize that whatever you take out will double across the life of the loan (after training and 10 years repayment).

I hadn't exactly thought about how much the interest would cause the loan to grow, but,you're right.

According to the rule of 72:
4% loan will double in 18 years
6% loan will double in 12 years
8% loan will double in 9 years

 

[startswithb]

this my plan as well, but for everything. i'm going to dump all the money into a savings account, with the monthly budget transferring in at the first of every month

Hey, that's a good idea. I will see if my bank can do that for me.

 

[RogueUnicorn]

i don't know about your bank, but i use Bank of American for checking/saving and ING for high interest saving, and they both have an automated transfer system i can set up right through the online banking website. i'm also playing with the idea of having the disposable funds come in weekly while the necessary budget items like rent come in monthly

 

[eablackwell]

Anyone else with a long history of working worried about having trouble adjusting to the lack of disposable income??

I just received my last paycheck, and I've been saving up for the down payment I have to pay for my apartment next week. Between application fee, background checks, pet fee, first month's rent + admin fees I have to dump $3,600 on Wednesday. That's basically everything in my bank account at the moment.

I'm fluctuating between happy to move/start and freaking out about having no money in my bank account. I'm one of those people that likes to budget well enough that I don't have to worry about how much is left in my account before buying things. I feel bad for my husband. He has to deal with my "broke therefore angry" persona for the next month.

 

[Evergrey]

I found the budget worksheet on the AAMC site helpful.

I also played around with the loan repayment calculator (you have to sign in to use it). That thing makes me barf when I realize my loan payments post-residency (trying to pay off the loan within a decade) are going to be about $7,000/month. After federal and state income taxes, that doesn't leave much room. At least my fiancee will be able to help pay it off by the time I finish residency (she's getting a PhD). In the meantime, I'm gonna bust my ass in med school to try and get some scholarships!

 

[Geekchick921]

My living expenses are for a family of soon-to-be four, and our money is coming from my living expenses loans and my husband's salary. We have one small child and another on the way and we have a house, not an apartment. With that in mind, I have no idea how helpful my responses will be for you.

I editted. Perhaps a bit too overshare-y. If anyone wants the numbers, they can PM me, but it's about twice the standard living expense allowance since, again, it's for a whole family.

 

[Andnosoupforyou]

Hmm... I guess, long story short, stick to a budget and avoid unnecessary spending!

I have another question: Is it a good idea to take out the whole amount of living expenses that is offered by a school (for me, about $28,000)? I'm almost certain I won't spend this much money, and interest begins accruing the moment the loan is disbursed. On the other hand, it might be a good idea to have that extra moneys on hand in case I need it. What do you think?

 

[blizzah]

Hmm... I guess, long story short, stick to a budget and avoid unnecessary spending!

I have another question: Is it a good idea to take out the whole amount of living expenses that is offered by a school (for me, about $28,000)? I'm almost certain I won't spend this much money, and interest begins accruing the moment the loan is disbursed. On the other hand, it might be a good idea to have that extra moneys on hand in case I need it. What do you think?

Do you have the option to take out the money later in the year?

 

[NickNaylor]

Yes indeed, the hard part about loans is remembering there's no more coming when you see those zero's in your bank account.

Is it just me or wouldn't it seem wise to pay your rent for the semester up front? Then that would leave you with an actual figure to work with in terms of the rest.

This is what I did last year in undergrad (basically paid six months at a time). Unless the management company is stupid they'd be more than happy to take more of your money.

 

[synthase]

Yes indeed, the hard part about loans is remembering there's no more coming when you see those zero's in your bank account.

Is it just me or wouldn't it seem wise to pay your rent for the semester up front? Then that would leave you with an actual figure to work with in terms of the rest.

If you're willing to do this, ask your landlord for a discount if you pay rent 6 months at a time in advance. Although it makes financial planning easier, it may not be the smartest move. You won't have much bargaining power if something needs fixing or if you need to work things out with the landlord since they already have your money. Also, it is smarter to have that money earning interest for you rather than the landlord/management company. Just things to think about...

 

[bubbadoc]

If you're willing to do this, ask your landlord for a discount if you pay rent 6 months at a time in advance. Although it makes financial planning easier, it may not be the smartest move. You won't have much bargaining power if something needs fixing or if you need to work things out with the landlord since they already have your money. Also, it is smarter to have that money earning interest for you rather than the landlord/management company. Just things to think about...

Good point.

Anyone know if the interest you earn off of student loan funds is taxable? Or is it so miniscule that Uncle Sam just overlooks it?

 

[RogueUnicorn]

interest in a bank account, regardless of how you got the money, is taxable. but like you said, it's very small.

 

[NightGod]

Well we get our loans disbursed in August for the 5 months of fall semester in a lump sum. They take out tuition and fees of course, and then whatever is left is our living/personal money. This is why budgeting is so important; no more income coming in for 5 months. I'm almost considering a separate account for fixed expenses (rent, utilities, car insurance, etc) so that it's guaranteed to be there. Then, leftover is for flexible spending (food, entertainment, gas). Or, I could just make an extremely detailed and rigid spreadsheet. Not having rent money in December would be BAD as our next semester loans are not disbursed until January. In other words, it's going to be a huge adjustment from having a steady flow of income coming in.

Disbursement date is something to keep an eye on, as well. I know the UG I'm attending doesn't disburse until after the last date to drop classes, and that's because they don't get the money from the state until then. Granted, I live in one of the worst (financially speaking) states right now, but definitely something to confirm with the school if you are counting on that money being available Aug 1st.

 

[LeoGer]

Disbursement date is something to keep an eye on, as well. I know the UG I'm attending doesn't disburse until after the last date to drop classes, and that's because they don't get the money from the state until then. Granted, I live in one of the worst (financially speaking) states right now, but definitely something to confirm with the school if you are counting on that money being available Aug 1st.

NightGod: I never thanked you for the signature.

Thank you.

 

[mvenus929]

this my plan as well, but for everything. i'm going to dump all the money into a savings account, with the monthly budget transferring in at the first of every month

This is what I do. Pay rent and utilities first, then go from there.

I have another question: Is it a good idea to take out the whole amount of living expenses that is offered by a school (for me, about $28,000)? I'm almost certain I won't spend this much money, and interest begins accruing the moment the loan is disbursed. On the other hand, it might be a good idea to have that extra moneys on hand in case I need it. What do you think?

You can generally take out extra money until like March, if you need it. Make a plan and see within the first couple months if it'll work for you. If not, change it. I ended up taking out way more than I needed for first year, but rather than give it back, I just lowered my loans for second year, since I wanted to be sure that I had enough funds to get through the summer.

Remember: August check must last you through January, but January's check must last you through August. Despite this difference, the checks are the same amount. If you run out of money before your January check, you need to request more money for the second part of the year.

 

[NightGod]

NightGod: I never thanked you for the signature.

Thank you.

LOL np, glad to help 😉

 

[obgyny]

I have another question: Is it a good idea to take out the whole amount of living expenses that is offered by a school (for me, about $28,000)? I'm almost certain I won't spend this much money, and interest begins accruing the moment the loan is disbursed. On the other hand, it might be a good idea to have that extra moneys on hand in case I need it. What do you think?

I'd like to hear others' thoughts on this too. I already decided to borrow the max amount for the first year, just in case.

I also have credit card bills to pay off (from the application process). I figure I'll use any excess loan money to pay them off. I feel horrible paying off one debt with another debt. But what else can I do... no income for a while...

 

[DrYoda]

Rent&utilities: 5820 ($485/mo)
Groceries: 1920 ($160/mo)
Transportation: $2400 (counting $1000 set aside for possible repairs ect)
Med School Expenses: M1: $50 M2: $250 ( I generally don't buy books😀)
Necessary Personal Expenses: $1400
Unnecessary Personal Expenses : $ 2400

I'd like to hear others' thoughts on this too. I already decided to borrow the max amount for the first year, just in case.

I also have credit card bills to pay off (from the application process). I figure I'll use any excess loan money to pay them off. I feel horrible paying off one debt with another debt. But what else can I do... no income for a while...

In your case it's the smart thing to do, debt to pay of debt is fine if you're upgrading to lower interest and better terms.

As far as taking excess money, I recommend having at least some extra money laying around in case you need car repairs or something.

Is it just me or wouldn't it seem wise to pay your rent for the semester up front? Then that would leave you with an actual figure to work with in terms of the rest.

Personally, I'll only pay rent up front if I'm getting a discounted rate. But if it's what helps you keep track of things go for it.

 

[Seven of Nine]

this may be a stupid question, but if you take out more than you end up needing, can't you just pay back the difference instead of spending it/keeping it in your bank account? i thought there weren't any penalties for early payments. if you pay it back, then it won't be accruing interest.

 

[synthase]

this may be a stupid question, but if you take out more than you end up needing, can't you just pay back the difference instead of spending it/keeping it in your bank account? i thought there weren't any penalties for early payments. if you pay it back, then it won't be accruing interest.

If I have anything leftover (doubtful) at the end of first year, I'll just take out that much less for second year, and so on. That seems easier than trying to pay it back and take out more loans at the same time. Just a thought, no experience with this issue yet...

 

[Seven of Nine]

If I have anything leftover (doubtful) at the end of first year, I'll just take out that much less for second year, and so on. That seems easier than trying to pay it back and take out more loans at the same time. Just a thought, no experience with this issue yet...

well right, requesting a smaller amount of loans for the following year would go hand-in-hand with paying back any surplus. this would be an option for the people who take out the max amount of loans unsure if they need all of it or not. they could take out the loans, have money available if they incur extra expenses, and pay it back as soon as they know they don't need it. so in requesting maximum loans, you are just opening yourself to extra interest/money you'll owe in the future, but you can always manage that risk by paying back parts of the loan. in my mind that seems like a relatively safe avenue to pursue since (i'm pretty sure) there aren't penalties associated with early repayment (you have it/$$ if you need it and if you don't you just give it back).

if you don't have any funds leftover, then paying back extra money doesn't apply to you.

 

[Buttermellow]

$800/month for food?!?! Whoa...whoa...srsly...I am tempted to say that is impossible. I spend around $150/month and our school budgets $250.

They also budget $530/month for rent and $175 for utilities. I'm spending $690 for rent + utilities.

Anyone else with a long history of working worried about having trouble adjusting to the lack of disposable income??

I've always been kind of a Scrooge when it comes to money, so I don't think I'll have trouble adjusting. I'm a saver, not a spender. But I've never taken out a loan before, especially one of that magnitude, so I think that's going to be a real shock

 

[Andnosoupforyou]

You can generally take out extra money until like March, if you need it. Make a plan and see within the first couple months if it'll work for you. If not, change it. I ended up taking out way more than I needed for first year, but rather than give it back, I just lowered my loans for second year, since I wanted to be sure that I had enough funds to get through the summer.

Remember: August check must last you through January, but January's check must last you through August. Despite this difference, the checks are the same amount. If you run out of money before your January check, you need to request more money for the second part of the year.

Alrighty, makes sense. I'll probably borrow the full amount for the first year, and hopefully lower that down by the second year once I have a sense of how much I'll be spending.

Rent&utilities: 5820 ($485/mo)
Groceries: 1920 ($160/mo)
Transportation: $2400 (counting $1000 set aside for possible repairs ect)
Med School Expenses: M1: $50 M2: $250 ( I generally don't buy books😀)
Necessary Personal Expenses: $1400
Unnecessary Personal Expenses : $ 2400

Awesome, thanks for the estimate! I figured around $200/month for unnecessary personal expenses would be about right, good to see that holds true for others.

 

[rHinO1]

Well we get our loans disbursed in August for the 5 months of fall semester in a lump sum. They take out tuition and fees of course, and then whatever is left is our living/personal money. This is why budgeting is so important; no more income coming in for 5 months. I'm almost considering a separate account for fixed expenses (rent, utilities, car insurance, etc) so that it's guaranteed to be there. Then, leftover is for flexible spending (food, entertainment, gas). Or, I could just make an extremely detailed and rigid spreadsheet. Not having rent money in December would be BAD as our next semester loans are not disbursed until January. In other words, it's going to be a huge adjustment from having a steady flow of income coming in.

I plan to use my ING direct account to hold my loan disbursement, then transfer my monthly budget to my regular checking account with wells fargo. ING can be set up online, no minimum balance required, and their interest is ~1.5% right now (a few years ago it was as high as 7%!!). I've used them for about 6 years, and I've always been happy with them.

i don't know about your bank, but i use Bank of American for checking/saving and ING for high interest saving, and they both have an automated transfer system i can set up right through the online banking website. i'm also playing with the idea of having the disposable funds come in weekly while the necessary budget items like rent come in monthly

great minds...

I like the idea of having rent transferred on the 1st, and then the rest of my budget come in bi-weekly, like my current paycheck.

 

[PeachyPhd]

I plan to use my ING direct account to hold my loan disbursement, then transfer my monthly budget to my regular checking account with wells fargo. QUOTE]

This is exactly what I have set-up to do. Except I have a checking account for recurring monthly expenses such as rent, insurance, utilities, etc. and a seperate checking account for spending including food, entertainment, prescription meds, pet expenses, etc.

 

[NightGod]

Keep in mind that the amount of cash you have in bank accounts can affect your status when applying for need-based aid. I'm personally a fan of safe deposit boxes for that very reason.