Cutting Personal Expenses

[Porfirio]

Anyone else cutting personal expenses back during this time of uncertainty?

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[miacomet]

Well, there's nothing really to spend money on right now. Or at least a lot less.

 

[TooMuchResearch]

Unless we sell our house, stop making student loan payments, or stop feeding our kids, there isn't too much to easily cut.

 

[GeneralVeers]

Probably saving $1000/month on eating/drinking out. Probably another $2000/month on travel. I used to to a big international trip almost quarterly.

 

[miacomet]

Honestly, we saved during good times for times like this. Uncertainty is a constant, even if we realize it some times more than others.

 

[Brigade4Radiant]

Lived like a resident and still doing so even though our shifts are 8's I won't feel it as much since I will still make a large amount to student loans. I have 90k left.

 

[southerndoc]

Cutting like crazy, but doing so for another reason.

 

[bravotwozero]

gym membership GONE, not like you can really use the gym anyway. Cutting down 401k contributions, as you may need more cash handy at this time.

 

[thegenius]

gym membership GONE, not like you can really use the gym anyway. Cutting down 401k contributions, as you may need more cash handy at this time.

Interesting...I fully funded my SEP-IRA this year and will be investing more in the stock market. For long term investors I think this is easy money.

 

[Apollyon]

Cutting like crazy, but doing so for another reason.

Ok, like vague, maybe? What is the "other reason"?

 

[DocEspana]

Ok, like vague, maybe? What is the "other reason"?

Prior business venture Southerndoc's house of MRSA wasnt the hit chain restaurant one would expect.

 

[miacomet]

Interesting...I fully funded my SEP-IRA this year and will be investing more in the stock market. For long term investors I think this is easy money.

Agreed. Everything is on sale. Upping contributions to everything as much as possible.

 

[hundreddaysoff]

Wife stopped traveling so that's saved us a few $k this year. Otherwise, no, we're still living like residents as we have done since residency.

As we're still renting and we almost have the cash saved to buy a nice West Coast "starter" home free and clear, I really hope the housing market tanks in the next few months!

 

[Splenda88]

Everyone's eyes are on the housing market...

 

[southerndoc]

Ok, like vague, maybe? What is the "other reason"?

Will PM you.

 

[southerndoc]

Prior business venture Southerndoc's house of MRSA wasnt the hit chain restaurant one would expect.

The Drive-Thru Roxy Express also suffered because of this little thing called the PDMP.

 

[thegenius]

Everyone's eyes are on the housing market...

We were in contingency literally 2-3 weeks ago and we got out because I didn't know what the F was going to happen. I'm so happy I did...however that being said homes out here in Northern CA / Marin are still selling and usually over list price.

 

[Splenda88]

We were in contingency literally 2-3 weeks ago and we got out because I didn't know what the F was going to happen. I'm so happy I did...however that being said homes out here in Northern CA / Marin are still selling and usually over list price.

You did a good thing by getting out. We are in uncharted territory right now when it comes to the global economy. People are crazy if they are buying home right now...

 

[anonperson]

Anyone else cutting personal expenses back during this time of uncertainty?

Somewhat.

Cancelled vacation in April so that saved a few thousand.

Eating out less.

Doing a no cost refi and will decreasemy monthly payments by a few hundred. I still plan on paying extra but have the luxury to cut back for additional cash.

Still investing fully in my 401k and doing my backdoor Roth ira.

For new residents and attendings, have a robust emergency fund to give yourself peace of mind. At least 6 months but 1 year is better. I have 1 years worth in my high yield savings account and no penalty CDs.

Don't overextend yourself.

We have stable jobs in general but we are seeing that some specialties are getting hammered by the pandemic.

 

[thegenius]

Somewhat.

Cancelled vacation in April so that saved a few thousand.

Eating out less.

Doing a no cost refi and will decreasemy monthly payments by a few hundred. I still plan on paying extra but have the luxury to cut back for additional cash.

Still investing fully in my 401k and doing my backdoor Roth ira.

For new residents and attendings, have a robust emergency fund to give yourself peace of mind. At least 6 months but 1 year is better. I have 1 years worth in my high yield savings account and no penalty CDs.

Don't overextend yourself.

We have stable jobs in general but we are seeing that some specialties are getting hammered by the pandemic.

Right, even on here some ER docs are having their pay or worktime cut.

 

[thegenius]

I just put some limit orders in to buy VTI, VEU, VBR, VCIT, and VWO.

 

[erdoc00]

You did a good thing by getting out. We are in uncharted territory right now when it comes to the global economy. People are crazy if they are buying home right now...

The problem this time is going to be that they cant foreclose on everybody. I wouldnt be surprised if they end up coming out with some crazy mortgage relief. And as usual everyone who is risk averse and plans for rainy days and makes financially conservative decisions will be screwed. It's probably a great time to buy the most expensive home you can find.

 

[Splenda88]

The problem this time is going to be that they cant foreclose on everybody. I wouldnt be surprised if they end up coming out with some crazy mortgage relief. And as usual everyone who is risk averse and plans for rainy days and makes financially conservative decisions will be screwed. It's probably a great time to buy the most expensive home you can find.

It will be too costly... The system will crumble

 

[thegenius]

The problem this time is going to be that they cant foreclose on everybody. I wouldnt be surprised if they end up coming out with some crazy mortgage relief. And as usual everyone who is risk averse and plans for rainy days and makes financially conservative decisions will be screwed. It's probably a great time to buy the most expensive home you can find.

Right, like the government will pay your mortgage, bills, car loans, food, cell phone bills, school, books, eating out, clothes, concert tickets, beer, and your casual run-ins with hookers all for a grand total of 6 months.

 

[Brigade4Radiant]

So who thinks we will go into a depression?

 

[bravotwozero]

You mean we are not in a depression already? Bear market, massive job losses, people raiding food banks?

 

[Splenda88]

So who thinks we will go into a depression?

No one knows... But things are not looking good. I think the economic fallout will be worse than the 2008 recession...


By the end of this month, close to 30 million people will be out of work...

 

[Birdstrike]

Anyone else cutting personal expenses back during this time of uncertainty?

Just canceled a trip to Kauai for a family of 4. Reducing my expenses this month by about $10,000

 

[thegenius]

So who thinks we will go into a depression?

Nope, we will not get into one. Not like what happened in 1928. We might get into one temporarily by definition, but we will bounce back pretty dam quickly once people can freely move around.

I do think it will take longer to recover though because international travel (and to a lesser extent domestic travel) will be impeded by countries who will demand either evidence of immunity (either by antibody test or a vaccine) before you enter their country. that could take 1-2 years before that resolves.

Before we know it though...we will reach herd immunity or have a vaccine.

 

[Splenda88]

Who is waiting for carnival cruise stock to get to < $5/share to make a move?

 

[thegenius]

LOL not me. I hope Carnival goes down. I hope that is one industry that the government doesn't bail out. Cruises are a luxury in our economy. It surprises me who would want to go on those floating petri dishes anyway. It's anything but privacy. Terrible!!!!

In general I'm not buying any one particular company or stock. I'm sure there are people who can forecaster this stuff better than me, but my retirement portfolio is what I put above and it's a set it and forget it portfolio. I'm happy taking market returns over the next 25 years before I retire.

That's just me

 

[Splenda88]

LOL not me. I hope Carnival goes down. I hope that is one industry that the government doesn't bail out. Cruises are a luxury in our economy. It surprises me who would want to go on those floating petri dishes anyway. It's anything but privacy. Terrible!!!!

In general I'm not buying any one particular company or stock. I'm sure there are people who can forecaster this stuff better than me, but my retirement portfolio is what I put above and it's a set it and forget it portfolio. I'm happy taking market returns over the next 25 years before I retire.

That's just me

I guess you are very conservative... I waiting for it to get to $2-3/share so I can dump 20k-30k on it. Want to semi retire in 12 yrs... 10 years after becoming an attending.

 

[Birdstrike]

So who thinks we will go into a depression?

I don’t. I think this is temporary and we’ll bounce back quicker than during other downturns. If it started quick, we can come out of it quick. But I was pretty bad at predicting corona, so take my Econ predictions with a grain of salt.

 

[thegenius]

I guess you are very conservative... I waiting for it to get to $2-3/share so I can dump 20k-30k on it. Want to semi retire in 12 yrs... 10 years after becoming an attending.

Why do you think there is going to be high demand for cruises over the next 3-5 years?

Even if we get out of this coronavirus business quickly...do you think people will be clamoring to get back to cruising?

I think it's going to be a long road for that industry. At some point people will be cruising with the same frequency as prior to the crash. But I think it's going to take many many years for people to forget cruiseliners being full of sick people and getting refused to dock by states and countries.

I think there are other companies that are better bets.

 

[Splenda88]

Why do you think there is going to be high demand for cruises over the next 3-5 years?

Even if we get out of this coronavirus business quickly...do you think people will be clamoring to get back to cruising?

I think it's going to be a long road for that industry. At some point people will be cruising with the same frequency as prior to the crash. But I think it's going to take many many years for people to forget cruiseliners being full of sick people and getting refused to dock by states and countries.

I think there are other companies that are better bets.

I think it will take 5-7 years... Sad to say, but Americans are not that bright.

I am a high risk high reward individual.

 

[hundreddaysoff]

We were in contingency literally 2-3 weeks ago and we got out because I didn't know what the F was going to happen. I'm so happy I did...however that being said homes out here in Northern CA / Marin are still selling and usually over list price.

Good move.

Where we're headed (smaller city a bit up the coast from you), the realtors say there are still quite a few all-cash investor buyers from LA. Maybe their logic is that if they can get a cash flow via the feds bailing out renters, it's still a better place to stick their money vs the stock market. Seems damn risky to me though.

If we eventually end up with hyperinflation like Venezuela due to too many corporate bailouts, I'd much prefer the house over the cash, even if the market tanks right after I buy.

 

[Tenk]

My wife won't let me eat chipotle so I’m saving at least $1,000 from that alone.

 

[VA Hopeful Dr]

My wife won't let me eat chipotle so I’m saving at least $1,000 from that alone.

She must be trying to ration TP

 

[RustedFox]

My wife won't let me eat chipotle so I’m saving at least $1,000 from that alone.

I, too; commit the sin of Chipotle all too often.
Their app makes it so easy to feed my addiction.

 

[Tenk]

I, too; commit the sin of Chipotle all too often.
Their app makes it so easy to feed my addiction.

There is no sin of Chipotle. Only blessings my son.

 

[Dr Mantis Toboggan]

I miss it so much...

There is no sin of Chipotle. Only blessings my son.

 

[HoosierdaddyO]

Is now the time to take that job that pays 450k but is in bumble fudge if America... or stick to job number two that is 300k but in a huge top 5 city?? With all this economic downturn it’s hard to pass on the money for a “better” social life lol!!!

 

[RustedFox]

Is now the time to take that job that pays 450k but is in bumble fudge if America... or stick to job number two that is 300k but in a huge top 5 city?? With all this economic downturn it’s hard to pass on the money for a “better” social life lol!!!

You couldn't pay me enough to live in downtown...

NYC
LA
SF
CHI
ATL
DC
BOS
DAL

 

[BoardingDoc]

You couldn't pay me enough to live in downtown...

NYC
LA
SF
CHI
ATL
DC
BOS
DAL

I'm pretty sure someone could pay you enough to live there. The problem is they won't.

 

[RustedFox]

I'm pretty sure someone could pay you enough to live there. The problem is they won't.

Okay, fine.
You couldn't pay me a realistically persuasive amount of money to live in those places.
And yes; they won't.

 

[Birdstrike]

You couldn't pay me enough to live in downtown...

NYC

I am not a city person, and never have been. Due to an opportunity I couldn't turn down, I had to live in downtown NYC for one year. But not in the insanity anywhere Midtown, or Times Square. Believe it or not, there are quiet little spots in and around Manhattan, away from all the bull$hit, cabs, tourists and noise. I lived in one of those places called Battery Park City. My apartment was on the water, tucked between two quiet and unknown parks (Teardrop & Rockefeller). The first 6 months, it was like living on a different planet in a different galaxy, with different laws of physics and nature. The second six months, once I got used to it, it was actually pretty cool. It was an insane year, and it left me just about broke, but it was also one of the best years of my life. Long term, I prefer being by the water in the heat of the more affordable, lazy South. But that one year...Man, do I have stories.

 

[GeneralVeers]

I'd definitely live in downtown DAL. One of my favorite big cities. Reasonable cost of living, no taxes and decent restaurant nightlife. RF why do you hate it so much?

Agree completely on the other high-tax hellholes you mentioned.

 

[HoosierdaddyO]

Oh I 100% agree that these are possibly the worst financial cities to live in, but if you’re a single, self-proclaimed “decent” looking 30-year-old young attending, can you really put a price on the social life of living in a big city making 300,000 versus living in the sticks making 450?!

 

[KGflyboy]

I'd definitely live in downtown DAL. One of my favorite big cities. Reasonable cost of living, no taxes and decent restaurant nightlife. RF why do you hate it so much?

Agree completely on the other high-tax hellholes you mentioned.

... But the traffic. Doesn't it take forever just to get from one side of the city to the other? I have never stayed in Dallas, but I always dread passing through on my drive to other parts of Texas.

 

[e30ftw]

We’ll probably save 10-15k over the next two months in cancelled vacations and by eating at home.

Fine with me since it frees up cash for the retirement accounts.