How important is saving $$ during school?

[OptMan]

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Hello all,

I will be starting optometry school this fall and just wanted other peoples thoughts on how to live (in a financial sense) during my four years at school.

I have secured a line of credit, so I am not too worried about running out of money or anything. The main thing I am trying to figure out is if it makes a huge deal once you are out of school.

For example comparing two apartments, one of them has $100 higher rent, but it is further away from school, however it is extremely nice and includes a pool/fitness center + bigger.

Another example would be buying a TV, would spending an extra $500 on a nicer TV really hurt in the grand scheme of things (such as a debt of $150,000 that $500 or extra $100 in rent/month is not going to increase by debt by that much). I know many people may think why the need for a nice TV? however I am a person that does like to relax for a bit after a long days work and a nice TV would go a long ways into helping me do that 🙂

I dont know. I guess am just trying to figure out where I should draw the line between wants and needs I guess

any advice would be greatly appreciated!

 

[eyestrain]

That line of thinking will get your debt snowballing in a hurry.

 

[SarahNC]

I think its OK somewhat. If you feel you will be much happier in a bigger place with a bigger TV, then sure, its not that much more money. Be careful though, you don't continuously do that. "Its only $___ more..." That kind of thinking adds up fast and you can get addicted to that mindset. My husband and I just decided to rent a 3 bedroom house near PCO instead of a 1 bedroom apartment. It cost $300 more a month, but it will make a huge difference in terms of study space and having a backyard for our dog.

 

[OptMan]

That line of thinking will get your debt snowballing in a hurry.

Yes I do understand that, I don't think I will get out of control with my spending or anything

Basically the question that I am looking for advice for is how much of a difference will spending an extra $15,000 - $20,000 over the course of 4 years will make.

 

[SarahNC]

What are you talking about an extra 15-20 thousand? You said an extra 100 bucks a month, which over 4 years is only 4800.

I would say live like a student now, so you don't have to live like a student later.

 

[KHE]

Hello all,



Another example would be buying a TV, would spending an extra $500 on a nicer TV really hurt in the grand scheme of things (such as a debt of $150,000 that $500 or extra $100 in rent/month is not going to increase by debt by that much). I know many people may think why the need for a nice TV? however I am a person that does like to relax for a bit after a long days work and a nice TV would go a long ways into helping me do that 🙂
!

Be VERY careful with that line of reasoning because it will almost become like death by a thousand paper cuts.

Don't skimp on your living quarters. There is nothing worse than coming home after a long day of getting abused to a dumpy, roach infested apartment with difficult neighbors or a rough part of town.

But you don't need a fancy TV. That's exactly the kind of thing that you will regret later. I guarantee it.

 

[JAZZEYE]

Of course a comfortable apartment in a good location is important .... Opt. School can be stressful.... you need a sanctuary to retreat and recharge.
But the size of your TV should not be so important....I would take any old thing that works.

There are loan calculators online that can crunch the numbers for you if you really want to know.
Loan calculator

at 7%
20K = 232.72 month 10yrs
15K = 174.16 month 10yrs
but you probably will refinance at some point.

 

[JMU07]

I would say live like a student now, so you don't have to live like a student later.

This is exactly right... don't buy fancy things because you want them. Having a nice apartment is important, you don't want to live in a shady area of town. But just because you have a credit card doesn't mean you can get whatever you want. Live like a student now so you can live like a doctor after you graduate. Take out the ABSOLUTE MINIMUM you can in student loans. If you have loan money left over at the end of the semester, give it back so you don't have to pay it off (DO NOT spend your extra money on things you want but don't need!).

I've seen a lot of things working in the financial aid office. Spend your money wisely.

 

[qwopty99]

But you don't need a fancy TV. That's exactly the kind of thing that you will regret later. I guarantee it.

I totally understand this line of reasoning. It makes perfect common sense. That said, I don't think you can deal with absolutes.


None of us know this guy's priorities and where his values lie. If getting a large-screen TV is important to his mental health, holding parties, and souping up his bachelor apartment, then what can you say. He could look back at that TV and decide that the TV was the one thing that put his apartment "over the top" and was worth every penny. So this is an issue of values, and not just money. In the way that you say "don't skimp on living quarters", because it makes perfect common sense, that represents your values. I'm sure you can probably find someone (somewhere) who did and was OK with it.


I will also say that at the end of every optometry school year, 1st, 2nd and 3rd year students get inundated with fire-sale furniture etc. from 4th year graduates who are moving back to their home towns. In the OP's case, this probably means fire-selling that TV.

 

[Dwight Schrute]

Live like a student now so you can live like a doctor after you graduate.

You must not have had the privilege of living in 'Trashby' 😀. I don't think I could stand another four years of that!

 

[alferec]

All I can say is, if you're spending loan money, the general rule that I heard is that you're paying back about 2-3x more than you spend depending on the principal, interest rate, and how long you stretch out your payback time. So that nice $500 TV set can cost you $1000-1500 if you are using loan money. You can't go wrong with your spending if you think about it that way.

 

[JMU07]

You must not have had the privilege of living in 'Trashby' 😀. I don't think I could stand another four years of that!

HAHA you are correct... I never had the "pleasure" of living there. 😀 I was in the good old campus condos!!

 

[swiftiii]

I am probably the most anal person about money you'll ever meet. But just before you think I am a total scrooge, as a chick, I still like to spend my money😉. A lot of great points have been made thus far. My favorite story in school so far has been a point made by financial aid. We have a starbucks kiosk in the building and their point was that sure you pay $3.50 for that mocha now, but you're really spending $10 for it. So I don't buy starbucks. In fact, I don't bring my money to school at all. It certainly saves me a bundle. However, I DO spend my money elsewhere.

So here is my point. Certainly you are entitled to a TV that you pay $500 for but that is really going to cost you $1000. Is that what you really want? Or really need? Of all the purchases you could make, is that something you want to spend your loans on? I believe you can buy certain things, but you need to learn a balance. We all suffer from massive debt once we graduate, and with the state of the profession, it's hard to know just how much we will make in the future. If you make an expensive purchase, are you strong enough to forgo nights out on the town? A certain party? Living in a nice apartment? That's the balance I am referring to. Feel free to spend your money occasionally; but if you're not good at saying no to some extraneous spending, I would try to keep in check the things you can. Like spending more on an apartment because it has nicer amenities, or buying a tv that four years from now you will have to lug out of city.

And can I just say, living closer to your school pays dividends. You don't have to drive. You can go home on your breaks. And how much of what the apt offers can you not get on campus?? Certainly, live in a nice place. But really think about what you are paying more for. I pay to live close to campus. But paying more for something that has a sweet pool is not, in my mind, a good reason. But you'll be a doctor in a few years. You are smart enough to know what is a good "waste of money" and what is not.

 

[Framecontrol]

Living in a nice place that represents and supports my passions and values gets my creative, motivate, and innovative juices flowing. Hence forth, this results in more income down the road + better opportunities.

Feng Shui my friend.

 

[gochi]

Optometry school is overpriced when loans are included.

 

[eyestrain]

Living in a nice place that represents and supports my passions and values gets my creative, motivate, and innovative juices flowing. Hence forth, this results in more income down the road + better opportunities.

Feng Shui my friend.

Huh? A nice place that "supports your passions and values"? Please tell me how an apartment, or any housing for that matter, can support your "passions and values".

 

[SarahNC]

Huh? A nice place that "supports your passions and values"? Please tell me how an apartment, or any housing for that matter, can support your "passions and values".

Haha, that must be one fantastic apartment! 🙂 I just want an apartment with some space in it and no roaches or rats. and perhaps a dishwasher.

 

[LucidEyes]

Does anyone who is in or has been through OPT school knows/knew anyone who worked some hours while in school? It would be of some benefit if you have a way of making money to help while going to school. I'm sure there are some people who had decently payed professions prior to going to opt school so could use that to make a little extra cash on the side for very few hours and help pay the bills.

 

[KHE]

Does anyone who is in or has been through OPT school knows/knew anyone who worked some hours while in school? It would be of some benefit if you have a way of making money to help while going to school. I'm sure there are some people who had decently payed professions prior to going to opt school so could use that to make a little extra cash on the side for very few hours and help pay the bills.

I worked between 8 and 12 hours a week as a technician in the clinic from my first year through my fourth year.

 

[JMU07]

You can probably find a work-study job at your school. That's what I'm doing. The students I work with did it during the school year and said it wasn't that bad, but you really don't have much time to work. I know at SCO, they limit the amount of hours you're allowed to work because they don't want it to take away from your studying (I think it's 20 hours max a week during the school year).

 

[Jay12]

Live like a student now so you can live like a doctor after you graduate.

I like that.....great advice 👍

 

[EyeWitness]

I worked full time all through undergrad. is it really not possible to work at least 20-30hrs a week? it worries me

 

[JMU07]

I worked full time all through undergrad. is it really not possible to work at least 20-30hrs a week? it worries me

I really don't think so. You're in school around 8 hours a day (give or take) and chances are you're going to be spending a lot of your free time studying. You'll get more chances to work if you do work-study.

 

[swiftiii]

The answer to this question really depends on the person and I think maybe what school you go to. I'll start with the school since it gives me perspective on how many hours I think it can be done. Here at Nova, you have a lot of holes in your schedule, and 20 hours is absolutely doable. 30 maybe, but I think you would be stretched too thin and because of the variability of your schedule, I don't know where you would get a job that would allow you to flexible enough to fit in 30 hours anyway.

More importantly, though, the number of hours you work depends on the type of personality you have and the type of student you are. Are you disciplined? Can you study during your break periods and in the morning (when you are less likely to be working and possibly not in school.) Do you like to have fun? Or have many outside interests? Can you structure a schedule and stick to it? Do you stress out easily or get easily apprehensive about various things on you to-do list? Are you enough? Will you have to study a lot to get by or can you learn in less time?

And I must ask. Why does it worry you so much to not work? Here's an easy lesson to learn early. Loans are not evil. Absolutely, less is better, but having higher loans preserve your sanity for later, make you a better doctor, and hopefully net you more money in the long run (so you pay off those bills!)

I am all for people working during school if they need to. I personally needed it because it caused me to be more structured in everything I did. When I had too much free time, I couldn't get myself to study at all. And I had so much time! But this certainly isn't the case for everyone. Just as it's not the case that some people would be able to work, nor advise anyone else too either. A job during school isn't going to do much more than give you spending money and make a little dent in your final debt. Accept that now and you'll save yourself from a bigger headache later.

 

[Habitual Rx]

Optometry school is overpriced when loans are included.

When speaking in terms of the optometry schools in the US, I agree with you. My student loan for going to optometry school in Canada would not cover 2 years tuition in the US for the schools I applied at.

Oh, then there's books, equipment and living expenses.

 

[LucidEyes]

Does anyone know about the Health Professions Scholarship Program in the Air Force? Like other programs like medical school will they help pay for your optometry school if you comit to 4 years active duty in the military?

 

[janne1720]

LucidEyes,
Two of my classmates took the HPSP program for the Air Force. Their program was 3 year commitment for the last 2 years tuition of school, plus extra as a monthly stipend.

 

[swiftiii]

The military, and the AF specifically, has gone back and forth about the length of scholarships they offer and the amount of time you owe. I was a military officer for five years, so I have some good perspective here. It used to be four years for four years, which was a good deal. I can say with certainty, now it is not (and that the AF figured out too that the deal was too good and they could get applicants for much less.) At least monetarily speaking. Yes you get a stipend, and tuition, but then you get Captain's pay plus I believe a $1000 bonus yearly. That brings your salary, including housing, to about $45-50K the first two years (you can find out your specific salary and housing stipend on the web). Of course you get full health benefits, which I do find particularly valuable, but that's about it. The real benefit is if you stay for 15-20 years. Then you can retire with 1/2 pay. You could also say the guaranteed job is a benefit, but I don't know how to weigh that cost.

So, you would hope that you make more money than that if you get a job in the real world once you are done with school. Perhaps it might work out to the same amount of money (once you total in debt etc) after a couple years, but I implore you to understand something. They own you. If you don't like your assignment, your location, being deployed (please know that AF doctors can and do fill assignments for the Army), etc, you can't do anything about it. You learn quickly to suck it up, but I want you to think about the pros and cons and do the math before you think it is a good idea. I know what I know; I have done the math for myself, and I feel I know better. But maybe some won't agree. Other benefits also may go beyond money, but if money is your reason, I think you would do better taking the loans.

 

[Mixin Marc]

Wasn't there one girl here that graduated with over 70,000.00 in credit card spending during her four years in optometry school (from reckless spending)? My cousin recently graduated from NOVA and she just put herself in more debt by buying herself a BMW! I didn't think that was a smart idea (at least not right away)

 

[zyg0te]

Wasn't there one girl here that graduated with over 70,000.00 in credit card spending during her four years in optometry school (from reckless spending)? My cousin recently graduated from NOVA and she just put herself in more debt by buying herself a BMW! I didn't think that was a smart idea (at least not right away)

70k in CC debt is insane. It is one thing to leave school with a large subsidized student loan debt, since your rate will probably be <6%. I heard the AOA sometimes buys out your debt and can make it even lower. But to have 70k in debt tacking on 15% interest is ludicrous.

Buying a BMW fresh out of school may not be the best idea, but I wouldn't blame her. Something to reward herself for the 20 years of schooling she just completed, as well as means of transportation. As long as she has secured a job, I don't think it is really an issue. To me the debt accrued over the course of undergrad, and possibly (hopefully) optometry school is just the cost of doing business. I would probably take as long as I could to pay it off since the interest will be so low compared to anything else. The automatic 500 dollars (or whatever the numbers work out to be) every month I wouldn't worry too much about, again it is the cost of doing business.

 

[JMU07]

70k in CC debt is insane. It is one thing to leave school with a large subsidized student loan debt, since your rate will probably be <6%.

Stafford loans are fixed at 6.8%. Just so you know what to expect. 👍

 

[kkoch]

I worked full time all through undergrad. is it really not possible to work at least 20-30hrs a week? it worries me

One of the optometrists I shadowed is in his first year out of PUCO. He told me he worked 30 hours/week for his first three years of school and actually bought a house as a freshman and sold it after his senior year at 30k profit. So it is possible to work and complete school however I'm sure it's not easy.