Is it possible to only live on your spouse's salary during residency?

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M.MD

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I'm just finishing up M1 year, but I've always liked to plan ahead. I'm curious to know if anyone here lives entirely on their spouse's salary and how it's worked out for you. When I start residency my girlfriend will be probably be making around $50k/year teaching, which seems like enough for us both to live on if we're frugal. This would free up my entire salary (minus retirement contributions and other savings) to pay toward student loans, somewhere in the neighborhood of $15k/year. It wouldn't make a huge dent but I could at least keep interest from ballooning. My girlfriend and I have talked about it and we agree that this sounds like a good idea in theory, but neither of us are very experienced when it comes to financial matters, and we're concerned we might be overlooking something. Any input will be appreciated.

TL;DR: Do you live entirely on your spouse's salary and how has it worked out for you in residency?
 
Dont have kid's if u want that to work. We pay 21k just in daycare annually.

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Dont have kid's if u want that to work. We pay 21k just in daycare annually.

Thanks for the extra motivation lol, I didn't realize it was that expensive. Definitely holding off on kids until ~35
 
It depends on where you live, I guess. In my particular bit of fly-over country, $50k/year is a ginormous salary. Probably not the same, though, in NYC, LA,etc.

I lived on my spouse's salary (much less than $50k/year) for the two years of med school we were married. Worked out fine. Will continue doing so during residency and use my salary for loans + retirement.
 
I'm just finishing up M1 year, but I've always liked to plan ahead. I'm curious to know if anyone here lives entirely on their spouse's salary and how it's worked out for you. When I start residency my girlfriend will be probably be making around $50k/year teaching, which seems like enough for us both to live on if we're frugal. This would free up my entire salary (minus retirement contributions and other savings) to pay toward student loans, somewhere in the neighborhood of $15k/year. It wouldn't make a huge dent but I could at least keep interest from ballooning. My girlfriend and I have talked about it and we agree that this sounds like a good idea in theory, but neither of us are very experienced when it comes to financial matters, and we're concerned we might be overlooking something. Any input will be appreciated.

TL;DR: Do you live entirely on your spouse's salary and how has it worked out for you in residency?

Residency pays more or less 50k/yr. -30% taxes, 10% retirement and savings, still leaves more like 30k. That is not an insignificant amount.

Many people in this country live on a lot less than $50k for a couple. They don't get to have a lot of nice things, but you can absolutely stay fed, clothed, housed, and transported for that sum. Again, lets cut that down to ~$30k of take home. In my medium-sized city, $1000/month rents a really comfortable 1 bedroom in a good neighborhood. You can go cheaper, by a lot, but some markets are pricier so lets keep that figure. That leaves $18000. I imagine that you have 2 decent used cars. Assume that you spend $3000/year each in repairs and upkeep, and insurance and fuel. Whatever of that you don't spend goes into a savings account toward replacement should either car fail in a way that is not easy to fix. Use of walking, bicycles, and public transit can control this expense to some extent. $12000 left, or $1000 per month for food, clothing, and everything else.

You can make more room in that budget by living in a less expensive place, or by living closer to your work, etc. If you keep up that lifestyle for just 1-2 years beyond residency, you may be able to pay off your loans, even if you don't go into a high paying specialty.
 
Residency pays more or less 50k/yr. -30% taxes, 10% retirement and savings, still leaves more like 30k. That is not an insignificant amount.

Many people in this country live on a lot less than $50k for a couple. They don't get to have a lot of nice things, but you can absolutely stay fed, clothed, housed, and transported for that sum. Again, lets cut that down to ~$30k of take home. In my medium-sized city, $1000/month rents a really comfortable 1 bedroom in a good neighborhood. You can go cheaper, by a lot, but some markets are pricier so lets keep that figure. That leaves $18000. I imagine that you have 2 decent used cars. Assume that you spend $3000/year each in repairs and upkeep, and insurance and fuel. Whatever of that you don't spend goes into a savings account toward replacement should either car fail in a way that is not easy to fix. Use of walking, bicycles, and public transit can control this expense to some extent. $12000 left, or $1000 per month for food, clothing, and everything else.

You can make more room in that budget by living in a less expensive place, or by living closer to your work, etc. If you keep up that lifestyle for just 1-2 years beyond residency, you may be able to pay off your loans, even if you don't go into a high paying specialty.

Thanks for the cost breakdown, it puts things into a better perspective. It sounds like it could work out pretty well if we stay disciplined. Like you suggest, we're planning to live only on her salary for at least 2-3 years after residency to pay off loans and save for a down payment on a home.
 
It depends on where you live, I guess. In my particular bit of fly-over country, $50k/year is a ginormous salary. Probably not the same, though, in NYC, LA,etc.

I lived on my spouse's salary (much less than $50k/year) for the two years of med school we were married. Worked out fine. Will continue doing so during residency and use my salary for loans + retirement.

I'm hoping for a residency on the west coast, so unfortunately cost of living will be a little higher but I think we can still manage.
 
Daveramsey.com

I don't share his religion or his politics, but he does give really sound financial advice, as well as provide a wealth of tools to help people get control of their finances so that they can be debt free ASAP. I used his system to get my ex out of $80k in debt when we were both working in crappy retail and customer service gigs. (He subsequently dug the hole just as deep for himself again, but only after he was out of my life.)

One of his slogans is that "If, for a while, you will live like no one else, then later, you can live like no one else." If you will be incredibly frugal for a while, so that you can pay your debts off as if your life depended upon it, then later you will have your whole income free and clear. Even $300k/yr income can look pretty bleak, if you have enough debt. Without debt? It looks a whole lot like you could retire in about 10 years, if you wanted to. Being able to work because you want to, because you love it, feels a lot different than having to work to avoid disaster.
 
FWIW, she's taking an enormous financial risk.
 
FWIW, she's taking an enormous financial risk.
Actually it might not be that risky.

In the case that they divorce, she can easily show (cache this thread!) that she supported him throughout residency (and medical school?) and that she deserves a large chunk of his doctorly riches. In the name of a bit of privacy, let me just say that I saw it play out exactly this way in my own family.
 
Actually it might not be that risky.

In the case that they divorce, she can easily show (cache this thread!) that she supported him throughout residency (and medical school?) and that she deserves a large chunk of his doctorly riches. In the name of a bit of privacy, let me just say that I saw it play out exactly this way in my own family.

Depends on 1) whether or not they marry and/or 2) what the relevant common law marriage statues are. So far, she's a girlfriend with no mention of being a fiancee. Or at least I missed it if there was one.
 
Depends on 1) whether or not they marry and/or 2) what the relevant common law marriage statues are. So far, she's a girlfriend with no mention of being a fiancee. Or at least I missed it if there was one.
Ah you're right...I had assumed it was his wife.

Yep, if she's "just" a GF, she's taking a HUGE risk. He needs to put a ring on it if she's moving with him AND supporting him.
 
Ah you're right...I had assumed it was his wife.

Yep, if she's "just" a GF, she's taking a HUGE risk. He needs to put a ring on it if she's moving with him AND supporting him.

We've been together since high school (6+ years now) so I don't consider her "just" a girlfriend. We just decided to wait until we're better offer financially/career-wise before sealing the deal.
 
We've been together since high school (6+ years now) so I don't consider her "just" a girlfriend. We just decided to wait until we're better offer financially/career-wise before sealing the deal.
No insult was intended on my part and I apologize if it seemed to be my intent.

My point still stands: she has very little legal protection (regardless of your intentions) without a marriage certificate.
 
We've been together since high school (6+ years now) so I don't consider her "just" a girlfriend. We just decided to wait until we're better offer financially/career-wise before sealing the deal.
We aren't questioning the strength of your relationship so much as pointing out how amazingly unequal the power differential would be if she supported you until you paid off your loans without the legal protection of marriage. There's essentially zero chance that you could or would be able to adequately compensate her for the monetary sacrifices she is making without legal protection. So if your (collective) plan really is to put paying off your debt as the number one financial priority of the relationship then you either need to marry or have a lawyer draw up a loan from her to you that's enforceable if the relationship ends.

Also, as mentioned before it's very possible for a couple to live on $50k in most parts of the country in the absence of kids.
 
No insult was intended on my part and I apologize if it seemed to be my intent.

My point still stands: she has very little legal protection (regardless of your intentions) without a marriage certificate.

No apology necessary, I didn't mean to sound annoyed. You're right in that she is taking a big risk until we get married. We've talked quite a bit about this already and she's fully aware of what she's committing to. I do like @Arcan57 's idea of drafting some legal documentation to protect her just in case. I wasn't aware you could do this, so I'll definitely bring it up to her. Thanks everyone for the advice!
 
No apology necessary, I didn't mean to sound annoyed. You're right in that she is taking a big risk until we get married. We've talked quite a bit about this already and she's fully aware of what she's committing to. I do like @Arcan57 's idea of drafting some legal documentation to protect her just in case. I wasn't aware you could do this, so I'll definitely bring it up to her. Thanks everyone for the advice!
Thanks for understanding.

Its easy to not understand or assume your relationship is impervious to the destruction seen by others.

The most loving thing you can do for your partner is to protect her, psychologically and financially. So if you aren't going to get married (c'mon 6 years? Its time! You can have the fancy wedding and honeymoon later.), then yes a contract or promissory note between you two stating that you'll pay her back (with interest!) if the relationship dissolves is good advice. My grandparents did the same for me with the stipulation being that if I dropped out of medical school I would pay them back, but that if I graduated, then loan was dissolved. 🙂
 
Well, you did post "spouse" in your discussion line. Depending upon the state, not sure if anything other than a marriage contract will be ultimately binding/protective. Heard from a lawyer that a state around me got rid of any claim by way of common law, etc. He said it just got too sticky, and marriage is more protective. I don't understand why that would be so. A civil union should have legal weight, etc.

Well, good luck to both of you.
 
Well, you did post "spouse" in your discussion line. Depending upon the state, not sure if anything other than a marriage contract will be ultimately binding/protective. Heard from a lawyer that a state around me got rid of any claim by way of common law, etc. He said it just got too sticky, and marriage is more protective. I don't understand why that would be so. A civil union should have legal weight, etc.

Well, good luck to both of you.
There are two issues at hand:

his SO getting back the money she paid when she supported him; that's what a promissory note or contract stating that the money was a loan is for

her getting any claim to current and/or future earnings based on supporting him throughout their relationship, i.e., a common law one in many states

The former is very easy to do and enforceable if drawn up by an attorney; its the same as any other loan made to another party.
 
Just curious, does anyone have a rough ballpark figure for what it my cost to have an attorney draw up a contract like that? Also are there specific attorneys who deal with those types of contracts or will any lawyer be able to do it?
 
Just curious, does anyone have a rough ballpark figure for what it my cost to have an attorney draw up a contract like that? Also are there specific attorneys who deal with those types of contracts or will any lawyer be able to do it?
Somebody who does family/divorce law. You're basically asking for a pre-nup here.
 
IDK, I am not talking in any kind of absolutes. Just my perspective, and I am certain it will be different than some others. It just seems to me that if a couple is truly committed for the long haul, why not just get married? Big weddings are nice, but they are 6 hours or so of your life, with a lot of money attached to those 6 hours. The whole wedding planning, catering-using, venue-finding thing is just a big money maker for those that work in it. I am not against big weddings. It's just that there is so much foo foo emphasis on them. One can make vows in marriage, which, for someone like me, are more about a spiritual union/promise/covenant than anything else. The legal aspects of unions are one thing. The marriage part is a more spiritual thing--call it religious if you would like, although for someone like me, that falls kind of short of things.

Sure people can get contracts, just like they can get prenups. But for some folks like me, people are either committed with a unified, spiritual promise or they aren't. Yes. I know things happen, and even the seemingly best of couples could end up in divorce. But if the commitment for a lifetime is really there, then make it. Otherwise, people are just talking about entering into a business contract. And yes, I know that is how some see marriage anyway--and how the law sees marriage. But I think marriage is something a LOT more than a business contract.

So, if I were the person's significant other, I'd have doubts about a relationship that enters into merely a business contract. Sure, it could protect her. And that is an important consideration. But to me, if people are willing to live as married, refer to their SO as "spouse," and are willing to construct a business agreement, something seems missing to me (and again, this is JUST from my perspective, so I am not speaking in absolutes for anyone), if the persons don't just go ahead and make the whole commitment. I don't want to offend anyone. I am just giving a perspective that I don't necessarily think I'm alone in having. If I am important enough to live with, give my life and time with, help support you, etc, why defer the ultimate commitment? Would it be just to have a big wedding? I mean, what is the hold up with that? Certainly do as you want and as you think best, but it's rolling around in my mind, and I am sure perhaps at least a few other peoples' minds. But the other thing is, this kind of discussion would certainly help to get a stronger idea about where the two people really stand, in terms of the long haul and commitment of marriage. Admittedly, I am one of those people that sees marriage as one sees pregnancy. You are or you are not. You aren't merely a little bit pregnant. You are or you are not. Likewise, people cannot be a little bit married. They are or they are not.
 
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IDK, I am not talking in any kind of absolutes. Just my perspective, and I am certain it will be different than some others. It just seems to me that if a couple is truly committed for the long haul, why not just get married? Big weddings are nice, but they are 6 hours or so of your life, with a lot of money attached to those 6 hours. The whole wedding planning, catering-using, venue-finding thing is just a big money maker for those that work in it. I am not against big weddings. It's just that there is so much foo foo emphasis on them. One can make vows in marriage, which, for someone like me, are more about a spiritual union/promise/covenant than anything else. The legal aspects of unions are one thing. The marriage part is a more spiritual thing--call it religious if you would like, although for someone like me, that falls kind of short of things.

Sure people can get contracts, just like they can get prenups. But for some folks like me, people are either committed with a unified, spiritual promise or they aren't. Yes. I know things happen, and even the seemingly best of couples could end up in divorce. But if the commitment for a lifetime is really there, then make it. Otherwise, people are just talking about entering into a business contract. And yes, I know that is how some see marriage anyway--and how the law sees marriage. But I think marriage is something a LOT more than a business contract.

So, if I were the person's significant other, I'd have doubts about a relationship that enters into merely a business contract. Sure, it could protect her. And that is an important consideration. But to me, if people are willing to live as married, refer to their SO as "spouse," and are willing to construct a business agreement, something seems missing to me (and again, this is JUST from my perspective, so I am not speaking in absolutes for anyone), if the persons don't just go ahead and make the whole commitment. I don't want to offend anyone. I am just giving a perspective that I don't necessarily think I'm alone in having. If I am important enough to live with, give my life and time with, help support you, etc, why defer the ultimate commitment? Would it be just to have a big wedding? I mean, what is the hold up with that? Certainly do as you want and as you think best, but it's rolling around in my mind, and I am sure perhaps at least a few other peoples' minds. But the other thing is, this kind of discussion would certainly help to get a stronger idea about where the two people really stand, in terms of the long haul and commitment of marriage. Admittedly, I am one of those people that sees marriage as one sees pregnancy. You are or you are not. You aren't merely a little bit pregnant. You are or you are not. Likewise, people cannot be a little bit married. They are or they are not.

I think people are reading into this a little too much and we're getting off topic from the original question. My girlfriend and I have come to a mutual agreement that we'd like to wait until we're financially stable and settled into our careers before we get married. We're in no rush and there's really nothing more to it than that. Different strokes for different folks.
 
I think people are reading into this a little too much and we're getting off topic from the original question. My girlfriend and I have come to a mutual agreement that we'd like to wait until we're financially stable and settled into our careers before we get married. We're in no rush and there's really nothing more to it than that. Different strokes for different folks.


Yes. That's why I shared that it was only my perspective. If you are both good with it, then, whatever. Good luck!

Oh and I am sure if you live frugally, you'll be fine.

The other questions, well, it depends upon the lawyer re: how much it would cost. Maybe it would cost between $400 and up to have a lawyer do this. To me, good lawyers are worth every penny. You have to figure out if they really know what they are doing. PM the person above with FL experience.
 
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Wife and I are in a similar spot. We're both residents making ~50k/year. I have 280k in debt, she has none (thus similar to you with a 50k income in addition to your own and only 1 set of debt). We live relatively frugally and are currently paying 2k/month against my loans (target paying ~700 per month against the higher interest rate loans). I plan on increasing this amount by 200/month each year (just slightly over the yearly pay increase) over the course of residency (3 more years). Doing this will save me ~80k in interest over the life of the loan.
 
Wife and I are in a similar spot. We're both residents making ~50k/year. I have 280k in debt, she has none (thus similar to you with a 50k income in addition to your own and only 1 set of debt). We live relatively frugally and are currently paying 2k/month against my loans (target paying ~700 per month against the higher interest rate loans). I plan on increasing this amount by 200/month each year (just slightly over the yearly pay increase) over the course of residency (3 more years). Doing this will save me ~80k in interest over the life of the loan.

This is exactly what I wanted to hear, thanks for replying!
 
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