Pay more for studio apartment with loans?

[little_giant]

I am a M2 taking loans for full cost of attendance. I lived with a roommate for both M1 and M2 year and am thinking about moving out to a studio ($~300-400/month more expensive = $7,200-$9,000 total more loans to take out).

Living with a roommate is bearable but it definitely does take a toll on my mental health as they often wake me up from my already not enough amount of sleep since our sleep schedules dont match up. I've wanted to live in a studio for M3 and M4 years, but financially is this a big problem?

$7,200-9000 does seem like a lot of money (and with interest this might end up being $15,000), but in the long run will increased happiness for 2 years during clinicals be worth the cost?

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[bGMx]

I have been doing this since year one and it's worth it.

 

[little_giant]

I have been doing this since year one and it's worth it.

How much more per month would you pay till it's no longer worth it? I'd have to have a budget haha

 

[Yellow345]

How much more per month would you pay till it's no longer worth it? I'd have to have a budget haha

Retrospectively as someone who values my alone time: up to $20,000 in additional loans. Best of luck

Edit: divide that into months I didn’t

 

[deleted966837]

$15,000 is less than one month of attending take home pay.
Would I work one month extra as an attending to sleep peacefully for 2 years? Yes

 

[little_giant]

$15,000 is less than one month of attending take home pay.
Would I work one month extra as an attending to sleep peacefully for 2 years? Yes

When you put it like that I guess I shouldn't be worrying too much. Maybe it's just from habit because I've always had to consider financial repercussions my whole life

 

[lumya]

It's really great that you're financially responsible and cognizant of your spending, but I would argue that it's an investment for you to be the best version of yourself as possible.

I value silence and pay more to live by myself and I find it 100% worth it.

 

[Davidfromcali]

I would definitely do it if living alone is something you really value.

 

[Osteosaur]

Well worth it. I live alone in a one bedroom and cannot imagine it any other way.

If you are an introvert and miserable what is money for but your comfort and success?

 

[howdoiknow]

Definitely worth it. Look at it this way, someone could live off rice, beans, chicken breast and frozen veggies for $120/month but they'd be far happier with some variety for $200-250/mo + $50/mo take out.

At the end of the day that $15k is less than one month's take-home salary even as a FM doc and will be even less by the time you need to pay them off.

 

[KirksvilleKrunk]

I was in the same situation and now live alone as M3, it's amazing! I rent a guest house from a private homeowner in my town. Don't have to deal with shady apartment companies and the place came furnished with all utilities/internet paid. Coming back to an empty, quiet house after rotations has been invaluable to me.

 

[JP2740]

Really? For missing a part of a note? Med school is so dumb.

 

[little_giant]

Well now the question is should I go for a $1,000/mo studio that doesnt have good facilities, some problems with the A/C, etc vs a 1.4k/mo studio that is really nice?
Location is the same.

 

[howdoiknow]

Well now the question is should I go for a $1,000/mo studio that doesnt have good facilities, some problems with the A/C, etc vs a 1.4k/mo studio that is really nice?
Location is the same.

$1400. Youre already paying $12k another $4k for comfort (vs literally barebones walls that keep u sheltered) is worth it

 

[little_giant]

$1400. Youre already paying $12k another $4k for comfort (vs literally barebones walls that keep u sheltered) is worth it

If I do the 1k/mo apartment I'd end up paying $8000 more over the two years compared to now (not accounting interest from loans --> I estimate it to be $16,000 I'd have to repay in the end). If I did the 1.4k/mo, I'd end up paying about $16-17k more over the 2 years --> $32k owed after interest...

 

[howdoiknow]

If I do the 1k/mo apartment I'd end up paying $8000 more over the two years compared to now (not accounting interest from loans --> I estimate it to be $16,000 I'd have to repay in the end). If I did the 1.4k/mo, I'd end up paying about $16-17k more over the 2 years --> $32k owed after interest...

Leases are 1 year. If you feel like you didn't get your money's worth after 1 year you can always move to a cheaper apartment. It's a lot better to have your sanity (and possibly avoid a series of unfortunate events/stress that can lead you to failing a shelf or a rotation). By the time you have to pay it back salaries will have increased. Hospitalists in my area made $160k 15 years ago and now they make >320k. That $32k will be 1 or 2 paychecks depending on your specialty by the time you have to worry about it (assuming the world hasn't ended by then and/or some form of partial/full loan forgiveness)

 

[calivianya]

I'd pay whatever amount of money I had to to not have a roommate. I can't put a monetary value on peace of mind. I don't do well with roommates other than SOs.

 

[ChordaEpiphany]

I'd pay whatever amount of money I had to to not have a roommate. I can't put a monetary value on peace of mind. I don't do well with roommates other than SOs.

If I do the 1k/mo apartment I'd end up paying $8000 more over the two years compared to now (not accounting interest from loans --> I estimate it to be $16,000 I'd have to repay in the end). If I did the 1.4k/mo, I'd end up paying about $16-17k more over the 2 years --> $32k owed after interest...

For most of us, I think it all depends on our goals. OP should run a net worth calculator and figure out, realistically, how they expect to live. Chop off ~25-40% of anticipated salary, because we all need to be honest about the value of an MD moving forward. See the effect these loans make on allowable expenditure and net worth, all at different ages. Most of the time you realize that costs during schooling years are pretty inconsequential. Where it might make a difference is things like time to paying off loans, age when you can afford a mortgage, age when you can retire, etc... Realistically, if you are disciplined with your spending, this should be nothing.

For instance, I'm living on a shoestring budget trying to save up enough on my $41K (gross) income to put 20% down on a house for residency (to avoid PMI). Saving money now actually makes sense because it will improve my well-being in the near future. Currently that means roommates (3 of them). I simply can't justify the $1.5-2K/month cost of a studio in my HCOL city during my PhD, but I plan to either move in with my girlfriend or eat the cost of a studio with a parking spot for 3rd year. Of my 3 roommates, 2 are fantastic people I'm happy to share space with. The other is one of the hardest people to be around I've ever encountered. The thought of dealing with this dude's s*** after an 80 hour week during my surgery rotation makes me want to puke.

 

[ChordaEpiphany]

$15,000 is less than one month of attending take home pay.
Would I work one month extra as an attending to sleep peacefully for 2 years? Yes

While I wholeheartedly agree with this, also make sure to work out how it affects cash flow, particularly in residency. If you look at where the numbers land you at retirement/attendingship, everything looks fine and spending during med school looks inconsequential, but your financial stability and spending power along the way can be just as important. Having more loans now can mean having less to spend during residency.

So you need to think about how your loans are structured and the worst case scenarios. If you take on the extra $16-32K right now, you may wind up having to pay something extra in residency. I'm not going to pretend to be an expert in loan repayment, since I pay for med school in time and sanity, but if your monthly cashflow goes down by $200-300/month on a net income of $4000/month during residency, you could have some trouble if you have some sort of sudden expense. Any number of things, from sick pets to lemon cars to family members in trouble, could definitely sink you at this income level, especially since your ability to simply work more and make more money is limited in residency.

Overall, yes I think it is completely worth it and the math likely bears that out. We devalue our QOL far too much early career. However, don't just think about tacking these expenses onto the end of your career. Think about the journey and whether or not this would impose a burden at any point along the way.