I assume you are being sarcastic but for those who can't do math- by the time you finish residency you are going to be starting a family so it's no longer just bachelor life living on ramen...
$200K becomes roughly $130- 40 after federal, state and local taxes. Or $11,000/mo after taxes
House: 2000/mo (major underestimation in most major cities)
Property taxes- ~1000/mo (could be 2000 for a morgage of 2000 in some locales)
Various insurance $1500 (health for a family, life insurance, malpractice insurance- probably an underestimate)
Utilities/TV/internet/cell phone- $700
Food for family $1,000
Car- a 300/mo (per person)
Savings: should be 10-20% of your income (1400-2800/mo)
So you're left with $2600-3000/mo prior to necessities like clothes for your family, gas, spending money. Now with 6.8% interest and a 30 year loan of 500K is 3200/month. So, even before any spending cash you're at 11,200-12,600/mo- So yeah, that's not affordable.
Even if you take out your savings, or rent instead of own, you can make ends meet. However, by the time you're 60 when you've paid off your loan, you won't have saved enough to retire.
The end lesson: don't spend half a million dollars on education unless you're going to be making more than 200K
I was a bit sarcastic, but it is possible to win the Game of Loans.
I mean, you don't
need a house right after dental school.
General Dentists don't need a residency after school, so you start making 120K+ right away.
Now, because I made the choice to go to dental school (very important to remember, nobody forced anyone to go to dental school) I know that I will have to plan for the future. This is presumptive of me, but I'm either single, or talked with my significant other about delaying a family until we can get finances and debt paid off because I knew this would be a long road. I agree with myself or with Sig other that we are gonna live minimalist life until debt is paid in full. It took a couple years, but I was able to snag a position off of a dental school waitlist after 3 times trying, Im now 26 and buckle up for a rough 4 years.
Fast Forward 4 year from orientation day at that private dental school. Im a fresh faced 30 year old dental associate hot off of dental school and snagged a super awesome position at around 140K/year. Uncle Sam and the State come to take their cut , and Im left with 110K/year (prolly closer to 100K with future taxes) for all of my hard work. K, so Ive got 110K big ones to work with. Lets do the maths.
Apartment: In my area of the country, I can snag a pretty decent apartment in a safe place for around
600/month, less than that if I want to really cut bare bones. I get furniture on the cheap, hand me downs, mom dad are you using that chair, card table from nice old lady's yard sale. SO we are looking good there.
Property Taxes: B/c of apartment living, no property tax.
0$
Various Insurance: we will stick with your figure, but it varies person to person
$1500
Utilities: Again, minimalism is key here. Im on a cheap cell phone plan-35$/month, I don't have cable TV, I have internet through my phone hot spot to save money, utilities such as lights and electricity however can't really be managed. So lets say
300/month.
Food: Im living the dream with Friday nights at............My house! I have a bag of lettuce and fresh cut chicken that costs less than 10$ over the span of 3 days. I treat myself to subway once a month, and date night consists of walking in the park. Food for me around
500/month.
Car: I staved off docitis and kept my now 15 year old car. It is a gas guzzler, but old bessy still runs (not as well as it did back in college) and Im hoping it lasts for at least another 5 years. Car insurance and gas is what Ive got to pay for, so I'll estimate this at 70$(car insurance)+150(gas)=
220$
Savings: 2K/month.
So, tally it up and we get: Cost of total living 3,120K/month. Subtract from our 9K-3,120K= 5,880K. Pay back time! Im going full force attack on this monster.
Now, my personal tally and how I plan on paying back massive debt: I live comfortably right now as a single person with no car payments, 30/month prepaid phone plan, eating out occasionally, and I can live on 20K/year no sweat.
So, we have 110K/year salary (-) 20K/year, leaving me with 90K. I throw about 20K in savings a year. That leaves me with 70K/year to throw at this huge debt. So, 70K/year(debt payment) X 7= 490K, assuming no raise. Maximum effort! 8 years living the minimalist lifestyle........560K. Rats, still not enough to pay it back with that stupid interest at 6.9%. Lets go for broke (literally) take 10 years=700K. Since we voraciously were able to attack the debt each year, it kept the compounding interest from inflating to astronomical levels. We made it.
Im now 40 years old and single, but hey, I am debt free, and I can now enjoy life. Man, my hair is totally gray now and my back really hurts. Ugh, should have just gone into dermatology like every girl in my intro bio class was gonna do.