Trying to sort out a budget for M-1

[punkedoutriffs]

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Not sure if this is the correct forum, but I've been tinkering around with a budget for M-1 so I can know how much to take out for loans. I wonder if I have any blind spots that you could point out?

I've separated the costs into fixed/variable:

Fixed:
Tuition
Fees
Technology Fee
Life/Disb Insurance

These are what they are, so I'll leave them alone.

Variable:

Rent/Utilities $7,000
Food/Household $2,500
Personal/Recreation $2,000
Medical/Dental Costs $470
Travel Home $500
Transportation- Car $1,900
Books, Equip & Supp $650

This is what financial aid allows for. I think I can reduce these numbers down to the following:

Rent/Utilities $4,000
Food/Household $1,800
Personal/Recreation $200
Medical/Dental Costs $470
Travel Home $0
Transportation- Car $260
Books, Equip & Supp $650

I've found a cheap place to live with rent being $265/month and utilities being <$40. I plan on eating mostly basic, staple foods that I cook on my own (rice, lentils, fruit smoothies, etc.). I took out most of the personal/recreation because I have no idea what that could be used for. I've kept most of the medical/dental because I don't know how to budget for that. I don't plan on traveling home. I don't own a car so the $260 is really for bus tickets and maybe the occasional cab ride. I've kept all the money for books/equip because though I've heard that upperclassmen will point out books I won't need, I still want to leave some room for Step I review books like First Aid, etc.

A monthly breakdown of this looks like (excluding books/equip):

Rent/Utilities $333
Food/Household $150
Personal/Recreation $17
Medical/Dental Costs $39
Travel Home $0
Transportation- Car $22

What do you guys think? Am I missing anything?

 

[chemsmith]

I certainly admire you for getting seeking out such affordable housing. I bit the bullet and got a place in a nice neighborhood a block from my med school, and its more pricey than I would like. Also, I could not manage on $150 per month (37.50/wk) for food. I planned on borrowing the max first year while I figure stuff out then borrowing much less in the subsequent years.

 

[theshellyb]

A monthly breakdown of this looks like (excluding books/equip):

Rent/Utilities $333
Food/Household $150
Personal/Recreation $17
Medical/Dental Costs $39
Travel Home $0
Transportation- Car $22

What do you guys think? Am I missing anything?

You really only plan on spending $17 on yourself per month for having a life? What if you want to get a beer with friends, or go to a movie, or just get a burger. Budget= exceeded. Up that number, DRASTICALLY.

Where do you live that rent AND utilities are $333/month?

 

[punkedoutriffs]

You really only plan on spending $17 on yourself per month for having a life? What if you want to get a beer with friends, or go to a movie, or just get a burger. Budget= exceeded. Up that number, DRASTICALLY.

Where do you live that rent AND utilities are $333/month?

It's in the midwest. The house is actually a half-mile from campus and I'm renting a room in the basement. The price was a shock to me too as I'm used to East Coast prices. Regarding the recreational expenses, maybe $17 is a bit tight. Maybe 50 will be good. I think anything more will be indulgent by my standards.

 

[Donald Juan]

It's in the midwest. The house is actually a half-mile from campus and I'm renting a room in the basement. The price was a shock to me too as I'm used to East Coast prices. Regarding the recreational expenses, maybe $17 is a bit tight. Maybe 50 will be good. I think anything more will be indulgent by my standards.

Your budget seems very unrealistic. I recommend you take out a lot more than you plan on using and then if you have that money left over you can always pay it back. Better to have the money and not need it then to be stressing over not having enough money to pay rent.

 

[punkedoutriffs]

Your budget seems very unrealistic. I recommend you take out a lot more than you plan on using and then if you have that money left over you can always pay it back. Better to have the money and not need it then to be stressing over not having enough money to pay rent.

So the money can be paid back without having it accrue interest?

 

[ijn]

You're not going to buy a dental AND health insurance plan for $470 a year... da ****

Expect to pay something more in the range of $1000-$2000 depending on what kind of deal your school offers.

 

[Donald Juan]

So the money can be paid back without having it accrue interest?

Yes, it will accrue interest during the year, so you might take a slight loss on that.

I'm really just wondering how you will ever live like this. $150 a month for food/household = $5/day. Do you plan on doing laundry...with soap? Using deodorant and toothpaste? $22/month for transportation? I guess you don't have a car, because your insurance would be more than that. What happens if your computer craps out on you, or you need a new pair of shoes or a new tie? If you already have a couple grand saved up to give you a nice buffer, then maybe you don't need to take out more in loans. I just really doubt you will genuinely live for a year this way.

 

[Zarika]

Not sure if this is the correct forum, but I've been tinkering around with a budget for M-1 so I can know how much to take out for loans. I wonder if I have any blind spots that you could point out?

I've separated the costs into fixed/variable:

Fixed:
Tuition
Fees
Technology Fee
Life/Disb Insurance

These are what they are, so I'll leave them alone.

Variable:

Rent/Utilities $7,000
Food/Household $2,500
Personal/Recreation $2,000
Medical/Dental Costs $470
Travel Home $500
Transportation- Car $1,900
Books, Equip & Supp $650

This is what financial aid allows for. I think I can reduce these numbers down to the following:

Rent/Utilities $4,000
Food/Household $1,800
Personal/Recreation $200
Medical/Dental Costs $470
Travel Home $0
Transportation- Car $260
Books, Equip & Supp $650

I've found a cheap place to live with rent being $265/month and utilities being <$40. I plan on eating mostly basic, staple foods that I cook on my own (rice, lentils, fruit smoothies, etc.). I took out most of the personal/recreation because I have no idea what that could be used for. I've kept most of the medical/dental because I don't know how to budget for that. I don't plan on traveling home. I don't own a car so the $260 is really for bus tickets and maybe the occasional cab ride. I've kept all the money for books/equip because though I've heard that upperclassmen will point out books I won't need, I still want to leave some room for Step I review books like First Aid, etc.

A monthly breakdown of this looks like (excluding books/equip):

Rent/Utilities $333
Food/Household $150
Personal/Recreation $17
Medical/Dental Costs $39
Travel Home $0
Transportation- Car $22

What do you guys think? Am I missing anything?

I think you're going to be coming to my school based on your initial financial aid numbers looking very familiar and the mid-west part. I'm also from the East Coast, so while I agree things are WAY cheaper here, $17/month isn't realistic. You literally won't be able to go out more than once if you're talking dinner or two or three times if you do a drink or two per bar night. First semester first year you'll need to study a lot of course, but you'll also want to be spending some of your weekends going out and being social and making friends.

I would also up the food budget a little bit. $150 per month can be done, but it requires it being a constant planning and things like NEVER picking up a coffee on campus. That 250/month they give you also includes the "household" category. Don't forget things like laundry detergent, dishwashing soap, toilette bowl cleaner will not need to purchased every time you go to the store obviously, but when you do need them they can seriously eat into your weekly food budget.

If you go where I think you're going, the other nice thing is that you can take out more money at any point until a certain date that's 2/3 of the way through the semester. But then I think you get stuck with more origination fees although I can't verify that.

I think most people at my school take out less than the maximum amount. I don't know that they do it as drastically as you have without significant parental help, so there's also that to consider.

 

[HLxDrummer]

Do you have some money in the bank? Then you will be fine depending on your lifestyle.

All through college I worked/saved my money and I am still working a little bit. I borrowed only enough to pay tuition/fees. Told myself I would pay the rest out of pocket this year at least. It is working just fine especially considering I will be working this summer. I also have to mention I have a free place to stay or I would have added that to my loans.

I also don't go to the bar every night so that keeps costs down for me. Didn't bring my car to school, make coffee at home, pack a lunch, etc.

 

[235009]

Your budget seems very unrealistic. I recommend you take out a lot more than you plan on using and then if you have that money left over you can always pay it back. Better to have the money and not need it then to be stressing over not having enough money to pay rent.

find out if your school allows you to take out more loans mid-year as long as you're under the COA. you'll likely need it because your budget is pretty unrealistic.

I've separated the costs into fixed/variable:

Fixed:
Tuition
Fees
Technology Fee
Life/Disb Insurance

life and disibility insurance? where's medical insurance? you really don't need life insurance as a med student if you're single (which it sounds like you are)

I've found a cheap place to live with rent being $265/month and utilities being <$40. I plan on eating mostly basic, staple foods that I cook on my own (rice, lentils, fruit smoothies, etc.). I took out most of the personal/recreation because I have no idea what that could be used for. I've kept most of the medical/dental because I don't know how to budget for that. I don't plan on traveling home. I don't own a car so the $260 is really for bus tickets and maybe the occasional cab ride. I've kept all the money for books/equip because though I've heard that upperclassmen will point out books I won't need, I still want to leave some room for Step I review books like First Aid, etc.

A monthly breakdown of this looks like (excluding books/equip):

Rent/Utilities $333
Food/Household $150
Personal/Recreation $17
Medical/Dental Costs $39
Travel Home $0
Transportation- Car $22

What do you guys think? Am I missing anything?

1. you should budget at least $200/month for food
2. not sure what this medical/dental is but if it's insurance you're way off...if it's spending money ontop of insurance you can budget zero and take out more later if you happen to need it
3. i'm assuming you're in the suburbs....how can you not have a car?! sounds like you're going to isolate yourself without one.
4. why aren't you ever traveling home? unless you no longer speak to you parents and have not made any friends over the last 22+ years you should probably rethink that
5. the amount you budgeted for books/equip is super high! for first year you'll likely just need 200 bucks max. definitely more for second year when you need to get qbank subscriptions which are pricey and you'll need to budget for step 1 registration cost (don't remember what it is but in the hundreds).
6. obviously your 17 bucks for recreation is absurd.... you should budget at least 100/month for that
7. don't plan on buying any new clothes? what about dress shirts and ties for patient encounters and OSCEs?
8. who's taking care of the cell phone bill? if it's you're parents you should really go visit them at some point (see #4)
9. cable? internet? typically expensive stuff and will bring your utilities > $40 pretty quickly

bottom line is you can't be unhappy and expect to do well. preclinical years suck enough as it is that there's no reason to compound it further by trying to pinch pennies like this.

though your school's COA is likely being generous, as most tend to be, you can't just go ahead and cut the budget in half and expect to live comfortably and be happy.

 

[survivordo]

I think you should live like you normally would for a few months and just keep track of what you spend. After a few months take a look at where you are spending your money. Then identify areas where you can cut back and try to establish a realistic budget. What you have going up top there seems a but unrealistic, but doable.

Have you tried mint.com?

Survivor DO

 

[HatWobble]

Take out the whole COA and hold on to it. You never know when you'll need extra spending change. What if you have to pay for a car repair, parking ticket, or ER visit?

Worrying about the interest accrued on an extra $1,000 or so ($68/yr, mind you) is silly compared to the security of having extra loot on hand.

 

[punkedoutriffs]

Thanks for the responses everyone, I'll go back to the drawing board on this one.

 

[wonderdog]

I think you should live like you normally would for a few months and just keep track of what you spend. After a few months take a look at where you are spending your money. Then identify areas where you can cut back and try to establish a realistic budget. What you have going up top there seems a but unrealistic, but doable.

Have you tried mint.com?

Survivor DO

Mint.com is the best!

 

[DrBodacious]

Not sure if this is the correct forum, but I've been tinkering around with a budget for M-1 so I can know how much to take out for loans. I wonder if I have any blind spots that you could point out?

I've separated the costs into fixed/variable:

Fixed:
Tuition
Fees
Technology Fee
Life/Disb Insurance

These are what they are, so I'll leave them alone.

Variable:

Rent/Utilities $7,000
Food/Household $2,500
Personal/Recreation $2,000
Medical/Dental Costs $470
Travel Home $500
Transportation- Car $1,900
Books, Equip & Supp $650

This is what financial aid allows for. I think I can reduce these numbers down to the following:

Rent/Utilities $4,000
Food/Household $1,800
Personal/Recreation $200
Medical/Dental Costs $470
Travel Home $0
Transportation- Car $260
Books, Equip & Supp $650

I've found a cheap place to live with rent being $265/month and utilities being <$40. I plan on eating mostly basic, staple foods that I cook on my own (rice, lentils, fruit smoothies, etc.). I took out most of the personal/recreation because I have no idea what that could be used for. I've kept most of the medical/dental because I don't know how to budget for that. I don't plan on traveling home. I don't own a car so the $260 is really for bus tickets and maybe the occasional cab ride. I've kept all the money for books/equip because though I've heard that upperclassmen will point out books I won't need, I still want to leave some room for Step I review books like First Aid, etc.

A monthly breakdown of this looks like (excluding books/equip):

Rent/Utilities $333
Food/Household $150
Personal/Recreation $17
Medical/Dental Costs $39
Travel Home $0
Transportation- Car $22

What do you guys think? Am I missing anything?

Going through med school some of my friends kept themselves on a strict budget. Now, after finishing a 5 year residency, I may have 150% of the debt as they do, but they lived in poverty for 4 years, while I enjoyed a variety of things in a "middle class" budget. At worst, I will may be paying $1000 - $2000 more per month on my student loans for a few years to catch up. Some limitations can be there if you go in to a lower paying specialty, but even if you only make $150K per year, that should give you a monthly after tax income of around $10000.

Just make sure you put everything in perspective. I understand there are people that just naturally pinch pennies and can live no other way, but it doesn't really make sense in the big picture to live in poverty throughout med school, unless you have some really unique long term goals.

You didn't budget anything for clothes, cell phone, internet, but if your aim is to live in poverty, then I guess you don't need those things.

As someone else said, you probably don't need life insurance.

 

[DrBodacious]

.

 

[235009]

Going through med school some of my friends kept themselves on a strict budget. Now, after finishing a 5 year residency, I may have 150% of the debt as they do, but they lived in poverty for 4 years, while I enjoyed a variety of things in a "middle class" budget. At worst, I will may be paying $1000 - $2000 more per month on my student loans for a few years to catch up. Some limitations can be there if you go in to a lower paying specialty, but even if you only make $150K per year, that should give you a monthly after tax income of around $10000.

Just make sure you put everything in perspective. I understand there are people that just naturally pinch pennies and can live no other way, but it doesn't really make sense in the big picture to live in poverty throughout med school, unless you have some really unique long term goals.

You didn't budget anything for clothes, cell phone, internet, but if your aim is to live in poverty, then I guess you don't need those things.

As someone else said, you probably don't need life insurance.

this is excellent advice. don't waste your 20s, you can't go back and redo them. you'd be very hard-pressed to find someone who regrets having TOO much fun in their 20s but you will certainly regret living in poverty when you didn't have to.

another thing you're forgetting to budget for....dating?

 

[thedoctor8706]

Seriously, it may sound "irresponsible" or whatever, but you do need to budget yourself a little more cash for fun time. Not for partying ever other night, but if you don't balance your life with time and a little cash to blow off some steam every once in a while, med school will consume you. Set aside a little money to go to the movies, get a burger with your friends, take some girls (or guys) on dates. And if your budget or tuition doesn't already include this in there, set aside some money for a gym membership! Balancing your life is key, or you will quickly start to hate it.

 

[Dave89]

Bear in mind that if you're talking about Stafford loans, the financial aid office can add to your loans anytime during the year if you haven't exceeded the limit (at least in my school).

 

[evilbooyaa]

As most people have said, give yourself some room to breathe in terms of a budget. I'm not saying budget yourself enough so you can throw 20s at ho's down at the local strip club every weekend, but enough to live a little. Don't live your 20s as a hermit (unless you really really wanna) b/c there is a strong chance you will regret that decision when you're single and in your 30's.