Medical school is behind you and now you can focus on your residency in Emergency Medicine. You are finally going to have some positive cash flow but knowing what to do with it can be tricky. Seems like the answer should be easy but when you break it down the choices you make can mean the difference between financially secure now and in the future or being broke again.
The first thing you want to do is get a complete understanding of your current expenses. The best way to do this is break them down into categories. Start with your fixed necessary expenses such as: Rent, Student debt, Disability Income Protection, Auto Loan etc. Then your non fixed necessary like groceries, medical expenses, gas, clothing etc. Now add in your wants category items like dining out, morning starbucks, impulse purchases, event tickets (you get the idea). Keep in mind this is the category that typically gets everyone in trouble.
Once you’ve got all that then take that number and deduct it from your current salary what if any is left over. Hopefully you have something to spare for a rainy day. If not don’t worry just start analyzing what you can do without. The key here is to be real with yourself. No one else is looking and you are trying to paint a realistic picture of what you spend now while your and Emergency Medicine Resident and on a limited budget. If changes need to be made then make them. Building a solid foundation for spending and saving now will go a long way toward creating that financial security you will want in the years to come.
In addition to being the top Disability Income Protection Specialist in the country, IncomeProtectionSpecialist.com is also fully licensed and able to assist you with your financial plans now and going forward. Should you have any questions please do not hesitate to contact us.