Higher education is expensive, and medical school is often one of the most costly paths. It is rare for students to be able to afford medical school without taking out loans. Let’s cover the budgeting tips for medical students.
It is tough to carry debt when you are just starting a career, but you can easily manage your student debt and personal finances if you know how to be smart with your money.
Whether a medical school is considered “affordable” or not for you, essential money management and budgeting will be indispensable in keeping you financially stable and stress-free.
1) Set up a budget and stick to it:
First, spend a month or two seeing where your money is currently. Once you know your expenditures, use this information to adjust and build a realistic budget.
Try an app to track spending. It’s an automated way to categorize expenses and manage all the other tips you’ll find here.
It may be beneficial to try a few different apps to find what works best for you. However, the old-fashioned pen-and-paper method still works great if apps aren’t your thing.
The important thing is to monitor your money to manage it well!
2) Carry limited cash in hand:
Limited cash may seem like a strange tip, but it’s one of the oldest when it comes to controlling spending.
Handing over cold, hard cash makes you think twice about spending it.
With credit cards and other forms of digital currency, it’s easy to lose track of how much you are spending.
Maintaining a predetermined amount of money in your pocket helps limit daily spending.
3) Keep it realistic:
As with any goal, setting overly tight restrictions is setting yourself up for failure.
Leave some room for occasional luxuries like a night out or a gift for a friend. There may be some unexpected expenses that pop up, like travel or medical bills also.
4) Prioritize expenses:
How you prioritize will be up to you, but it is crucial to make sure things don’t get away from you when dealing with debt.
Make sure you pay the bills before committing money to other spending categories.
Late fees, interest, and additional charges can add up quickly if you fall behind on payments and make saving money even harder.
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5) Be frugal where it makes sense:
There are some areas where it is easy to cut back on expenses.
Utilize public transport where available and if it makes sense. If a car is necessary, look for something reliable that suits your needs.
Buy used or second-hand textbooks. You can often find older books with minimal changes to content for less than half the price of the newest edition.
6) Be willing to adjust:
You may have to sacrifice a bit to save what you can. However, some minor lifestyle adjustments can put a considerable dent in debt payments over time.
- Sharing living expenses with a roommate is a great way to save a big chunk of money.
- Check up on your subscription services and cancel those you don’t need or use.
- Minimize eating out. Weekly groceries are always cheaper than eating out every day, not to mention generally healthier.
- Use apps to easily find coupons and sales for everyday purchases like household items or personal care.
7) Conscious spending
Finally, one of the best long-term habits you can build to save money and make better spending decisions is to practice conscious spending.
The practice of mindfulness is everywhere right now, and it applies to finances as well! Review items and think twice before clicking “check out” when making online purchases.
Wait twenty-four hours before making big purchases to assess your needs. Shop around before committing to a contractor or service, as there is often a range of prices that can fit your budget better.
Conclusion
Building good financial habits early on is vital for a medical student.
Monitor, manage, and maintain. Get an idea of your finances and start to fine-tune where you spend.
Then you can begin to pay off your debts and move towards putting away some money to save and invest for the future.
As with any profession, being a doctor comes with financial advantages and challenges that you can learn to manage with these essential tips. We help Medical Students pass their USMLE Step 1 & Step 2 CK Exams and provide Live and Live Online Review Courses as well as 1:1 Tutoring.
