What do you want to save for? Repaying student loan debt? Putting together an emergency fund? Putting money aside for a more expensive yet desired item? Regardless of what you’re saving for, two things are certain: the goal is important to you and it could be difficult for you to save enough money for it.
As a medical student, repaying loans and setting aside money for future goals may feel overwhelming. The good news is that there are techniques to make saving money simpler so you can accomplish your objectives more quickly.
Take into account these 8 money management practices to curb spending, manage debt, and reduce financial stress.
- Before using your credit line, shop around
If you depend on a student line of credit to pay for your education, you should only borrow what you actually need. In order to prevent needless debt, consider alternate sources of income first. You may be able to use your education savings or family support. Make sure you’ve submitted applications for government loans as well as grants and scholarships. Use earnings from a side business, such as tutoring. A budget makes the best use of the available funds.
- Calculate all of your costs
It’s crucial to make a distinction between fixed costs and spending that you have some influence over when making a budget. Rent, phone subscriptions, and auto insurance costs won’t fluctuate from month to month, so you know how much to budget. Likewise for fixed education costs like tuition.
You have more control over the remaining expenses since they are arbitrary (groceries, clothes, auto upkeep, etc.) or optional (entertainment, eating out, vacations, etc.). Calculate how much you anticipate spending each month on them. Include a little buffer to cover unforeseen costs. One suggestion to get you going is that residents and medical students are eligible for banking incentives, such as a fee waiver on some credit cards and chequing accounts.
- Decide on a monthly budget
A goal is beneficial. Determine a monthly spending limit for yourself based on the costs you anticipated for the academic year. Try your best to adhere to your monthly cap, including any credit-card transactions. Every month may not be perfect, but you can always make adjustments to reflect reality. To keep track of spending, note patterns, and get a precise picture of your cash flow and budget over the course of two or three months, use a single credit card for all of your transactions.
- Maintain a log in your own style
Whether you enjoy using spreadsheets or prefer to keep notes on paper, keep track of your spending. Whatever schedule you choose—weekly, monthly, or quarterly—stick to it. You may effortlessly enter data on well-known web sites and budgeting programs. However, be wary of third-party services that request that you attach your personal financial information because doing so might leave you open to fraud. To reduce your debt, first spend what you have. Debt reduction can be accomplished by using extra cash from summer employment or roommate expenses that are split.
- Take a step back to view the entire scene
You may need to change your budget each semester to account for changing costs and unforeseen expenses, such as attending conferences or taking optional courses that require travel. Things may vary month to month, so watch for trends. Check the balance on your line of credit frequently to compare against initial forecasts and adjust expenditures if necessary. In your final year, budget for additional charges such as travel expenses and Canadian Resident Matching Service participation fees.
- Take advantage of cash benefits and loyalty awards
Through your student union or medical organization, look for “free” money and discounts that are offered on anything from insurance to exam prep. If you inquire, the majority of merchants also provide a student discount. Use your most generous credit card for all of your payments and purchases to maximize your benefits, and then use cash or your line of credit to settle your monthly debt.
- Encourage yourself to indulge once in a while
If you want to make it through the rigours of medical school, you must take care of your physical and mental health. You should never be denied necessities for your health and happiness because of a tight budget. Nobody else matters but you, whether you need that pricey oat milk or a certain set of running shoes. Budget for a few enjoyable traditions!
- Ask for help when you need it
You might not have much energy left after all of the studying and information overload. You do, however, require a foundation in budgeting. Start by saving these personal financial resources for medical students to your bookmarks, and seek professional assistance if necessary.
From the first day of medical school and beyond, MedTax financial consultants have years of expertise assisting students with their financial decisions. You can always reach out to your advisor with any questions or for help setting a financial path for your career. Get in contact with one today!
