poor MD
Personal Finance Tips for Medical Students
- Put your loan money into a higher yielding bank account. Chances are, if you have your savings account with a traditional brick and mortar bank, your interest rates are next to nothing. Online banks are your best bet to give you a much better interest rate. A better interest rate leads to money growth. You'd be surprised the interest a fat loan check can develop with a decent interest rate. When I switched from US Bank to ING Direct, the interest gained on my money increased to well over 50 times what I was getting at US Bank, not to mention the $25 free money you get for opening an account.
- Visit your Financial Aid Office. They are a great source of information regarding special grants and scholarships that you may qualify for.
- Save, budget, blah, blah, blah... you've heard it a million times. Live like a student now and then live like a professional for the rest of your life. Otherwise, live like a millionaire now only to live like a pauper under a mountain of debt forever. Keep track of your money, spend less than you have, avoid credit card debt, follow the "Must Read Tips for Med Students and Residents"... you know what to do, now just do it.
- Do NOT do military scholarships just for the financial aspects. I came a bronchoprovication test away from signing away years of my life to military service. The incentives sound great, but from a financial standpoint, doing the military makes little sense. If you want to do something like family medicine or internal medicine then you may come out even financially going through the military. But if you are like most students and are unsure about what you field you want to go into or you are interested in a specialized field of medicine, then don't do the military route. Several real life examples: my friend recently finished an orthopedic residency and was getting starting offers over $250,000 he could not entertain because of a commitment to pay back four years to the military. Several of my good friends during medical school were denied even applying to anesthesia and radiology residencies because the military had no need for those specialties at the time. Understand that while you may save money, you lose time, and time is money. In my opinion, the main reason one would choose to do a military scholarship is because they come from a military background and/or want to be a military doctor. Doing it only for the money is a mistake!
- Do NOT buy NEW. I got through medical school only having to buy four books brand new. Imagine that, four years of medical school and only buying four new books, a huge money saver considering the number of books that are recommended during medical school! Here's how I did it: I learned from friends before starting medical school which books where absolutely needed and which were useless. You'd be surprised how many of the so called "required" texts on the course syllabus are unnecessary; ask around. Of the books I did need, I borrowed from upperclassmen, the library, and other classmates. Realize that your military scholarship colleagues get paid to buy ALL the required textbooks, a great source for you. For the books that I could not borrow, I'd buy used from other classmates or off the Internet. And lastly, if I could not buy a used or previous edition text, I'd have to buy new. I'd also find out from classmates if that "required" otoscope/opthalmoscope set is truely necessary . Realize that if you are in a clinic and hospital and need something like that, they will most likely have it. Most likely all you'll need is a stethoscope, pen light, and reflex hammer (the latter two you can get free from drug reps).
