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Personal Finances for Residents

The first time someone referred to you as their doctor to your first intubation on a coding patient, hopefully medical school prepared you for the challenges of intern year. But grossly lacking from the preparation to becoming a physician, is what to do with that first pay check. Sure it's not much money, but when you are going from living off a student loan check to making several thousand dollars a month, improperly handling your money is an easy mistake.

Here is a list of 5 things every intern should do with their money. For more tips, see the "Must Read Tips for Med Students and Residents."

  1. Put your savings into a higher yield savings account so at least your money is doing something while it's sitting there.
  2. Pay off all your high interest credit card debt. That stuff hurts.
  3. Participate in your programs 401k if it matches a portion of your contribution. That's free money and there is nothing former med student loves more than free stuff. Also, with a steady income, now is the time for young residents to think about retirement.
  4. If your program does not match a 401k then don't worry, open up and contribute to a Roth IRA. It is the perfect program for residents because while the money going into the fund is taxed, our meager income puts us in a low tax bracket, much lower than when we will retire, giving us the luxury of withdrawing tax free money. Read why "Every Resident Must Have a Roth IRA."
  5. Stop loaning all your hard earned money to Uncle Sam. Why let Uncle Sam hold onto your money when you could be investing it, paying off credit card debt, or at the least, growing it in a higher yield savings account? You can take back what's yours right now by decreasing the amount of taxes that are taken out of each paycheck instead of having to wait till tax filing season to get you money back. Read more at "Tax Tips for Residents."