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I've seen a number of posts about salary by medical students/residents as well as recent interest in the FIRE movement (Financial Independence Retire Early for those unaware) and just hit a big milestone for myself so I wanted go give anyone interest a real example of a "traditional" medical student without any family support.
Background: Grew up upper-middle class as a young child but then due to life circumstances spent formative years lower middle class. College financing was clearly something that I would need to procure on my own. Began working mowing lawns by high-school, held part-time jobs from 16-18 and saved >50% of this. Obtained significant scholarships and worked my freshman and sophomore year in a research lab to cover all undergraduate expenses (left without any loans). Took out are $175k for medical school (state school, 6.8% interest) to cover 4 years + living expenses. No paying jobs from 21-26.
Residency: Was very overwhelmed by my student loan payments and tried to pretend they didn't exist. Eventually after a few months of not paying, formally put into forbearance. Don't try this at home folks, but I think it's important to understand that other people make big money mistakes too. Got onto IBR a little before PGY-3 year, did not have the re-pay options to subsidize loan rates when I was in training. Looked into moonlighting options as a PGY-3 but options in my city were not good. Mid PGY-5 year I began to moonlight as an adult psychiatry attending working to cover weekends and some evening hours, Initially offered $110/hour, negotiated up to $150 an hour (had already passed adult boards) working about 15 hours/week.
Finances at end of fellowship: Loans had grown to about $240k with my lowly IBR contributions for a life-time loan of around $250k. Living with significant other for much of fellowship but anything I saved on rent went into a diamond and wedding costs.
Attending job hunting: Spoke with a variety of hospital chains in the area, was looking for predominantly inpatient CAP work so even in a big city the list is pretty narrow of applicable places. Most colleagues making around 250K for similar work in my area. Was able to land a position with administrative responsibilities out of the gate for 300k, fully employed with benefits, gave up moonlighting job. Worked about 36-40 hours a week with q8 home call (averaged 3-4 calls/night between 10pm-7am). Wife was completing residency this year (recently married), making about 60k. Lived like a resident except for a few changes: needed a car for work, took my wife's Honda and bought her a new BMW in cash (about 40k). Rest of the income went into student loans. Note 2, definitely should have maxed my 401k, I did not fund it at all; should have maxed a backdoor roth, failed to do so. Did fund HSA. Final loan status - $120,000 remaining when I left this job after 1 year.
Year 2: I had to move due to wife landing attending job elsewhere. New position's contract offered a student loan repayment option covering about $75,000 in 3 installments at the end of each year total annual salary (including this loan repayment) is nearly identical to last positions. Recently completed first year and had first installment arrived. I used a calculator to figure out how much the loan would move to over the next 2 years while awaiting the next 2 payments from employer and cleared the rest out about 4 months ago. Now turning off monthly payments and essentially debt free if continuing on with this job for 2 more years.
Other financials to catch up on: Fully funded 401k for last and this caldender year for wife & self, fully funded backdoor roth IRA for last year/this year for wife & myself. Large disability insurance taken out on wife (her risk of disability is much higher than mine as a male psychiatrist). Savings rate is close to 50% due to being DINKs presently, with the rest of our funds having fully paid off our house (low CoL area) and now working on growing taxable investment account. All assets in low cost index funds.
I have no plans to retire early and hope to work as long as I can provide effective care for my patients, but I do want students and residents to know that you can make a great salary while still working 40 hours or less a week and thoroughly enjoy your work in psychiatry.
Background: Grew up upper-middle class as a young child but then due to life circumstances spent formative years lower middle class. College financing was clearly something that I would need to procure on my own. Began working mowing lawns by high-school, held part-time jobs from 16-18 and saved >50% of this. Obtained significant scholarships and worked my freshman and sophomore year in a research lab to cover all undergraduate expenses (left without any loans). Took out are $175k for medical school (state school, 6.8% interest) to cover 4 years + living expenses. No paying jobs from 21-26.
Residency: Was very overwhelmed by my student loan payments and tried to pretend they didn't exist. Eventually after a few months of not paying, formally put into forbearance. Don't try this at home folks, but I think it's important to understand that other people make big money mistakes too. Got onto IBR a little before PGY-3 year, did not have the re-pay options to subsidize loan rates when I was in training. Looked into moonlighting options as a PGY-3 but options in my city were not good. Mid PGY-5 year I began to moonlight as an adult psychiatry attending working to cover weekends and some evening hours, Initially offered $110/hour, negotiated up to $150 an hour (had already passed adult boards) working about 15 hours/week.
Finances at end of fellowship: Loans had grown to about $240k with my lowly IBR contributions for a life-time loan of around $250k. Living with significant other for much of fellowship but anything I saved on rent went into a diamond and wedding costs.
Attending job hunting: Spoke with a variety of hospital chains in the area, was looking for predominantly inpatient CAP work so even in a big city the list is pretty narrow of applicable places. Most colleagues making around 250K for similar work in my area. Was able to land a position with administrative responsibilities out of the gate for 300k, fully employed with benefits, gave up moonlighting job. Worked about 36-40 hours a week with q8 home call (averaged 3-4 calls/night between 10pm-7am). Wife was completing residency this year (recently married), making about 60k. Lived like a resident except for a few changes: needed a car for work, took my wife's Honda and bought her a new BMW in cash (about 40k). Rest of the income went into student loans. Note 2, definitely should have maxed my 401k, I did not fund it at all; should have maxed a backdoor roth, failed to do so. Did fund HSA. Final loan status - $120,000 remaining when I left this job after 1 year.
Year 2: I had to move due to wife landing attending job elsewhere. New position's contract offered a student loan repayment option covering about $75,000 in 3 installments at the end of each year total annual salary (including this loan repayment) is nearly identical to last positions. Recently completed first year and had first installment arrived. I used a calculator to figure out how much the loan would move to over the next 2 years while awaiting the next 2 payments from employer and cleared the rest out about 4 months ago. Now turning off monthly payments and essentially debt free if continuing on with this job for 2 more years.
Other financials to catch up on: Fully funded 401k for last and this caldender year for wife & self, fully funded backdoor roth IRA for last year/this year for wife & myself. Large disability insurance taken out on wife (her risk of disability is much higher than mine as a male psychiatrist). Savings rate is close to 50% due to being DINKs presently, with the rest of our funds having fully paid off our house (low CoL area) and now working on growing taxable investment account. All assets in low cost index funds.
I have no plans to retire early and hope to work as long as I can provide effective care for my patients, but I do want students and residents to know that you can make a great salary while still working 40 hours or less a week and thoroughly enjoy your work in psychiatry.