Finances: 5 Ways to Avoid Extra Debt in Residency (or anytime!)

Nobody likes talking about money. In particular, nobody likes to talk about their own money problems. It's personal! And a pretty sensitive subject... But I'm going to be honest here in hopes that it helps someone out there!

My husband makes about $52,000 a year as a resident. Once taxes, health insurance, and our tithing (for the Church of Jesus Christ of Latter-Day Saints) is taken out of that, then we live off of about $34,000. With a family of 4, we don't have too many expenses besides the usual bills. We don't have any credit card debt and aren't paying back any student loans yet. We are renting a very affordable home, don't have any government help (i.e. WIC or food stamps), own one car and have a low car payment on the other. We have made a huge effort from the beginning of residency to live within our means and always keep our expenses less than what my man brings in bi-weekly. 

As you can imagine, and if any of you are living with the same kind of salary, you'll know it can be extremely difficult some days. Don't get me wrong... My family is so very blessed with enough food to eat, clothes to wear, toys to play with, cars to drive, heat, electricity, cell phones, and a computer. All of our basic needs are met, PLUS some. I am so very grateful for those things every day. But that's about all there is every month. We don't have anything left over for savings, traveling, eating out at restaurants, buying christmas or birthday gifts (even small things) for family and friends. We only fly to visit our families once a year, and even then we use flight points that we have saved up for the entire year! More than once during residency, our bank account in between paychecks has been as low as $50. It's scary, and nerve-racking, and frustrating!

So... even though I'm not giving you tips for "How to feel rich during Residency" ... I think I have some good points here that may help some of you survive without getting into more debt.

1. Stick to your budget! [Cash Envelopes]

If you have a great way of keeping yourself ON TRACK with a budget, then stick with it! If what you're using now isn't keeping you on track, try something else! 

We have been using the "cash envelope" budgeting technique ever since medical school. It is the BEST way I have found to keep us on track when it comes to everything besides the set-in-stone bills each month. It not only keeps me from over-spending in groceries or clothes for the kids, etc... but it also helps me feel like I'm not going to go CRAZY feeling poor. It helps me feel like I'm in control of what money we have that month instead of "assuming" what money we have used. When you pull your debit or credit card out for everything, it's harder to keep track of where dollar is actually going. It's important to write a whole list of what you spend your money on. Catergories like: diapers, groceries, "other" grocery items (toiletries, TP, saran wrap, etc), oil changes for the cars, haircuts, a little fun money for each person, and so on. Know EXACTLY (to the dollar) how much money comes in, and figure out exactly how much goes out. Then you can easily cut back in areas that need it.

Then STICK. TO. IT. 

You can do it. :)

2. Throw in some fun: "Friday Night Pizza Picnic"

I don't know about you, but if I don't have a little bit of money to feel "free" with, I start to go completely crazy. I have found that if I can get out with my family every so often, and do something fun together, then I don't feel as bogged down overall.

We have decided that as a family we have $20 of "fun money" to spend together each month. That is enough for all of us to see a movie at a cheap theater, or eat out together at Chick Fil A, or get some ice cream or treats once or twice that month. Since it isn't much, we decided that we would start "friday night pizza picnic" night. My kids look forward to it all week! I make us homemade pizza for dinner and we put on a disney movie while the kids sit on a blanket and have a "pizza picnic". I could order pizza and make it less work for myself... but why spend the money? Why not spend an hour making it from scratch and instead of going OUT for some entertainment, we can stay in for free! Redbox is a great help on those nights as well. :)

3. Enjoy being home

Realize that every time you leave the house it costs you money. Whether it's in gas, stopping for a snack or treat, finding things you just "have to have" in the DollarSpot at Target... 

I have so many friends who claim they just can't stay inside all day. Their kids get stir-crazy... The moms need to get out... Everyone wakes up with the attitude of "Where are we going today?" I do admit I have days like that every so often... but most of the time my kids and I actually enjoy being home. We have time to play together, time to relax, time for a PBS show or two, lower stress levels, I have time to make dinner for my family without scrambling or cutting corners in meal-planning, and my kids have learned to self-entertain when I have projects to work on.

 Find indoor activities and activities to do with your kids. Search pinterest for easy/fun ideas (there are TONS!). Borrow movies from friends. Make a fort!

4. Memberships and free activities

-Get a library card and use it often!

-Get a zoo pass. This gives you a place to go multiple times a month if you need to get out but have no money to play with. Even better: We were gifted a year family pass by my parents... Maybe ask for one for Christmas from parents/grandparents?

I have also discovered that if you are on medicaid, you are eligible to special prices at places like zoos and other family establishments. Look into it!

-Get a pass to a kids' play place or discovery museum.

-Find out when your local Barnes and Noble has reading time. You don't need a membership for this.

-Do some exploring in your area and find out where the parks, walking trails, ponds (to feed ducks), and other outdoor sight-seeing locations are.

5. Moonlighting shifts

Some residency programs allow their residents to take on extra shifts in the hospital whenever they have spaces to fill. Usually it's in the NICU or PICU and it's mostly 12-hour night shifts on the weekends. These can pay anywhere from $700-$1000 (based on my husband's program) per shift which, as you know, is a HUGE amount of money. Find out if it's an option in your man's program. They can be hard to snag with all the other residents going after a few of these shifts per month, but they're a big help if you can get them.

I hope this lists help you bare the financial frustrations that come with residency. Hang in there! You can do this and it doesn't last forever. :)

-F. Nightingale