Scared Of Debt

[ovenmitts]

Hey everyone,

 

I'm starting medical school this fall and I will be relying on both government student loans and an LOC to finance my way through it. I've had it extremely good thus far - my parents have paid for most things, no debt, no loans, nothing. In other words, I don't know money. I plan on moving out of my parent's place this year (it's definitely time), but I'm worried about the financial implications of that because it ain't cheap. Now that I'm looking at how much I'm going to be in debt at the end of four years, I'm scared. How can I possibly pay all of that back? Am I digging myself into a hole by moving out now? I really want to move out (for space and not having people breathing down my neck all the time), but my parents have been scaring me into staying at home because of cost. Now I'm just rambling...

 

The TLDR of it all: will be moving out for the first time, will be relying on student loans and LOC, and scared about debt. HELP.

[JohnGrisham]

Look up typical renumerations for physicians in your area, then sit back and realize the money you're worrying about now is nothing compared to what you will eventually make.

It is definitely hard to get over, but you'll eventually get over it and look back on it and think "wow, i worried about that extra 200$ on xyz?"

Now, don't go spending it all on useless material goods, but necessities such as food, housing and such are perfectly fine. As well as quality of life type expenditures. 

[_ _]

just consider yourself lucky-most people will be starting med school with 30K in undergrad loans on top of all that

[Bambi]

We all have done it and are just fine. 

[sjc2]

Debt is a part of life. As long as you have the good kind of debt (i.e. not credit card debt), you'll be fine. Just wait till you take out a mortgage...

'

[rmorelan]

Debt is a part of life. As long as you have the good kind of debt (i.e. not credit card debt), you'll be fine. Just wait till you take out a mortgage...

'

 

ha

 

It is an investment (never liked the term good debit for some reason - I just cannot associate good with owing money regardless of the reason - but there is certainly worse debit)

 

there are a lot of posts on this on the forum for sure - in the end of course the debit is not going to be a major problem - just a minor inconvenience. You have to be careful but not overly frugal. The real issue with the debit is not medical school but residency/fellowship - where you have to possible continue to rely on the same debit amount for "whatever" while possibly living in an expensive city and all the more advanced training costs (ha, like say 8000 in exam costs).

 

that being said - fear is logical if it turns you to action - you simply shouldn't go through life not knowing anything about money. That is very expensive in the long run (pun intended). So get a basic financial planning book and read it at some point, there are a lot of good ones out there. Learn how to budget, compute the interest payments, and get a rough idea of how much all of this is going to cost. Best way to fight the uncomfortable feeling of uncertainty is to empower yourself with information. It honestly isn't that hard, and gives you control over a major aspect of your professional life

 

any questions of course - ask way!

[xcon2run]

ha

 

It is an investment (never liked the term good debit for some reason - I just cannot associate good with owing money regardless of the reason - but there is certainly worse debit)

 

there are a lot of posts on this on the forum for sure - in the end of course the debit is not going to be a major problem - just a minor inconvenience. You have to be careful but not overly frugal. The real issue with the debit is not medical school but residency/fellowship - where you have to possible continue to rely on the same debit amount for "whatever" while possibly living in an expensive city and all the more advanced training costs (ha, like say 8000 in exam costs).

 

that being said - fear is logical if it turns you to action - you simply shouldn't go through life not knowing anything about money. That is very expensive in the long run (pun intended). So get a basic financial planning book and read it at some point, there are a lot of good ones out there. Learn how to budget, compute the interest payments, and get a rough idea of how much all of this is going to cost. Best way to fight the uncomfortable feeling of uncertainty is to empower yourself with information. It honestly isn't that hard, and gives you control over a major aspect of your professional life

 

any questions of course - ask way!

 

 

Rmorelan, would you be able to suggest some books for those who us who are not as savvy about financial planning?

 

I've been looking online but would love some input so I don't have to read like 20 books haha.

[osteon]

hey, anytime someone is offering you money at either 0% interest (government) or 2.75% interest unsecured (LOC), you hold on to that as long as you can. This is the kind of debt you embrace with arms wide open.

[rmorelan]

hey, anytime someone is offering you money at either 0% interest (government) or 2.75% interest unsecured (LOC), you hold on to that as long as you can. This is the kind of debt you embrace with arms wide open.

 

ha true, quite true.

[Candie]

Rmorelan, would you be able to suggest some books for those who us who are not as savvy about financial planning?

 

I've been looking online but would love some input so I don't have to read like 20 books haha.

 

^ this! 

 

edit: and thanks in advance  

[Edict]

Don't be afraid of debt, almost everyone goes into debt eventually, whether its a mortgage or student loans. You are going to be a doctor, if you live prudently you will definitely be fine. 

[rmorelan]

Rmorelan, would you be able to suggest some books for those who us who are not as savvy about financial planning?

 

I've been looking online but would love some input so I don't have to read like 20 books haha.

 

i will see if I can narrow it down

 

I have read so many of them - like parts of many actually. Hard to find the perfect book simply because your personality comes into play, and beyond the basics which they all cover there is a little bit of personal style.

[xcon2run]

i will see if I can narrow it down

 

I have read so many of them - like parts of many actually. Hard to find the perfect book simply because your personality comes into play, and beyond the basics which they all cover there is a little bit of personal style.

 

You're the best! Even if it's four or five that would be great 

[Bambi]

http://finance.yahoo.com/news/6-free-online-personal-finance-120015557.html