Post: #1

Starting in June, I will be 21 and starting medical school in Salt lake city. I've received a full scholarship and I get about 2000$ a month after taxes. I'm looking at buying a place, with a mortgage of no more than 800$ a month and leasing a car for about 200$ a month. If anyone can give some advice about budgeting, how to trick out my place on a budget, where to look in the city, or anything in general I would love to hear your advice.

Post: #2

Rent with a roomate, you will be in med school so you won't have much of a social life.
Buy a car in cash, that way you don't have to worry about payments.

Keep your expenses low. I only pay 400 rent, 75 cable/internet, 200 gas, 30 cell phone, groceries 275 a month.

Total: 980 a month.

Post: #3

MMM blog is pretty cool. He and his wife live on a similar budget.
http://www.mrmoneymustache.com/2014/01/1...-spending/

Post: #4

From knowing some medical students.....do not worry about your lifestyle! Do whatever will allow you to excel at school right now! No matter what school you're at, good grades and experience will allow you to get a good residency. If you want to specialize (which you should), you will need to get into a competitive residency. You will have plenty of time and money to be a bitchin' radiologist player when you are making $400k/yr.

Live in a comfortable house. Cook for yourself, but buy better food than hot dogs and easy mac. Physical health is extremely important for medical students, as too many of you get caught up in studying.

Spend extra money on going on more dates.

Spend money on a good gym membership...one where you can do EVERYTHING and shower there, so that you can have more time to study.

Good job on not having to pay tuition, it seems like you're pretty level headed about medical school.

The other thing that is overlooked a lot of the time at our age (I'm 22) and with students (which I still am) is a SHTF (shit hits the fan) fund. Seriously, save a couple stacks so that you JUST IN CASE something goes wrong with your scholarship, or you end up hating school, or you break your leg and have to take a semester off, you will be thankful for this money. I don't care how close anyone is with their family. Just like relationships...you should always have one in the chamber.

Hide it in your house, or put it in gold, you will be happy to have it one day.

Best of luck!

Post: #5

(05-04-2014 11:38 AM)Cattle Rustler Wrote:  Rent with a roomate, you will be in med school so you won't have much of a social life.
Buy a car in cash, that way you don't have to worry about payments.

Keep your expenses low. I only pay 400 rent, 75 cable/internet, 200 gas, 30 cell phone, groceries 275 a month.

Total: 980 a month.

800 is for 2 bedrooms, so I could rent out one of them for 400, and then I would be a homeowner for 400 a month. But my concern is that if the roommate turns out to be a pain in the ass, it would end up screwing with my schoolwork in order to deal with him.

Post: #6

(05-04-2014 11:43 AM)redbeard Wrote:  From knowing some medical students.....do not worry about your lifestyle! Do whatever will allow you to excel at school right now! No matter what school you're at, good grades and experience will allow you to get a good residency. If you want to specialize (which you should), you will need to get into a competitive residency. You will have plenty of time and money to be a bitchin' radiologist player when you are making $400k/yr.

Live in a comfortable house. Cook for yourself, but buy better food than hot dogs and easy mac. Physical health is extremely important for medical students, as too many of you get caught up in studying.

Spend extra money on going on more dates.

Spend money on a good gym membership...one where you can do EVERYTHING and shower there, so that you can have more time to study.

Good job on not having to pay tuition, it seems like you're pretty level headed about medical school.

The other thing that is overlooked a lot of the time at our age (I'm 22) and with students (which I still am) is a SHTF (shit hits the fan) fund. Seriously, save a couple stacks so that you JUST IN CASE something goes wrong with your scholarship, or you end up hating school, or you break your leg and have to take a semester off, you will be thankful for this money. I don't care how close anyone is with their family. Just like relationships...you should always have one in the chamber.

Hide it in your house, or put it in gold, you will be happy to have it one day.

Best of luck!

Thanks for the advice bro.

I make sure to eat healthy, plenty of vegetables and fruits in my diet, low-carbs and a lot of lean meat. I swim and do weightlifting regularly so I'm pretty athletic.

School hooks us up with a super nice gym, with all the works, so I save out on that.

As for the scholarship, its in my contract that I'm guaranteed a tuition waiver plus 26,000$ for each year I am enrolled in the medical school, along with a comprehensive health plan, so its a pretty sweet deal. But I get what you're saying about the rainy day fund, so I want to save as much as I can without making a major sacrifice in lifestyle, probably about 100$ - 200$ a month.

Post: #7

(05-04-2014 11:49 AM)edtf Wrote:  

(05-04-2014 11:38 AM)Cattle Rustler Wrote:  Rent with a roomate, you will be in med school so you won't have much of a social life.
Buy a car in cash, that way you don't have to worry about payments.

Keep your expenses low. I only pay 400 rent, 75 cable/internet, 200 gas, 30 cell phone, groceries 275 a month.

Total: 980 a month.

800 is for 2 bedrooms, so I could rent out one of them for 400, and then I would be a homeowner for 400 a month. But my concern is that if the roommate turns out to be a pain in the ass, it would end up screwing with my schoolwork in order to deal with him.

I'm sure that there has to be some kind of accepted students forum, facebook page, etc. where you could put out an ad looking for like-minded med school students to rent with you. Finding someone through this kind of avenue would, in theory, limit the risk of some bad random roommate and would put you with someone who probably has similar priorities, being in a rigorous program and all.

Post: #8

Screening your potential roommates is a good plan, consider finding a friend who can be cool about helping out as opposed to actually co-signing and subletting. I would probably look into putting the spare room on AirBnB at like $45/night, which is good because SLC seems to run $24-50 for a private room. I'd probably go slightly above market to help with screening, so you get the customers who are willing to pay a little more to live with a quiet med student instead of some psycho. If you have someone from AirBnB in there 10 nights a month, you make $4-500, if you go to 20 nights, you've paid your rent, pocketed $100, and have ten days in the house on your own. Either way, probably better than a roommate. You might even be able to network. And, as a bonus, pull your listing down on days that are significant on the academic calendar (I need a week to study for midterms, so just not going to let anyone in and eat the rent this month).

For general lifestyle, bike, motorcycle, or cheap car bought in cash. DO NOT GET A CAR PAYMENT. SLC is great for outdoorsy stuff, and exercise outdoors is better than indoors because of the vitamin D, so a decent bike could be a lot of fun, or if you're more of a road guy, there's some great motorcycling out there.

Don't skimp on groceries, gym time, or other health-related investments. Have cheap or free hobbies like gym, avoid alcohol, travel unrelated to education, chasing the next shiny electronic thing, and status purchases (but do make sure you have a suit you would be willing to wear on national TV while shaking hands with the President, because you never know).

Source: I live on about this amount in DC, though I crash with women near and sometimes help with their rent instead of doing AirBnB as above.

Post: #9

How much are houses in SLC?

Buying a house (or I should say, mortgaging a house) in a city that you're not going to stay in long term (15+ years) is not always a good financial idea, because the first 15 or so years you are paying more interest than paying off the principal.

Post: #10

(05-04-2014 11:49 AM)edtf Wrote:  

(05-04-2014 11:38 AM)Cattle Rustler Wrote:  Rent with a roomate, you will be in med school so you won't have much of a social life.
Buy a car in cash, that way you don't have to worry about payments.

Keep your expenses low. I only pay 400 rent, 75 cable/internet, 200 gas, 30 cell phone, groceries 275 a month.

Total: 980 a month.

800 is for 2 bedrooms, so I could rent out one of them for 400, and then I would be a homeowner for 400 a month. But my concern is that if the roommate turns out to be a pain in the ass, it would end up screwing with my schoolwork in order to deal with him.

It sounds like you should to think more about what owning a home means for you personally. Try to think about your situation 3 years from now with the house.

Real estate prices just shot up 40% from the bottom, nationwide. You need to analyze this and decide if you think there is still a lot of upside.

In 3-5 years, if you are successful, you will have opportunities to pursue that are not directly on your mind right now. Try to think about the stress of pursuing those new dreams will be affected if you have a house to worry about at the same time.

If you like yard work, buy some plants. If you need a nicer place, switch out the window coverings, update the lighting, and update the bathroom a little bit.

I used to have the mindset that I needed to own my own space. That is bullshit. You need to own your own cash flow source. If you can't immediately rent out the house and cover all your expenses, don't do it. Think about what it would be like if it took 8 hours of travel time to visit your property.

Post: #11

I concur with those saying rent vs. buy. You can bail on the rental if your plans change. Try selling a house quickly when you have to and you'll get reamed.

If you decide to buy a house, consider renting first for 6 months or a year in the neighborhood until you know it. Check the Case-Schiller reports for the city for pricing histories and future estimates. Buy FSBO and avoid paying an agent's commission. If you find a place you want that's listed with an agent, approach them yourself and make sure they know you do not have an agent. Then if the sale happens they'll get the full commission and are much more amenable to tell the seller to accept your lowball offer. Never get an agent yourself unless you're desperate to buy quickly and don't know the neighborhood. I've had the best luck with FSBO, both buying and selling.

Good luck!

Post: #12

(05-04-2014 04:46 PM)Engineer Wrote:  I concur with those saying rent vs. buy. You can bail on the rental if your plans change. Try selling a house quickly when you have to and you'll get reamed.

If you decide to buy a house, consider renting first for 6 months or a year in the neighborhood until you know it. Check the Case-Schiller reports for the city for pricing histories and future estimates. Buy FSBO and avoid paying an agent's commission. If you find a place you want that's listed with an agent, approach them yourself and make sure they know you do not have an agent. Then if the sale happens they'll get the full commission and are much more amenable to tell the seller to accept your lowball offer. Never get an agent yourself unless you're desperate to buy quickly and don't know the neighborhood. I've had the best luck with FSBO, both buying and selling.

Good luck!

Thanks for your advice, I decided on renting for now because you made very valid points. If some opportunity comes that I absolutely cannot pass up, then I will think about pulling the trigger.

Post: #13

Don't buy a house. You may not land a residency in the same city where you live currently.

Post: #14

Like others have said Do Not buy a house. I just got a job and am trying to keep my expenses below $1000.

Here's how I break my budget:

$525- rent/electricity/wifi/water
$33- cellphone plan(T-Mobile prepaid with 1500 minutes/text)
$75- Car Insurance
$50-100 Fuel
$100-$150 Groceries
$100- Entertainment

After a few months you'll have a substantial saving. I did this for a while and purchased a new car.

Try and avoid unnecessary expenses like eating out. Instead cook at home.

Take public transportation or car pool to work/school if its an option where you're at.

Avoid drinking(unless its with a girl you're trying to sleep with).

Don't get cable or Netflix(I had Netflix and I cancelled as it was taking away a lot of my time).

Post: #15

(05-13-2014 01:46 AM)sinnerman Wrote:  Like others have said Do Not buy a house. I just got a job and am trying to keep my expenses below $1000.

Here's how I break my budget:

$525- rent/electricity/wifi/water
$33- cellphone plan(T-Mobile prepaid with 1500 minutes/text)
$75- Car Insurance
$50-100 Fuel
$100-$150 Groceries
$100- Entertainment

After a few months you'll have a substantial saving. I did this for a while and purchased a new car.

Try and avoid unnecessary expenses like eating out. Instead cook at home.

Take public transportation or car pool to work/school if its an option where you're at.

Avoid drinking(unless its with a girl you're trying to sleep with).

Don't get cable or Netflix(I had Netflix and I cancelled as it was taking away a lot of my time).

Right now I have my hand-me-down 1992 Toyota Camry, which I can fix up and make very reliable for about 300 bucks, and pay about 20 bucks a month for insurance. The only downside is that a med student driving an old ass car might seem like a DLV for girls.

Post: #16

As said before, you don't want a mortgage unless you are staying in that city long term. You almost always want to (in the best of situations) pay off a mortgage within seven years. The interest savings are incredible, as if you take a 15-25 year mortgage, you'll be paying only interest for the first few years.

Personally, I'd just rent, and look at investing the residual that is saved, because in all seriousness, doctors make a ton of money, but its the ones that use their money to work for them that end up being wealthy. Build the habits to invest now, because it will only help you down the road (I'm also 21).

Post: #17

(05-13-2014 11:21 AM)edtf Wrote:  Right now I have my hand-me-down 1992 Toyota Camry, which I can fix up and make very reliable for about 300 bucks, and pay about 20 bucks a month for insurance. The only downside is that a med student driving an old ass car might seem like a DLV for girls.

If a girl turns you down for the car you drive, while knowing you're a med student, it's probably best you steer clear of her anyways. When I was in law school in America, I drove a beat up Ford Focus that had crash damage on every side. It simply didn't affect anything, because by the time a girl agreed to get in my car and go on a date, it was pretty much already a done deal.

I live in Manila now, and I don't own a car here (although I own two cars back in America). Doesn't make a difference, I walk or take a taxi everywhere, and I wouldn't want to own a car, as I'd have to maintain the thing, which isn't worth the benefit to me, since taxis are available at all times here.

Back home, two of the guys I know which are the among the best at womanizing do not own a car (one's in a band, the other's just socially gifted). So, yeah, having an older model vehicle will only affect your game if you let it affect you. Getting a nice ride does help, if doing so boosts your confidence, and for getting a certain type of woman, but, while you're in med school, because you need to concentrate, those type of women, and the drama they could bring, are probably best to avoid.

Post: #18

I pulled the most when I didn't have a car and lived in the suburbs. Agree to meet somewhere close to her place or yours, or somewhere with easy logistics like close to a train/metro line.

Say you would rather travel than buy a car because you can buy a car anytime but not travel anytime. Most chicks agreed with me, "you're right, you should enjoy traveling while you don't have a family or kids".

Post: #19

Agreed with the others on renting. Unless you have a giant inheritance or REALLY know what you're doing, buying a house in your position is a bad idea. I looked at Zillow for 2 seconds, and from that exhaustive research it seems that houses range from 200-400 thousand.

(All of the LA people on this board suddenly sighed and started thinking about moving. Me included.)

If you don't put down 20%, you're paying PMI (private mortgage insurance), which is basically financial ass-raping. Plus you have taxes, insurance, HOA fees (pro-tip: don't live somewhere with a homeowner's association unless you have to), and all the other assorted bullshit that comes with owning a place.

You will be absolutely fucked if you have a leaky roof, plumbing issues, or any intensive repairs. Plus you're going to need cash for closing cost, etc.

As for budgeting, give yourself a comfortable cushion. You might as well get in the habit of saving 10% (or more) of what comes in. You can track your spending on Mint.com to see if anything's really crazy.
I know quite a few well-paid professionals who are broke because of their spending.

TL;DR---Get a cheap apartment. Buy a reliable and decent-looking used car (or lease if you absolutely must).

Post: #20

(05-13-2014 11:21 AM)edtf Wrote:  

(05-13-2014 01:46 AM)sinnerman Wrote:  Like others have said Do Not buy a house. I just got a job and am trying to keep my expenses below $1000.

Here's how I break my budget:

$525- rent/electricity/wifi/water
$33- cellphone plan(T-Mobile prepaid with 1500 minutes/text)
$75- Car Insurance
$50-100 Fuel
$100-$150 Groceries
$100- Entertainment

After a few months you'll have a substantial saving. I did this for a while and purchased a new car.

Try and avoid unnecessary expenses like eating out. Instead cook at home.

Take public transportation or car pool to work/school if its an option where you're at.

Avoid drinking(unless its with a girl you're trying to sleep with).

Don't get cable or Netflix(I had Netflix and I cancelled as it was taking away a lot of my time).

Right now I have my hand-me-down 1992 Toyota Camry, which I can fix up and make very reliable for about 300 bucks, and pay about 20 bucks a month for insurance. The only downside is that a med student driving an old ass car might seem like a DLV for girls.

It's all about the inner game. If the car is giving you the confidence then sure go for it but do it coz you like it. I got an old 2002 Ford Mustang but in order to do that I lived a very minimalist lifestyle for about 3 months. If you can save up and get a car with a bit more "character" then go for that option.

Having said that most girls don't really care about your car. Just dress better than your peers, smell nice and get them drunk or take them for a sunset or even invite them for a homemade meal and movies and you'll have them wet in no time.