Five Money Moves Residents Can Make Before Year-End

During residency or fellowship, it can feel like there's never enough time, or money, to think about the future. Between long shifts, exams, student loans, and everyday bills, financial planning may fall to the bottom of your list. The good news is that you don't need an attending salary to build strong money habits. Here are five steps worth taking before the year ends.

1. Find Out Where Your Money Is Going

Start with a quick look at your spending. How much goes toward rent, food, transportation, loan payments, and subscriptions? You don't need a complicated budget. Just identify one expense you can reduce and one savings goal you can work toward. Small choices can create breathing room while you're in training.

2. Build a Starter Emergency Fund

An unexpected car repair, medical bill, or move can be hard to manage on a resident's paycheck. If you don't have emergency savings yet, begin with a realistic goal, even a few hundred dollars. Set up an automatic transfer each payday. Over time, work toward a reserve that fits your expenses and situation.

3. Check Your Student Loans

Review your loan balances, interest rates, repayment plan, and payment status. If you're pursuing Public Service Loan Forgiveness, make sure you understand the current program rules and whether your employment and payments qualify. Loan rules can change, so confirm your options through your loan servicer and official federal student aid resources before making decisions.

4. Take Advantage of Benefits You Already Have

Does your program offer a retirement plan with employer matching contributions? Are you using the health coverage and other benefits available to you? If you can afford to save, even modest retirement contributions during training may help build a lasting habit. Check whether a Roth or traditional contribution makes sense with your tax advisor.

5. Review Your Income Protection

You may have group disability coverage through your hospital, but that doesn't automatically mean it covers everything you need. Review the monthly benefit, waiting period, definition of disability, and what happens when you leave training. Individual disability coverage may offer features such as specialty-focused protection and options to increase coverage as your income grows. Resident discounts may also be available, depending on eligibility.

Start Small, but Start

You don't need to solve every financial question before becoming an attending. Choose one step to complete this week. Building a good habit now can make the transition to a higher income much easier.