Current budget outlook

It's time for a wrap-up of where I stand financially, in the waning months of my 25th year.  

Warning: These numbers below make it pretty obvious that I am not a professional accountant and do not do accountant-speak. But I am very much aware of my money nonetheless. 

Current debt: -$35,000 

Current bank accounts combined: $6300

Accounts receivable: ($1400 conference, $1000 summer job) = $2400

Still to spend: About $1300 on travel (in my defense this will be to about 6 countries) 

Coming year's expenses: $15,700 in tuition, basically no living expenses (thanks mom, international organizations and government!)

Coming year's income: $3000 bursary, lots of travel assistance, and maybe, just maybe, funding for a development project that would also net me a month of real-world income. 

Projected debt in May 2013: -$41,500. 

Oh, if I could graduate with loans in the $30ks! It sounds like a fantastic dream right now and would make my post-graduation life significantly easier. Because regardless of what else I do, I'm going to pay off my loans in my first year post-graduation, and netting a job with worst-case-scenario $50k starting salary would be much easier to handle if I had $20k living expenses to work with. Of course I would love to be worth at least $100k, since I have lots of work experience, a top-tier MD and an Ivy league master's degree. But we'll see. 

Ten months until I graduate from medical school. I can see the end in sight! 

Year recap

I'm back after a year of not posting. Basically this last year I've been living in Boston doing a master's degree. The degree was expensive, but thank God a combination of extraordinarily generous family help and my own hustling (more on that later in this post) floated me through the year. 

The best feeling at my Master's degree graduation?

I incurred zero dollars of debt this year.

Sure, I'm still not at a 0 dollar net worth yet. But at least I've been working hard to ensure I don't graduate with more debt than I need. 

So how did I manage my cash flow? 

Increasing income 

1) Taking on a teaching position: 10 hours of extra work per week into a crammed schedule, plus biking extensively and missing out on a couple lectures. But it was worth it. Gain: $6000

2) Taking on a research assistant position: Between 5-10 hours a week, doing work I loved with my advisor. Gain: $1400

I actually turned down another research assistant position that would have paid $1000 for a month's work, but would have taken 20 hours a week, making my income less than $15/hr. I know that's a high income to give up, but with my school workload I've made it a rule not to take on jobs that pay me less than $30/hr if they take up more than 20 hours a week, at least for now. This may change later. 

3) Being a human experiment: I signed up for one clinical trial that required me to drink some oil (gross), insert an antecubital IV to take blood and stay overnight at a nearby research hospital. The oil was really nasty, but I got two days' worth of meals taken care of, plus a whole day of people pampering me, so that was not bad for $200. During the year I also took on some computerized psychology and business experiments that pay you between $15-$30/hr to answer some questions and complete some tasks. That was a fun, nice break from my day. The trick is to make sure you don't spend the $15 on lunch as soon as you get it - that would be a waste! Gain: $300

4) Additional freelance work: This is where it got fun. I wrote 2 speeches for a government official for $400-$500 a pop. I also took on some extra translation work because I know Mandarin Chinese. Gain: $1100

Total Hustle Money this year: $8800

Decreasing costs 

1) NOT. EATING. OUT. I ate out maximum one time a week with friends to make sure I kept up some semblance of a social life. This was fine because Boston has a lot of cheap restaurants that offer good meals for less than $10, particularly because I can't get enough of the cheap Thai food in our neighborhood. I went out once and blew $50 on a fancy dinner with some friends who prefer that lifestyle, and regretted it (the food was good but really, I'm not in a situation to spend that kind of money!). Most of the time I made really good meals myself and frankly, learning how to cook good, healthy food has been extremely empowering for me. 

2) Making weekly meal plans. This didn't come because of any advice - I just found it the easiest way to budget for my meals because I could see exactly what I spent every week. It turns out this really helped decrease my meal costs too, because one of the main strategies grocery stores use to make you spend more is to exploit impulse purchases. Using meal plans I never spent more than $40/week, and usually between $25-$30/week on groceries. 

3) Going to free lunch seminars and receptions. My school was so big on these things that nearly every day there was some event going on where you were guaranteed to get a free meal. Some people would consider it a huge faux pas to go to an event "just for the food", but really I got to learn a lot about different public health topics while getting a free meal. 

Like any financial blog will tell you, it's all about the mentality. If you want to get out of debt, stay out of debt, or pay off some of that big mountain of debt you have to want it. Sometimes it has to feel like you're drowning and desperately need air - you have to want freedom from debt as badly as you want air when you're drowning. I'm still not out of debt but my habits this year have certainly helped me to stay as afloat as I can possibly be. 

Budget recap

Ok, I'm currently doing a year in the States.

Here's how my money stacks up as a projected amount at the end of the year:

American Money
IN:
$960 Essay contest!!
$9500 Grandparents!!
$400 Current money
$650 in foreign exchange account
=$11450

OUT:
$8000 Food, rent, gas, phone
$1000 WinterSession
=$9000

Net in June: +$2450
Debt in June: -$35,000

Canadian Money
$700 (bank account)

NET AMOUNT - DEBT IN JUNE: -32500

Nice!

30 day budget recap

Let's take a sample of what I spent in the last 30 days, June 23-July 23, 2011.

I thought I was being frugal overall; let's see how I stack up.

Expenses
Jun-27 EuRest Food $2.80
Jun-28 Fairmont Jazz Food $34.12
Jun-28 Van Cam $112
Jun-28 Canada Post $10.81
Jul-04 Thai Away Home Food $11.75
Jul-04 Canada Safeway Food $4.88
Jul-06 Mastercard $233.84
Jul-08 Kaboom Box Food $10.00
Jul-08 Vietnamese Food $3.62
Jul-13 Cafe Ami Food $2.80
Jul-15 Sandbar Food $26.00
Jul-18 Cafeteria Food $8.61
Jul-18 Shoppers Drug Mart Food $4.66

TOTAL OUT $465.89

TOTAL FOOD $109.24



Income
Jun-29 Paypal $29.50
Jun-30 Payroll $231.07
Jun-30 Interest $0.02
Jul-05 Tax $149.62
Jul-15 Payroll $231.06
Jul-13 Trans $75.00

TOTAL INCOME $716.27
NET INCOME $250.38

My unavoidable big-ticket expenses: Flight, fixing camera (ok, this was avoidable)

Fine, only $109 spent on food. I'll take that for now. But if I want to reduce this food expense to ZERO for next year it's going to take another extra kick of discipline.

I splurged twice this month on food: once at the Fairmont Hotel buying drinks at the Vancouver International Jazz Festival, and another time at Sandbar, an upscale place on Granville Island.

I ate full meals out four times:
1. Thai food
2. Supermarket takeaway
3. Cart food (oyster po boy!)
4. Upscale Granville Island place.

The rest of my big-ticket expenses:
1. $100 to fixing my camera
2. $233 to buying a plane ticket to Boston, cell phone bill, etc.


What I plan on changing this next month:

1. I plan on NOT eating out at all. The goal is to reduce my expenditures to absolute ZERO, or realistically within $100 max. This does not include any advance planning for the NYC trip in September.

Expected Income:
$460 stipend
$225 travel bursary

Expected Expenses:
$100 books
$30 phone bill


And just as a reminder:
Bank account: $76.19
Total debt: around $35000.00 and will definitely be $10,000 more after this year.

Budget slice, May 15-June15

This last 30 days I spent:

1. Only $53.61 on eating out, miscellaneous drinks and muffins. Still a lot?
2. Yoga: $33.06. Best $33.06 ever spent.
3. Postage: $11.52.

Total spent: $98.19.

Income:
$462.13 from our stipend.

Net income: $363.23.

Not too bad!

Current bank account: $908.10.
$91.90 away from saving the $1000 extra fund goal I had for August!

Expected expenses rest of June - end of August:
$130 book recall
$200 plane ticket to Boston
$100 other misc expenses
$100 phone bill
=$530

Expected income rest of June - end of August:
$924.26 stipend

= will net $394.26 extra, putting me definitely over the $1000 mark.

Ahh, such is the savings life of a med student.

Being rich rather than getting rich

For the first time, I'm quite content with knowing I'll graduate with $60,000 of debt.

Not stressed, not feeling out of control - content.

I've been in a constant worry cycle over the past 2 years, feeling out of control over my life, my career, my finances, everything. But I'm finally able to say that I feel like things are working out.

So bring it on, debt. If it means not becoming a millionaire right until I'm 40, so be it.

How expensive is med school?

WOW!

I just saw a University of Toronto Medicine financial aid webinar out of interest here.

This is a typical budget for Year 1 of the MD program.

Tuition and fees $20,386.00
Books $1740.00
Accommodation/Food $9580.00
Other $7160.00

Total Year 1: $38,866.00

How is this possible? Who would pay that much? And what the heck is this other that students are spending $7160.00 on?

I'm in year 3 of my MD program, and my yearly expenses run at around $20,000 total. And $15,000 of that is my tuition.


The other thing is that average graduation debt for the class of 2010 is $88,000.

This is pretty average for my school as well ($80,000).

Still dumbfounded.