Debt free in <𝟓 𝐲𝐞𝐚𝐫𝐬 post graduation from residency! I decided that I did not want to continue to pay interest on money from school loans. Here are steps I took to reach my goal of financial freedom.
💸 Pay off the interest lump sum. When you finish school or residency, you will have a grace period of ~60-90 days. The interest owed is calculated. If you choose to not pay, that interest will get added to your principal and you will pay cumulative interest. Pay it off and save a few thousand dollars!
💸 Hire a financial advisor that specializes in your field to factor in malpractice, disability, retirement, investments, etc. Find someone that you trust to help diversify your portfolio.
💸 Refinance your student loans. If you want to pay them off aggressively, certain companies will drop your interest rate by a considerable amount.
💸 Create a budget that includes an emergency fund that covers your lifestyle for 3 months. Factor in fitness, travel, bills, groceries, gas, holiday spending etc. Stick to that budget!
💸 Resist the urge to splurge. Examples. I drove my beloved 6 speed, manual, turbo, VW GLI that was paid off, for 9 years before upgrading to my Benz. Invest in a coffee machine of your choice that brings your fancy cup of Joe down to <$1 instead of >$3. Try @nespresso
💸 Treat yourself. Although I focused on paying off my loans, I still bought the Gucci bag I had been eyeing for all of residency and finally dove the Great Barrier Reef. It’s OK to set money aside for items or experiences that you really want because you only live once!
In the end, you have to make financial choices that fit your lifestyle, budget and help you live your life to the fullest!
Share your tips below 🧐 📸 @shabayeb - 22 days ago