Logically Get a Grip on Debt
Most professionals accrue debt at some point. Often a lot.
Some become numb to it. Others overwhelmed by it. Some use debt wisely. Debt can have a major impact on our current and future financial and mental health.
Humans are wired to think about debt illogically at times. Learn to think about debt logically to release your inner Vulcan boss. How you think about debt enables you to use it and deal with it more effectively.
Spending & Debt: A Chat With Future-You
Debt is actually spending your future income. Future-You will need to earn it.
If used wisely, Future-You may benefit from how you spent their money. In that case, they will thank you. If your spending puts them into a bad position, then they will have something else to say.
Best to chat before Current-You becomes Future-You.
Dealing With Medical Student & Resident Debt
Medical training comes with a high upfront basic cost. The debt load can be overwhelming and scary. It falls outside of the realm of most people’s experience. However, many doctors have trod this path and it turned out okay.
I will give some suggestions of how you can make it easier to be okay. Not just okay now, but to make yourself a financial super-power for the rest of your career.
Medical Student Debt Repayment In Early Practice
When you become an attending, the future has arrived. You have felt the growing burden of your debt and now it is time to the turn the tables and crush it. That requires you to pay attention and make a debt repayment plan.
The basic variables are your income, spending, debt repayment, and investing. This post looks at some Canadian data and applies that along with some tips to boost your success. There is also an embedded calculator to plug your own numbers into.
Pay Off Debt or Invest More?
Most people face competing priorities for their income. One of the most common dilemmas is whether to more aggressively pay off debt vs invest more.
Debt interest and missed time in the market can both result in compounding losses over time. You need to make a deliberate plan and then execute it.
Pay Debt vs Invest in TFSA, RESP, or RRSP
When faced with the competing priorities of paying debt vs investing, many will choose a compromise and do a bit of both.
Once your debt is at a safe level, starting your investing journey can help you take advantage of a longer time horizon.
You can also build good investing habits right from the start.
Learn why the TFSA is excellent for this. Also, consider when an RESP or RRSP may be even better.
Make A Loan Repayment Plan To Trash Your Debt
You need to make a concrete plan to eventually eliminate your debt.
That may mean consolidating some of it. For Canadian student debt, that decision should factor in opportunities for loan forgiveness, interest relief, and tax credits. There may also be fine print for some loans like financing and mortgages.
Besides the math, you must also consider your psychology to make a plan that you can execute.
Line of Credit Basics
In the work-cue.
Emergency Funds: High Interest Savings Account vs Line of Credit
In the work-cue.