Financial Progress After 3 Years of Living Like a Resident

With the high incomes that physicians typically make during our active careers, living like a resident can jumpstart that compounding process. Starting with more in the kitty helps.

The more you put aside, pay down, or don’t spend, the more money there is available to work hard for your financial independence. 

You might be surprised how as little as three years of high income but low spending can really jumpstart one’s progression toward FI. Dr Pay it Back shares with us his progress in all things financial after three years of living like a resident.

Financial Progress After 3 Years of Living Like a Resident

Arrow

The cash cushion of the previous two years has become a thing of the past. We had saved up a 6-figure amount for a downpayment, which was ultimately deployed a few months ago.

Cash

The smooth ride of 2021 is also a thing of the past, and investors have been punished since the start of the year. The past four months have seen us essentially treading water, with the previous eight being responsible for any annual gains.

Investments

We continue to keep our credit card spending on a short leash. You can see a few larger ‘hills’ in the past few months as we moved into and furnished our new home. But we continue to pay off our bills every month and don’t pay a cent of interest.

Credit Cards

Loans are one area in which the slow and steady march has mainly remained undisturbed. I did choose to get rid of my wife’s loans at the end of last year, but otherwise, it is just monthly stair steps down.

Loans

I am keeping my eye on interest rates, and if they continue to rise I may pay off our remaining balance sooner rather than later. We have demolished $170,000 in loans since I left training.

SWIPE UP NOW TO READ MORE

End-of-Year Financial Checklist for High Earners

MORE STORIES

How Financial Planning Differs for Dual High-Income Couples