Money Management in Residency

Budget with Intention, Not Restriction  

Having a budget doesn’t mean cutting out everything fun. It means being intentional with  your money. That includes being intentional with spending, too.  

Start by listing your necessary expenses:  

• Rent or mortgage  

• Utilities  

• Insurance  

• Groceries  

• Transportation  

• Other basics you need to survive  

Once those are covered, look at the surplus. Divide it between “treat yourself” money and  savings and debt reduction. Ideally, about 30% of your income should go toward debt  reduction and savings combined. You may live in a high cost of living area where that may  not be possible. If that is the case, don’t sweat. We can prioritize what is best at this time  based on your personal and professional goals through an actionable financial plan.  

Build an Emergency Fund  

Residency is unpredictable, and so is life. You’ll want an emergency fund of 3–6 months of  your expenses.  

Here’s how to calculate it: 

1. Create your budget.  

2. Total up your monthly expenses.  

3. Multiply that number by 3–6.  

Remember, always keep your emergency fund in a high-yield savings account. I love high  yield savings accounts because they are liquid, safe, and earning at least a little interest.  

Protect Your Future with Disability Insurance  

As a physician, your greatest financial asset is your ability to work. That’s why disability  insurance is non-negotiable.  

Work with a fiduciary (someone legally obligated to put your best interests first) to get  quotes. Residents often have access to Guaranteed Standard Issue (GSI) disability  policies. These are crucial if you have a pre-existing condition.  

What’s a pre-existing condition in insurance world? 

Basically, anything you’ve gone to the doctor for in the last 10 years. Even something you  didn’t think was a big deal could lead to exclusions or denial. Insurers can — and do —  discriminate here. A GSI policy sidesteps that risk.  

Understand & Build Your Credit  

Credit isn’t just about borrowing money. It plays a role in renting housing, securing loans,  and even qualifying for certain jobs. A big factor in maintaining strong credit is keeping your  credit utilization low, ideally under 30%, and even better if it’s under 10%. Consistently  making payments on time is just as important, since payment history makes up a large  portion of your credit score. If your balances are high, focus on paying them down using  either the snowball method (tackling the smallest balances first) or the avalanche method  (targeting the highest-interest balances first). Another quick way to strengthen your score is  becoming an authorized user on someone else’s well-managed credit account, which can  add positive history to your profile.  

Maximize Your Employee Benefits & Retirement Options  

Residency comes with benefits, so it’s important not to leave money on the table. Take full  advantage of meal stipends or allowances, know what’s offered and make sure you use it. If your program offers a 401(k) or 403(b), check whether there’s a Roth option. A Roth can be  especially powerful because you pay taxes now, when you’re likely in a lower tax bracket,  and let your money grow tax-free for life. Even if there isn’t a Roth option or employer  match, you can still open a Roth IRA on your own. This is one of the best ways to grow your  money for the long term, and at our firm, we help residents navigate these decisions all the  time. 

Create a Student Loan Strategy  

This is one of the biggest financial pieces for residents — and one of the most overlooked.  

There are constant changes to repayment plans, consolidation, refinancing, and PSLF  (Public Service Loan Forgiveness). Each of these choices directly impacts your monthly  payment, your taxes, and even how much room you have for retirement contributions.  

The truth? There are more rules than most people realize — and missing one detail can cost  you tens of thousands over time. Working with someone who understands the physician  loan landscape can save you a lot of stress and money.  

Automate Your Life (and Finances)  

Residency is busy. The fewer decisions you need to make, the better.  

• Automate bill payments and savings transfers.  

• Use meal planning services or grocery delivery to save time and reduce stress.   Set reminders for renewals, deadlines, and financial check-ins.  

Automation frees up mental space so you can focus on medicine.. not whether you  remembered to pay your electric bill. This includes automating your savings so it’s out of  sight, out of mind.  

Residency is demanding, but it’s also the foundation for the rest of your career. Being  intentional with your money now builds stability for your future self. Think of your financial  life the same way you think of patient care: diagnose your money habits, make a treatment  plan (budget, savings, protection), and follow through. 

At TriHelix Wealth Collective, we specialize in helping residents make smart decisions  about loans, insurance, and retirement so they don’t feel like they’re just “surviving”  residency but actually building a strong foundation for their future.  

Your future attending self will thank you.