Congratulations on making it to a medical residency and starting to make a salary. For most, you enter this stage in your career with a significant amount of debt. During this time, there are many tips to continue in the right direction financially until you can finish residency and start making a substantial salary increase.

First, I would ensure that your loans are no longer in deferment but instead are in an income-based repayment plan such as PAYE (pay as you earn) or REPAYE (revised pay as you earn). You will have a manageable payment (10% of your discretionary income), and in return, the government will pay years of interest accrued on your loans. Unfortunately, private loans do not qualify for these programs, and likely, these will have to stay in deferment.

When deciding on where to live, I would suggest a safe, low-cost rental near the hospital. Residency is very tough with long hours and overnight obligations; you can save on gas and time when living close. Avoid areas with bars and restaurants, which will often have a higher cost of living and are not conducive to the sleep you need. Other options would be to qualify for a doctor's home loan, which can be zero percent down. I would only advise this if you think you will be in the area for at least five years (typical time to break even on a real estate investment). If you would consider renting the place after you have moved, and if the payment can be manageable with you paying the total amount of the mortgage without relying on the help of a renter. However, renting a room is a great way to supplement your income in residency, and you should look to other residents as potential tenants.

Keep wants to a minimum during your time as a resident as you will not have much discretionary income. Make sure to look into your job's 401k plan if they offer this to start investing and possibly receive a match that you can then roll over to your following job's 401K plan. Also, it is an excellent idea to fund a Roth IRA each year while you are in residency, as it will be the time when you will make the least amount of money.

Another tip is to look for moonlighting opportunities in residency. This can be either external or internal moonlighting and will help supplement the income you are making. Internal moonlighting is also beneficial because it will continue to hone the skills that you are learning. If you decide to do moonlighting, I suggest opening a Solo 401K. By doing so, you give yourself the option to put away 401k money if your resident job does not allow it. Also, suppose you have maximized your employee contribution in your resident job. In that case, you can put away approximately 25% of your income in your Solo 401k as an employer contribution (please review the current year's maximum contribution). This solo 401k can continue to be used by you if you decide after residency to do locums.

When nearing the end of your residency, it is essential to get profession-specific disability insurance. Each person's coverage will be different given their situation. Still, it will be cheapest at this time given your age and necessary to protect your greatest asset: you and your future income. If you have dependents who rely on you, I would also make sure that you have life insurance that will reflect your current situation. These can both be acquired by doing some homework online and getting at a minimum of three quotes or seeking out a broker who can get multiple different quotes for you. Also, when choosing between jobs, talk to mentors or colleagues who are in your specialty to get a better idea of your fair market value.

Residency is difficult, but it is also exhilarating because you are finally making money and learning your craft. A typical art often forgotten during this time is money management, but it is essential to put yourself in the correct position before starting your first job after residency. In the next section, I will be describing tips for new docs in their first job post-residency.