What Resident Meal Card Taught Me about Retirement

 

  • Don’t spend money just because you have it.

I see residents buying $3.50 brownies, $2 surgary, or worst diet drinks from the cafeteria. I would never do that for a multitude of reasons. For one, drinks loaded with sugar is really bad for our health, diet drinks with a combination of caffeine and aspartame/artificial sweeteners create carbohydrate starvation in our bodies, very unhealthy practice than ingesting real sugar.

I rather spend the meal card on a delicious $2.60 deluxe burrito (one would argue just as bad for my health).

While most residents blow $10/day in the cafeteria, I tend to skip the cafeteria on most days, knowing that the food I bring from home is of tremendously higher quality (organic, fresh, not-processed) and that I could use the meal cards for other occasions rather than feeding myself subpar food daily.

  • Spending money may be bad for your health, literally and financially.

Given there are only 2 healthy choices in the cafeteria (sushi and salads), the rest are processed, mass-produced, freezer foods loaded with preservatives and chemicals, I hardly ever eat at the hospital cafeteria.

To apply this broadly to how we use our money, find out where your money going? Eating out too much? (That’s not good for your health). Too much alcohol? Clothes? Accessories? (I personally don’t think retail therapy is healthy and I believe in looking good and feeling good from inside out.)

If you are a shopaholic, it’s ok. Just ask yourself, how long do your happiness or positive feelings last after a shopping spree? How amazing would it be if you did an hour of yoga with free Youtube video instead of charging 3 more dresses worth a few hundred dollars on your visa card?

I have to say I was quite happy to look good in a formal dress I bought 14 years ago at the residency graduation dinner. By caring for my health, eating well, exercising (way cheaper than eating out and upsizing my wardrobe), I am both healthier literally and financially.

  • Use you money to buy assets.

Buy a piece of fruit, that make you healthier rather than a bag chips which will cost you health and medical bills sooner than you know.

This is a new idea. Since I’ll be getting more meal card money as PGY3 than last year. I am going to purchase items in bulk and sell them on eBAY. I will turn that meal card money into cash for me, and I will put it in Mini Wise Money’s 529 in index funds, bearing 8% annualized return. As soon as July 1st hit and I get my 1.8k of meal card, I will execute my plan. Check in here to see how it goes J

Some people may say, you are going to be SO busy as PGY3, with 12 weeks of overnight and weekend calls, better to save some meal card money so you can eat at the hospital cafeteria for convenience.

I beg to differ. The food is convenient for a reason. The pizzas are food like products… not real food. They are empty calories deplete of wholesome nutrition and loaded with chemicals. I think I’m much better off using the cash to hire a cook who makes me home made organic meals.

Applying this more broadly to $, buy assets, items or people that will put money in your pocket.

  • Don’t buy liabilities.

Liabilities take money out of your pocket. So a huge house is a huge liability, unless somehow you figure out a way to make money off of the house.

 

So with my meal card, I’m certainly Not buying unhealthy foods to subtract from my health, literally and financially. Instead of tempting myself daily with the intoxicating smell of fried, chemical-loaded, processed food products and hoping that I will get the more expensive, longer line salads and sushi, I’m liquidating my meal card into cash for purchasing assets, not liabilities.

 

  • It’s sweet to have so much in retirement that you give to charity.

Both PGY1 and PGY2 at University of Arizona, I spotted colleagues who have long depleted their meal cards a few months before the years end. While people are starting to buy 2 $.50 sides for a lunch, I was able to pay for others’ meals with my excess meal card dollars. That’s the position I’d like to be in in retirement.

 

I must have been doing something right with the way I managed my meal card dollars throughout the year. Not only am I healthier literally, but also I have plenty in the last days of the academic year.

  • Live reasonable, vacation rich.

While I don’t spend $10 daily in the cafeteria, depleting the card half way through the academic year, I occasionally spend $50 in the cafeteria. Since the cafeteria offers delicious (though bad for health) pizzas, I bought $50 worth of pizza for Mini’s 8 year old birthday. So many people told me the pizzas were so delicious and where I got them. I told them hospital cafeteria!

While I don’t make my dollars rain on daily basis, I also spare no expense on special occasions. Mini’s 9th year old birthday has a 1k budget, which she wisely used $500 and put $500 in her savings.

Very few people can afford to live lavishly on daily basis, but with good $ skills, one can certainly spare no expense on occasion.

 

Resident meal cards are great way to practice $ management. As Robert Kiyosake said, “More money accentuate money issues.” Someone who can’t manage his money well on 50k annual income, will only have bigger problems when he makes 200k a year.

So start now, build and refine your money practice. It’s money practice, not money perfect. Acknowledge where you are today, identify areas to improve and build upon.  If you learn to manage small income and prosper, you will be given more and prosper even more.

5 Ways Having More Harms Us

Chinese proverb says, “Grandfather dies of hunger, father dies of exhaustion, son dies of decadence.” What pitiful progression of generations.

 

I’d venture to say that most attending doctors have children who pretty much have everything their heart desire at their fingertips. For those who are still in training, residents and fellows or even medical students, many promise their loved ones lots of material comfort and indulgence down the road.

 

Let’s stop and think about this. Is having more making us happier and healthier? Do a google search. The list of study is extensive, evidence staggering.

google search-wealthy depressed

The key is to how to stay healthy and happy as we get richer, not to get rich so that we can become happy and healthy.

 

I still fondly remember the last few days of summer vacation before I start college at UC Berkeley, all of my belongings fit into the trunk of a small Japanese car. My family drove me up to Berkeley. I felt like I was on top of the world, sky was the limit. I was light on feet, not be laden with possessions, but filled with ideals and ideas.

 

  1. We lose sight of what’s important.

When I upgrade from 2 bedrooms to 4 bedroom house, lots of discussion, time, and energy was spent on the possible combination of uses of 4 bedrooms. Thinking back on it, so trivial. I could have went for multiple hikes with Mini Wise Money, or write innumerable posts with that time and energy.

 

  1. We waste time on stuff.

I always tell Mini. Spend time on things with souls, things that teach us lessons and expand our horizons. Don’t waste time tinkering with lifeless, loveless material objects.

 

  1. We lose time with people we love.

As we allow our riches to possess us, we get so caught up in the numbers, performance, appearance of owning stuff. We think about, calculate and project, constantly seeking ways to maximize wealth building. The one equalizer between Bill Gates and you is 24 hours in a day.

 

Let money make money for you. Once you do the homework, set up your simple DIY personal finance, let it auto-pilot with periodic checks, don’t lose time to frequent, compulsive, inconsequential checks (i.e. if you are not acting on the market correction by selling, why even check on market corrections?).

 

  1. We are stressed out.

Nothing wrong with possessing riches. Everything wrong with riches possessing you. The former leads to freedom and greater success, the latter to enslavement and stagnation.

 

A great saying goes, “when wealth is lost, nothing is lost; health is lost, something is lost; character is lost, everything is lost.”

 

Let’s not become stressed out, mean people because we own too much.

 

  1. We are paralyzed.

Choices are paralyzing. When you can afford “nearly” anything under the sun, the array of possibilities in material possessions and comforts is dazzling. Beneath the shining surface of glamour of choice, lies the crouching lion devouring your soul, trapping you in paralysis rather than liberation.

When you get to the point money is no object, you can have anything money can buy, find ways to quickly limit your options. Then you will find yourself truly free, beyond financial independence.

 If you like this article, you might enjoy other DWM articles on Personal Finance, Investing, Retirement, Practice Management, Lifestyle.

All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.

How I Paid off My Student Loans at 30 as PGY1.

I hate debt with a vengeance.

It all started when I was about 5 years old. I became aware of the dire financial situation my family was in. Debt collectors paid daily visits at our apartment door. I was scared when my dad would go off to negotiate pay back terms with the creditors because the Chinese Mafia movies I watched people’s extremities get amputated as warnings for missed debt repayments.

I came up with a plan. I started collecting coins around the house. Taking them out of my dad’s pants pockets, jacket pockets, finding them under the refrigerator or behind the cabinets. I was gaining momentum as my pile of coin built up, dreaming of the day when I would free my family from the threats of the creditors like a hero. It was kind of my Mulan fantasy.

But my mom caught on, sat me down one day and said, “I appreciate your effort in collecting coins, but we need that money for food… we can’t afford to save those coins, or we will have to skip dinner tonight.”

My dream was shattered. Even my most valent and brilliant (in my 5 year old mind) efforts weren’t helpful. I felt utterly powerless. I knew not how exactly, but I knew I’d avoid debt at all costs.

My family immigrated to the US when I was 16. While I was getting ready to attend a community college given it was cheap and that I was just a Fresh off Boat (weren’t expected by my guidance counselor to blow the SAT out of waters), I scored high enough and get into all colleges I applied to. I applied to 4: UC Berkeley, Irvine, UCLA, and UCSD.

My grandpa gave me 40k for college, I worked 2-7 jobs depending on the semester. I graduated from UCB penniless (net worth zero) in 2007 after 9 semesters and 1 course short of double majors.

I abandoned the idea to pursue medical school and started a family instead when I met Mini Wise Money’s dad. We were not ready to be parents financially. We got into 100k or so of credit card debt, which I spent the following 3 years paying off before starting medical school. This short sprint to pay off my consumer debts reaffirmed my desire to stay away from debt. I learned that debt, no matter in what country, with Mafia creditors or not, is a horrible thing.

I started medical school a single mother, with a sweet 3 year old daughter, and 20k of $100 bills. My medical school cost of attendance from 2010-2014 averaged approximately 90k/year.

 

I remember vividly, crying on the phone and complaining to my mother, [mini quote]

 

I was so debt averse that I really didn’t spend any money beyond the absolute necessities such as food and shelter, my splurges were for Mini’s ballet lessons discounted at the community centers, etc. I worked 2 jobs, mostly totaling 60 hours/week on top of full time study throughout medical school. I got some government assistance for health insurance and food (which was a big deal because health insurance for Mini and me would have cost 4k per year otherwise.)

 

I also kept opening new credit cards every 12 months or so as needed to pay for expenses and ride the debt balance on 0% interest for as long as possible before balance transferring to another card (paying 3% transaction fee for 1.5 years of 0% APR, so effectively 2% annual interest rate). As last resort, when I’m not able to squeeze out more cash flow, I’d take out the minimum amount of student loans at the latest minute possible (knowing that with student loans, the origination fee ranges from 1-4% and the interest rate is 6.8% the day federal government disburses the loan.)

When I was getting ready to purchase a home with a doctor’s loan during MS4, my net worth was -100k. 70k on credit cards with 0% interest rate, 30k on student loans with 6.8% interest rate. I threw every penny I had towards my student loans (my highest interest debt, that’s growing and decreasing my net worth the fastest). When I have a dollar of cash, I pay my student loans. If I get cash rewards from my credit card purchases, I deposit them in my bank to pay my student loans down further. I spare no penny when it came to that 6.8% killer interest rate.

Early 2015, I try to refinance my student loans with DRB, thinking it’s the best way to help me destroy my debt more rapidly since a lower interest rate guarantees that every dollar I channel towards my debt is more powerful, decreasing the debt principle @ a faster rate.

DRB rejected me. They required that I have $3,500 after all bills per month income. (This happened just few months before DRB rolled out their famous resident/fellow refinancing product.) My PGY1 annual income was $50k, and I didn’t have a spouse with income. In spite of my excellent credit history and score, and my unusually small student loan of 20k then, the only way DRB would refinance me was with a high income cosigner.

I was pissed. So I said screw this. I’ll refinance myself.

I open chase slate and got 20k credit limit. I wrote myself a check, deposit it in my checking account, and paid off my student loans. I like chase slate because it is the only card in the market that gives you 0% transaction fee for balance transfer check within the first 60 days of account opening. There, I was officially free of student debt before I turned 31. All my whopping 5 figure debt is at 0% interest rate on my credit cards. This very fact would keep some people up at night. But the 0% interest makes me sound asleep…

Then, I started aggressively attacking my 0% interest credit card debts, especially when they come due. When the credit card companies are “switching” after I took the bait 12-18 months prior, I’d either balance transfer the debt with expiring 0% interest rate to a new card or I’d pay said debt off before hitting the high 16% rate.

As I realize more and more that my happiness is found in things that are mostly monetarily free, I have been just enjoying watching my net worth grow with paying down liabilities and building up assets.

I’m happy to say as of today, I have zero credit card debt and zero student loan. I’m 32, soon to be PGY3, a happy, debt-free, mommy, radiology resident, & personal finance blogger @ drwisemoney.com.

5 Myths about Doctor’s Kid(s)

Like anyone else, doctor and doctor’s wife (or doctor and doctor’s husband), their children means a whole world to them. Yes it does suck to miss lots of their milestones while you are working inhumane hours at the hospital saving lives, getting paged to excuse yourself out of your kid’s birthday party for the 10thy year in a roll. Hopefully the doctors’ families get a bit more understanding and support from the society.

1.       Silver spoon.
I’m not harping on this. My borrow money from my 8 year old (Mini Wise Money) to pay off my high interest rate student loan. Sure I made her an irresistible deal of guaranteed 10% annual interest, but she gets the idea quickly as a 4 year old, “mommy, you are the poorest hardest working person I know.”
Most doctors’ kids are raised with metal spoons, possibly from the Good Will (given the nomadic life style required of a physician in training. We moved 9 times before settling for internship/residence/fellowship in the same town, which in itself without intentional planning and jumping through many hoops during interview seasons as 4th year, is Rare.)

2.       Selfish brats.
They learn early on the value of service to others. They know, when explained and embodied by their loving parents that the only reason that daddy or mommy is absent from your piano recital is because he or she is saving the life of another adorable kid like you.
It’s not because of money… not because of fame or anything self-serving that your parent miss such an important moment with you.
Kids see the example and become very caring and giving themselves.

3.       So smart that they don’t need any help.
They are frequently too smart for their own good. They are precocious little ones that may tell a stranger at dinner party to eat broccoli to avoid colon cancer; tell her school friends to cut back on sugary foods so they don’t go blind or lame one day. (Just a few things Mini Wise Money has said…)
They also suffer from a pretty strong and relentless of self-awareness and self-examination. They are their own hardest critics. They are driven without external forces…
They need more help, attention, support than your average happy-go-lucky-game-boy-TV kid…

4.       Confident.
Not exactly. Unfortunately, this may a trait A breeds trait A situation. The constant evaluation from head to toe and the medical training hazing doctors go through don’t exactly inspire confidence. So while many doctors are the highest performing/functioning human beings with inversely proportional level of self-confidence, so do some of their kids suffer the same.

5.       They naturally will be doctors too.
Some doctors’ kids will not touch a career in medicine with a 10 foot pole after seeing what their parents went through. Some kids are so inspired by their parents that they are inspired to stand on the shoulder of the giant they love and adore. Some kids, like Mini Wise Money, “I will only be a doctor if I can skip residency. It’s a cool job without that part.”

It’s never easy to be known as coming after and related to a well-respected, extremely successful individual. Give these kids of doctors the benefit of doubt. They may sound really smart and know a lot; they are kids after all. Build them up like you would any other child. Challenge them without crushing them. Love them; imagine all the moments this kid’s dad/ or mom missed with him or her while saving the lives of your loved ones.

You may also enjoy reading 5 myths about doctors our society believes and 5 Myths about the Dr.’s Wife (or Husband).  Join us in Physician Support Initiative to make healthier, happier, and more effective doctors.

If you like this article, you might enjoy other DWM articles on Personal Finance, Investing, Retirement, Practice Management, & Lifestyle.

All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.

Confessions of A Sleep-a-phobic

Have you ever wonder how I worked 7 jobs while double-majoring at UC Berkeley, and manage to cook and entertain my friends at my college apartment regularly?

How I worked 2 jobs as a single mom medical student?

How I now as a PGY2, blog about personal finance, tutor USMLE, write books, give talks, and do podcasts and YouTube on the side? Someone joked that it seemed that I have a large career in personal finance and I do residency on the side. No, I can’t possibly do that. Residency, and especially radiology, is indeed an all-consuming endeavor. PGY training challenges each and every resident like myself in various ways: physical stamina (80 hour work week,) mental agility to learn new and massive amount of information, psychological fortitude to weather and yet try one’s best to help lessen the suffering of patients.

 

The simple truth to how I do all I do is a sad confession. I have not slept more than 4 hours continuously since I was 16, the year I immigrated to America.

 

Having 20 waking hours a day worked to my advantage when I, a fresh off boat immigrant, in English as Second Language classes, had just 3 months to prepare for SAT’s. On SAT’s, I scored higher than 90% of the American born kids.

Sleeping just 4 hours a day also worked to my advantage in medical school, allowing me to take great care of Mini Wise Money while working 2 jobs and performing at the top of my class.

 

However, as I get older, my high school guidance counselor’s words began to haunt me, “If you keep this up, you’d be dead by 40.” I turned 32 this year… I thought about increasing my life insurance to take care of my Mini, my parents, my partner, his parents, etc. …

 

At the kind and strong suggestion of my program director, I went to see a psychiatrist at last. He diagnosed me with Bipolar Type II (which was no surprise to me.) But what surprised me was how he phrased everything. He said it is amazing how much I was able to accomplish with an untreated bipolar for what seemed like started when my sleep issues began at age 16. He was incredulous at how I turned my illness into a tool to succeed beyond most people’s imagination.

 

In the positive spotlight he directs onto my symbiotic relationship with my bipolar disorder, I realized why I did not seek medical care for my sleep issues for 16 years…

 

My lack of sleep and my successes were a positive feedback loop without any checks and balances. My sleep-a-phobia was a vicious downwards spiral much like that of a work-a-holic. Because unlike most diseases, sleeping less and working more are incentivized and rewarded by our society.

To put it bluntly, I was killing myself slowly, gently, & happily.

 

I have a happy ending. I had a supportive family, I have an amazing residency program director who recognized that I needed help direly and told me that gave me time off to see the psychiatrist the day of. But how many of my dedicated colleagues have sad endings? Dr. Pamela Whible, who studied the subject of physician suicide extensively, quoted that doctors on average commit suicide 3x more than patients.

 

The demands of pre-med, medical school, residency, fellowship, and even attending physicians are truly inhumane… Ironically the most humanitarian people in our society who chooses to become health care providers are treated so inhumanely by the laws and regulations.

 

I have seen what medical school and residency does to me and my peers. While I was killing myself happily and gradually with my delusions and hypomania, some of my colleagues could be battling deep depressions, sleep deprivation and more. How can we expect sick, exhausted, depressed doctors to heal sick patients?

 

After my confession of my sleep-a-phobic 16 years of life (I slept 6.5 hours continuously for the first time in 16 years last night with one medication prescribed at my first psychiatric appointment), I invite you to join me in the Physician Support Initiative (P.S.I.), a grassroots movement to raise healthier, happier, and naturally more effective doctors. You can read more about P.S.I. here.