4 financial challenges facing medical residents
Residency is a significant milestone. It’s one of the most demanding stages of your career, yet you also need to focus on these four key financial issues.
1. Figuring out your debt payments
Finishing medical school means you may need to start paying off your loans if you borrowed funds for medical school. Here are some things to be aware of:
- Repayment rules differ by province
- Find out if you qualify for a student loan forgiveness program
Medical student and resident lines of credit
- Repayment rules differ by financial institution
- Payments can often be deferred but interest has been accruing since day one
2. Managing competing financial priorities
Once you start earning a salary, you may find you have competing financial priorities—all converging at the same time.
- I need to pay off my student debt
- I want to start a family
- I want to buy a home.
- How much should I be saving?
3. Preparing for the gap in income
Between the end of your residency and the time you start billing, there could be two or three months in which you have no income.
- Receive last paycheque as a resident
- Set up practice and start billing
- Receive first payment as a practising physician
4. Planning for the transition to practice
Depending on your field of practice, transitioning to clinical work will require various start-up and ongoing costs.
- $5,000 family medicine
- $6,000 specialist
Operating expenses for first year: solo practice
Initial office set-up: solo practice
Source: Canadian Medical Association, New in Practice Guide 2017
MD is the only financial management company dedicated to the financial well-being of Canada’s physicians and their families.
As a resident and new-in-practice physician, you have access to MD MedEd Counsel™—a team of MD Advisors and Early Career Specialists.
Learn more about MD MedEd Counsel or find an MD Advisor near you at md.ca/meded
MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. For a detailed list of these companies, visit md.ca. • MD MedEd Counsel™ services are provided by MD Management Limited. • MD MedEd Counsel™ is a trademark of The Bank of Nova Scotia, used under licence.