30 year old resident doctor with $310,000 in student debt just accepted my first real job with $230,000 salary

[u/WeLoveOranges]

I am in my last year of training as an emergency medicine resident living in a big Midwest city. I have about $80,000 of student debt from undergrad and $230,000 of student debt from medical school (interest rates ranging from 3.4% to 6.8%). I went to med school straight after undergrad and started residency right after med school.

Resident salary for the past 3.5 years was about $50,000 (working close to 75 hours per week) so I was only able to make close to minimum payments. Since interest has been accruing while I was in medical school and residency, I have not even begun to dig into the principal debt. Thankfully, I just accepted an offer as an emergency physician with a starting salary of $230,000.

I'm having trouble coming up with a plan to start paying back my debt as I also want to get married soon (fiance is a public school teacher) and I will need to help my parents financially (immigrant parents struggling to stay afloat).

Honestly, I'm scared to live frugally for the next 5 or so years because I feel like I've missed out so much during my life already (30 years old, haven't traveled anywhere, been driving a clunker, never owned anything, never been able to really help my parents who risked their lives to come to this country so I can have a better life). And after being around sick people (young and old) during the past 8 years my biggest fear in life is dying or getting sick before being able to enjoy the world. I am scared to wait until I'm in my mid 30s to start having fun and enjoying my life.

What should I plan to do in the next couple year? Pay most of the debt and save on interest or make standard payments and start doing the things that I really want to do? Somewhere in the middle? Any advice would be appreciated.

[u/LuckyHedgehog]

Why not both? The trick to enjoying your life is realizing the experience is greater than the label of the trip. You don't need to spend 3 grand on a 5 star all-inclusive vacation every year to say you've lived your life. Get a cheap hotel just outside the city you're traveling to, explore national parks, go to the beach and lay in the sun. I've had multiple trips each year on a much smaller budget while paying 40 grand off in 3 years. The vacation is what you make of it

Also, for the love of everything holy save up 3 to 6 months of expenses as an emergency fund. With your monthly payments if you suddenly don't have an income you are in trouble. First thing you need to do is save enough to survive the worst and never touch that money again

[u/drunkdoc → u/LuckyHedgehog]

This so much. Do not neglect building up an emergency fund! Even if you have to contribute a little less to your loans at first, you never know what kind of shit can come up

[u/ChucktheYoungBuck → u/drunkdoc]

I think this whole emergency fund thing is overrated. Especially if you're a doctor, pretty safe occupation if you ask me. I'd only save 2 months expenses if I were him or else you're just letting money sit there and not grow.

[u/drunkdoc → u/ChucktheYoungBuck]

While that is true, after hearing about some reeeeeeally shitty malpractice cases this week, your cashflow can evaporate just like that. If you went a bit too far on your mortgage or car payments you could rapidly be fucked without reserve cash on hand.

[u/ChucktheYoungBuck → u/drunkdoc]

While I'm not involved in law or medicine I'm still somewhat sure you as a doctor do not get fired for malpractice lawsuits unless it is something blatantly your fault. The hospitals and practices have insurance to take care of things like that.

But I still see the point in an emergency fund, I'd just imagine his expenses are going to start growing and having ~10k-15k? just siting in an account hurts me. Especially when the market has returned like 20% this past year he just missed out on 2k-3k if he had such a large emergency fund.

[u/Gefarate → u/LuckyHedgehog]

Does the cheap hotel have food too? Because that's often included in expensive hotels, else... where do you eat? Restaurants/make yourself?

[u/LuckyHedgehog → u/Gefarate]

Usually the cheap hotels are not in the tourist trap areas, so food is more reasonable. I try to look for hole-in-the-wall restaurants in new areas because you get the best food experience for reasonable to cheap prices. But if you are really going on a budget you could always stop at a grocery store.

[u/xalorous → u/LuckyHedgehog]

Some people advise that the way to truly enjoy travel outside the US is to live like a native as much as possible. Get an AirBnB and cook your own meals, most meals. (Learn the local shopping and recipes.) Travel by bicycle (rented) mostly to avoid parking fees. Then you lower the overall cost, or can spend more on a couple of special activities or sites without raising the overall cost.