How to Become Debt Free Without Sacrificing
Written by: The Intiva Health Team
For many doctors recently out of medical school, debt is a fact of life. According to the latest statistics, the average medical school graduate leaves school owing more than 190,000 in student loan debt. This debt can impact many areas of your life. Student loan debt can make it hard to buy a house or even a car.
In spite of the high cost of medical school, medical education is a good investment. According to the Medscape Physician Compensation Report for 2018, the average overall physician salary per year is $299,000. Additionally, physician earnings have increased over the last year. Some specialties, like plastic surgery, average more than $500,000 per year.
Also, it is possible to become debt-free without sacrificing. There are many ways to pay off your student loans without sacrificing your lifestyle. Eliminating student loan debt without sacrificing takes some planning. Here is a detailed step-by-step plan to help you.
#1 Identify Your Goals
The first step in becoming debt free is to figure out your priorities. Do you want to pay off your debt as soon as possible even if you must give up some things? Or would you rather take longer to pay off your loans and have more disposable income each month? What things are essential in your life and what are non-essential? Some people might consider a gym membership as essential to their well-being, while others might see it as non-essential. This is different for everyone, so think about what is right for you.
#2 Create a Plan
Once you identify your priorities, you can create a plan to help you reach your goals. If your plan is to pay off your debt earlier and you don’t mind sacrificing some things, then you might create a three-year plan for paying off debt. Your plan for paying off debt will depend on your income, how much debt you have, and what you are willing to sacrifice. Keep those things in mind as you develop your plan for paying off debt.
#3 Do Research
The next step is to do some research to determine if your plan is feasible. If you want to pay off student loans in three years, but your current budget won’t allow that to happen, consider different ways that you can make that happen. What programs are available to help you? For example, would refinancing help lower your interest rate? What things can you do to help you pay off your loan within your timeline? Maybe you can boost your income by working overtime.
#4 Don’t Give Up
It can be a challenge to remain focused when paying off debt. However, it is essential to stay disciplined and keep working on your goal. Don’t give up even if you experience a setback or two. You might have to reevaluate your goals from time-to-time during the process. That is okay. Just stay motivated by getting back on track with your goals and focusing on the big picture.
