I’m thinking, how should I eat this piece of orange… 6 month old Mini.
The Monday Muse aims to serve as a weekly booster for our financial fitness, setting the tone of a successful week in all areas of our lives. With so many wonderful writers/bloggers sharing their experiences and insights, I frequently feel like yelling out their articles from the top of my lungs, so everyone could hear and benefit from these priceless lessons.
Each Monday Muse will share several articles I’ve read recently and found inspiring, instructional, & actionable: mostly in personal finances, but could also be pertinent to other areas of our lives. After all, our lives are not as compartmentalized as we thought. If various aspects of our lives are truly that segregated from one other, why would financial stress cause burn-out in physicians?
So here you go, I’m on the top of my little DWM mountain, shouting out to you. Enjoy!
As you are (soon to be) high income professionals, many are concerned that your kids may never qualify for financial aid. One of my attending radiologists was advised by his financial manager that to save 600k for each of his 2 kids’ college costs. After sharing the top 10 ways Mini Wise Money would pay for her own college, I’d like to share with you an incredible true story about a brilliant, determined, confident young lady, who knew her worth and refused to take “no” for a”no.”
At the tender age of 18, she dared to negotiate with the director of admissions & the director of financial aid at prestigious liberal art private college in California, as a visiting Arizona high school senior. She also happened to be the daughter of a successful cardiologist and school teacher 🙂
We have no financial relationship.
Steps to higher education (college, med school, grad school etc.) seemed be stacked by hundred dollar bills.
“How I Made my Dream College Affordable” By Pre-Med College Junior
Although I wasn’t sure exactly where I wanted to go to college, it had always been my dream to get out of my home state. For that dream to come true, I needed a huge amount of financial aid, first of all because my father was only planning on paying in-state tuition, second of all because I couldn’t stomach asking him to cover the ridiculous cost of out-of-state tuition, and lastly because I was not, under any circumstance, going to take out student loans for my undergraduate education. I resolved that if I could get enough scholarship money to attend an out-of-state university for less than the face value in-state tuition of my state school, I would be justified in asking my father to send me there.
I didn’t know much in the way of scholarships, so my first step was going to my high school college counselor. I asked for specific information on how to get large merit scholarships and names of specific ones I could apply to, but she wasn’t much help with that. She did, however, give me a key piece of advice regarding choosing schools to apply to if I really was determined to go out of state. She told me to stay away from big state universities, and focus instead on smaller, private schools. I hadn’t pictured myself at a small liberal arts college, but if it meant that I could get enough money to go out of state, I was willing to make it work. After researching schools and visiting some campuses, I selected a pool of eleven schools to which I applied, including my home state university.
The letters of acceptance that followed informed me of my financial aid award and the estimated net cost tuition and fees. Some schools offered me a substantial sum of merit scholarships, and others significantly less. Those that gave me minimal amount of money, no matter how infatuated I was with the school, were immediately eliminated from consideration. From there, my choices of out of state universities came down to four schools. The net cost of two of the schools was still outside of my range of affordability, but I kept them in consideration hoping that there was a way I could get more aid.
I went to each of the four schools’ preview days to assist in making my final decision. After the first two preview days, I decided that I really wanted to go to school in California, leaving me a choice between two final schools. I wasn’t completely attracted to one university over the other until I visited the second campus, when I decided that that was my dream university. Unfortunately, that school was one of the ones still just outside my affordability range, offering me much less money than the school I liked less, which I would have been able to attend for less than my state university.
Nevertheless, at each preview day, my mother and I attended the session where students and parents have an opportunity to meet with the university’s financial aid department to discuss financing their education. On the preview day of my favorite school, my mom and I were sitting in the waiting area for our appointment when we were approached by the director of financial aid. Although she was merely coming over to be friendly and ask how we were doing, I cut right to the chase and told her that I really wanted to attend the school but that I didn’t receive enough money to be able to. I took it a step further by pointing out that other schools offered me much larger scholarships, and that between my grades, test scores, and extracurriculars, I thought that I deserved more merit money than I had been awarded.
It was very apparent that the director was taken back by my bluntness. She replied that even though I may have had an impressive resume, many good students apply to the school, and left us on the note that she hoped we could figure things out. That said, she came back just a few moments later and told me that I should write a letter to the director of admissions explaining my situation and my reasons for feeling that I deserved more scholarship money. Shortly after, my mother and I were called in for our scheduled appointment with financial aid, which wasn’t much help in the way of obtaining more money. When leaving the financial aid session, the director of financial aid and director of admissions were waiting for us by the exit. The director of financial aid introduced us to the director of admissions, and then they wished us a safe trip home. On the car ride home, I feverishly wrote my letter to the director of admission and sent it off.
I put off deciding between the two schools because one was so much better financially, but I was so much more attached to the other. Then, I received a letter from my preferred university, informing me that I had been awarded another merit scholarship. The additional money altered the net cost for the school so greatly that I could attend for less than the cost of my state university, and the decision was made. I am now attending my dream school, an institution with an estimated tuition and fees of over $60,000, for less than it would cost to go to my state school.
I’m so incredibly proud of this young lady. She also has another amazing journey to share. Just last summer, she overcame a mysterious bout of spinal infection which required spinal decompression surgery. Her case remained a million-dollar-work-up-unsolved-mystery, which only led her to be stronger and more determined in her pursuit of medicine. I can truly say that she’s the Most accomplished person I have ever met at such a young age. And I know that she will be a phenomenal doctor one day.
Singularly amazing and unconditionally loving to her grandchild
Like Ella
The doctor of a father
Who may have to kiss his little girl good-bye
Forever
I know why I forego tucking Ella in for many nights
I know why I kissed Ella good-bye
Protect yourself, your ability to earn, and your loved ones.
I wrote this poem during my first week of medical school, August of 2010. It explains my motivation for pursuing medicine and ideals for serving patients & their families. Mini Wise Money (aka Ella), my then three-year-old daughter, is the most precious person in my life. When she catches the flu, I treat her throughout the night regardless of major exams I have the next day. A couple times I miss class to take her to the doctor. Depending on the pediatrician, Ella may scream and kick to resist medical examination or fully oblige. As I observe various doctoring styles, I commit myself to providing effective and empathetic medical care as a student physician. To best serve the community, I extend my innate drive to nurture Ella to all patient encounters.
At the Student Run Health Clinic, I work with colleagues of various disciplines to improve the health of medically under-served population. Because SRHC is free to the community, I embrace the luxury to spend as much time with each patient as needed. I conduct thorough patient history and physical exam. Under the supervision of Dr. Lopes, a board certified physician, I perform osteopathic manipulative treatment (OMT) on patients and provide health education.
For instance, I treated an elderly man with recent prostatectomy, which my grandfather had also gone through. It was natural to partner and communicate with him like I would with my grand father. He shared much personal and medically relevant information; I felt very privileged to receive such trust. I performed several OMT techniques, which ameliorated his post-operative pain and swelling. Seeing his frown soften into a smile with OMT reminded me of massaging grandpa’s forehead as a child. While my grandfather lived 400 miles away, I was grateful to treat and connect with a patient like him. He said that visit was the most thorough and empathetic medical care he had ever received. Then, he came to his follow up appointment and brought his wife as a new patient.
Volunteering at SRHC refreshes and grounds me. When my neck and shoulder ache from nine hours of dense clinical science lectures, I think of the little children like Ella and the elderly like my grand father. My desire to improve their health continually expands my appetite for medical skills and knowledge. Community service will always be integral to my personal fulfillment and professional success.
I wrote the above in 2012 when I was applying for a leadership position at the SRHC (Student Run Health Clinic) at Touro University College of Medicine CA. 4 years have flown by, I feel the same about the Apple of my eye & feel the same about choosing medicine to serve others.
Get the biggest deal of your finances right, first time.
How do you balance motherhood(parenthood) with medicine?
What are your passions in life? Do you sometimes feel pushed and pulled in many ways?
What are the most important lessons you’ve learned from the Apple of your eye?
Credit card companies helped me pay off my student loans faster by reducing my accrued interest by 60k after 4 years of med school.
I love credit cards. They have helped me pay for medical school expenses/tuition on 0% APR, reduced my overall med school debt by 60k in interest, given me lots of cash back & rewards, allowed me to channel my cash flow into my retirement and Mini’s college savings. Thank you, big banks! For giving back to small people once in a blue moon.
While most people see credit cards as the trap/ lock and chain around one’s financial life, when used responsibly and cleverly, one can really turn the table around & use credit cards to free themselves from other higher interest debts such as 6.8% student loans.
Protect yourself, your ability to earn, and your loved ones.
Many people are incredulous about my credit utilization style. Here are some numbers & facts…
My credit stats:
Credit scores from 3 credit bureaus: 780+
# of credit cards (all you see in the above pile): 52
# of balance transfer offers with <2% effective annual interest rate (post transaction fee): 10 offers/month
Late payments*: never in my 18 years of credit history
total combined credit limit: 250k
highest credit limit on 1 card: 51k
revolving debt balance as of 5/18/16: a huge ZERO
Just learned recently that late payments on credit history are not very strict. Payments have to be overdue >60 days before it’s reported to the credit reporting agencies. I have a couple late payments (2-3 days late) in the last 18 years but none impacted my credit score because the credit card companies/banks didn’t report these “late” payments.
Get your biggest deal right, the first time.
I use credit cards for:
All these things I need to do Today, not 6 years after medical school when I finally become a practicing attending. Credit cards allow for cash flow re-direction to my priority and interest-free (or even negative interest) $ on which I can get 8+% return on. For once, big banks way of using time value of $ can be used by every day ordinary people like me 🙂
Everything chargeable. why not, simplify my life, gives me cash back or rewards, track my expenses in one place (I usually only use 1/2 cards actively at any time.)
Cash back: 10-30% of each dollar charged
Emergency fund: why would I set cash away (idly not making me any return for emergency fund when I can charge onto Citibank Simplicity card and ride the balance 21 month interest free? at the end of 1.75 years, I would have enough money saved in a brokerage to pay it off completely anyways.)
Fund my 401k, Roth IRA, Mini’s 529: Chase Slate offers 0% transaction fee for me to write a check to myself for anything (up to my credit limit of 25k.)
Pay off other high interest debt: I initially paid off my student loans when I was rejected by DRB for student loan refinancing (yes, in a few months DRB rolled out product to refinance PGY’s for the first time in history. I would have qualify to refi with DRB if I waited a few months. oh well.)
Live a little: I will charge Mini’s art studio set up in our new home… enjoy it while paying the costs back in 21 months. For once, gratification is not delayed, pay back is.
Discipline: be realistic with how and when you can pay the credit cards off. Transferring to another card is an option, but paying off is even better 🙂
Take advantage of Time value of $. If you can borrow at -10% to 0% from credit card to fund your ROTH IRA earning 8%… Why not leverage this debt?
Be on the right side of the bank. In other words, Be The Bank. Collect rather than pay interest.
image courtesy of ariannabelle.com
Organization: remember VSAS & ERAS & AAMC? you must be an expert organizer by this point of your medical career. Start a master excel sheet, keep track of your credit card due dates, debt amount, monthly minimum payments. Stay on top of, just a month before, your sweet 0% interest rate (APR) converts to the nasty 29% big banks are waiting for.
image courtesy of spudcomics.com
Take the bait and bounce before the switch.
image courtesy of 2ndskiesforex.com
Most importantly, know thyself. If playing the big banks doesn’t gyve with you, don’t do it.
Know thy enemy. It’s simple. They want to get 30% more money back from you than what you charged/borrowed. Don’t let that happen.
I love credit cards. They have helped me pay for medical school expenses/tuition on 0% APR, reduced my overall med school debt by 60k in interest, given me lots of cash back & rewards, allowed me to channel my cash flow into my retirement and Mini’s college savings. Thank you, big banks! For giving back to small people once in a blue moon.
Purchase this short read and ace the test!
Take advantage of Time value of $. If you can borrow at -10% to 0% from credit card to fund your ROTH IRA earning 8%… Why not leverage this debt?
