As a resident, this is the ideal time to develop your money management skills. These five strategies will start you on the road to long-term financial security.
1. Control the Outflow: Make a Budget
Budgeting doesn’t have to be complicated, time-consuming, or unpleasant. Here are some tips:
- Keep it Current. Update your income and expenses at least once a month.
- Use a Spreadsheet Program. Software makes it easy to create your budget and keep it up-to-date.
As well, try our online budget calculator to help you determine your initial budget.
- Look for Small Savings. Cutting regular small expenses can make a huge difference over the long haul.
- Create a Paper Trail. Debit and credit card receipts make it easy to track expenses.
2. Maximize the Inflow: Apply for Scholarships and Bursaries
Apply for every bursary and scholarship you can find. Learn how you can apply for RBC scholarships for medical and dental students.
3. Keep it Simple: Consolidate Accounts
Having all of your financial accounts with one institution makes it easier to monitor and track income and expenses.
4. Reduce Your Cost of Borrowing
In most cases, it makes sense to maintain your student loans because the interest generates a tax credit. But for other debts, consolidating into a single line of credit can save you a bundle in interest. In addition, a Royal Credit Line® allows you to defer principal repayments until 12 months after you complete your residency.
5. Take Full Advantage of Tax-saving Opportunities
Keep receipts and make sure you claim all the tax breaks available to medical students and residents, including:
- Tuition fees
- Moving expenses
- Education tax credit
- Child-care costs
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