 All right guys, what is going on? Luxure from the empty journey helping you succeed on your medical journey with less stress. In this video, we are talking about money. All right, so in this video, I'm going to be super quick. I have to go to work soon at the Student Center today and I have about six minutes to record this video, so I'm gonna try to give you the content while keeping it short. So today's topic is super important and it's something that med students, pre-meds do not understand, which is not only managing your money. We'll talk about that too, but kind of what to do with your money, how to plan accordingly. One, when you're in debt right now, or this is why I can only show you a quarter on this video, or how you start to manage your money when you do start making an income and making sure you don't make stupid decisions with it. So the first thing is you have to understand debt and by that I mean understand that the average med student here in the United States at least graduates with about $170,000 in debt. That's after finishing medical school that doesn't count any interest you were cured during your years of residency. So if you're a neurosurgeon, I'm sorry, you're going to be more than $170,000 in debt. And if you live in a very expensive city or if you go to a much more expensive school, that price range starts to get to, you know, the high 200s, 300,000 just after finishing med school, which is crazy to think of itself and people start to tell themselves, you know, I'll make that money later, it'll be okay. One thing that I was taught that's really stuck with me is imagine this, every dollar that you borrow in med school, you basically assume that you have to pay $2 back. So every time I buy something, whether it's cheap or expensive, I ask myself, is it worth twice the money? So if I'm buying like coffee and I'm going out cause I feel like I really want a pumpkin spice latte, it's fall, I asked myself, is it worth 10 bucks? Right now it's about like four, right? And say answers usually no. So that helps me get away from that cause I don't want my future self to be paying 10 bucks for the latte that I borrowed now. And so for bigger and bigger purchases, that's even more expensive, right? If you go on a trip or you go on a vacation or you buy expensive electronics, ask yourself if you're willing to pay twice as much for the same thing. The answer is yes, then, you know, that's okay. But if the answer is no, it's probably a good sign that you don't need it. So understand debt because you're going to have a lot of it assuming that you're going on a typical route, which is you're going to fund yourself through med school in the United States at least with loans and scholarships. So understand debt and make sure you make wise decisions beforehand. So second thing to, on that point, is understand that you have to budget if you're a freaking college student or a med student when you're in med school, just because you have thousands of dollars of loan money hit your bank account does not mean you're rich. If anything, you're more poor now because somebody has, you know, your name assigned to that money and you have to pay them back. That's obviously what debt is. So budget well. I'm going to show you an app that I really love, which is I'll link it right here, mint.com. If you guys don't know about Mint, it's an amazing free app that basically puts all the financial accounts you have, your credit cards, your bank accounts, your mortgages and your school loans as well as any investing that you have into one area. So you can see how all your finances are doing. You can see how much you spent. You can set a budget and it's going to send you an alert on your phone that you're spending way too much on groceries or shopping or jewelry, whatever it may be, travel. So make sure you add Mint to your thing. It's free and I love it. It's absolutely amazing. I think every Med student, every student in general should have it. So make sure you're one of them and budget your money accordingly. Understand how much you can allocate based off where you live, what school you go to, every month of your loan money and try not to use all of it. So make sure you account for your rent, your food, your groceries, your utilities and then add in maybe some miscellaneous money but try not to use a majority. So moving on to the fourth thing I'm trying to be quick here. There are more tips that I will give in future videos because I am kind of a dork about personal finance and I love teaching it. The third thing is you need to understand credit and this means your credit score. In the United States, most people, for example, in residency will probably rent, maybe they may buy a home but if you haven't developed a credit you're going to get a crappy interest rate which may not mean a lot to you right now but when you buy a 200, $300,000 home your interest rate can be significant but just a few points here and there can save you a lot of money and the way you save yourself a lot of money is you have to put in the hard work now. So what I recommend is if you haven't had your own credit card at this point open one up with maybe your parents or do what they'd call it is a prepaid credit card where you essentially put the money down, maybe $500 and that's how much you can spend every month if you fail to make that payment then the bank gets to keep or use that down payment as a deposit against your balance. But if you keep spending maybe $200 every month you use it on little things such as groceries and you pay it off every month using your loan money and you keep it a solid budget you're going to start making a credit. Banks are gonna see that you are reliable with your money and you're not spending an excessive amount. So credit score is huge and you can start at this point if you're a college student watching this you can start then open up a prepaid card ask your parents if they can make you an authorized user on their cards assuming that they trust you but you're going to start building credit as your parents built credit and as you have a prepaid card you can do the same. If you have had a credit card then think about a few things that go into your credit which includes making sure you're not opening up crazy amounts of credit cards because every time you open up a new line of credit whether it's in a form of a credit card or a loan every time you do that you're basically decreasing your average of how long you've had a credit history. So you've had a credit card for 10 years and then you've had another one for five years that brings your average to about seven and a half but as soon as you bring another credit card in about for a lifetime of zero that brings your average significantly down it's just like a bad grade affects your overall grade in the class or your GPA. So think of it that way. So try to have a consistent and steady growing length of credit. Other things are included of how much of your credit card you spend. So first of all you don't want to be a curing interest on a credit card. So if your limit every month is $2,000 don't spend $2,100 don't even spend $2,000. The ideal number is to spend less than 30% of what your credit limit is. So if your number is a thousand then don't spend more than about $300 on that credit card. It shows banks that although you have money to borrow you're not borrowing all of it that's your much more safer bet when it comes to things such as car payment or car loans or housing mortgages and loans that you need in the future. So understand your usage rate which is 30% rule. Understand your credit length and make sure you're not missing any payments, okay? So make your credit card payments on autopay and understand where your money's going using mint.com. So that is my quick spiel on credit cards. I can make a future video on this on how to kind of game the system while building your credit. Again, I'm a total geek on this topic. So I love talking about this and it's really important because I think most of you guys have not unfortunately received the education you need. The last thing number four is you need to understand personal finance. And this is not just budgeting but you need to know personal like investing. Do you know what index fund is? Do you know what a mutual fund is? Do you know what an IRA is? This goes in the United States but also applies in other countries as well. If your answer was no, no, no then you do have some basic things that you should understand by the time you start making a paycheck like I'm about to get my first real paycheck as a resident in about a few months and at least I understand what I wanna do with that money as soon as it's my bank aside from paying my bills. But most of my classmates unfortunately don't because they haven't been receiving the proper education. They don't know where to invest. They don't know how to save their money. Most people think it's okay to just leave your money in a bank account and you think that your money will grow. It doesn't, you know you're growing like less than a percent in a bank account, which is ridiculous. So understand personal finance. And if you guys want more videos I can show you my tutorial and kind of what I've given this to my classmates on how it's totally possible if you're a physician in the United States and you graduate around your age of 30 you could totally retire at least with a decent lifestyle buy like your 40s, your early 40s if you do the right steps. And so if you guys want that in a future video comment below and I'll totally be down to giving that lesson as well. I'll link a book right here which is an amazing personal finance book. And honestly if you read it I would reach the last few chapters because that's all you need to know if you think investing is complicated you can, this book will show you that you can just automate it to where every time you get an income your money goes into a nice safe investment and you're just starting to grow your income. I started doing this guys when I was in college and the amount of money that's grown throughout that period has been kind of ridiculous. And it's been out of no effort after the initial setup which probably takes about an hour. So if you can make the investment to read the book which probably takes you a few days it's really short by the way so that means you're reading really slow but if you take the investment to read the book to continue to educate yourself and then do what they show you without getting too crazy using the other tips in this video you will set yourself up nicely. You'll have enough money you'll know what to do with it when you get it and you don't need to hire professionals to manage it for you because you've learned the basics that's really what you need to know at this point. So again, I was trying to be quick because I gotta go to work but hopefully this video is helpful. Money is something that's really important but unfortunately we're not taught about enough so if you liked this video even though it was a basic overview and you want some more detail comment below, like this video at least subscribe to the channel and join the community. I'm gonna stop babbling I will see you guys in the next, take care guys.