Blog #4: Future Expenses and the Ideal Plan

Assuming that I graduate from college and finish medical school, in about 10 years or so I would be doing residency at a hospital. I would be working on my three years of internal medicine residency. Obviously this is only possible if I don't take any breaks from my studies.

• According to the Los Angeles County Federation of Labor, yearly expenses for a single adult living in Los Angeles estimates to about $30,000 give or take a couple thousands depending the area a person may be living in. 

• According to glassdoor.com, I can likely count on making about $60,000 each year in my future job as a internal medicine resident.  My education/training to get that job may amount to about $300,000. 

• I want to save about $20,000 for my rainy day fund each year, and about 15% of my salary each year for retirement. If I do end up making about $60,000 during residency, I would be looking at about $9,000 a year. Of course the amount shall increase if my earnings increase as well. For example, if I save $9,000 for retirement each year starting my residency year (I'll be turning 27), by the time I am 65 years old I will have saved up about $342,000. Here are my random math thoughts for even farther into the future:
• Since I want to become a Cardiac Electrophysiologist, the yearly earnings for that estimates to about $600,000+ a year.  By the time I achieve that position, I will be about 33-34 years old. The amount I will be saving will be increased to about $90k a year. Assuming I would actually save 15% of what I would be earning a month. It's overwhelming to think I would need to save about $7.5K a month from what I would be earning. Though, if successful, in 31-32 years or so (I'll be turning 65) I would have been able to save about $2.8M.

• Comparing my future income and expenses makes me think… that for a long long long long long long time.... I will be living in a cardboard box living off of $1 Maru-chan cup noodles. All of this is absolutely overwhelming. This is the plan if nothing bad happens that will lead me to use money for other purposes. As of now... this is the ideal plan. Whether or not it's achievable... I have no idea. I WILL TRY. Not to mention education debts that I will need to pay each month. This is so overwhelming....