Leaving My Job to Go Into Debt Full Time

Upon learning that I got into medical school I read the email 4 times to be sure I wasn’t seeing things, jumped up and down, called my parents and tried to convince them that no I wasn’t lying and then realized that I’ll have to leave my very interesting and great job.

My last day at work is at actually today (sad face), so this is my last full month with a salary.

I wrote about my June budget here  and have planned to spend about $2400 of my $2700 coming in.Specifically, I plan to save at least $700 this month.

Between my last day of work and first day of school I have about 4 weeks to get through. I do have a line of credit, but in a more intelligent move, I have a plan for these ‘transition weeks’.

Although I haven’t finalized my July monthly budget, I do plan on starting on my first financial goal of limiting my living expenses to under $1450.

July Budget: 1450

700 from June savings

750 from planned tuition savings, in an effort to minimize usage of line of credit or loans

I do expect there to be huge school expenses this month, but this will come out of the planned tuition savings. School expenses will be over and above the living expenses, as I know the first month has tons of upfront expenses (unfortunately they haven’t given us any details).

What do you think? Should I save the planned savings to actually be put towards tuition or is it wise to spend as much as my money first before even touching any credit?

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Using Planned Savings

I have written a lot about my big tuition planned savings goal. I have written (and thought) much less about how I’m actually going to use this money I had saved up.

Obviously on tuition, but I hadn’t thought about all the little things that have to be taken care of before school even starts. ($6000 will not cover even one semester of tuition anyways.)

My plan is to track my spending as I withdrawal money from my planned savings account.

This is what I have so far:

Tuition for 2014 Date Activity Balance Reason
  2014-05-13 6619.7 6000  
  2014-05-16 -507.5 6112.2 deposit
  2014-05-19 -65 6047.2 first aid
  2014-05-20 -85 5962.2 immunizations
    -498 5464.2 trip to see mom/dad
    -90.28 5373.92 flowers for references
    -40.5 5333.42 agenda/file folder
    -144 5189.42 purse
    -85 5104.42 flats, two shirts

 

And yes, I’ve been a bad (but honest) personal finance blogger by tracking even the not-so-essential school expenses I’ve ‘expensed’ from this tuition account so far.

My theory is by carrying over this explicit spending tracking into the planned spending account I will be more honest about

a) Where the money is going and b) How much I actually have.

I have spent a good chunk so far.

Yes, I didn’t need a number of these things, but they do directly relate to school and I did not use a credit card or any credit to buy them, so I do not feel guilty at all!

I’m unsure about whether or not to use this money for living expenses in the weeks leading up to school or not, but perhaps I’ll write about that later.

Regardless, expect regularly spending tracking reports from this planned savings account in the future! I encourage you to do the same!

You counted every dollar saving it, you should also make sure you track where it goes!