Becoming a doctor was a journey that required me years of education, long hours, and plenty of sacrifices. One of the most crucial stages of this journey is residency, where I gained hands-on experience and apply what I’ve learned. However, the financial aspect of residency, particularly the resident doctor salary, is often a source of confusion and frustration for many. I didn’t much about the monetary expectations until I started the interview process for residency. In this post, we’ll break down the basics of the residency salary, what factors can influence it, and how residents can make the most of their earnings while keeping future financial goals in mind.

What Is the Average Resident Doctor Salary?

A typical resident doctor salary in the U.S. ranges from $60,000 to $70,000 annually, depending on the program and location. According to a 2023 survey by Medscape, the average residency salary was around $68,000 per year. While this may seem like a decent income, it’s important to remember that many residents are still paying off medical school debt, and the long hours often lead to an hourly wage that’s often lower than many other professionals with similar educational backgrounds.

Residency programs generally last between 3 to 7 years, depending on the specialty, and salaries tend to increase slightly each year. For example, a first-year resident, or PGY-1 (Post-Graduate Year 1), might earn around $60,000, while a third-year resident could be earning closer to $70,000.

Factors That Influence Resident Doctor Salary

Several factors can affect how much you earn during your residency. Some of the most common include:

1. Location: Salaries tend to be higher in metropolitan areas where the cost of living is more expensive. For example, residents in New York City or San Francisco might earn more than those in smaller cities or rural areas. However, the higher salary may not always compensate for the elevated living costs in these areas.
2. Year of Training: As mentioned earlier, residency salary increases as you progress through your training years. Each year, residents can expect a small raise as they take on more responsibility and gain experience.
3. Specialty: While most residents earn within a similar range, salary is typically not tied to the specialty training. The salary is dependent on one’s training year (PGY-level) regardless of one’s specialty. Surgical specialties, for example, do not offer higher resident doctor salary compared to non-surgical fields. Thus, within the same hospital system, a Psychiatry intern is likely paid the same as a Neurosurgery intern.
4. Moonlighting: Some residents choose to “moonlight,” or work extra shifts outside of their residency program, to supplement their income. This is typically more common among senior residents who have gained enough experience to handle additional work. Moonlighting can significantly boost a resident doctor’s salary, but it can also lead to burnout if not managed carefully.

Managing Finances on a Resident Doctor Salary

Given the modest residency salary and the often significant student loan debt that residents carry, managing personal finances during this time can be challenging. Here are a few tips to help you navigate this phase of your financial journey:

1. Create a Budget: It’s essential to know where your money is going each month. A detailed budget can help you prioritize necessary expenses like rent, utilities, and groceries while finding room to save or pay down debt.
2. Student Loan Management: Many residents qualify for income-driven repayment plans, which can make student loan payments more manageable during residency. Some residents also take advantage of Public Service Loan Forgiveness (PSLF) programs if they plan to work in qualifying nonprofit or government positions after residency.
3. Consider Housing Carefully: While it may be tempting to live in a trendy area near your hospital, consider more affordable housing options. Many residents find that living slightly farther from the hospital, or sharing housing with roommates, can significantly reduce rent costs.
4. Start Investing Early: Even though the residency salary is lower than what you’ll earn as an attending physician, it’s still possible to start investing. Consider setting aside a small percentage of your income into a retirement account, such as a Roth IRA. Starting early can have a big impact thanks to compound interest.

Bottom Line

While the resident doctor salary might feel limiting at times, it’s important to remember that residency is temporary. Once you finish your training and become an attending physician, your earning potential will significantly increase. The average attending physician salary is over $300,000 per year, depending on your specialty.

During residency, the goal is to focus on building a strong foundation for your future career while managing your finances wisely. With the right strategies, you can navigate this period with confidence and set yourself up for long-term financial success.

In the meantime, understanding the nuances of residency salary and making informed financial decisions can help you thrive during these challenging yet rewarding years.