When I started residency, I knew the hours would be long, but I wasn’t prepared for how far a resident doctor salary would need to stretch. Earning around $55,000 a year while managing student loans and basic living expenses felt overwhelming initially. But over time, I learned how to budget and make the most of my benefits. Residency is tough, but with the right strategies, you can navigate the financial challenges and set yourself up for success. Here’s what I’ve learned about the resident doctor salary, what impacts it, and how to make the most of your money.

What Is A Resident Doctor Salary?

Resident doctors usually earn between $60,000 and $70,000 a year as of 2024. Not exactly rolling in it, right? Especially when you factor in the hours.

This money mainly comes from hospitals and Medicare funding. While most programs stick to similar pay scales, a few key factors can affect how much actually ends up in your bank account.

What Affects Resident Salaries?

Training Year

The further along in residency training, the higher the salary. A first-year resident physician (colloquially known as the intern) will make less than a senior resident physician. But don’t expect to get rich just because you’re a few years ahead of an intern. Each successive year of residency training makes about $2,000 to $4,000 more than the previous year of training.

Location

Where you live can make or break your budget. A $62,000 salary stretches further in a small town than it does in a pricey city like San Francisco. Some programs know this and offer extra stipends for high-cost areas. It’s a small win, but we’ll take it, eh?

Hospital Type

Most residents work at teaching hospitals where salaries are pretty standardized. Private hospitals or unique training programs might offer a little more, but these are exceptions.

Specialty

Since they are paid by their year of training, specialty training does not affect salary during residency. So a PGY2 surgical resident will have the same salary as a PGY2 psychiatry resident. So don’t expect to get rich just because you’re stitching people up as a surgical resident compared to someone who is administering propofol as an anesthesiology resident.

What Comes Out of Your Pay?

I remember looking at my first paycheck and wondering where it all went. Between rent, food, and loan payments, it felt like I had nothing left. I started packing lunch every day, and it was a small but necessary change.

Deductions

Taxes, insurance, and retirement contributions will shrink your paycheck faster than a post-call nap. Brace yourself for those deductions because they’re inevitable.

Benefits

On the upside, residents often get perks like health insurance, meal stipends (hello, hospital cafeteria), and funds for licensing exams. These can take some of the sting out of your expenses.

Extra Pay

Overnight shifts or moonlighting gigs can pad your income if your program allows it. I picked up a few moonlighting shifts to save for a vacation. It was exhausting, but that trip to Prague gave me a much-needed reset before diving back into residency. Those extra hours might feel brutal, but the paycheck boost can be worth it.

Are Salaries Changing?

Resident salaries inch up a bit every year, but not by much. They rarely keep up with inflation or the sky-high cost of student debt. It’s an issue. Organizations like the AAMC are pushing for better pay and benefits. Fingers crossed, right?

There’s also more talk about how debt and burnout are hitting young doctors. These conversations might lead to bigger changes in the future. Let’s hope.

Managing Finances on a Resident Doctor Salary

Budget Smartly

Know where your money is going. Apps like Copilot can help. Break your spending into categories—rent, food, fun—and stick to your limits. Yes, even the coffee budget.

Tackle Student Loans

Student loans don’t have to be overwhelming. I chose REPAYE because the payments were manageable on my salary. It wasn’t easy, but setting up autopay made it one less thing to worry about during busy rotations. If you’re at a nonprofit hospital, look into Public Service Loan Forgiveness. It’s not a magic wand, but it helps.

Save Where You Can

Even if it’s just $20 a month, start saving. Open a high-yield savings account for emergencies or begin a Roth IRA for future-you. Small steps now make a big difference later.

Why Salaries Should Be Higher

Residents work long hours and are crucial to patient care. It’s only fair that their pay reflects that. Advocacy groups are fighting for better salaries, more benefits, and mental health resources. Change takes time, but every voice matters.

If you want to help, consider joining professional associations or advocacy groups. It’s a way to support progress while balancing your busy life.

Bottom Line

A resident doctor salary might not feel like much, but with careful planning, you can make it work. At the same time, it’s clear that change is needed. Better pay and more support can make a huge difference for young doctors.

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