SKINFLINT PHILOSOPHY:
PAY BACK YOUR SCHOOL LOANS
AND SURVIVE AS A PODIATRIST

Part 1 of 7 

by Michael Rosenblatt, DPM
ROSEY1@prodigy.net

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John Trench, III, DPM wrote a wonderful article on consolidating
and handling out of control student loans.

He did this out of concern that the negative comments on podiatry have been too one sided, with no constructive help. Dr. Jon Hultman, DPM, MBA, a frequent and valued contributor also tendered the advice of not falling into the trap of buying expensive cars. But an expensive car is far beyond starting podiatrists and many who have seen managed care erode their income. Another point I want to make is that government is at least partially responsible for our plight. They are willing to help loan us money for our college, but insist that we not make the income to pay them back. I want to concentrate on the draconian money stretching philosophy called "Skinflint living." I will also deal with governmental restrictions in some sample letters to your local politicians and various loan collection officers.

SKINFLINT LIVING

This is defined as a way of life that is very, very different from the typical American approach toward money. Most of the writers on this subject are religious people, helping families to more effectively tithe to their church. I suspect that some podiatrists (and their spouses) will consider this shocking and be unwilling to do it. But I think it should be looked upon as a "temporary" assignment. My wife Yvonne and I did it for about 3 years when we started out. We didn't have your enormous loans, but we were still very poor. In 1971 I only grossed 8,000 dollars. Yvonne was fired from her private school teaching job when she got pregnant. In those days that was perfectly legal!

OUT WITH DISCRETIONARY SPENDING

John Trench, III, DPM recommended keeping a diary of EVERY discretionary expense. That's a good start. The Skinflint Philosophy has NO discretionary spending. The magazine at the news stand, the latte', a movie from a rental store, ANY restaurant meals, book store books, even a daily paper. Some Skinflints will still get a paper, but they get them from "other" sources a few days old. It's easy to see how the dollars fly away. Discretionary spending is the single item in your budget over which you have the most control. Yvonne and I did NO discretionary spending for three years.

If you want a quick example, take a couple of latte's and rented movies: easily 10 bucks. If you do that every month that's $120/year. You could have gone to a local library to borrow a movie and made your own popcorn at home. The high cost of gas now necessitates careful planning for auto trips, combining chores into close geographic chunks. Gone at least for now are discretionary "rides to the coast" to savor the sunsets.

In order to make you feel a bit better, I should tell you that I am now retired and we have no need for a SF type of life. We saved very aggressively. We drove cars to over 150,000 miles. We still do, not because we have to, but because there is no reason not to. We struggled to find the money to purchase real estate, which has helped to allow us to retire. I accredited my office as a surgical center and eventually sold it and my practice.

NEXT ISSUE: CARS, ENTERTAINMENT, and WHY SHOULD A PODIATRIST HAVE TO DO THIS, AFTER SUFFERING POVERTY WHILE GOING TO SCHOOL?