New Medical Professionals at UTMB: Congratulations, and Welcome to Galveston
Whether you're beginning residency, joining the faculty, or starting your career at UTMB, welcome to Galveston. This guide will help you think about your first paycheck, your benefits, and the financial decisions that can set you up for long-term success.
This article is written for all the new medical professionals at UTMB.
First things first, congratulations. This is such a huge step in your career, and we are excited for you.
As exciting as it is, we also know how demanding the workload can be. You don't have a ton of free time, and when you do, relax. You've earned it, and you need it.
Four years or more for undergrad, four more years of medical school, and now at least three years of residency, maybe longer. Fellowship in your future? That's a lot.
But here's the best news so far.
You actually start getting paid. Finally!
Granted, it's residency pay, but it is pay, is it not?
Now that you're making money, it's in your best interest to start thinking about that money and making it work for you.
The first thing you're probably thinking, and rightly so, is, "Holy cow, I'm starting my life with a mountain of debt."
Yep. Welcome to residency.
According to a 2025 AAMC survey of graduating medical students, the median medical student loan debt among respondents was around $200,000. More than one-third reported debt of $200,000 or more, and 16% graduated with more than $300,000 in student loans.
Anytime a new resident, or frankly anyone who starts making money, receives those first few paychecks, it can lead to flat-out euphoria. I remember mine when I started in this business.
I want to give you permission to splurge just a little.
Don't go crazy, but you should treat yourself to something you've wanted or needed and simply couldn't afford before.
It's okay.
Brad said so.
The next thing I want you to think about is starting a list of the things you want to accomplish in your life.
For example:
I want to pay down my debt.
I want a new car.
I want to build a retirement account.
I want a new boat...don't do that one.
Next, start thinking about your five-year plan.
Where do you want to be? What will it cost to get there?
These are the things we use when building your first financial plan.
So many people in my industry begin every conversation by telling you that you need to start saving money. I take some issue with that because, for many people, it simply isn't realistic. Also, most people giving this advice make money when you save and invest.
Step 1: Budget
Before you start saving money, you need a budget.
I'll be honest.
Creating a budget sucks.
It's not fun, at least not for me. However, I have one for my personal life and for each of my businesses.
A business without a budget goes broke.
So do people.
Start by listing the things you must pay for:
Rent
Food
Entertainment (what little time you'll have for it)
Insurance
Student loans
Utilities
Transportation
I like using a simple Excel spreadsheet.
List each expense, then next to it write the amount you need to set aside every month.
When it comes to food and entertainment, there are advisors who believe you should live an extremely frugal lifestyle. I've never been one of those.
Here's an example.
I love coffee.
Someone (I won't name her) became famous for saying people are broke because they buy a $6 or $8 coffee every day.
Ridiculous.
If you budget accordingly, even first-year residents can afford to sit down at MOD Coffeehouse and enjoy a latte every now and then. I'd lose my mind if I couldn't sit outside under their canopy, read the news, and enjoy a cup of coffee once in a while.
And once a week, I treat myself to a great meal. I'm partial to a cup of seafood gumbo and the soft-shell crab sandwich.
Finally, if you're looking for a fun day off, grab a few friends and call my buddies at Out Cast Charters. Reserve a half-day fishing trip around the Galveston jetties. Split four ways, it's a pretty affordable day, and you get fresh fish to take home.
I know you're young, but if you can find the time, watch The Shining with Jack Nicholson.
There's a famous quote:
"All work and no play makes Jack a dull boy."
That's what he spent all day typing before becoming completely unhinged.
That won't be you.
But you get the point.
Set aside time to have some fun.
You've earned it, and you deserve it.
The next thing we typically see in a resident's budget is student loans.
Here's where you need to be careful.
Many people want to pay them off as fast as possible. While that's understandable, your monthly cash flow is often more important during residency than aggressively paying down long-term student loans.
List each loan, the interest rate, the minimum payment, and then add another column labeled Actual Payment.
Leave that blank.
Build your budget around the minimum payments first.
Give yourself a few months to settle into your new budget. If you consistently have money left over each month, start putting extra toward the loan with the highest interest rate.
Step 2: Protect
Take a look at the life insurance available through your UTMB benefits.
Most employees begin with $50,000 in basic group term life insurance.
That's a good start.
But does it cover your student loan balance?
Go back and look at that number.
Let's at least try to have enough insurance to cover your debt.
The good news is that every payment you make reduces your loan balance while your insurance benefit stays the same, putting you in a stronger financial position over time.
Our Certified Financial Planner here at Redfish Capital has spent considerable time analyzing this and has developed a process to determine whether increasing your coverage beyond your employee benefits makes sense.
Step 3: Save for Your Future
All benefits-eligible employees at UTMB are automatically enrolled in the Teacher Retirement System (TRS). This includes most Graduate Medical Education trainees.
Take a look at your paycheck.
You'll see your TRS contribution there.
Each year, you'll contribute 8.25% of your salary.
The State of Texas effectively matches that amount, bringing the total annual contribution to 16.5%.
If you're a designated faculty member, administrator, or professional employee, you'll likely participate in the Optional Retirement Program (ORP) instead. Human Resources will notify you if that applies to you.
Your TRS benefits become fully vested after five years of service.
These funds are professionally managed on your behalf.
If your budget allows, consider opening an additional retirement account alongside your TRS benefits.
Even small contributions can make a tremendous difference over time.
I hope you found this useful as you begin your journey.
Please know that we at Redfish Capital think about financial planning every day, and we genuinely want to help you make smart decisions from the very beginning of your career.
If you ever have questions, don't hesitate to give us a call or send us an email.
Our office is just down the street on Mechanic Street.
And if you're new to Galveston, our go-to gumbo spot is MOD Coffeehouse. Grab a bowl, take a well-earned break, and welcome to the Island. We think you're going to love it here.
