I just had a discussion with a colleague about the importance (or lack) of limiting one’s debt. The gist is that we’re about to finish residency, where our salaries will range from $120 - $500K/year, depending on our specialty. The conversation was sparked by a group of our colleagues who regularly (2-3 times/year) fly to Vegas for the weekend, at a cost of about $2000 or $3000/trip. All of us are well over $100K in the hole from school.
His position is that the cost of such trips is just a drop in the bucket of our vast debt. To quote him, “the way I see it, 15 years down the road when I’m grossing 3-450k, it’s pretty unlikely that I will think, ‘man I’m glad I saved my money and didn’t go to Croatia/Vegas when I was 25’. And by then I will have a family and the option of going will be either a) impossible or b) considerably more hassle than its worth.”
My position is that it’s a bit of a gamble to expect that there will be no other expenses/interruptions in work in the next several years. In addition, it seems like it’d make more sense to work toward paying it off now, and travel when we’re in our early 30s. It’s not like we’ll be decrepit or incapable of having a good time when we’re a little older. I also just don’t like the idea of being in debt without anything concrete to show for it; a mortgage or car payment isn’t the same to me as a line of credit. My problem is that I can’t really make this logical…it’s just my natural cheapness coming through.
Does anyone have thoughts to offer?