You’ll learn a lot as a medical student: how to take a history, how to read a chest X-ray, how to survive a night on call with only instant noodles and caffeine.
But you know what you won’t get a lecture on? How to budget, deal with HELP debt, or navigate your first payslip. Yet these money questions can have as much impact on your future as any exam result.
At DPM, our advisors talk to med students every day. Here are the top five questions we get asked, and the practical advice we give to help you start strong.
Should I take out income protection now or wait until later?
Income protection pays you a percentage of your regular income if you can’t work because of illness or injury. If you are off work longer than the waiting period, you will receive the payment until you return to work or your benefit period expires.
Your ability to earn is your most valuable asset as a doctor. If illness or injury stopped you from working, income protection can step in and pay you a percentage of your regular pay.
Our advice? Don’t wait. Once you land your first job, look at getting cover. The earlier you set it up, the easier it usually is (and often cheaper) because you’re less likely to have conditions that mean higher premiums or exclusions.
Think of it as insuring your future pay cheques.
What’s the best way to manage my HELP debt?
As a med student, you’ve probably got a pretty big HELP debt. HELP debt doesn’t charge interest, but it does grow each year through indexation. And once you earn above the repayment threshold ($56,156 in 2025–26), repayments are compulsory.
If you work at the public hospital, they’ll ask you if you have a HELP debt, and they’ll take out additional tax from your income to make the compulsory repayments.
But if you’re doing locum or private work, it’s up to you to set money aside. Otherwise, tax time can come with a nasty surprise.
Our tip: save around 30–40% of your locum/private earnings in a separate account to cover tax and HELP repayments.
How should I budget during placement or internship years?
Going from a broke student to earning $90k in your first year feels great, but it’s easy to overspend if you don’t plan ahead.
Start by working out your minimum expenses (rent, food, transport). Then look at your surplus and decide where you want it to go: savings, paying down debt, or personal goals like travel.
Don’t forget career costs on the horizon: exam fees, CPD courses, relocation for placements, or even the fellowship year (where many doctors earn little while gaining experience).
Having a budget isn’t about saying “no”. It’s about making sure you can say “yes” to the things that matter.
Should I invest now or wait until I earn more?
Aah, the million-dollar question. This is a personal question and will depend on your goals.
Our tip: you don’t need to wait until you’re a consultant to invest. In fact, the earlier you start, the more you benefit from compounding returns (where your money makes money).
Investing comes with risk, so the right choice depends on your comfort level and goals. Choosing to invest in shares, property or super all have pros and cons.
Time matters. It’s never too early to start, but know your risk profile first. And get some advice if you’re not sure.
How do I prepare financially for internship and beyond?
Before you get your first full-time pay cheque, set up the basics:
- Open a high-interest savings account so you can put away some money every week for the future.
- Understand your payslip and tax obligations so you’re not caught short at tax time.
- Track your spending (apps and spreadsheets help).
- Understand salary packaging if you’re in a public hospital as it will boost your take-home pay.
The saving, tracking and planning habits you build now will stick with you long after medical school.
If you’re not sure where you’re at financially, a consultation with a financial advisor can help you:
- Understand your current position.
- Set up a custom plan.
- Build confidence before internship hits.
Need clarity before your next clinical rotation? Chat to a DPM advisor about what you can do now to set yourself up for long-term success.
This article contains general advice only and may not be suitable for your circumstances. Make sure you seek financial advice appropriate to your individual circumstances before making decisions.
