Have an Oh S&^t! Fund - Some Thoughts for Senior Residents About to Graduate

(Note: The photo I’m using for this series represents a path into the unknown, mysterious world of real practice, which every soon-to-be attending faces. I’ll be using this for the senior resident advice series.

Additional note: Some of my former residents complained about the lack of information and advice about navigating life and career after residency. This post will be the first in a series giving one perspective on how a newly-graduated attending can navigate this landscape.)

My training and experience as an emergency physician taught me that you often have to gameplan for the worst case scenario. Here’s an example of how I took this lesson and applied it to life after residency: The Oh S&^t! Fund.

What is the Oh S&^t! Fund?

The Oh S&^t! Fund is a concept I try to teach my senior residents.

The Oh S&^t! Fund is money you set aside in case of an emergency, for a proverbial Oh S&^t! moment. This event can come in many forms. The common thread is that you will not be able to work for a while. If you have no money set aside, such a situation can quickly drown you. If you have some money set aside, you have a better chance of riding out that proverbial storm and coming out the other side in one piece.

How much money you put in the Oh S&^t! Fund is a personal decision. As a rule of thumb, I usually tell my residents that it should be at least 2 months worth of expenses. The fund can certainly be more. I recommend 2 months as the bare minimum.

Do not touch this fund unless you have an actual emergency. Do not use this money towards paying for the down payment to a condo, car payment, once in a lifetime vacation, etc. This is for serious emergencies when you’ll need the cash.

The fund should just be cash. Keep the Oh S&^t! Fund in a cash account even if you’re very comfortable with investments like bonds, stocks, certificates of deposit, real estate, etc. and you can make your money make more money for you. You want the cash liquid and immediately accessible. The other investments I mentioned can be very wise choices if you know how to use those tools, but the Oh S&^$t! Fund is a tool for a different purpose. It is your safety net for that Oh S&^t! emergency.

Save for your Oh S&^t! Fund as soon as possible. This should be the first thing you save for.

Your Oh S&^t! Fund does not replace other tools for emergencies such as health insurance, disability insurance, etc. It is another tool that you use alongside the others.

About me: I’m an emergency physician currently practicing in New York City. The first thing I saved for after graduating residency was an Oh S&^t! Fund. I’m also the author of The Handbook of Medical Charting and A Guide to Clinical Decision Making.