[As we republish this 2015 post today, I was pleased to see it needed no updating at all, except to mention one of the best parts of our recent home renovation was to place a very sweet foosball table into the game room. Maybe my kids will have a chance in the med school lounge.]
My four years in medical school were some of the best years of my life. We were newlyweds and true DINKs (Dual Income, No Kids,) even if it wasn't much of an income. I had my $920 a month military stipend and my wife was working as a ski instructor (comes with a personal and spousal season pass, far more fun than a personal and spousal IRA) or getting a teaching stipend while in grad school. We didn't have much, but life was good.
Professionally, I was learning new things every day that I would be using for the rest of my life. Our class was just 100 people, and far more tightly knit than the tens of thousands at my undergraduate institution. Sure, there were disappointments upon getting my first gross anatomy exam results back (when I realized that everyone in medical school is as smart as I am,) but for the most part, the competitive part of my education was over and the collaborative part had begun.
Some of the best collaboration, of course, takes place in the student lounge. Many of the most important lessons of medical school I learned at the foosball table.
Lesson # 1 How To Take a Beating
We played a unique brand of foosball. We called it two-ball. It was played with four people, two per side, and with two balls at once. If the second ball went in your goal prior to you getting the first ball out of your goal and back into the game, that was a “Bjork,” named after our medical school dean, the fine Dr. Bjorkman. A Bjork was worth two points, rather than the standard one. The reason for two balls and Bjorks was that the game to 10 points went a lot faster so that many different people could play in the 10 minutes between classes.
However, it turned out that by the time my class sauntered into the lounge in September of our MS1 year, the MS2s were far more talented at this game than we were. Thus ensued a spectacular beating. A talented set of MS2s might run a dozen of us off the table in less than 10 minutes. It was probably three months before we ever beat the MS2s by the skin of our teeth, an event to be celebrated for sure.
But there was a lesson there, that carried over throughout the rest of medical school, certainly residency, and throughout our careers — We didn't know much and our skills were even worse.ย That humility came in particularly handy during MS3 rotations and internship.
It is also an important skill in investing. When you realize how cloudy your crystal ball is, you've taken your first step toward a winning investing strategy.
Lesson # 2 Take Advantage Of Your Strengths
However, all good things come to an end, and those MS2s eventually moved on to their MS3 rotations, rarely to be spotted in the lounge again. It was our turn to rule the table. Sure enough, along came a fine set of brilliant, but inept, MS1s. All those skills we had honed against the class of 2002 could now be placed into deadly effect against the class of 2004. They hung their heads and walked away as we called, “Next!” and another pair stepped up to take their licks.
Life is a bit like that too. Financially speaking, we all have strengths.
- We might be married to another high earner.
- We might have a relatively low student loan burden.
- We might have a relatively high earning potential.
- We might be perfectly happy living in a low cost of living area or in a frugal manner.
- Perhaps we learned the importance of a few financial skills early and began saving for retirement in our thirties.
- Maybe our 401(k) plan is particularly good, such as the Federal TSP, or we get a big employer match.
- Perhaps we get a 403(b) AND a 457(b).
- Maybe we have a stomach of steel and sleep like babies during bear markets.
- Perhaps we have interest in some entrepreneurial pursuits or think landlording is a fun hobby.
- Maybe you have a frugal spouse, or you can live at home, or whatever.
You probably don't have all of these strengths at your disposal, but the chances that you have none of them are very low. Take advantage of the ones you do have. Those “MS1s” won't suck forever– beat the snot out of them while you can.
# 3 You Can't Carry Someone From The Front
Eventually, we'd get sick of plastering the MS1s 10-0, 10-1, 10-1, 10-0, and 10-2, all in less than 10 minutes and we'd mix it up a bit by putting an MS1 and an MS2 on each team. That was when you quickly learned that you can't carry someone from the front. As many football coaches have learned, defense wins championships. And if you want to win with an MS1 on your team (and play in the next game instead of watch it,) you'd better make him the “front-man.” In Foosball, the front-man is in charge of the three-man and the five-man rows, rather than the far more critical two-man and goalie. While you can score goals from the back, you can't stop a good player from the front.
Sometimes in life, we end up paired with an MS1, financially speaking. Your partner may have zero interest in investing, or perhaps a massive student loan burden. Or perhaps a spending problem. While financially speaking you would obviously be better off with an “MS2” on your team, life isn't all about finances.
If you are paired up with an “MS1,” don't try to carry him from the front. Take the lead with the financial planning, budgeting, and investing. Eventually, he'll figure out how to play, get that five-man up when you shoot, and you'll find financial success together. He might even teach you a thing or two about how to bring happiness through reasonable spending!
# 4 Thoreau Was Wrong
Henry David Thoreau, in the ever-classic Walden, said this:
Age is no better, hardly so well, qualified for an instructor as youth, for it has not profited so much as it has lost. One may almost doubt if the wisest man has learned anything of absolute value by living. Practically, the old have no very important advice to give the young, their own experience has been so partial, and their lives have been such miserable failures [that] they are only less young than they were. I have lived some thirty years on this planet, and I have yet to hear the first syllable of valuable or even earnest advice from my seniors. They have told me nothing, and probably cannot tell me anything to the purpose. Here is life, an experiment to a great extent untried by me; but it does not avail me that they have tried it.
I could not disagree more. Aside from some diversion from studies, some of the most valuable time I spent in medical school was at the foosball table at the feet of my mentors. Yes, they taught me the delicacies of how to “push” and “pull” the ball prior to shooting and how to feed the ball so it always rolled to my best shooter, but more importantly, they passed down all kinds of practical wisdom, particularly when an MS3 or 4 would swing by the lounge for a few minutes.
- Which lectures to attend and which to skip
- Which books to use studying for the boards
- Which rotations to take, in which order, and how to do well on them
- Which attendings and residents to avoid, and which to go to for letters of recommendation
- How to interview and match into our chosen specialty
- Which were the top programs in our specialty and who in the school had connections to them
Our financial lives are no different. The more you can learn from the experience of others, the better.
I frequently run into someone with a fantastic idea about how to invest. The idea backtests well and seems intriguing. But then I find out the person is two years out of college, has a negative net worth, and has been following this fantastic strategy for only a few weeks. Maybe it will work out, maybe it won't. But it seems far wiser to me to find a successful person who is 1, 10, or 30 years ahead of me and ask them how they did it. Then copy them.
If you want to be skinny, do what skinny people do. If you want to get rich (or comfortable, wealthy, financially independent, or whatever euphemism you prefer), do what rich people do. Sure, there are factors out of your control, but for the most part weight control like financial independence is the sum of thousands of tiny, seemingly meaningless decisions.
# 5 Pay It Forward
Eventually, we became the MS4s. Thanks to excellent preparation from our mentors we honored our rotations in our chosen specialty and matched at our #1 pick. We now had a little more time to swing by the lounge than we did as MS3s. Now was our chance to learn the joy of sharing some of what we knew with those who come behind. Maybe you showed up on this website as a figurative “MS1.”
- You read a few dozen posts and a few good books.
- You fired your commissioned salesman “advisor” and found some qualified help (or became the qualified help.)
- You dropped your investment-related expenses by thousands a year.
- You boosted your savings rate while increasing your happiness and optimized your financial situation.
- You got your insurance and estate planning nailed down.
Now is your chance to pay it forward. I can guarantee that someone you work with has too much of the wrong kind of insurance and too little of the right kind. Or is paying too much money for bad advice. Or thinks that he has to drive that $60,000 car even though he still owes $300K in student loans. Find a way to help him. You'll both be better for it.
What do you think? Who has helped you financially and how have you passed it on? What valuable lessons were you given at your financial “foosball table?” Why is it so fun to pound the ball into the back of the goal while an MS1 has his head down next to it fishing your last shot out of the goal? Comment below!
Funny to see the between-class foosball culture was just as intense in elsewhere med schools
It is interesting how the analogy works with respect to knowledge buildup over time too. Two years ago, I had zero knowledge of retirement accounts, expense ratios, disability insurance… I just knew that I had a lot of debt. Loaded up on the reading here and now people are asking for advice all the time. And the debt is gone. We are going to enjoy “residency” a lot more the second time around.
Helping others: What a great idea, but how do you do it without giving advice that no one asked for?
When the student is ready, the teacher will appear.
Is foosball a typical med school thing? Because we had a very similar environment and playing with two balls (we liked the heavier red ones) was standard as its just so much more fun. I really miss foosball but dislike these new 3 goalie non ramped corner tables.
Obviously this site should go without saying, and that has caused me to branch out to several books and blogs that now make up a reading list I cant keep up with.
I try to help friends by first referring them here, or buying them your book, and sometimes discussing strategies and investment choices. My one friend recently opened his practice and was with American Funds or something where the loads and ERs were unbelievable and the choices terrible. I gave him the run down, but unsure if it was switched, for some reason FV dollars dont seem as real or as important as other things. There really is a self selecting bias in finance matters.
I’ve been reading this website since medical school and now through 4 years of residency. I basically share the knowledge I’ve gained on this website with every resident and medical student I can, and then tell them to visit here.
When I was a PGY2, we had a “financial advisor” come talk to my residency program. He basically was a salesman where he tried to sell everyone some whole life insurance, AUM investing, ect. I asked very pointed and hard questions to him (based on the knowledge gained from here) and basically made him squirm and give terrible answers so much that I was yelled at by my chief resident after the presentation because I “possibly couldn’t know more then him.”
Even after referring people here, some folks just don’t care and want their “money guy” to handle everything. Few of the past graduating residents were like this and I just shook my head and moved on. It’s sad to be honest and I feel bad for how naive they are…I even told some of them I’d do it for half the fees ๐
Funny how the hard questions are easy for the real advisors, but very tough for those who aren’t.
Ha! I’ve thought the same. I will charge you 10% of your current guy and get you better returns, and it will be simpler. Nearly done that for my before mentioned friend, but I wouldnt really charge him to set up their Vanguard account. Does cross your mind though.
I find myself frequently sharing this website and specific posts with classmates, friends, family, and residents. I figure those with a desire to take control of their finances and make smart decisions with their money, will do so without much more coaxing. Those who aren’t interested, likely aren’t going to change soon. I’m an MS3, still more of an MS1 in the finance realm, but since I started reading this blog consistently 6 months ago, I still feel more comfortable about my financial future (even if I can’t DO anything with no income right now) and potential income is taking more of a back seat in choosing my future specialty.
As always, thank you John for all you do on this blog.
Who’s John?
Ha! Sorry I’ve got a friend named John Dahle (in Utah no less) and instinctively wrote his name. Thanks JIM.
Who is John Galt?
You for got to mention no spinnies!
Potentially a good metaphor for avoiding financial shortcuts or something. Is there anything worse than someone who thinks they can get away with foosball spinnies?
Spin all you like. If you’re spinning you’re upside down 80% of the time. ๐
No way – spinning will get you kicked off the table where I trained (foosball trained)
Why? I encourage people to spin against me. Very easy to score against. Not only upside down 80% of the time, but also harder to move laterally.
I did the math once and a physician who pays 1% AUM fees with another 0.5% increased expense ratio investing $53K/yr over 30 years will end up leaving over $0.75 million behind. That alone should give people some incentive to learn this stuff.
That’s nice, Alex. But no way are we working 30 years in our family.
But you will be investing for well over 30 years. If you are lucky, maybe over 60 years.
In my day, way back when, it was hacky sack and MASH reruns in the student lounge
My first introduction to Dr. Bjorkman was when we was doing new med student orientation and said, “You’ll soon learn that there are two types of physicians. Those who are gastroenterologists, and those who wish they were gastroenterologists. And as a GI, my stools do not smell.”
That was his opening statement.
This are some interesting things you’ve learned about foosball. I’m a fan of it and I’m glad that also other’s like it!
Wow. Didn’t know we had this is common.
I actually had gotten a Foosball table when I was a teenager and became quite skilled at it (also has one of those coin operared bubble top arcade US vs Russia Hockey tables which was pretty awesome too).
In college my best friend and I actually won the Foosball tournament one year. I played offense and he played defense.
Haven’t played in years but would love to pick it up again
Fun! There’s a Bubble Hockey game for the game room in the mail too!
Another great post; although 2 ball foosball is sort of off-the-reservation. Will have to have a major challenge at next WCICON! But please don’t feel too bad if you end up feeling like an MS1 again, WCI. ๐
Absolutely agree with John (from 2015) โ real players donโt spin! I think the analogous lesson is โblind hope is not a winning strategyโ.
Someone come help me convince my kids of that!
Absolutely right; remember the Four Cardinal Rules of Foosball:
1. No spinning
2. No spinning
3. No spinning
4. Swearing is fine
sadly our foosball table at Rutgers in NJ was frequently broken ๐ there was at least a couple of dudes with missing legs, and when the table got fixed the ball went missing!
The investing lesson I learned from our foosball table: Our financial lives here in NJ, like the med school foosball table, is always broken ๐
Sorry for the downer! but Jim you’ve inspired me. The next Rutgers Med School donation request I get, I buying the med school a new foosball table off Amazon!
Yes, we replaced many men and even rods during my time there on our chintzy table. They eventually got a nice one though I understand, which could stand up to medical student use/abuse a lot better.
Interesting. Medical school was far more competitive than undergrad. At my college, essentially everyone who did reasonably well was admitted to med school. Maybe the advisers weeded out those who held on through the years and wanted to try with poor GPA or low MCATs. From the data I saw, the acceptance rate for decent students who actually applied, no need to be a star, was over 80%. If you had decent grades you probably had excellent MCATs by national standards. In effect, we were competing with the whole country, not so much with classmates. Plus, by sophomore year all my requirements were done. I was taking courses I found interesting and spending the rest of my time doing something I valued. In my case, it was research, which did not include competition.
In med school, everyone wanted to go into the most selective residencies in the most selective fields. Many wanted to stay at our hospital. There were only so many slots and they were not all going to our students. It was a fight to do better than the person next to you with a great residency as the prize to the winner.
I have lots of friends from college. Medical school was not remotely friendly. You would not dare get distracted with foosball for worry about what someone would be doing behind your back.
I think the actual data is close to 1/3 of those who apply get into medical school.
Sorry to hear your medical school experience was so miserable.
I think you were a year of two behind me at the U of U. We had many a heated foosball match and tournament in there. I think we even ran in there from Classroom A in between classes for a quick grudge match now and then.
We also played some killer Age of Empires matches in that student computer lab.
Good times.