frugal

Learn From This Poor Kid-Turned-PhD Student’s Different Perspective on Frugality and Debt (Part 2)

March 16, 2020 by Lourdes Bobbio

In this episode, Emily interview ZW Taylor (Zach), a PhD student in Educational Leadership and Policy at the University of Texas at Austin. As a child, Zach identified as a “poor kid” and never thought higher education was for him. His upbringing and winding path through community college and his bachelor’s and master’s degrees taught him lessons about money that he has carried into his life as a PhD student – for better and for worse. In this second half of the conversation, Zach gives detailed and unique financial advice to prospective and rising graduate students on evaluating stipend offer letters and selecting housing. He was determined to not go into debt during his PhD, so he thoroughly investigated his stipend offer letter and the socioeconomic layout of his new city before accepting the offer. Finally, Zach shares his vision for the future of his finances once he’s done with his PhD and earning a significantly higher paycheck.

Links Mentioned in This Episode

Teaser

00:00 Zach: If they want you and they offer funding, then in a different side of the same coin, they should be able to tell you specifically what you’re getting, because how can you budget, how can you plan without knowing what your income is? I mean, it’s incredibly important. So to your point, encouraging PhD students to be their own best friends and their own advocates and be very clear about what you’re getting before you go.

Introductions

00:29 Emily: Welcome to the Personal Finance for PhDs podcast, higher education in personal finance. I’m your host, Dr. Emily Roberts. This is season five episode eleven and today my guest is Zach Taylor, a PhD student in educational leadership and policy at the University of Texas at Austin. Zach has such a unique perspective and so much wonderful advice that I’ve split our interview into two episodes, last week’s and this one. In this episode, Zach gives detailed and unique financial advice to prospective and rising graduate students on evaluating stipend, offer letters and selecting housing. He was determined to not go into debt during his PhD, so he thoroughly investigated his stipend offer letter and the socioeconomic layout of his new city before accepting the offer. At the end of the episode, Zach shares his vision for the future of his finances once he’s done with his PhD and earning a significantly higher paycheck. Without further ado, here’s the second part of my interview with Zach Taylor.

Financial Advice for Early Career PhDs

01:30 Zach: You know, in terms of advice for other early career PhDs, in terms of saving money and thinking about going to grad school, especially with the kind of frugal mindset is I was not going to go to grad school one, if I had any debt. That was just something that I had always thought to myself that if I’m going, again another childhood lesson, if I’m going to pay for it, I’m going to pay for it in cash and I’m not going to take out a loan. My best advice for early career folks who are thinking about the PhD is if you can work before you go to grad school and pay down any undergrad debt you might have. I know it’s not possible for some folks, but try your best to get some work experience and pay down that debt.

Further reading:

02:18 Zach: And then when you’re thinking about doing the PhD, do some of the same leg work that I did. Investigate the city — where is public transportation? Where are groceries? How can you get around? Talk with other folks who have been there for a couple of years. You know, one reason I came to UT Austin is that everyone was eager to give me their perspective. I mean, when I asked people how do you like living? How much do you spend? Where do you live? How do you get to school? No one held information back from me. Everyone was so willing to share because I think you want to help other folks out. So ask questions and be inquisitive and see where you can make it work financially. But then when you make that choice, I made the choice that I was going to go to a funded PhD program. I was going to work through. I wasn’t expecting just to not have to have an assistantship. I’ve worked all the way through, but I’m also not gonna have to take out any loans. And I think if you have the right combination of work experience and academic experience in certain fields, you can find those programs that are very, very low cost or no cost and be able to work through.

03:27 Emily: I just want to add a couple of comments on those pieces of advice, starting with your most recent one. So in the STEM fields and engineering, where I’m coming from, there’s this advice I guess, that people sometimes say to a prospective graduate students, which is that an acceptance without funding is a tacit rejection. Like if you are not offered funding along with your offer of admission, they don’t really want you there. And that’s typical in those kinds of fields. And at a certain, I’ll say tier of university. Not every graduate students — I mean some people do either take, you know, fully pay for their PhDs on their own, like there’s no funding package offered or they go into a situation where they know, okay, sometimes there’s going to be funding, sometimes there’s not going to be, or okay I’m going to have funding to a degree but I’m also going to have to do X, Y, Z to make up the deficit.

Emily: It’s really hard for me to ever say something as blanket as don’t go to a PhD program if you have to take out debt, because I just, I want to allow for individual situations. But I mean it sounds like from your perspective, even being in a totally different field than I’m coming from, you were still determined, I’m not going to go to graduate school if I have to take out debt. It’s just not going to happen under those circumstances. So you were very selective about where you applied slash the programs that you were actually considering going to, to make sure that you could make it happen in that way, even though it did in your case involve outside work as well.

What to Research When Choosing a Program

04:59 Zach: Absolutely. And one thing that I really insisted upon before I came and I don’t, know of too many other young PhD prospective PhD students who do this, but you really have to push the graduate coordinator or someone in financial aid. Know exactly what you’re getting. It’s really easy to say you’ll have an assistantship and it’ll provide a stipend. After taxes and benefits, how many specific dollars am I getting? When in the month am I being paid? Am I being paid biweekly or monthly? Am I paid over the summer? What are the opportunities for employment over the summer? As someone who is going to embark on a five or six year journey, they owe that to you. They have the information, they can provide that to you.

Zach: Before I came I was very, very explicit in saying, if I’m going to leave this job that I know that I like and I’m going to forego wages for five years and give up a salary and not be able to save any money, what am I specifically getting? What are the specific opportunities? And then matching them up with the area and saying, okay, I can make this sacrifice for four or five years. Yes, I’m going to forego wages and a savings, but I’m also not going to be in so over my head or I’m going to feel pressured to make choices that I wouldn’t normally make. And you know, Emily, to your point, it’s absolutely been the case in my experiences and other classmates that there have been times where they’re unclear about their funding package because it wasn’t made specifically clear when they were admitted. Kind of that tacitly, if you’re not fully funded, we don’t fully want you. If they want you and they offer funding, then in a different side of the same coin, they should be able to tell you specifically what you’re getting, because how can you budget, how can you plan without knowing what your income is? I mean, it’s incredibly important. So to your point, encouraging PhD students to be their own best friends and their own advocates and be very clear about what you’re getting before you go.

07:10 Emily: Oh my gosh, I’m so glad that you made this point even more explicit because it’s one that I talk about frequently during admission season. Check the show notes, if you are a prospective graduate student because there will be links there to further articles and workshops and resources that I have on that exact topic of figuring out exactly what your offer letter is saying to you and asking questions when there’s a lapse in information in the offer letter. And I mean, to your point, pay frequency. I mean that’s not even something that you would necessarily think about, but it’s really important once you’re actually on the ground and doing that budgeting. I’m super glad you brought that up.

Further reading/listening/watching:

Emily: But to go back to one earlier point would you mentioned which was paying off debt and working potentially before starting graduate school. I totally have to concur on this because, now student loans I’ll put in one basket, okay, because student loans can be deferred while you’re in graduate school, but other kinds of debt — credit card debt, car debt, any other kind of debt that you have to be making payments on during graduate school — do everything within your power I would say to clear that before getting into graduate school because the stipend is already so meager, you don’t want to have ongoing payments that you don’t have to, once you’re in that situation. And then of course the student loans in another basket, if it’s at all possible to pay down part or all of them are maybe the ones that the highest interest rate or just to make some kind of progress on that student loan debt, if you’re carrying a lot of it, before you start graduate school. It’s an amazing step to take. It’s a gift to yourself. Me personally, I had some student loans coming out of undergrad. I was sure to pay off all of the unsubsidized student loans before I started graduate school. The subsidized student loans, they’re not going to garner interest during that time. At that point, wasn’t caring about that so much, but I got the unsubsidized ones wiped off before I started graduate school. Just wanted to emphasize that point as well. Please go on with your other other advice for early career PhDs.

08:59 Zach: Yes. So this is more about where you’re planning to study and how you can kind of network beforehand. You brought up a great point that I want to hit on again about where you’re living and how much you’re paying and understanding kind of the socioeconomic context of not the university, but the city. Austin, like you said, is really rapidly growing and I applied across the country. I applied to Indiana, Vanderbilt, Stanford, Michigan, Princeton, Cornell, all over the place. But I was really specific about researching Austin when I got in because I knew how rapidly Austin was growing. And to give you an idea of the cost of living increase and how much graduate students are actually paid, I moved into this current one bedroom apartment back in the spring of 2017 for $960 a month and I am a one hour commute from campus. So I’m one hour away for $960, with utilities it’s about $1200 a month. That was a sacrifice I made. However, these apartments now go for $1310. So they have increased almost $400 in two years. And I’m still one hour from campus. If I was arriving to Austin today and having to sign a lease today, I would pay almost $400 more than I would have paid just two years ago. Now you had talked a 10% increase — 30% increase, 40% increase. And these are not….we don’t have a garage. We don’t have a private yard. We don’t have too many amenities. It’s a pretty standard one bedroom apartment with air conditioning, but it’s also an hour away from campus.

10:53 Zach: I always host PhD students in the spring who are prospective students. And I always, when I show them apartments, I ask not only for the current rent because a lot of major cities have market rent, which means it changes, with the ebbs and flows of moving season throughout the year. Don’t only ask for the rent now and move in, but ask for it three years prior because they have records of all the leasing contracts and all of the, um, leasing and rental agreements. So you can see how rent has changed and gone up or gone down in a certain area. And actually I just helped a friend from Michigan move in just the other week and he and his partner made a very specific decision to go to a certain complex and neighborhood because the rent had been somewhat stable over the past three years and had only gone up about $180 over three years. Whereas my neighborhood is in a different kind of more developing area of Austin and it is growing like crazy.

Zach: Especially when you’re moving into a new city, getting an idea of historical trends and then do the exact same thing for the stipend. How much was the living stipend, how much was the assistantship five years ago? What does it now and do you anticipate a cost of living increase and is that going to be compensated by the university? Something that UT Austin recently did was dedicate new money to try to keep up with cost of living and try to develop some new graduate student housing, which we haven’t really talked about, but always inquire about graduate student and subsidized housing because some universities still do have it. Even though in a very landlocked, city locked university like UT Austin, there’s not a lot of room for expansion anymore, but always ask about the cost of living increases in historical rent in the city, how that relates to the stipend from the university and then what the university is going to do to keep up with that cost of living. I couldn’t agree more.

12:56 Emily: Yeah. I’m so glad you made that point.

Commercial

13:02 Emily: Emily here for a brief interlude. Tax season is upon us and while no one loves this time of year, it’s particularly difficult for post-bac fellows, funded grad students, and postdoc fellows. Even professional tax preparers are often thrown for a loop by our unique tax situation. And don’t get me started on tax software. I provide tons of support at this time of year for PhD trainees preparing their tax returns. From free articles and videos, to paid at-your-own-pace workshops, to live seminars and webinars for universities and research institutes. The best place to go to check out all of this material is pfforphds.com/tax that’s P F F O R P H D dot com slash T A X. Don’t struggle through tax season on your own. Visit my website for the exact information you need in the most efficient form available. Now back to the interview.

Understanding The Role of Cost of Living Increases

14:05 Emily: Really, a new idea for me is actually asking about those historical rents and seeing the increases. This might be a silly question, but does Austin have any rent protection in place? Like increases can only be a certain amount over time, like in terms of laws in place?

14:21 Zach: Not that I am aware of and it doesn’t seem to have translated to people who have actually been into leases and stayed multiple years. Our rent has only gone up $60 in two years, but for the same apartment, for new leases, it’s that new elevated price. However, and this to me was just absolutely ridiculous, I was actually outraged by this, that we have a valet trash fee that is mandated. That we have to pay $14 a month to have somebody pick up our trashcan outside the door and take it to the dumpster. Now the dumpster is a half a block away and I don’t want to pay for valet trash, but I have to because it’s part of the lease and it’s an industry that Austin supports. So there are some fees — you know I’ve heard a lot about the fee creep and higher education where you might have a tuition freeze, but you can keep charging student fees and those add up. The same thing happens with amenities and fees in Austin. The trash fee has gone up, water has gone up, electricity has gone up. It used to be that we would come in a close to $100 over the summertime for air conditioning. Now it’s closer to $140 or $150, and it’s a dramatic increase. So not only understanding the rent, but really understanding what fees you have to pay, what are mandatory, what are optional, and then how those feeds are going to be adjusted over time, because in some big cities they’re just mandated and you just have to bite the bullet and pay for them even if you don’t want to. But those really add up just in fees. We pay an extra $95 or $100 a month just in fees.

16:09 Emily: Yeah. What I’m getting from this part of our discussion is just the importance of interrogating every single component of your offer, of what your living expenses are going to be. And all the time that you put into researching these different components before you actually move to the city that your graduate school is in, or after graduate school, same story, it’s really going to be worth it. It’s going to pay off when you do this research, because the less you have to learn on the ground once you’re there and make changes, the easier it’s going to be. If you can find a place you want to live for several years right from the beginning, it’s a lot easier for you. I did want to go back to make one other point from what you said earlier about asking about the historical stipends. I definitely think you should and can ask a graduate program that, but I wanted to plug my own website, which is PhDstipends.com and also I have another one for postdocs, postdocsalaries.com. PhD Stipends has been around for five years now, I think. And people enter which academic year, the stipend their listing is for. So if your university has enough data in there, you definitely can look back, even potentially at your own department and see what they were paying five years back to compare it to what’s in your offer letter.

17:24 Zach: Yeah, absolutely. And to your point about having that access to data and actually seeking that out, now that you mentioned that, I don’t know anyone else who did that when they came. A lot of folks were really excited just to be able to come to Austin and to be in a PhD program. It’s a very highly ranked program. It’s very prestigious around the country, so a lot of folks were just happy to be there. But then down the road they really kind of regretted not understanding where they were going to live, how much they were going to make. Also the time crunch in making a decision. I had to make my decision in a series of three or four weeks. I mean really in graduate student visits when I was admitted to PhD programs, I the beginning of February really until about mid-March to visit places, do my research. So also understanding how that’s going to affect whatever job you have at the time.

Zach: When you’re exploring PhD programs, it is a serious time commitment. I mean just finding a PhD program in a city that fits you and your budget and that you can continue to maintain your expectation of living whatever that is, is like a full time job. It’s like being on the job market and people should take it with the same seriousness and explore all of those resources that they can because like you said, I have been very, very fortunate. It was some good planning, but I’ve been very, very fortunate not to have to move every year, not to have to sublet. That means my computer workstation has stayed the same. I have a routine. I’ve been able to write. I’ve been able to travel because I haven’t had to worry about where I’m going to live, how much money I’m going to make. It’s all very budgeted, all very meticulous and I think that has really made the PhD program a much more fulfilling experience, because like you said, I have gone through those hoops initially to make sure that I was in a place that I could afford and I would feel comfortable in.

Final Words of Advice

19:24 Emily: Yeah, absolutely. I’m so glad that you brought up that point as well. Any final advice for other early career PhDs?

19:31 Zach: Yes, so I guess lastly, and it’s kind of more of a philosophical point, is I did make the choice not to go to a PhD program that wasn’t going to financially support me. And I think, most people who pursue a PhD, it’s right in the prime of their earning potential, right? So you’re talking early twenties to anywhere in the late thirties like that 10 to 15 year period, you can make a lot of money during that time of your life and pay down a lot of debt. You have to understand that going and getting a PhD, you’re going to forego wages and you might take on debt. It’s such a double edged sword because you’re losing money on one hand, and you’re kind of having to borrow more money. So really, really committing and making that sacrifice, because understanding how many hundreds and thousands of dollars you may be foregoing in the future, and having to pay back debt, and having lost wages.

Zach: The sacrifices I made were having a very compromised social life and a very kind of frugal living down here because I knew it’s going to be four or five years of just extreme sacrifice. I am not going to go out. I am not going to go out to eat very often, I have only gone out for drinks three times in three and a half years and all three times were for professional networking, and to work on projects. I just don’t do it. A margarita is $12 and that’s my food budget for almost an entire week. I have made that kind of level of commitment to stay out of debt and to do it frugally. Not everyone can do that, but if you can commit to doing that, you can get out without debt or with very low debt and 10 or 15 years down the road, you’ll really thank yourself, and you’ll look back and you’ll realize, you know what? I think that sacrifice was worth it.

21:27 Emily: Yeah, I think so. I mean your point about opportunity cost is a very, very important one and not something that people, I think think about enough going into PhD program. For me, it’s another reason to work before you go into a PhD program because you have a better idea of what you are giving up on the one hand in terms of salary potential during that time. And you also have more context for your PhD work. What is this going to do for me on the career side?

Financial Plans After Grad School

21:51 Emily: I’m gonna surprise you with one last question, Zach. This is not what I prepared you with, but what do you think you’re going to be doing with your finances once you’re done with the PhD? And hopefully, you have a job you enjoy that pays you much better than whar you’re being paid right now. Do you see yourself shedding some of these mindsets and habits that you’ve carried with you to this point? And if so, how? How can you even step away from this since it’s been going on for so long in your life now?

22:22 Zach: Yes. It is such a lifestyle. I cannot emphasize that enough. I have thought about what I want to do with my money when I graduate and get a job and now I don’t have debt and the money is mine to spend. I don’t want a larger than two bedroom house because I’ve never lived in a place larger than that. I wouldn’t feel comfortable in a four bedroom house in the suburbs. That’s just not me. I would not feel at home there or comfortable. I could never buy a new car. I could never do that. I would not feel comfortable driving in a 2019 anything. I’ve always bought used cars. I wouldn’t even feel comfortable doing that. If you remember actually from HEFWA, though, what is really, really important to me is donating. I wanted to stay out of debt and get a PhD and have the earning potential to donate to certain programs that I was a part of as a kid and that really helped me out. I think when people are asked about “why do you save money?” I saved so I can give more. Since I’ve been a PhD student, I have been able to donate about $700 to my alma mater and a mentoring program that they have going that I was a part of when I was there. For me, that is such a better use of the money instead of going downtown a couple of weekends and having drinks. I feel so much better about it.

Zach: I think having an understanding of the kind of money I will make when I’m done and then how I’ve grown up, it’s going to allow me to do a lot more good and amplify a lot of the philanthropy that I’ve started doing, and that is really how I’m going to be spending a lot of my expendable income as you could say. I’m going to start a savings account. I’m going to start a 403B or a 401k or some employer sponsored a savings account. If there’s a state pension program, I’ll participate in that. But it’s really going to free me up to spend money where I think it needs to be spent, which is education and low income kids. And like I said, I’m going to look back on my time at UT and Austin and say, maybe I was able to send some kid to community college because I didn’t go out. I was able to help some kid get their associate’s degree because I made those sacrifices and I will trade that any day of the week.

24:56 Emily: I’m so glad to have that incredible perspective from you on the podcast today. It sounds like a really bright future and happy for you that you’ll be finished quite soon, and you’ll get there before too long. Zach, it’s been an absolute delight to have you on the podcast today. Thank you so much for joining me.

25:16 Zach: Absolutely. Thanks Emily.

Outtro

25:18 Emily: Listeners, thank you for joining me for this episode. PFforPphDs.com/podcast is the hub for the Personal Finance for PhDs podcast. There, you can find links to all the episode show notes and a form to volunteer to be interviewed. I’d love for you to check it out and get more involved. If you’ve been enjoying the podcast, here are four ways you can help it grow. One, subscribe to the podcast and rate and review it on Apple podcast, Stitcher, or whatever platform you use. Two, share an episode you found particularly valuable on social media or with your PhD peers. Three, recommend me as a speaker to your university or association. My seminars covered the personal finance topics PhDs are most interested in, like investing, debt repayment, and taxes. Four, subscribe to my mailing list at PFforPhDs.com/subscribe. Through that list, you’ll keep up with all the new content and special opportunities for Personal Finance for PhDs. See you in the next episode, and remember, you don’t have to have a PhD to succeed with personal finance, but it helps. The music is Stages of Awakening by Podington Bear from the Free Music Archive and is shared under CC by NC. Podcast editing and show notes creation by Lourdes Bobbio.

Meal Prepping Has Benefitted This Prof’s Time, Money, Health, and Stress Level

November 11, 2019 by Lourdes Bobbio

In this episode, Emily interviews Dr. Brielle Harbin, and assistant professor at the Naval Academy. Brielle realized early on in grad school that she had to reform her eating patterns, and she slowly worked her way into meal prepping. She describes her current meal prep practice, including what she eats and when she shops and cooks. Meal prepping is an excellent practice for early-career PhDs as it almost always saves time and money and improves health. Brielle outlines a perfect first step for people who want to start meal prepping.

Links Mentioned in This Episode

Teaser

00:00 Brielle: And just start off with a very reasonable goal. Say, for a month, I’m going to meal prep my breakfast and I’m just going to try and get into the practice of preparing that and figuring out what that is. And then once that’s under your belt, then you can add, I think the next thing I added was a morning snack. So okay, now I’m doing the morning snack and once I had that under my belt, then I did lunch. Don’t try and go 0 to 100 that that’s not going to happen. So be very realistic about what’s the easiest thing that has the least amount of barriers for you to be successful and start there.

Introduction

00:40 Emily: Welcome to the personal finance for PhDs podcast, higher education in personal finance. I’m your host, Dr. Emily Roberts. This is season 4, episode 13 and today my guest is Dr. Brielle Harbin, a new assistant professor at the Naval Academy. These days, Brielle is a skilled meal prepper, but things weren’t always that way. She tells us how her cooking and meal planning has evolved over her years in grad school and her post doc and describes the sustainable, flexible system she developed. Brielle’s commitment to meal prepping, has reaped benefits in her time, money and health. Without further ado, here’s my interview with Dr. Brielle Harbin.

Will You Please Introduce Yourself Further?

01:23 Emily: I have joining me on the podcast today, Dr. Brielle Harbin, who is going to be speaking to us about meal prepping, which is a topic that I am so excited to learn from her about. So Brielle, will you please tell us a little bit about yourself?

01:36 Brielle: Sure. Thank you so much for having me. My name is Brielle Harbin and I am a political scientist by training. I got my PhD at Vanderbilt. I graduated in 2016 and I then went to the university of Pennsylvania for post doc and I was there for three years. And now I am actually beginning in my very first week of being an assistant professor and I have my new job at the Naval Academy in Annapolis, Maryland. So I now live in Annapolis, Maryland.

02:10 Emily: That is amazing. And thank you for taking the time out of this first week to speak with us.

Cooking Habits Before Meal Prepping

Emily: Let’s take it all the way back to when you were in graduate school, before you got into meal prepping. What was your starting point with respect to cooking and how you managed your food and everything?

02:28 Brielle: Sure. I was very fortunate that I always liked to cook. I think I cooked my first Thanksgiving dinner when I was in seventh grade. So I’ve always had a passion for cooking. When I was in grad school, I learned pretty quickly, especially the first semester when you’re taking coursework and you just have so many things that are being thrown at you that one of the biggest time sucks is going to get food. So that was quickly on my list of things to try and figure out how I can minimize the amount of time. It took quite a while for me to do that, and I can get into some of the different phases that I went through in that, but I started off with just, “I know I need to do this, but how can I do this when I don’t really have that much time?”

03:19 Emily: And are you speaking now about cooking in general or like cooking in an efficient way? Time efficient.

03:26 Brielle: Yeah. Trying to cook in a time efficient way. Because you know, as someone who loved cooking, I would always do it more in a social way. So I’d have people come over and it’s like, “Oh, I’m going to cut this and I’ll sit down and I’ll chat.” But when you’re in grad school, you don’t really have that liberty. I had to figure out, okay, how can I, one think and create a plan for what I’m going to cook, and then I need to think about, okay, when am I going to get it? Where am I gonna get it from? How am I gonna store it? How am I going to pay for it? It just became a much bigger logistical issue, then from just enjoying to do it with family and friends.

04:08 Emily: Yeah. It sort of sounds like cooking went from maybe more of like a hobby and an enjoyable activity to okay, I have to feed myself. It has to be monetarily efficient. It has to be time efficient, because there’s no slack in my schedule and in my budget for another way of doing things, at least not on a regular basis. So, we just mentioned a couple broadly a couple of barriers: going to obtain food, the budget, the amount of time it takes. Is there anything you want to go more in depth on about when you were trying to move towards what ultimately became meal prepping, what was maybe holding you back from being fully successful with it during graduate school?

04:49 Brielle: Well, one, I just think I was unrealistic in terms of how much I was spending. I didn’t have a great sense of how big of a cost it was. And so one of my earliest steps in trying to create a process was actually tracking how much I was spending on eating out. The way that my brain works is I need to have some type of motivation to help keep me, especially if time is zero-sum and you know, I have a lot of things competing. So when I saw the number of how much I was spending on eating out and then thinking about how much time it takes if my order is wrong and I’m unhappy with the meal, it just didn’t make sense anymore. I think, and I’ve talked to a lot of friends because everyone always asked me about my meal prepping, I think a lot of people don’t have a strong sense of how much they’re spending because you know, it’s a coffee here, it’s a quick run to, you know, whatever restaurant there and you never really aggregate the data. But as a social scientist, I guess this is my quantitative brain coming to bear. I wanted the data and once I saw the data, it was pretty ugly.

06:00 Emily: Yeah. That’s interesting that you bring that up because I feel like there’s a couple of different styles right with this. So there’s the style of what you were just saying. Maybe eating out quite frequently or making small trips to the grocery store and it’s sort of dribbling out money and dribbling out time and it is hard to, to keep track and add up what all that is if you’re not doing it quite intentionally versus like the meal prep approach is more like, okay, you’re going to do your shopping trip — maybe it’s once a week, whatever it is, a certain frequency, it’s a big trip — and then you’re going to do this big investment of time to do all the prep. And so it feels like a lot for the day or two it takes to do that. But then it pays off so much the rest of the time and you’re not dribbling out time and dribbling out money on continuing to shop and prepare food and so forth. It’s really a reallocation of time and money and like you were saying it, you become more aware of how much you’re spending in both of those areas with the meal prep, but it doesn’t mean it’s more in money or time than doing it the other way. It’s just your awareness is different of it, right?

07:01 Brielle: Yeah. The biggest thing and when I started my meal prepping, I wasn’t always saving a huge amount of money. I was always saving something because eating out can get pretty expensive pretty quickly. But the biggest changes were occurring in the amount of time I was just traveling, having to go places and whatever. If there’s traffic and all the different things that can hold you up, that was just consuming a lot of time and actually creating quite a bit of anxiety for me around if I’m going to lose my parking space so then I have to go at this time. It’s just a lot of brain space that it was taking up for met that seemed like a not great use of my time.

07:42 Emily: That’s another really interesting thing for me to hear. I’ve become more, I think, sympathetic over the years, as my life has gotten more full, to the advantage of totally simplifying decision making, and not having to make a decision in the moment of, “okay, where am I going to go eat and when is it going to be and what am I going to eat.” If it’s just like it just in this one small area of what are you going to eat, if I’ve already decided that in advance, it really is kind of, for me, a load off my mind, so I’m sure other people come to the same decision maybe in terms of routines that they go through in their daily basis or maybe they always wear the same types of clothing or whatever. There’s lots of ways that we can simplify our decision making and preserve that energy for other areas of our life and planning your meals is one of those areas.

08:27 Brielle: Yeah, I’m really into different professional development things and time saving. I’ve listened to several podcasts that are just about that. And I think, I can’t remember what I read or what I listened to, but I remember reading that, I think President Obama always wore a similar outfit because he didn’t want to have to waste the mental energy. And I was like, well, if it’s good enough for President Obama, it’s good enough for me. That really resonated with me and helped me a lot.

Getting Started With Meal Prepping

08:56 Emily: Okay. So you’re in graduate school and you have this eating out habit and this lovely hobby of cooking, but it has to become a little bit more utilitarian maybe overtime. Now it seems like, or let’s say in your post doc, prior to your move, you got to a really great spot with your meal prep. Can you tell me about how you did that? How did you make that transition?

09:22 Brielle: Beginning, and can I go back for a second to grad school, the way that I was able to make that transition, I actually started with the buddy system. I had a really good friend that I met actually the day of our orientation at Vanderbilt and he just happened to love to cook too, and also had a habit of doing it and similar stressors that were coming into life. Since we were in different departments and had different life things that were coming up at different times, I think, I can’t remember, I’m pretty sure I started it. I think he was taking an exam and I just went over there with three days worth of food, so that he didn’t have to think about it. And he was like, that is really nice. When I was going through a big exam, he came over with three days of something for me and then it kind of became a friendly competition because he has a Caribbean background and so all the things that he was very familiar with were not foods that I had before. It became, “Ooh, let me introduce you to this food that I love and that food” and it became a social thing, which outside of the efficiency question, which is nice to have a friend in to bond that way. I always tell people it’s not always realistic and I frankly don’t want to eat everybody’s food, but if you have that opportunity, it’s a really great way to mix up the meal prep process and when you are kind of at the height of all the things on your plate, maybe you have someone who’s not as busy and is willing to step in for you. So that really helped. Once I started with that, I never really fully got consistent every week in grad school with meal prepping just because honestly you have so many things going on that I think if you’re 50/50, that’s a good goal to have with meal prep.

11:14 Brielle: But once I moved to the postdoc, I realized this is less stressful now, I don’t have as many things on my plate, and I was craving stability. Honestly, I was just so stressed out during grad school and I’m feeling some of the effects of being post PhD in terms of the stress level that it has on your body, and I really felt and craved eating for holistic health. I actually briefly had a blog where I was kind of getting into different foods, how they make you feel, the effect that they have on your body, so I was doing all this research and then trying to incorporate these ingredients into my weekly meal prepping. It just became, after awhile, I think it was June in 2017, I just said, I want to, for two months, meal prep every Sunday. I’m going to do this for two months and then I’ll see how it feels. I’m going to take pictures on Facebook for accountability because that’s what we do these days. After two months I just felt so much better. I was getting better sleep, I was just feeling less stressed out during the day and like I was better powered in terms of my energy that I just stuck with it.

12:36 Emily: I love that approach of setting yourself a challenge right over a set period of time to really put your all into it and then decide at the end of it, was it worth it or was it not? I talk about this sometimes in the context of what I call frugal experiments. And meal prepping is a big frugal experiment, right? That’s a big, big timeline and these could be very minor, but I really just love the idea of having a set in advance, fixed period of time to have an experiment and evaluate the results at the end of that. It sounds like at the end of that period you were ready to keep rolling because you’d experienced so many advantages.

Meal Prep Routine

Emily: Can you tell me about what is the system that you came to? You’ve mentioned Sunday already, so just tell us what is the meal prep process for you?

13:23 Brielle: It started off where I was on Thursday and ended up being on the Fridays because I was usually tired on Friday afternoons. I would think about what is it that I want to eat for the next week and I would come up with a shopping list. I’m super organized and so I always went to the same grocery stores so I knew exactly which section everything was in. I created my shopping list by sections so that I could just get in and get out because I love to cook but I hate grocery shopping. Behind laundry, it’s the only thing I hate more in terms of just life stuff. I would do on Friday the shopping list and then on Saturday I always went to a morning spin class that was fairly close to the grocery store that I would go to. So I’d always go to the same class and immediately after go to the grocery store on Saturday morning and then on Sunday and not at a particular time, just sometime on Sunday I would actually cook the food.

14:23 Emily: Yeah. I think that’s a pretty common lay out for a meal prepper, right? To do the prep on Sunday and do the shopping on Saturday. I’ll start interjecting some of my own thoughts here at this point in the interview because meal prepping is something that I have tried maybe a little bit half-heartedly and not been very successful with. I definitely agree that you need to separate the shopping from the cooking. It’s all too much to do in one day. For me, trying to do all the cooking that I would eat for the week — and actually this is when I had a family, so it’s actually a lot of food — I was exhausted by the end of six hours or something and I was like, I haven’t even gotten through everything I planned and I felt like an abject failure. So tell me for the actual, on Sunday when you’re doing the meal prepping, what are you doing? What foods are you cooking? Are you making components that you then assemble into meals right then? Or are you making things that you’ll be assembling later?How does it actually work for you?

15:25 Brielle: So at some point, and I don’t remember exactly when this happened, I realized that I was having a challenge in my meal prepping because I really didn’t like the Tupperware I was using. That seems like such a small detail, but if you want to transport it and then microwave things, Tupperware can get pretty gross pretty quickly. Especially I would use a lot of curries and things like that. The big thing that shifted my process was getting Pyrex, and they are a little bit more expensive, but it’s actual glassware. I actually separate each one of my lunches into a different Pyrex bowl and I started off where I was trying to prep salads and I think that’s probably the most common question I get. How do I do that? And so for me, I always just put the leafy greens in one of the Pyrex things and then I have the component pieces in separate ones and then the sauce in a third smaller one, and then I combine it when I’m ready to eat, just because you don’t want to have a soggy salad.

16:37 Emily: I want to be clear about what I’m imagining here. I’m imagining you on a Sunday, you have your five, or seven, or however many you’re doing, bowls for your greens and you have your five, or seven for the toppings and then you have your five or seven dressing separately. All those are like individually packaged already starting on Sunday, is that right?

16:25 Brielle: Yes. I don’t actually have five separate for the dressing. I usually just use a Mason jar and made the bigger one and then I would just pour it into the smaller one because that’s a pretty easy clean. But yeah, otherwise you’re correct. I have a lot of pictures and posts I did on Facebook that showed my five dinners, because I usually do five, five lunch and five dinner.

Commercial

17:24 Emily: Emily here for a brief interlude. As a listener of this podcast, every week you hear strategies that another PhD has used to improve their financial picture. But listening and learning does not automatically translate into action in your own financial life. If you are ready to change how you think about and handle your money, but need some help getting started, I can be of service. There are two main ways you can work with me to create and implement a financial plan tailored for you. First, I offer one-on-one financial coaching, either as a single session or a series, as you make changes over the long term. You can find out more at PFforPhDs.com/coaching. Second, I offer a group program called The Wealthy PhD that is part coaching, part course, and part community. You can find out more and join the wait list for the next time I open the program at PFforPhDs.com/wealthyPhD. I believe it’s possible to succeed with your finances at every stage of PhD training and throughout your career. Let’s figure out together how to make that happen for you. Now, back to the interview.

Meal Prep Recipe Ideas

18:39 Emily: Okay, you’ve talked us through salads. What are some other common meals or foods that would show up for you?

18:46 Brielle: I make a little bit of everything. I think one of the biggest things I tackled was getting bored with things. I had some regular meals that I would make, and then, after a while, I realized I think I’ve gotten tired of at some point or another, shrimp, and chicken, and all these kinds of things. I became a master at Googling ingredients and then finding new things that I would experiment with. Through that process, I figured out sometimes, you know, a picture looks nice, but when you get into the details of the recipe, it’s like all these elaborate things and all these mini micro steps that take a lot of time, so I use them for inspiration, but I didn’t always follow recipes one-to-one.

19:39 Emily: Just to follow up on that — do you have any go to resources to find, let’s say recipes specifically designed for a meal prepping or are you more adapting recipes? Not necessarily for that purpose, but just you do it on your own?

19:53 Brielle: I don’t necessarily do it for meal prep specifically, but I found a couple of sites that I like. There is a blog, Sweet Potato Soul and it is actually run by a woman of color named Janae and she is vegan. I went through a phase of just prepping vegan stuff. One of the things that I have continued to have, even though I’m not a vegan, in my weekly routine, is I love Buddah bowls because they’re so easy to just throw a grain in there, throw some chickpeas, and some toppings and she has a lot of great ideas for Buddha bowls. I would say that that is a staple and you can always change the ingredients of what’s in the Buddah bowl, but it’s really easy.

20:40 Emily: This is another example of simplifying the decision making, right? That you have like a baseline type of meal you make — salads, Buddha bowls — and then you can shift things up as your taste directs you. Any other resources you care to mention or any other types of food that you love to prep?

20:57 Brielle: I don’t have a specific recommendation beyond I think one of the most important things is going with the flow and listening to your process and not being too hard on yourself, if you don’t get it right. For me, there were a lot of different adjustments that I made along the way and you just have to roll with it and beating yourself up doesn’t help at all. But if you can just become more aware of maybe certain times of the year you like this type of foods or when you’re taking a test, this feels more of a comfort. Just paying better attention to yourself, which can be really hard in grad school, I think that’s the best advice I could probably give someone who’s trying to embark on the journey.

Saving Money Through Meal Prepping

21:39 Emily: Yeah, it sounds a little bit like budgeting actually. You may think it’s going to look one way when you haven’t quite dived into the process yet, but then it’s going to evolve as you evolve and your life changes and so forth, and you’ll learn more about yourself and what makes you happy and satisfied. Speaking of budgeting, do you think that you’re spending less money overall with this meal prepping stuff or how has meal prepping affected your budget?

22:07 Brielle: I definitely have saved money over time. The biggest shift actually though came when I changed my process from, I think I mentioned before that I would on Friday create a list and then go on Saturday. Once I got more comfortable with what I like to eat, I actually didn’t create a list and I would go into the store and find what’s on sale. I think when I was doing the list thing, I was spending some like $115 a week and I eat a lot of organic things, a lot of fruit and veggies, I get all organic meat, so that’s kind of at the top end of things. But I went from that to spending about $65 a week by just eating what was in season. So I think that’s a considerable difference.

22:59 Emily: Oh, that’s huge. That’s much higher than I was expecting actually. And did you then or do you now do all of your shopping at one store? You already mentioned your routine of going after your cycling class or spin class, but is it always one place or do you have a few different stores you hit in rotation?

23:16 Brielle: Now it’s just one, but at one point I was, there’s a produce junction that was in Philadelphia that I found one of the administrators at Penn told me about it, and you could buy fruit and vegetables in bulk. Now my challenge is that I’m single and so I would buy things and I was wasting a lot of foods. That didn’t work for me, but for somebody who has a family, I think finding some of those alternative options where you can buy in bulk would be a great option, but it just wasn’t for me. I wanted to say one thing to make sure that I acknowledged this, while it was still in my brain. I was a single person in grad school and I know a lot of people aren’t. A lot of times people would say, “Oh, I can’t really do that because I’m a mom where I have like this or that.” I’ve actually become much more attentive to asking my sister friends who have children and meal prep, how do you do this? And I think the biggest difference in the process is that some of the women that I have talked to say that they eat more stews and soups because you can just throw everything in a crockpot and it’s really easy. They may go to the grocery store twice, rather than once a week. I think it’s still possible to do it, it just might look different in that phase of life.

24:38 Emily: Yeah. And I think that goes to what we were just saying earlier is that this kind of has to evolve with you as things change for yourself and your family. I know that when I was in graduate school and just cooking between myself and my husband, I was using our Crock-Pot so much. I wasn’t really into meal prepping, but I would do bulk cooking. So like huge thing in a Crock-Pot, feed me all week for lunches. It was a sort of minor step in that direction and I still love that approach of just make an enormous pot of something and be done for a little while. Again, it takes the decision making off the table because you know what you’re eating for the next week when you cook in such great volumes. Okay, you were really able to take you’re spending down. You’re eating this lovely food that you feeling wonderful for your body and so forth and you really took your spending down by becoming a little more flexible and being able to go for sale items, in season items, and making the decisions on the spot in the store. I know I’ve fallen into that trap sometimes too of being too emboldened into my list or feeling too flexible and I go back and forth, but that’s a great percentage reduction in your spending just based on that one step alone, so that’s awesome. Thank you for that discussion on buying in bulk versus not because of course different households have different needs there. I know, personally, we shop at Costco right now quite a bit and the buying and bulking from Costco gets a lot of criticism, “Oh, how are you ever going use a gallon condiment jar or whatever.” But we actually buy produce and meat at Costco because we do get through it and we just eat the same produce for several days in a row and it works for us well. Okay, so we’ve talked about the time and how you do it and the money and so forth. Why do you think that other people should be meal prepping? Or maybe you think, why should other people consider meal prepping? What benefits might they experience? And let’s specifically think about our population of early career PhDs.

Other Benefits of Meal Prepping

26:31 Brielle: The biggest benefit for me, and I think for others potentially, is just the health benefits. I think it’s really hard when you’re in the thick of grad school to give time to your mental, physical health, but it’s so important. Sleep deprivation and all the different thingsthat’s happening to your body when you’re in such a stressful period. If you can’t sleep eight hours, at the very least, you can give yourself some leafy greens and nourishing meals. I consider it, and I didn’t always follow my advice, is just a little bit of — I know people kind of don’t like the self care language now, but something you can do for yourself that you’re going to have to do no matter what. It’s not like, you know, it’s an elaborate expensive thing to just take care of yourself in that process.

27:20 Brielle: For me, actually when I started, I went through a couple of different phases with like doing Whole 30 and different types of food preparation techniques because I was experiencing some health issues and I actually figured out what my food intolerances were by meal prepping because I was able to eliminate things and put things into my diet where I figured out what was causing me inflammation. I think even for that reason alone, it’s really helpful to just know how different foods are affecting your body so that you can at least control that part of a life that is pretty out of control in grad school.

28:01 Emily: Yeah. Great point. Exactly as you said, you’re going to be eating anyway, you may as well make it something that’s going to fuel your body properly and keep you feeling good for all that work you have to do. Just as we’ve discussed before, I think the other potential benefits, depending on how you do it, are of course time savings and money savings. we’ve well covered that, but thanks for adding the health benefit there.

Tips To Get Started With Meal Prepping

Emily: Let’s say there’s someone listening like me. I’m listening and thinking I need to give this a shot, I needed to try this again. What are some easy first steps you would recommend?

28:39 Brielle: What I did was start small. For me breakfast is always a pretty simple meal that I’m always going to pretty much eat the same thing and just start off with a very reasonable goal. Say, for a month, I’m going to meal prep my breakfast and I’m just going to try and get into the practice of preparing that and figuring out what that is. And then once that’s under your belt, then you can add, I think the next thing I added was a morning snack. So, okay, now I’m doing the morning snack and once I had that under my belt, then I did lunch. Don’t try and go 0 to 100, that that’s not going to happen. So be very realistic about what’s the easiest thing that has the least amount of barriers for you to be successful and start there.

29:24 Emily: Yeah. Thank you so much for that advice because that is what I need to hear. I’ve been pretty successful in cooking like a casserole for breakfast that’ll last us the week. Something like that. Lunches are also pretty accessible for me. I think dinner’s the real challenge and that’ll be left for last in my next go around with this.

29:42 Brielle: Hold your confidence when you find yourself because there’s going to be benefits. I even noticed I was able to better control the calories once I was like, okay, I’m eating this for breakfast. So then I’m snacking less and it’s like, “Oh, I lost a couple of pounds. Ooh, I feel better.” Okay, so now I’m motivated to do the next thing. Like you, I was the type of person who needed a reward for every single thing and celebrated every single success. So there are a lot of those small milestones along the way that’ll keep you going. If you just commit to the very small thing of, let me work on my snack or my breakfast first.

Meal Prepping During Life Transitions

30:19 Emily: Awesome. Well, thank you so much for this wonderful view into your meal prep process and it’s really encouraging to hear that this is not something that was automatic for you from the beginning. It’s not something you learned as a child or anything. This is something you took years and years to develop. And of course there were times during graduate school when it wasn’t able to happen, but that doesn’t mean it can’t ever. And you’ve continue with that. How has it been with your latest move? Going from, you had your process down set when you were living for your postdoc and now you’ve moved. How has that gone?

30:59 Brielle: It was very chaotic. I think I was realistic in that if all my kitchen is literally in boxes, then I can’t cook. But it just takes a lot out of you to move, to pack and then to move. I thought, “Oh, okay, I’ll just jump in probably a week after and I’ll be back to it,” and that just didn’t happen. I just gave myself this space to say like, I’m gonna just enjoy eating out because even with my meal prep, I would still eat out on the weekends, just as a social activity. I allowed myself to do that and I’m just now kind of getting in, I moved at the end of May, and I’m now just a month or so later, finally getting back into my routine.

31:44 Brielle: It’s gonna look different because my life is different here, but I’m going with the flow. I think the other thing besides just moving that’s been a change in my routine is that, with my meal prepping, I got better in terms of feeling healthy with my food, which encouraged me to be better about my exercise. Now I’ve gotten to exercising five or six times a week, which now has changed how I had to meal prep, because in order to be able to do those workouts, I have to eat in a totally different ways. I think there’s never an end point in how this process works. However your life goes, you have to adapt and move with it. And so I don’t know, and I’m not feeling super successful about my food prep right now, but I know I will be if I just give myself some time.

32:35 Emily: Yeah. Unsurprisingly, what you eat is very intimately connected with many other areas of your life and health and work and sleep and exercise and so forth. And so yeah, just thanks so much for giving us a picture of that evolution with how meal prep has been fitting into your life over the last few years. Thank you so much for teaching us on this topic today.

32:55 Brielle: Thank you. And I wish everybody lots of success in whatever their journey looks like.

Outtro

33:02 Emily: Listeners, thank you for joining me for this episode. PFforPhDs.com/podcast is the hub for the Personal Finance for PhDs podcast. There, you can find links to all the episode show notes and a form to volunteer to be interviewed. I’d love for you to check it out and get more involved. If you’ve been enjoying the podcast, here are four ways you can help it grow. One, subscribe to the podcast and rate and review it on Apple podcast, Stitcher, or whatever platform you use. Two, share an episode you found particularly valuable on social media or with your PhD peers. Three, recommend me as a speaker to your university or association. My seminars covered the personal finance topics PhDs are most interested in, like investing, debt repayment, and taxes. Four, subscribe to my mailing list at PFforPhDs.com/subscribe. Through that list, you’ll keep up with all the new content and special opportunities for Personal Finance for PhDs. See you in the next episode, and remember, you don’t have to have a PhD to succeed with personal finance, but it helps. The music is Stages of Awakening by Poddington Bear from the Free Music Achive and is shared under CC by NC. Podcast editing and show notes creation by Lourdes Bobbio.

This Postbac Fellow Saves 30% of Her Income through Simple Living and a SciComm Side Hustle

February 25, 2019 by Jewel Lipps

In this episode, Emily interviews Maya Gosztyla, a postbac fellow at the National Institutes of Health in Rockville, MD who saves approximately 30% of her income from her stipend and freelance science writing income. Her goals for funding her PhD program applications and upcoming move to grad school and wedding motivate her to keep her expenses low and sustain her side hustle. Maya gives great financial advice for PhDs in transition into and out of grad school.

Links mentioned in episode

0:00 Introduction

1:15 Please Introduce Yourself

Maya Gosztyla graduated in May 2018 from Ohio State. She majored in Neuroscience and Molecular Genetics. She started as a postbac at National Institutes of Health (NIH) right after graduation. She is mainly focused on drug discovery research. Her interests are in neurodegenerative diseases in particular. She is applying to PhD programs, with intent to begin her PhD program in Fall 2019. Maya is relieved that she does not have to balance undergraduate coursework with time spent on graduate applications. She also has more time for the interview weekends, which Emily says can be a fun experience.

2:33 What is your income? Where do you work and live?

Maya’s postbac annual salary is $30,000. She works at NIH location in Rockville, Maryland. The cost of living in this location is fairly high, because she is in the Washington DC metro area.

3:26 What was your financial situation coming into your postbac position?

Maya didn’t have any student loans. She says she treated filling out scholarship applications like a full time job, so she was able to fund her entire junior and senior years of undergraduate education. She didn’t spend all of her scholarship stipend during senior year. She has emergency savings fund of about $7,000 since she graduated from college.

4:25 Do you apply the same mindset from your undergraduate scholarships to your graduate school fellowship applications?

Maya says she has been applying to many graduate school fellowships. She applied to the National Science Foundation Graduate Research Fellowship Program (NSF GRFP), the National Defense Science and Engineering Graduate Fellowship (NDSEG), and one example of a school specific fellowship is the Knight-Hennessy Scholars at Stanford University. In addition to her graduate school applications, she has been sending in many applications to go after award money in full force. Emily assures that this strategy is a great idea, because you are certain that you will get paid for your graduate work.

5:58 Where did you move from? How did you manage your finances during your move?

Maya’s rent during college was $350 per month. In Rockville Maryland, her rent is $850 per month. Maya says what helped her most during her move was making a really detailed budget. She used several cost of living calculator websites. Additionally, she doesn’t have tax withdrawn from her postbac stipend, so she had to estimate quarterly tax.

She was in shock when she moved from the inexpensive Ohio city to the much more expensive DC area. She thought she needed to spend as little as humanly possible. For instance, she first moved into a bedroom in a three bedroom apartment. Her portion of the rent was $700 per month, which is the cheapest she could find in the area. She had an hour long commute, and she had to leave the apartment because of a cockroach infestation. Maya advises that people not to choose the cheapest apartment, but to take into account other factors. She says it can be worth more rent money to be closer to work for a shorter commute, and to live in a quality apartment.

Maya used cost of living calculators to get a sense of the maximum expenses she would have in the DC area. She says she spends less than suggested by the calculators. She talked to people who are in the NIH postbac program, because these are people in her age group and income level. At this early career stage, people are willing to share information about income and rent.

10:04 What is your savings rate? How are you saving this amount each month?

Maya is averaging around 30% of her gross income, pre-tax, going into savings. She emphasizes the importance of setting targets and timelines for what she is saving for. One of her specific goals was to pay for PhD program applications, which was well over $1000. She wanted to start an Individual Retirement Account (IRA), since she’s not sure she can have an IRA while she’s in graduate school. Another financial goal is to get married next summer! With her partner, she wants to take a couple of weeks vacation in Europe. She wants to do all of this without tapping into her emergency fund, because she wants to use this fund for her move to graduate school.

Maya has several frugal strategies. She doesn’t have a car, which is unnecessary in DC and major cities. She takes a bus to work, which she says is reliable. NIH will pay for public transit, so she gets reimbursed for her bus expenses. Maya says eating out is really expensive. She cooks almost all of her meals, and she meal preps. She goes out to eat with friends, as a social experience, it’s important to eat food to bond with people. This happens two to three times a month, and they don’t go out for drinks that much either. She views her eating out expenses as paying for access to space and people, and eating food isn’t the purpose. She set a rule for herself that she won’t eat out alone.

She goes to work, gets groceries, finds free stuff to do, and she doesn’t spend on entertainment. Also, she has a side source of income. Maya does science writing as a freelancer. It’s not easy work, but it’s not incredibly technical. She can pick and choose when and what kind of assignments she wants to accept.

15:27 How did you get connected to opportunities for freelance science writing?

Maya started a blog about Alzheimer’s Disease while she was in college. She wasn’t making money from the blog, but she started getting cold emails from people who liked her writing who would commission her for articles. She uses Upward, the freelancing website to find clients. Upward has a fee of 30% from every writing, so she charges more to make sure she doesn’t undercharge for her work.

Emily recommends the academic blogging network on Facebook (now called Gradblogger Connect) as a great resource for people interested in blogging and podcasts.

She doesn’t see science writing as her career. The variable income makes her feel anxious. She’d like to keep writing on the side, because she believes it is important for scientists to write about research for the public. Emily says that a side hustle during the PhD training is useful to figure out if this is what you want to do for your career.

20:37 Do you consider yourself having a financially quiet life?

Maya says that she applies a KonMari method to her purchases. She asks herself questions like, “will getting take out actually make me happier?” She does spend money on flights, because her fiancé lives in Ohio and she travels to see him. Maya observes that people spend money because they feel like they have to. She says it’s not a sacrifice for her to not go out every weekend, because she doesn’t really like alcohol. Emily says that it’s very interesting to apply Marie Kondo’s method to finances, and ask “does this spark joy?” Maya has gone through the introspection to consider what is bringing her high value. When you have low income, you can’t just default to the kind of consumerism you see around you.

23:30 Have you started thinking about how you’ll financially manage the transition to graduate school?

Maya is applying to high cost of living areas, so she feels more prepared for that move. Since she’s lived in the DC area, she will have a better idea of expense in places like Boston and San Francisco. She’s trying not to touch her emergency fund, because she needs it for her moving expenses. She is also trying to make sure that fiancé and her are comfortable in their current low income lifestyle, she wants to avoid the lifestyle creep. Graduate school will be a transition, but Maya will also experience the life transition of combining her lives with her partner.

25:02 Do you have any advice for someone looking at a transition out of college or into graduate school?

Maya says the first thing you have to do is look at what you have and where do you want to be in a month, or year. There is no way to set a savings rate if you don’t have something you’re aiming for. She gives the example that she wanted to save $4,000 for their honeymoon, then she could create a budget with that goal in mind.

She also says don’t forget about taxes. She had lab mates who didn’t know this. They weren’t setting aside money for tax season, and ended up owing. She says you can set up a separate savings account to set aside taxes. Emily says that this blindsides a lot of people. She has created resources on her website to help people estimate their quarterly tax.

Maya says you need to buy things that actually make you happy. She offers the caveat that if something is actually important, like you don’t need to get the cheapest apartment, get one you want. You can keep stock of what you actually care about. Maya wonders if people really know the taste of expensive wine, for example, or if it’s more about expectations. Emily says we may need to shuck the expectations. You have to figure out if something is right for you, if it “sparks joy” for you, and it’s not an expectation that others put on you. Maya says that others don’t pay attention.

Finally, Maya says to keep a really detailed spreadsheet. She used to use Mint, but now she uses a manual spreadsheet, and inputs once a week. She customizes it for her needs.

30:47 Conclusion

Give Yourself a Raise: Inexpensive Entertainment on or Near Campus

July 30, 2018 by Emily

With respect to entertainment and socializing, graduate students are facing a bit of a catch-22: their university affiliation affords them tons of opportunities for free and subsidized entertainment, yet they often think they are too busy to take advantage. However, all work and no play makes for a burned-out PhD student. When you do manage to escape from the lab or library, there are numerous ways to have fun without straining your wallet. When you plan a night out with your peers or want to see a show, check on your free or subsidized options through your university before paying full price.

A version of this post was originally published on GradHacker.

Low-Cost On-Campus Entertainment Ideas

University, school, and department social events

From happy hours to dances to sponsored outings, universities put on tons of free events year-round for students, anywhere from once per year to as frequently as once per week. Your graduate student government is probably the best place to start looking for sponsored activities and opportunities to socialize with your peers. The graduate student government at my alma mater hosted happy hours about once per month, paid for students to go bowling and to minor league baseball games, and hosted trivia nights and ice cream socials. Other student organization may sponsor similar nights out to bars or local attractions such as museums and planetariums.

Spectator sports

I have to admit that I was not a fan of any college sports until I got to graduate school, but I found my alma mater’s basketball culture irresistible. Grad students who enjoy watching football, basketball, or many other sports will be able to attend events for free or at a highly subsidized rate. Or if watching sports isn’t your thing, maybe tailgating is!

Intramural sports

Intramural sports are a great combination of entertainment, exercise, and socializing. There are most likely grad student teams competing against each other and undergraduate teams in softball, volleyball, flag football, basketball, etc. Because you are using university facilities, the fees to participate in such teams are typically nominal.

Theater, museums, movies, and concerts

Similar to spectator sports, you can likely attend student theater productions on campus for a very low price. There may be a museum or botanical garden on campus that is free for students. Free or subsidized concerts and movies are also common, though you might not see the newest releases. My alma mater screened both of the PhD Comics movies for free, which were wonderful events designed specifically for graduate students, and also hosted two large free outdoor concerts each spring.

Orientation activities

The start of the school year is a great time to find free entertainment as clubs are recruiting new members. You can keep an eye on club calendars for events that you might enjoy, such as stargazing, games, gardening, hiking, or volunteering.

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Low-Cost Off-Campus Entertainment Ideas

City events

Most cities cultivate a calendar of events for residents and visitors to reference. Over the summer months, these calendars burst with lovely outdoor activities that are often free or inexpensive, such as festivals, concerts, and movies. This can be a great way to stay entertained when the university’s calendar tends to be more dormant. Local bars and coffee shops in college towns also frequently host live performances that draw in a student crowd.

Theater, movies, museums, sporting events

Your graduate student ID almost always works just as well as an undergraduate’s for scoring reduced-price tickets in the community. Many venues such as theaters, sports stadiums, and museums offer discounted rates of entry to students on set days of the week or month or a few times per year. My husband and I held season tickets to the Broadway shows at our local theater for several years on Sundays or Tuesdays, which were the student discount nights.

Movies

You don’t need a subscription to Netflix, Hulu, or Amazon Prime to enjoy watching movies in your home. Your university and local public library should have an excellent selection of titles that you can check out for free.

Do-It-Yourself Entertainment Ideas

Social gatherings

One of the best aspects of grad school is the built-in social network it gives you within your school or program. Parties can be easily planned alone or with a few other hosts in homes, at pools, in bars or restaurants, or in parks, and designating them as potluck, Dutch, or BYOB means that no one is shouldering the cost alone.

Watch parties

One of my favorite aspects of grad student life was getting together with other basketball fans to watch our team play away games on TV. We even had an informal arrangement with another couple that we would host watch parties for all the games that were broadcast over the air while they would host for all the games shown on cable (removing the primary argument for us to keep paying for cable). You can arrange watch parties at home and sometimes at bars for whatever kind of entertainment you enjoy – sports, popular TV shows, movies – as long as you know a few other people with that common interest.

How do you keep yourself entertained and socialize on campus and in your city without busting your budget? How have you used your student status to get discounts on entertainment?

Dual PhD Couple in Seattle Spending $20k/Year on Rent

July 23, 2018 by Emily

In this episode, I break down my own budget from 2017. My husband and I earn about $100,000 per year and live in Seattle, WA with our two small children. I detail our top five expenses (rent, groceries, travel, kid spending, and transportation) as well as the financial goals that we’re currently working toward. I give some advice for a budget-conscious person moving to Seattle. Finally, I share what it’s like to be a renter in Seattle’s rapidly inflating housing market, spending nearly $20,000 per year on rent and feeling shut out of the housing market.

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Links mentioned in episode

1:05 Q1: Where do you live and what is your income?

My husband, Kyle, and I live in Seattle, WA, with our two daughters, a 2-year-old and a newborn. We moved here in 2015 for Kyle to take a job at a biotech start-up. I am self-employed; Personal Finance for PhDs is my main business, and I also have a side hustle. Our household income in 2017 was around $100,000.

Further reading:

1:40 Budgeting Background Info

Kyle and I practice percentage-based budgeting, which means that from our gross income we:
- Pay income and FICA tax
  - through payroll deductions on Kyle’s income.
  - through quarterly estimated tax on my self-employment income.
- Tithe (donate 10% to our church).
- Save into retirement accounts (20% in 2018, 18% in 2017).
We live on one income. Kyle earns most of household income and has a regular salary, so we base our budget entirely off of his income after the percentage-based allocations. All of my income after the percentage-based allocations goes to savings. This helped a lot when my self-employment income was irregular, although now I pay myself a salary.
We budget for our regular (monthly) and irregular (yearly) expenses. More details about this system can be found in Season 1 Episode 1.

Further reading: How to Pay Tax on Your PhD Side Hustle

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4:19 Q2: What are your five largest expenses each month?

Our total spending in 2017 was approximately $47,500 (excluding the above percentage-based allocations and health insurance premium paid as a payroll deduction).

5:09 #1 Expense: Rent

In 2017, we spent $18,870 on rent, which is a monthly average $1,570 and 40% of our total spending.

Our rent went from $1495 per month to $1645 per month.

We live inside Seattle city limits. Our apartment in older building with no amenities. The apartment is approximately 850 square feet and has two bedrooms and one bathroom. We chose the apartment based almost solely on location and price.

When we next move, we definitely want to get a place with a dishwasher! Our kitchen is pretty small. We cook and eat in a lot and with two little kids so we wash a lot of dishes every day.

6:38 #2 Expense: Groceries and Household Consumables

In 2017, we spent $7,733.54 on groceries and household consumables, which is a monthly average of $644.46 and 16% of our total spending.

This amount of spending feels high to me, and this is a category that I keep a close eye on.

We meal plan, eat virtually every meal out of our own kitchen, and usually buy food on the less processed side of the spectrum. We shop mostly at Costco and Fred Meyer and also a little at QFC. We don’t seek out organic or similar food except when we buy directly from the from farmer’s market.

Most likely the reason we spend a lot in this category is simply that we eat a lot, and the food we eat is on the more expensive side of the spectrum. These days, we alternate between eating low carb/Whole30-ish and eating the standard American diet, which means we are consistently eating meat and often dairy, which are both more expensive categories.

Our typical meals are:

Breakfast: Egg casserole with sausage, sweet potato, onion, and spinach.
Lunch: Chicken yellow curry, chili, sausage and eggplant hash, fish plus sautéed spinach or zucchini.
Dinner: Meat with vegetable, e.g., balsamic vinegar chicken and roasted asparagus. Kyle’s favorite meal: Brussels sprouts bowls. One of my favorite meals: Mexican breakfast bowls.
Snack: PB and almonds

Our toddler is a very good eater. We followed the baby led weaning technique, and now she eats the food we do plus more milk, fruit, and cheese.

9:57 #3 Expense: Travel

In 2017, we spent $3,482.47 on travel, which is a monthly average of $290.21 and 7% of our total spending.

I was surprised that travel ended up in our top 5 because I perceive that we travel much less than before we had children.

In 2017 we traveled on five occasions: two weddings, our 10-year college reunion, a memorial service, and to one of our parents’ homes for Christmas.

In addition to the flights, on various of these trips we paid for hotels, rental cars, meals, entertainment, and registration.

We definitely spend more per trip than when we were in grad school. Flying with a baby has spurred us to take direct flights at convenient times of day instead of purchasing the lowest fare available.

Our current frugal practice regarding travel is to rewards credit cards; we currently have the Alaska Airlines credit card and the Chase Sapphire Reserve credit card.

12:10 #4 Expense: Miscellaneous Kid Spending

In 2017, we spent $2,688.66 on miscellaneous expenses for our oldest daughter, which is a monthly average of $224.06 and 6% of our total income.

This is the category I have the least handle on as it is so unpredictable.

Our one regular expense included in this category was preschool tuition, but that only applied for a few months

Our spending out of this category was all over the place

Medical copays, occupational therapy copays, breastfeeding medicine.
Travel car seat and travel stroller (in addition to the ones we use at home).
Bookcase, mattresses for grandparents’ houses, jacket, and teether.
Toddler class at the local community center and zoo membership

This is a fly-by-the-seat-of-your-pants category.

I was surprised these miscellaneous kid expenses as a category cracked top 5 because our first-time-parent start-up expenses hit in 2016.

14:30 #5: Transportation

In 2017, we spent $2385.77, which is a monthly average of $197.98 and 5% of our total spending.

I really thought transportation expenses wouldn’t be in our top five; low transportation spending is a point of pride for me!

It turns out that 30% of the spending was from our regular monthly budget, and 70% was from our irregular expenses budget. Our regular expenses included gas and parking, whereas our irregular expenses included car insurance, registration, and maintentance.

We own one older car and don’t use it for commuting. Kyle has a sub-10 minute bike commute and I work from home. We generally just use the car for errands, activities with the kids, church, grocery shopping, etc.

Those irregular expenses hit in only 3 months of the entire year, which is why I sort of forgot about them. We pay our car insurance once every 6 months, and it’s inexpensive. We spent over $1000 in car repairs/maintenance in 2017, which was unusually high and not a yearly occurrence.

All of our top 5 expense categories together accounted for 74% of total yearly spending.

17:20 Q3: What are you currently doing to further your financial goals?

1: Retirement Savings

We save a fixed 20% of our gross income into our retirement accounts.

We actually don’t use Kyle’s 401(k) through work at all because of high fees. Instead, we put our retirement savings into our two Roth IRAs and my individual 401(k), which we had total control over. Kyle’s 401(k) is the account of last resort because there is no match.

Details on Emily's Roth IRA

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2: Down Payment Savings

In 2017, we saved 21.7% of my income and all of our self-tax refund for a down payment on a home.

Further reading: Creating Our Self-Tax Refund

In early 2018, paused our down payment savings to save into a fund to help with expenses and lost income associated with the birth of our 2nd daughter’s.

Once those expenses have settled, we’ll resume saving for our down payment. In the remainder of 2018, we plan to save a fixed rate from Kyle’s income plus 22.7% of my income.

Our initial down payment goal was $60,000, but now that we’re getting close to that number, we want to keep saving and perhaps make $100,000 our next goal. We’re not necessarily shooting for a 20% down payment, but having a lot of money available for the down payment, other fees and expenses, and moving costs will be good.

3: Kids’ College

We save a nominal amount of money toward our children’s college expenses. We plan to hit this goal harder after we buy our first home.

4: Paying Down Student Loan Debt

We are currently making only the minimum payments on a standard 10-year repayment plan on my student loans. Episode 1 explains why we have not yet paid off these loans. However, as of the day of the recording, we received an update on the loans and decided to pay them off completely.

20:47 Q4: What don’t you spend money on that might surprise people?

1: Kid Expenses

A: Childcare

We don’t spend much money on childcare because of the way we have structured our life. Kyle has a regular job, and I’m self- employed. I’m also our children’s primary daytime caregiver. I work when Kyle is home with the kids and when they are sleeping. In 2017, I worked around 20 hours per week with this system. When I travel for speaking engagements, we hire sitters through a service we subscribe to, but this is irregular. We don’t have any regular childcare as of now. We are considering hiring a part-time nanny this fall since we now have two kids to help keep my work hours up.

B: Diapering and Clothing

We cloth diaper, which means we paid a bunch of money for diapers in 2016 but not in 2017. We use disposable diapers when we travel and disposable wipes sometimes.

Further reading: Cloth Diapering in an Apartment

We didn’t have to spend any money on clothes in 2017. The communities we’re plugged into gave us lots of gifts, hand-me-downs, and borrowed clothes.

Further reading: Outfitting Our Baby with Hand-Me-Down, Borrowed, and Used Stuff

When we buy stuff for our kids, we often look to the secondhand market first.

2: Eating Out

We only spent $254.38 on eating out in 2017, which is an average of $21.20 per month. This is a shockingly low figure to me. Since having our first child, we basically don’t go out to eat or get take-out any more!

We don’t drink coffee, which many people pay for out of the house.

Kyle does buy a beer at occasional happy hours with his coworkers, which probably accounts for a good fraction of the spending in this category. I’m in a non-drinking phase of life due to breastfeeding and pregnancy.

3: Entertainment

Our only recurring entertainment expense is Netflix. We are still avid Duke basketball fans, but as we’re not attending games anymore that is an inexpensive hobby.

This low spending is a big change from before we had kids. We used to have season tickets to the Broadway musicals series our local theater, which is not something we’re doing now.

Most of our entertainment now revolves around our toddler: going out doing activities or playing with friends and even at home. We attend lots of free activities around Seattle: parks, toddler rooms and gyms at community centers, and libraries. We also hang out with her toddler friends and our kids tag along to game nights with our friends.

I’m chalking this low spending up to this being a unique phase of life! We expect to spend more in this category again later.

26:31 Q5: What are you happy with in your spending and what would you like to change?

Overall I am quite happy with our spending and progress toward our financial goals.

I don’t love that we spend almost $20,000 per year on rent, but it is reasonable for this city.

I’m not so happy with the grocery and kid expenses.

I feel like we’re spending a lot on groceries. I have some frugal practices, but could do more. During the Frugal Blitz this coming September, I will focus on frugalizing my groceries.

I don’t mind spending what we do on the children, I just want it to be more predictable! Perhaps we will institute a monthly cap on spending or try to anticipate the larger expenses as they grow.

28:11 Q6: What is your best advice for someone new to your city who is budget-conscious?

Focus on housing and transportation: Do your research in advance about where to live and what your commute will be like.

Renting and buying in Seattle is on a quick timeline. Places listed for rent are available immediately or like one week out, and little notice is required when you move out of a place. In 2015 when we moved to Seattle, the rental market was quite competitive. We had to make quick decisions on where to apply and compete with others.

We handled this market by researching the prices in the neighborhoods of interest before we started our moving trip, even though we were not expecting that any of those same rentals would be available when we arrived. This gave us the ability to spot a good deal.

Further reading: Apartment Search in Seattle

You should factor in your commute if you know where you’ll be working. A lot of people avoid the higher housing prices by living outside of Seattle, but that usually increases their commute time. We chose to eliminate the commute and pay the higher housing cost so that we could have more time together.

Don’t assume you’ll commute by car. Over 50% of people in Seattle commute by other methods: bus, biking, walking.

30:52: Q7: Would you like to make any other comments on what it takes to get by where you live on what you earn?

In Seattle, the high tech industry is quite dominant. Those positions are very well paid, and housing costs are being driven up quickly.

In 2017 and the first half of 2018, Seattle had the fastest-appreciating housing market.

Housing prices are heading up quickly, and it’s very discouraging for renters/first-time buyers.

Purchasing a home in our current neighborhood (maintaining that short commute) would be very difficult for us. Even earning $100,000 per year, the most we could afford in our neighborhood is the lowest priced condo possible. The median home value in our neighborhood is almost $1,000,000. The median condo price in Seattle is nearly $550,000. It’s also very hard to not get swept up in the hype of the market.

We are leaning against ever buying in Seattle. Housing is quite a struggle for first-time home buyers.

I’d love to hear from other PhDs (in training) who make less than what we do on how you manage your expenses!

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Our $100,000+ Net Worth Increase During Graduate School

July 9, 2018 by Emily

I share my personal money story, which is how my husband and I increased our net worth by over $100,000 while we were in graduate school. We carefully budgeted our two PhD student stipends to consistently add money to our investments and pay for both our regular monthly expenses and irregular expenses such as travel. Over our seven years as graduate students, we accumulated approximately $75,000 in retirement savings, $20,000 in cash, and enough money to pay off my student loans plus an additional $5,000. I detail the five strategies we used that made the largest positive impact on our cash flow, which enabled us to increase our savings percentage over time.

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Timestamped Show Notes

0:00 Introduction and Outline

1:45 Background Information and Income

When we graduated from Harvey Mudd College, I had $17k in student loan debt and no savings, and Kyle had zero student loan debt and approximately $5,000 in savings. Kyle went straight into a PhD program at Duke University in Computational Biology and Bioinformatics. I spent one year in the National Institutes of Health’s postbac program before starting a PhD program at Duke University in Biomedical Engineering.

Our $100k+ increase in combined net worth occurred between 2007 and 2014 when we earned two graduate student stipends. My NIH stipend was $24k/year, and my Duke stipend went from $24k/year when I started to $28k/year when I finished. Kyle’s Duke stipend went from $25k/year when he started to $29k/year when he finished.

In the first three years, Kyle and I were dating and kept separate finances. We got married in 2010, so for the last four years of the seven-year period we kept joint finances.

4:00 How We Increased Our Net Worth

Saving and investing consistently throughout the whole period.
Budgeting intensively to keep a lid on expenses and funnel more money into savings.
Investment growth due to the bull stock market that started in 2009.

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4:51 High-Level Strategies to Increase Net Worth

Our programs paid us above the local living wage, and Durham, NC is also a medium cost-of-living city.
We identified our values, which included financial security and family/community. This meant that saving, including for retirement, was a top priority, as well as travel to visit family and friends. We reduced our spending on everyday expenses so that we could funnel more money to our top priorities.
We employed percentage-based budgeting. Right off the top, we paid our taxes, tithed (10% of gross income to our church), and saved for retirement and near-term expenses.
Any extra income we received, such as gifts, side income, and credit card rewards, went toward our financial goals instead of general spending.

7:38 Net Worth Breakdown

8:07 IRAs ($0 to $75k)

I started saving 10% of my gross income into my Roth IRA as soon as I started receiving a stipend and maintained that savings rate for 3 years. Kyle didn’t intentionally start saving right away, but allowed money to build up in his checking account. He opened and maxed out a Roth IRA in 2009, and maxed out a Roth IRA every year following.

Further Reading: My Biggest Financial Mistake and Why I’m Glad I Made It

Once we got married, we made a game of trying to max out two Roth IRAs each year. We never quite achieved our goal, but we did increase our savings rate from 10 to 17%.

What exactly we were invested in doesn’t matter as much as our savings rate, though I am happy to share my investment choice.

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12:11 Cash Savings ($5k to $20k)

Initially, I didn’t focus on cash savings. In 2007, I paid off a $1k unsubsidized student loan. When I started grad school, I bought a car with a $3,500 car loan. Later that fall, my parents gave me $10,000, which I used as a general savings account/emergency fund. I paid off my car loan, then repaid my “car payment” to myself to rebuild my savings. Kyle naturally lived below his means, and he continued to accumulate savings in his checking account.

The year we got married, 2010, was a financial reset point. From our cash savings, we paid approximately $10k in wedding expenses. When we joined finances, we assessed our combined balance sheet.

We each had money in our IRAs, and we also had $17k in cash. We set $16k aside to pay off my student loan balance and set up a $1k emergency fund. However, that left us with no savings for near-term expenses, just whatever we could cash flow.

We built up $20k in savings between 2010 and 2014 using targeted savings accounts. We were inspired to start using targeted savings accounts by several large irregular expenses that hit right around the same time and were difficult to cash flow: an expensive wedding season, two university parking permits, and season tickets to the Duke men’s basketball games and Broadway theater series.

Further Reading:

We decided to start preparing in advance for anticipated expenses over the next year. We started out with savings accounts for Cars, Entertainment, Travel. We set up budget for each account by anticipating when we would need or want to spend money and calculating a savings rate. Targeted savings accounts turn large, irregular expenses into small, fixed expenses that are easy to write into a budget.

By 2014, we had more savings accounts: Travel, Cars, Entertainment, Appearance, Electronics, Medical, Charitable Giving, CSA, Taxes, and Camera in addition to our checking and emergency fund accounts. We used Ally Bank, which did not charge us any fees or require minimum balances, etc.

We set up automatic savings rates into the targeted savings accounts, then manually pulled money back for each expense when it occurred.

We built up the savings in these accounts because we over-estimated what we would need in various areas, which caused us to over-save.

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20:43 Student Loan Payoff Money ($0k to $16k in cash savings, then $16k to $21k in investments)

By 2010, we had the money to pay off $16k in student loans. Instead of paying it off, we chose to conservatively invest they money to earn a small return. It was difficult to choose how to invest the mid-term money, and we wanted to be conservative so as not to lose it.

We decided to conduct an experiment on ourselves to find out what kind of investors we were. In 2011, we put a large fraction of the money in a CD, a small fraction in aggressive stock mutual funds, and a large fraction in conservative mutual funds (stocks and bonds).

We learned that we are committed to passive investing.

Further reading:

23:57 Our Best (Pain-Free) Money-Saving Moves

I started blogging at Evolving Personal Finance in 2011; learned a ton from my fellow personal finance bloggers and developed my own ideas about how I should manage my money. I published a post near the end of grad school on the best things we did to increase our available cash flow for saving and investing. This list largely explains how we increased our retirement savings rate from 10% to 17% savings and built up $20k in cash savings.

25:24 1. Moved to decrease rent twice (savings $2,340/year).

Initially, we lived in a great apartment, but one year the rent jumped up so we moved to a townhouse, decreasing our rent by $110/mo (what it would have increased to over the new rent). The next year, we moved again and decreased our rent by an additional $25/mo (previous year’s rent to new rent).

Through those two moves, we maintained our home size (1,200 sq. ft., 2 BR, 2+ BA). With the latter two townhouses, we actually reduced our commute to Duke, so the saving was even deeper than just the rent decrease. We did give up some amenities we had through the apartment complex, but that was acceptable.

Further Reading:

27:48 2. Cancelled cable TV (Savings: $1,208.16/year)

We cancelled our cable TV in favor of paying for internet only. We bought an antenna so we could still watch broadcast TV.

Further reading: How to Cancel Cable When You’re Addicted to a Show

28:47 3. Signed up for rewards credit cards (Income: $991.18/year)

We signed up for cash back rewards credit cards, both for good ongoing rewards and good sign-up bonuses. We looked for minimum spends that we could actually meet and timed application so that we could put our large irregular expenses on the new cards to help meet the minimum spend.

Further reading: Perfect Use of a Credit Card

30:00 4. Became a One-Car Family (Savings: $972.03/year)

After we got married, we started commuting to Duke together. Around that time, my car needed some expensive repairs, so we stopped using it. Our reduced expenses came from lower car insurance, dropping one parking permit, less gas used, half as much maintenance required, and less need to keep money on hand for repairs. We had to work out our schedules to be able to share the car and ended up spending a lot more time together, which was wonderful!

Further Reading: The Financial Implications of Dropping One Car

32:19 5. Switched to an MVNO (Savings: $544.34/year)

I started using Republic Wireless, paying approximately $25/mo for service. (Kyle has since switched to Google’s Project Fi.)

The best thing about these pain-free money-saving moves is that they don’t require any ongoing effort/willpower. Typically, we just had to carry out one-time decisions.

34:41 How Our Accomplishment Led into PF for PhDs

I had been blogging about personal finance for 3.5 years by the time finished grad school, and I also volunteered with Personal Finance @ Duke. After I defended, I decided to give my own seminar on personal finance for graduate students. I had the best time making and delivering the seminar and answering questions from my peers. I asked myself, how can I teach my peers about personal finance as my job?

The initial phase of my business was as public speaker; I gave seminars at universities all over the country. That first seminar I created is now titled “The Graduate Student and Postdoc’s Guide to Personal Finance,” and I have others on taxes, investing, budgeting, and starting grad school on the right financial foot. If you’d like to (figure out how to) bring me to your university for a seminar or workshop, please email me at emily at PFforPhDs.com.

In addition to speaking, I’ve added other aspects of my business, ebooks and online courses. I have two new initiatives launching later this year, an investing webinar series and a membership community.