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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

  • Tax Center for PhDs-in-Training 
  • Volunteer as a Guest for the Podcast
  • Gradblogger Connect 
  • How Much Tax will I owe on My Fellowship Stipend or Salary?
  • Quarterly Estimated Tax Workshop

postbac savings rate

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

Using Data to Improve the Postdoc Experience (Including Salary and Benefits)

February 11, 2019 by Jewel Lipps

In this episode, Emily interview Dr. Gary McDowell, the executive director of Future of Research. Future of Research is an advocacy organization that uses data to empower early-career researchers. Gary outlines the ongoing work at Future of Research before diving into the details of their recently published study on postdoc salaries. Emily and Gary discuss the complexities around categorizing and counting postdocs as well as the interesting results from the data Future of Research acquired by Freedom of Information Act requests. Current postdocs can contribute to this ongoing project by submitting their salary and benefits data to the Postdoc Salaries database.

Links mentioned in episode

  • Tax Center for PhDs-in-Training
  • Volunteer as a Guest for the Podcast
  • Future of Research
  • Paper: Assessing the landscape of US postdoctoral salaries
  • Nature News “Pay for US postdocs varies wildly by institution” 
  • PostdocSalaries.com
  • PhDStipends.com

postdoc salaries

Teaser

Gary (00:00): We actually found that the median salary for all postdocs across the US, regardless of field, was actually pegged to the minimum National Institutes of Health National Research Service award stipend.

Introduction

Emily (00:18): Welcome to the Personal Finance for PhDs podcast, a higher Education in personal finance. I’m your host, Emily Roberts. This is season two, episode three, and today my guest is Dr. Gary McDowell, the Executive Director of Future of Research, an advocacy organization that uses data to empower early career researchers. Gary shares results from future research’s, recently published study on postdoc salary data gathered through FOIA requests. We also discuss how prospective postdocs can properly evaluate and negotiate their postdoc job offers. Current postdocs can contribute to this ongoing project by entering their salary and benefits data to the database at postdocsalaries.com. Without further ado, here’s my interview with Gary McDowell. Today on the podcast I have Gary McDowell from Future of Research, and we are going to be discussing postdoc salaries. Uh, they have just wrapped up or well wrapped up a milestone in an ongoing project, and we’ll be discussing that. So, Gary, please, you know, tell us a bit more about yourself and about future of research.

Will You Please Introduce Yourself Further?

Gary (01:25): Sure. Um, so I, uh, I’m from Northern Ireland Originally, I grew up in Northern Ireland, in Scotland. I did all of my, um, undergraduate and postgraduate study in the UK, um, and then moved over to the US to become a postdoc, um, first at Boston Children’s and then at Tufts University, uh, both in the Boston area. Um, and it was while I was there that I started getting more in interest in the, um, the scientific system itself, um, and how we are training people, how we are, um, you know, setting scientists up for success and producing scientists and not just science. So, um, obviously at that time I was also experiencing a lot of the frustrations that people find with the, the hyper competition that there is in this system. Um, and so, um, moved on afterwards. Uh, I’m now the executive director of this nonprofit future of research, uh, and we’re trying to, uh, champion, engage and empower early career researchers with evidence to help them change the, uh, research system and the enterprise that they’re experiencing, uh, and make improvements.

Emily (02:36): Yeah, I love this. It obviously dovetails really well with what I do. Uh, you guys have a broader focus. Mm. Um, I’m more narrow about just really getting people dialed in and helping them with their finances. Um, kind of throughout, you know, uh, pre-graduate school, during graduate school, post-graduate school. Um, so I love that we have sort of complimentary pursuits here. And we’ll of course be talking about that specifically with, with respect to salary in a moment. But can you, um, give me kind of a little bit more of an overview about, you know, what’s your team at future of research? What have you guys been up to, generally all the different areas that you work in?

Future of Research Nonprofit

Gary (03:09): Sure. So, yeah, we’re, uh, an organization, um, at the moment there’s just me as staff, and we have a board of about 20 early career researchers. Um, so we ended up forming this nonprofit. Originally we’d had a, a conference to bring early career researchers together and discuss some of the issues with, uh, the system and with hyper competition, um, that there is particularly in biomedicine. Uh, and from that conference and then a bunch of conferences around the country, we quickly realized there was this, this need for this, um, this group to be, you know, trying to have these conversations. Um, and in particular, you know, trying to give data and evidence to early career researchers to help ’em make better choices, but also to educate in some sense the rest of the scientific community about the realities that our generation is currently experiencing. So, you know, we have this board, um, um, and volunteers who are actively working on a bunch of projects and issues that, that come up and that we’re experiencing. Um, we have two major projects, which I think are, are, have both come out of local meetings that we held in the last couple of years which are really very, um, you know, we, we wanna try and have specific projects that we’re setting up and establishing, um, having looked at a, a need, uh, around in the community. So those projects, one of them we’re calling who’s on board, and that’s trying to get, uh, more early career folks into leadership positions. So we’re gonna start trying with scientific societies and trying to get more people onto the voting council positions at the top of the, the organization. Um, you know, and trying to bring in that perspective. Um, also recognizing that a lot of people need leadership training and development and, and so on. And hopefully generating a network of future leaders, um, that, that, uh, organizations across research can tap into. Then the other major project that we’re really pushing at the moment is, uh, focusing around mentoring. Um, I think mentoring is one of the biggest concerns of, um, grads, postdocs, uh, et cetera, you name it, throughout the system right now, junior faculty in particular, one of the first things that, that I am asked by junior faculty is, you know, how do I find out more about mentoring people and managing people because I don’t know how to do it and suddenly I’m expected to. Um, and, you know, this can lead to all sorts of issues with people reaching their full potential. Um, you know, egregious behavior can, can occur and is not really held accountable. So we’re, we’re pushing a big summit next June in Chicago to bring people working in this space, this, um, and doing research on mentoring together and trying to figure out what we can do to take grassroots action to really make sure institutions are putting mentoring right at the center of what they’re interested in. Um,

Emily (05:57): Yeah, sounds amazing. Um, especially, particularly the latter project, I think. Um, yeah, please keep going. Or any other major efforts there.

Gary (06:07): Yeah, so we, then we have, so those are things that we’ve sort of set up, um, deliberately, and then there’s things that we’ve sort of responded to and we try to be responsive to, you know, needs that arise. So one of those projects is sort of related to the who’s on board thing. Um, and it’s to do with peer review. Uh, and in particular, we’re trying to address this phenomenon of grad students and postdocs, essentially ghost writing a peer review report that is then submitted under somebody else’s name to a journal. Um, and you know, this, this is not only a problem, it’s sort of scholarly recognition. Um, but it, you know, at the same time we’re hearing that there’s not enough reviewers, um, and journals are sort of crying out for more reviewers and this lack of transparency about who’s actually doing the review and getting the names of particularly, you know, grads and postdocs who journals may want to review again in the future. Um, those sort of barriers of not putting those names across, um, and of not recognizing that scholarly work, uh, and, and who, who did it, um, is a thing that we’re pushing, uh, both with journals, but also, uh, we did a survey asking people about their experiences with this. And one of the big things coming up is that, of course, principal investigators have not been trained in peer review either generally. And so a lot of these practices are to do with just a lot of, uh, assumptions and, um, um, you know, a lack of clarity that there should be a different practice that you should be giving these names. So it’s really, that’s been really interesting to work on and sort of was in response to a survey done by, um, junior folks at eLife in the last year. So, so we’ve been following that. And then the other one, which, which we can talk more about now, is the, the salary project. Um, that really started just as we had formed the nonprofit. It was when there was a change to federal labor law being proposed, um, and the long, and the short of it was that this was going to affect postdocs and it was going to raise their salaries, um, or institutions were going to have to essentially have postdocs clocking in and out and, uh, tracking their time, which is not really very realistic. So, so there was this push to raise salaries, and we, we were following what institutions were doing, uh, to accommodate that change. And that then led us to asking, well, what are the actual salaries that people have and led into the, the, the work that we’ve, we’ve done here.

Emily (08:29): Yeah, I would love to talk about that a little bit more in depth now. Um, when I was, you guys just came out with a, a paper recently, right? What’s the title of that and where can people find it?

Gary (08:39): Sure. So the title is Assessing the Landscape of US Postdoctoral Salaries. Um, it’s open access, it’s in the studies in graduate and postdoctoral education, um, and, uh, which is part of the Emerald Insight Publishing Group. Uh, yeah,

What is a Postdoc?

Emily (08:56): Yeah. So my <laugh>, my question is, I was very interested in this, uh, section of the paper where you talked about the different titles that postdocs might have and how that affects what salaries they have. And it just led me to the question of what is a postdoc?

Gary (09:09): Yeah.

Emily (09:10): Actually, like, can we start there? What’s a postdoc?

Gary (09:12): Yeah. So yes, a postdoc is, so I can give you, I can start with what I think a postdoc should be, and we can maybe work from there. My, you know, when you’re, you’re going through the academic track, um, there’s, you know, you go through your undergraduate phase, then you go to graduate school, you get your PhD, uh, that’s the point at which in my opinion, you should be learning how to do science, how to carry out research, how to, you know, do experiments, uh, how to analyze them, how to learn the nuts and bolts of being a scientist. Um, then what has become the default over time is that in order to become a professor after getting your PhD, there’s an intermediate step known as the postdoc or carrying out post-doctoral research, um, post obviously being, after getting your doctorate. And, um, in my opinion, this is a period in which you should be thinking about your own research goals and how to take those forward and learning under the mentorship, uh, slash apprenticeship of an investigator who already, you know, is doing this, learning how to manage a group, learning how to mentor people, learning how to manage budgets, how to write grants, how to, you know, ensure that your research project can succeed and that you can lead a team. Um, but the postdoc more likely is in reality is, um, a period of further research. Um, usually someone will move on to do a, another project. It’s quite common to change field and get experience by doing a postdoc there. Um, but in reality, what people are doing is trying to get, uh, a number of papers trying to demonstrate that they can succeed in perhaps a different lab to where they did their PhD, um, and, um, sort of accrue credentials in order to get a faculty position to then start as a, as a professor.

Emily (11:09): And I, what I was curious about, because your understanding and my understanding are very, um, similar to one another, I was also coming outta sort of the biomedical world, so that kind of makes sense. But, um, I think in your paper you had something like 11 different common titles under which postdocs can be hired. And so I was just wondering if there’s part of the issue, uh, a discrepancy between how the, the employers or universities or workplaces or mentors see postdocs and how postdocs see themselves.

Gary (11:37): Yeah.

How Was the Idea for a Project to Assess Postdoc Salaries Formed?

Emily (11:38): Um, and we can get into this a little bit more, but one of, I think the main motivations behind your project was, um, just kind of trying to figure out what level of awareness universities, et cetera, have about their own, their own postdocs, whether they’re employees or not. So let, let’s take it back there a little bit bit. So like, you’re, you’re coming up with this idea. Okay. How, how was this idea formed for the project? What exactly were you asking?

Gary (12:00): Yeah, so you’re, you’re totally right, because we were coming from this perspective, I think this is particularly why we took the route that we did. Um, when we were looking at the policies that were being updated in response to this labor law, we started to ask ourselves the question, well, these are policies at an institution that doesn’t tell us necessarily what people are actually getting paid. And it requires adherence to a policy, uh, and that someone essentially is checking up that the policy is being followed. Now, we already, we have a, a preprint, um, paper, um, that we’ve done with, uh, rescuing biomedical research, another nonprofit in this space, um, looking at the National Science Foundation’s data on the number of postdocs. And, um, this was in reaction to a paper that claimed that the number of postdocs was in decline, because that apparently seemed to be reflected in the NSF data. Um, and we dug into that data a little, and we first questioned whether there was actually a decline or whether there was actually a bubble of people postdocing for longer after the recession in 2008. But one of the things we found was that institutions were doing a pretty terrible job of reporting year to year how many postdocs they had. And so, while we were very receptive to, you know, institutions telling us, oh, well, we’re raising our salaries, like this is going to be our new policy. Um, if you don’t know who your postdocs are to begin with, we were curious as to whether people would be falling through the cracks and whether you would actually know who your postdocs are, and, um, whether they’re getting the salaries that they’re supposed to be getting, uh, whether, whether the policies were actually reflected in reality, or whether an institution could say, you know, we recommend all our postdocs get this salary, and then there’s no follow up or, or action on that. So that was a big part of that. Right. And, and knowing as you say that there is this great breadth of, um, assumptions about what the postdoc is, um, you know, there is this constant argument of whether they are employees or whether they are trainees. Um, you know, sadly it seems that they’re employees whenever it suits in keeping them out of training or outta things that you need to do for students. But they’re also trainees when it suits in terms of giving them lower salaries and not giving them benefits.

What Position Counts as an Employee or Not an Employee?

Emily (14:16): I was just going to ask about that. Actually. This is one of, this is just a question that I’m constantly asking about whether people are employees w receiving W twos. Or not employees. And I would think that categorizing people as not employees would be an easy way to get around the, uh, you know, the pol- the, it’s a fair labor of Standards act, right? The FLSA, right?

Gary (14:38): Yeah. So yeah, the, the interesting thing about that, and a lot of institutions did in the beginning try to claim that they’re, because also it’s complicated by where the money comes from for the postdoc. So most postdocs are paid directly off a research project grant, um, as quote unquote staff on the grant. But a lot of postdocs are also on fellowships of various kinds from a whole multitude of different organizations and people on fellowships, uh, especially if they are per paid directly and not paid through the institution, they’re most usually referred to as trainees. Um, they often get the, the worst situation of losing their benefits often when they get on a fellowship, um, after moving off a, uh, another mechanism, um, because the institution says you’re no longer an employee, therefore you no longer have to provide benefits. And this came up a lot with the, the, the Labor Act, um, updates. And what was really interesting was the Department of Labor, um, the specification of like, who is a, who is an employee or not, doesn’t come down to who pays you. It’s the nature of the work that you’re doing. And one of the most interesting things that came up was this, this pushback that occurred of you can’t just claim that your fellows are not, that they are exempt from this law. They actually are not. And indeed, the Department of Labor told that to the National Institutes of Health, that’s why they raised their fellowship stipends, um, because they were told these people are not exempt. They are explicitly, they ended up explicitly being, uh, part of the target of those trying to make the change. Um, so yeah. So the, even within those definitions, part of them are just institutional. The institution will just argue that they have that definition, but it actually sometimes doesn’t even stand up under, under law. So it’s, it’s been an interesting part of this.

Emily (16:24): Yeah, that is very interesting. And it is so important, um, I think for people who are looking to take a new position, whether it’s as a graduate student or as a postdoc or, or what have you, um, to know going into it, how you are viewed by the institution. Employee, not employee trainee, not a, not trainee, um, just because yeah, your, your benefits or whatever might, um, change depending on the, the status that you have. Um, they could be taken away from you if something changes at the university level. Um, so just kind of go into whatever situation you have with eyes wide open.

What Did You Do for the Postdoc Salaries Project?

Emily (16:57): Yeah. So let’s get back to the, to the salary project. Um, so you were curious about, you know, whether policies were actually being applied at, at the institution. So, so what did the actually project end up being? What did you do for it?

Gary (17:10): Sure. So, so we wanted to get these salaries, and this is data that is not, you know, easy to find, uh, that is out there. And so we ended up with this rather blunt, somewhat aggressive, but also, um, easy and also standard methodology, which was to carry out freedom of information requests at public institutions. So what we would do is contact the freedom of information, uh, office or the public records office at the, at a public institution. They’re legally required to give out data like this. And we would ask for, um, in this case, we asked for the simply the title and the salary of everyone who was a postdoc. Um, we wanted to keep it as, as easy as possible. And that was on, we were asking for salaries on the date of December 1st, 2016, which was when this labor law was due to come into effect, uh, when, when changes were, were likely to happen, the institutions had been preparing for at the time. Um, and so, yeah. And so we asked, basically asked for, for this data. Now the, the reason it’s a bit aggressive is that it ends up, um, basically forcing the institution to give data in a, you know, we weren’t asking institutions, we weren’t going to the sort of postdoc offices or to various administrators and asking them to give us the data. Um, but that actually worked out as a really interesting part of this project as an internal metric of whether a university’s administration knows what postdocs are. So I would find some institutions were able to provide the data with no problem, and other institutions, I would be contacted back and asked, you know, what is a postdoc? Can you explain what this is? You know, I would have to look up titles sometimes at the institution to find out what the relevant titles were that we wanted. Um, and, um, you know, we were sort of cross-checking the number of salaries we’re getting with the number that NSF thought, um, that they had. Which, again, those numbers should be reported by people who know better what postdocs are to the NSF. And so we’re, you know, providing all these like controls and looking at seeing how good is the data that we’re getting, um, you know, on top of just getting the numbers, what standard is it at? What are we getting back? And that was actually a really interesting aspect of, of what we were receiving as well.

Commercial

Emily (19:32): Do you know what’s even scarier than an upcoming committee meeting the prospect of preparing your tax return? But it doesn’t have to be that way. I’ve created a variety of free and paid resources to help you get through tax season with as little pain as possible. These resources are specifically for grad students and fellowship recipients, post back through postdoc, check them out at pfforphds.com/tax.

Analysis and Findings from the From the Postdoc Salaries Project

Emily (20:03): So once you were able to get, you know, some data, uh, coming back from these public institutions, uh, what what did you do with that? What was, what was your analysis like?

Gary (20:14): Sure. So we had, uh, a data scientist on our team, um, who went through and tried to analyze, basically, you know, we’re, we’re sort of looking at the, the, the distributions of salaries. Um, and, you know, we wanted to break things out by geographic region, um, by, uh, gender, um, and, um, possibly other demographics. We have a little try at that. And also by the, the title, whether what variables there were that were affecting the salaries, um, and what we, you know, what were we seeing overall as the, again, you know, to a big part of this was just assessing the landscape, just figuring out what postdoc salaries looked like and giving us a sense, uh, giving us a bar to work from, uh, in terms of, of efforts going forward.

Emily (21:03): And so, was there anything, uh, well, what were sort of the broad, I guess, conclusions, was it just like, okay, here’s ranges of salaries and, uh, here’s the breakdown of these different groups. Like what were some of those conclusions? And then also was there anything that came out of that that was actually surprising to you?

Gary (21:18): Yeah, so, um, so yeah, we sort of got broad distributions of where salaries were. And we actually, um, before the, the paper was done when we’d actually done the, uh, initial data gathering, we had it write up, um, uh, in nature about this, um, I think it was titled Postdoc salaries very wildly from institution to institution. Um, and they did a very nice demographic of where all the salaries lay, and most people were in the forties, thousands of dollars, um, you know, between 40 and and 49,999, um, which made sense. Um, we actually find that 22% of all of our data was in a $25 range around the new, uh, NIH minimum stipend, uh, which was very close to what the proposed salary threshold had been under the, the federal labor law change. So we found that that really had a, a very striking effect. Um, and in fact, one of the things that was most interesting and I think, um, is useful for us in, in doing policy work going forward, we’re interested in finding out what is, what are the levers that we need to pull in order to raise postdoc salaries? And we actually found that the median salary for all postdocs across the us, regardless of field, was actually pegged to the minimum, uh, national Institutes of Health, um, national Research Service award stipend. So these are the, the numbers that NIH uses for things like F awards and T awards that postdocs are paid off. Um, these are the only people who have to actually be paid according to this stipend. Um, but a lot of institutions just peg their salary scale to the NIH, and in particular, they may not use the scale year to year. They may not have increases per year, but they certainly will peg the minimum salary, must be the NIH’S level. And so we actually find that the most effective policy lever for raising postdoc salaries in the US would be to get the NIH to raise their, um, the, the NRSA award stipends. And that’s obviously something we’ve been pushing. 

Emily (23:28): I’m, I’m so glad you brought that up. Um, I remember, so several years ago, I, I did a fellowship at the, um, the National Academies, and I remember reading their, uh, postdoctoral report. The postdoctoral experience revisited, I think was the recent report on it. And seeing that and seeing that discussion about how important the NIH minimum salary, uh, recommendation was, how so many universities were going off of it, which is really just so surprising because again, it’s one, it’s a recommendation. And except for their own internal stuff like it, you know, that’s required. But for everyone else, it’s just a recommendation. And two, it’s a minimum. And it’s not at all taking into account like different cost of living, you know, areas. Like is it, like, is that minimum supposed to be for Bethesda, or is it supposed to be national? I’m not even sure about that. But, um, yeah, anyway, just the fact that they were going off of this as if it were absolute truth and no, it was only ever a minimum and only ever a recommendation. And I’m so glad that you brought that up. And I believe I read that within the last, we’re recording this in December, 2018. I think within the last week or so, NIH actually has raised, um, their, their recommended minimum salary, right?

Gary (24:35): They have, yeah. They have done, they, they did a big raise. We actually plotted this out in a, in the first figure in the paper of raises over time. And, um, you know, the, most of the raises, um, to the current towards the current level happened during the NIH doubling around the turn of the century. Uh, and then the, the Fair Labor Standards Act was actually another major push. Um, you know, the NIH had been pushed along, uh, a couple of times by various reports. Um, I think the, the, the last one previous to the FLSA was the 2012 Biomedical Working Group report. And so there’s been these little pushes and since the FLSA, they’ve pushed up a lot at that point, and then they have consistently continued to push quite high. Um, I think this year was a 2% increase, so that now the minimum is at $50,000, uh, which has been recommended for, for quite some time now.

Emily (25:30): Yeah. So they finally reached another milestone there of getting into the the fifties range <laugh>.

Gary (25:34): Yeah, exactly. So, um, yeah. And then, you know, this has actually been useful as a real policy example. You know, I and, uh, the president of Future of Research, Jessica Polka, were both on the National Academy study, uh, for the next generation researchers initiatives, which NIH is releasing its recommendations on, uh, in a, in a few weeks. And, um, one of the things we were able to push having this data was, well, we know the NIH number is a very important number. And so the recommendation, I think in the upcoming outta that report was NIH needed to raise its number, but also institutions should take that number and then adjust for cost of living and for years experience. So sort of both, both groups needed to be both sets of stakeholders needed to be, to be, uh, yeah. Working on that.

Emily (26:20): Yeah, absolutely. Um, so any other interesting findings from the paper?

Gary (26:25): Yeah. Um, I think one of the things I was surprised with, uh, most was how many salaries there were in the fifties thousand, uh, of dollars. Um, and it was interesting, you know, we did a little bit of, uh, breaking down by, um, by field as far as we could. Um, we had only requested the title and, um, salary of the postdocs to, you know, to have this basic, uh, uh, request, um, and as reasonable requests that hopefully institutions wouldn’t refuse as possible. But half of those institutions ended up giving us also names and department, uh, information so we could work out field for a large subset. Um, and we find that there was no real field dependence on the salaries. Um, you know, I think a lot of people assume that, oh, the humanities will be all the salaries in the low range and the, you know, the higher ones will be computer science, and certainly towards the higher end, you do see some of that. But, you know, there’s no, the humanities are not lower on average than anyone else, to be honest. You’d be surprised how often biomedical en- engineering is, uh, in the low salary range. Um, and, um, yeah, so I think that was one of our surprises, and a lot of this anecdotally seems to be, um, you know, when I go and talk around the country about salaries, um, and make a, a big push for people to be talking about salaries, uh, I hear a lot of who negotiates. Um, a lot of postdocs are negotiating salaries a lot more than I think people know. And so there’s this whole, I think there’s this disparity in who’s asking and who’s not asking. And you know, frankly, that we’re not even supposed to be talking about money to talk about money in academia, as I’m sure you’re, you’re often facing as well in your work to talk about this is already to, to cast out on whether you deserve to be there, because if you’re looking for money, you shouldn’t be in academia sort of thing. Right. So, so that’s been an interesting thing to push as well.

Emily (28:22): Yeah. And I think that leads well into, um, the project that we first met over. Um, you first approached me about, so to give a little backstory for the listener, um, in 2014, I think my husband and I created a website called, uh, PhDstipends.com and it’s just a really simple database where people can enter what their stipends or salaries or fellowships or whatever, uh, your, your university is calling it, uh, basically how much you’re being paid, um, and then kind of whatever other details you would like to add. Um, and it’s just a very simple database, but it’s got, I think there’s over 4,000 entries in it now, and it’s, it’s getting pretty robust. Um, and so anyway, it’s a great place to go to just kind of compare maybe for prospective graduate students offers that they’re getting, um, to see if they’re reasonable, see what other people at that university are being paid, see what, you know, other people in their field are earning at different universities. So that’s kind of that purpose. And then forever, we had the idea that we should do the same thing for postdocs, but we never did it until you and I entered into conversation. And, um, if I remember correctly, the motivation for wanting something like what we eventually created, which is postdocsalaries.com, um, was to figure out if, again, these, well, sort of what you’re saying, if the policies are actually being played out at the individual level for postdoc. So, um, if even the data that was being reported to you was the same as what was perceived to be, you know, the salary by the postdoc, um, him or herself, and then also, you know, the FOIA requests were only given to public institutions. And so you’re completely missing everybody who’s at a private institution. So that was a big question mark there. Um, so yeah, so anything else from your perspective to add about sort of why we started that aspect of the project?

Gary (30:01): Yeah, I mean, as you say, you know, for example, I have no data from Boston <laugh>, um, in the, the postdoc salary paper here because there’s no public institutions essentially there that we FOIA’d or that you can FOIA. So that’s obviously, you know, that’s an example of missing out a, a huge chunk of the population. Um, and, you know, then you’re asking the question, well, this is all for public institutions. Do we think the private institutions might be paying more or less or, or what have you? So again, getting people to self-report, um, you know, the quality of the data that we got for this paper, um, we had a lot of pre-processing, first of all, because, um, frankly, the data that we got, what we asked for was annualized salaries. What we often got was what had been through payroll, and again, with the example of people on fellowships, uh, if they were being paid directly, um, sometimes we would get these salaries back that were zero or a few thousand dollars. Um, and you know, the, the absolute legal minimum under federal labor law is 23,660. Um, and so we, we give institutions the benefit of the doubt and said, well, let’s cut off all the salaries, be below this certain level. That’s not to say all the ones above it or exactly what is being paid, but there was this element of nuance to the numbers we were getting and whether that would affect overall our data. So with the self-reporting, um, it’s nice to not only get private places, but also to get a sense of whether what people are reporting, um, matches up with what the institution is reporting. We, we knew for one institution, university of Washington, um, they had actually sent us excellent salary data. Um, and, uh, I was contacted over social media by someone on a fellowship there who said, oh, you know, you’ve been talking a little bit about how fellows are gonna be lower. Um, you know, I, I’m betting that my salary in Washington will look lower than it is. And I was like, well, all the Washington salaries look, you know, very, they’re all above NIH and they all seem like pretty good. So I just sent that person what their salary was in my data, and they said, oh, that’s exactly what I’m seeing. So it was even, it was really great to see that positive story of an institution that was, you know, giving us like, the data exactly that we wanted <laugh>. Um, so, and seeing that match up. Um, but yeah, I think it’s, it’s fun to, to have the, the, the effort online for people to self-report because it gives you, you know, we are obviously putting out salaries and we’ve repeated our data collection effort again for 2017 and 2018. And so we’re starting to gather that data now and we can keep putting that data out there. But I think it’s very useful also for, for this sort of self-reporting tool for people to go in and look and see what people are doing. And it also gives the opportunity for people to comment on issues that have come up. ’cause we also have benefits in there. Benefits is just a whole minefield with postdocs, even within the same institution. There can be all sorts of different benefits categories for all sorts of different titles of postdocs. So people self-reporting what they’re getting, and also just having a free form space in which to comment on things they experienced has been really interesting to look at. Um, and that sort of sharing of information, which is really what we’re very passionate about, that people are making informed choices and able to act on those.

Emily (33:17): I think that’s where we have such good overlap between, between you and I in terms of our missions and, and I am like all about more transparency around money in general, but salary, I mean, that’s a really difficult area, but we need more transparency around that too. So I agree. It’s so interesting to look into the database. Um, again, postdocsalaries.com, go there, enter your salaries, enter your benefit information. What I love seeing again is, uh, fellowship versus employee kind of stuff. That’s so interesting. And again, what the titles are. And, uh, we do have a section there for demographics as well, so that you guys, that that data is not, uh, publicly visible, but you guys are able to do that analysis on it to continue the questions of who’s being paid what and why. Um, and then my other favorite kind of section about this is regarding negotiating, which you brought up earlier. Um, the last time I looked, which wasn’t, it was maybe a couple months ago, about 25% of the people who had entered, you know, their information into postdocsalaries.com had negotiated something or is had attempted to. Uh, which was kind of a higher proportion that I was thinking, but it’s very encouraging. And so any, I would say any person who’s looking at taking a postdoc position should at least attempt to negotiate. It might not be successful, but, uh, you know, that’s what you would do for any normal job. And absolutely, this is, you are at a high level of training already. Uh, many of us consider it to be a job, whether it’s that officially or not. And so I think it’s a good encouragement just to see other people’s examples, just to know that other people are negotiating and you know, you can do it too. 

Gary (34:46): I think that has been one of the biggest surprises. And then, you know, it’s one of those things that when I knew that a lot of people must have been negotiating because the salaries were there, were salaries higher than what I was expecting. And then starting to talk about that with people. Yeah. 25% now, I actually think sounds about right. Like it’s, it sounds high, but it also is, I think reflects the, the, the data broadly. Um, and my favorite thing in talking about this too, because whenever I give a talk in an institution, I just love to bring up money and talk about money and usually under the, the auspices of, we’re not supposed to talk about this, so I’m not gonna talk about salary and like, what you should do about it. Um, and as you know, speaking to graduate students in particular, um, this should be one of the questions that you ask your prospective pi, and I am, you know, the not only to to get more money, which I think people deserve, but also frankly, how that question is answered will tell you a lot. I think about whether you want to work with that person, because someone who says no can give very different reasons and can be a person that you may, may or may not want to work for. For example, if someone says, I would really love to pay you more, you know, I only have so much of a certain grant, you know, we can look into applying for fellowships and I can give you some more money on top as a reward, which is a thing that also happens quite often. Um, you know, because essentially you’re saving me a salary so I can give you some money out of a, you know, another budget or something for, for that. Uh, as a, as a thank you, uh, versus someone who says, oh, why would I pay you more? Right? Like, why, why should I give you a higher salary? This isn’t about the money. Like, I think if a person tells you that you should really reflect on whether you wanna work for that person, because that could reflect other attitudes that they have about you and your role and your importance and so on. And, and whether you are a warm body in the lab versus someone that they really wanna see succeed and, and encourage. So I think that’s, it’s all part of gathering information and being, you know, making an informed choice, um, and realizing also that you are a bargain, uh, to these people and that, you know, you really should be pushing. If they want someone good, it’s good to try and push a little and see, see whether they’re, they’re willing to budge on some of these things.

Action Steps That Postdocs Can Take Today to Improve Their Salaries, Benefits, or Working Conditions

Emily (37:02): I love it. I love it so much. <laugh>. Um, let’s, let’s zoom back out a tiny bit. So, what can a person who is a postdoc today or expects to be a postdoc in the near future, um, what can they do, what can they get involved in that will help them improve either their salary or their benefits or working conditions or anything like that? What’s some action steps that postdocs can take today?

Gary (37:24): Sure. So, um, always having data to hand is such a useful thing. So both for the individual, but also for groups who are trying to advocate. You know, we hope that the data like this gives a, um, gives a somewhat of a mandate to say, Hey, you know, here are salaries that people are getting, um, that, that are, you know, are in my field or at this institution or what have you, and, you know, or this is what your policy says and this is what you should be doing. Really trying to go in with, with that, particularly on the personal level is good. Um, we found that, um, what was a nice example was that when we were comparing various institutions publicly, we found that there were administrators at institutions who were trying to push for raises who had faced opposition. Um, suddenly we’re able to say, well, we’re being compared with everyone else on this list and we don’t look very good compared to our, our aspirational peers or our, you know, whoever they’re comparing themselves to. And if we wanna be competitive for postdocs, um, that, you know, that then they were having success with that. So for groups who are looking to push for change at an institution, um, you know, there’s a number of lines of evidence. Um, we have, uh, various resources at our, our website on postdoc salaries that we hope are useful for people trying to push for those change at institutions. Again, comparing with the peers is always a useful one. Um, also pointing out the recommendations that there are, I think our most recent recommendation is that the salary should be at least 50,000 then has cost of living adjusted locally, then also has years of experience. Um, and, uh, yeah, that, that these are the recommendations that are out there, that this is what institutions should be doing. Um, you know, we see varying success with this, uh, at various institutions. It depends who’s there to be honest, and, and whether they feel they are concerned about this or not. Um, I would definitely recommend to institutions who are in the Midwest, um, or who are at places where there’s a, um, you know, there’s some institutions you go and they’re like, oh, we really struggle to get quote unquote good postdocs. Um, not quite sure exactly what that means. I think it’s a little bit of, you know, we are not in Boston, so we struggle to get all the people who just apply to Boston. But that’s a good point of, you know, if you’re in institution that shows that you can pay more and live somewhere in the Midwest, which has a lower cost of living, you actually may attract more people at this time when, you know, people are struggling to be able to afford to stay in academia, to be perfectly honest. So, so I think these are all good buttons to, to try to push. Um, and now that we have this data here as a baseline to start working with, working with, um, hopefully that’s, that’s a useful thing to, to use as evidence.

Emily (40:13): Yeah, absolutely. And the, the listeners can participate in this by again, going to postdocsalaries.com and entering their information and telling your colleagues and your friends about it too, and just continue to spread it. I think as of this recording, we have about 1200, um, entries, which is decent, but like, let’s keep it growing. Absolutely. Um, and you guys will keep going on the public institution side of that effort. So I would say particularly if you’re at a private institution, it’s even more important to get out this self-reporting, uh, mechanism because there’s not another good way to get at the data, at least that we know of right now. So, yeah. Gary, thank you so, so much for, for joining me today and I look forward to, you know, continuing to work together on this.

Gary (40:54): Yeah, for sure.

Conclusion

Emily (40:56): Gary, I’m so glad you joined me on the podcast today for this important conversation. Show notes for this episode are at pfforphds.com/S2E3. If you wanna get in touch with me, you can email me at [email protected] or find me on Twitter @pfforPhDs or Facebook Personal Finance for PhDs. If you’d like to receive updates on new podcast episodes and other content, go to pfforphds.com/subscribe. See you in the next episode. The music is Stages of Awakening by Poddington Bear from the free Music Archive and is shared under CC by NC Podcast. Editing and show notes creation by Jewel Lipps.

Negotiating PhD Funding Offers: This Grad Student Did It Successfully

January 28, 2019 by Jewel Lipps

In this episode, Emily interviews John Vsetecka, a second-year PhD student in History at Michigan State University. When John was a prospective PhD student, he attempted to negotiate the stipend and benefits of the three admissions offers he was seriously considering. John shares exactly how he initiated the negotiation process and the outcomes at each of the universities. His negotiation method is well-researched and well-considered and is applicable to many if not most other prospective graduate students. John and Emily also discuss how prospective PhD students should combat imposter syndrome during the admissions process.

Links mentioned in episode

  • Tax Center for PhDs-in-Training
  • Volunteer as a Guest for the Podcast
  • PhDStipends.com
  • GradCafe 
negotiating PhD offer

0:00 Introduction

1:05 Please Introduce Yourself

John Vsetecka is a second-year PhD student in the Department of History at Michigan State University. He studies modern Ukrainian history, with a focus on the 1932-1933 famine. Before beginning his PhD program, he worked as a GEAR UP advisor. This is a federal grant agency that works with low income students, called Gaining Early Awareness and Readiness for Undergraduate Programs. He worked in Colorado to help middle school and high school, low income students prepare for college. Before this job, he got a Master of Arts in History in 2014 at the University of Northern Colorado.

2:55 What PhD offers and interview requests did you receive from universities?

When John applied to PhD programs, he applied to eight schools and faced some rejections. He considered four offers, then narrowed his list to three. The first offer he eliminated would have required that he start with MA and work into PhD. Since he already had an MA, he felt he was ready to move on. He seriously considered three offers. He accepted the offer from Michigan State University, where he is now. He visited “University 2” in person for an interview. He had a virtual interview with “University 3.”

4:21 What did you think about the offers from these three universities?

John wasn’t sure what a fair offer was for a PhD position in History. Generally, PhD students are shy about sharing their financial experiences. So he did research and his mentor from the University of Northern Colorado guided him in this process. He talked to other PhD students, who would say they had enough to live on or that they were struggling. He used the websites GradCafe and PhD Stipends. He got a sense of what people were being paid, including their health insurance and fees. From all of this information, he decided two offers were fair and worth considering.

Emily shares an important piece of advice for prospective PhD students is to do your research. Anonymous databases, like PhD Stipends, provide more transparency around these offers. But you should talk to current graduate students, because it’s one thing to look at the numbers, and another thing to get a feel for how it is to live on that amount.

Further Reading: How to Read Your PhD Program Offer Letter

7:54 How did you initiate the negotiation process for your PhD stipend offers?

John negotiated his stipend offers during his interviews. He went to visit two universities in person for interviews, and had a virtual interview a University 3. His first interview was at University 2. During the visit, they have an itinerary and fully scheduled day. The experience is like a whirlwind. He prepared a set of questions for faculty members and set of questions for Graduate Director. With the Graduate Director, he talked about the PhD program as a whole to get their insight. Then he directly asked the Graduate Director if there is any other money available, such as other fellowships, and explained that he has other offers with higher financial value. The Graduate Director is the one that can control the money. The faculty can only put in good word on a student’s behalf. So as a prospective PhD student, you should know who you can talk to and know who you can negotiate with. You don’t need to be afraid to ask tough questions about financial aid.

The PhD program interview was a good time to negotiate PhD stipend offers. John waited until he received all offers to see where he stood across the field, and this gave him some leverage. Negotiating like this is is what people do with any other job. John told the Graduate Director that he had other offers, but he didn’t show them the letters themselves. Negotiating before receiving all other offers and before the interview can seem desperate. But if he negotiated after the visit, it might seem like that offer wasn’t his first choice and he was only negotiating after losing another offer. John also believes that talking in person is the best type of communication. Negotiating in person puts them on the spot.

During his interview visit for University 2, John asked the Graduate Director about the potential for a better financial package. The Graduate Director told John that they would get back to him a couple hours. Later that day, John received an email with a offer for a fellowship package. This showed John that they were willing to work on his behalf. He was surprised by this because he had expected them to negotiate and push back. During the interview visit, the department is most focused on recruitment, so they quickly considered his request and acted on it.

John went into the meeting with a set plan for negotiation. He had a notebook and visibly took notes during the conversation, which indicates that he took the negotiation seriously. Treating graduate school interviews like a professional scenario sets you up for success.

14:35 What new offer did you receive after negotiating?

Because he negotiated with the Graduate Director, John received an offer of a university fellowship instead of a teaching assistantship. The new offer was university-based funding, not department-based funding like his original offer. The university fellowship had different teaching requirements than the department teaching assistantship. It was more money in total, as well as better health care coverage. This showed what kind of control the department and university has over financial awards for PhD students. Even if the university can’t raise stipends, they can cover more fees or provide better benefits.

16:22 What outcomes did you get from negotiating with the other two universities?

John learned that not everyone would negotiate. At Michigan State, he had a generous offer that he was already happy with. Even so, he asked the Director of Graduate Studies at Michigan State about his financial award. The director kindly told him that his original financial award was what the department was willing to offer. John later learned that his department offers different financial packages based on a tiered system, and he was happy with the offer he received.

At University 3, John had a virtual meeting with the department. John brought up that he had offers with much more value than what they had offered him. John says that honestly, he was displeased with University 3’s financial offer. He learned that due to financial constraints at University 3, the department couldn’t offer more money. The department suggested term-to-term options. John didn’t want to be on his toes every semester wondering if he’d get paid. Though University 3 offered paid tuition, the money offered for teaching/research was not enough to even consider.

It’s important for prospective PhD students to recognize that some offers only tell you about the first year, while others present a five-year plan for funding.

19:35 Based on what you experienced, what would you do to negotiate differently?

John says he wouldn’t change much. While he knew negotiation was possible, he personally didn’t know anyone in his cohort group that negotiated their stipend offer. John heard from his advisors and mentors that it’s ok to ask, but you have to know to ask. John says this is one of those hidden things in academia. If prospective graduate students receive multiple offers, this is a chance to use offers against each other.
even if you get one offer, be happy, but if you get more offers you can use them

Emily brings up that often, applicants don’t feel a lot of confidence. They often think, “Who am I to be receiving these offers?” This imposter syndrome deters prospective PhD students from negotiating their stipends and ensuring that they receive the best offer.

22:27 How did you know negotiating your PhD offer would be possible and welcome?

John’s MA program advisor told him how to negotiate PhD stipend offers. First, you have to apply to multiple universities and know their programs well. Second, you need to know who you want to work with. Third, you need to talk with current graduate students. This is the most important advice. If you find their email on department websites, you can email them directly. Fourth, online communities like GradCafe help you connect with people who can help you.

John says that graduate school applicants should treat a PhD position like any other job. John says this profession should not be excluded from the process of negotiation. John’s experience at GEAR UP, where he helped low income students fight for undergraduate school money, showed him that there is a lot of money out there. He says it’s unfortunate so many undergraduates go into a lot of debt, when there are all types of money out there for different skills and talents. John wonders why graduate students can’t have that money too? There are different organizations, based in different fields, but money is out there. He suggests prospective students apply to everything they’re qualified for, but they also ask universities and departments what they can give.

Emily adds that prospective PhD students need to consider cost of living. If you have school A versus school B with higher stipend and in lower cost of living, you can ask the school A’s department what they can do to make the offer comparable.

26:44 Has your negotiation had any lasting impact on your graduate career?

John says the negotiation process doesn’t stop when you receive your final offer. Negotiation is a longer standing issue to think about in the future. At Michigan State, John and his peers negotiate for conference money, travel money, research money for the summer. Some graduate students can’t find money beyond teaching assistantships. Because he considered these benefits in his financial offer, he accepted a position that allows him the time and money to not worry. He has summer funding and he can teach online. For instance, he taught a seven week class online while being in Ukraine for research. He chose a school with an institutional investment. The department is doing well and it is investing in its students. He saw that the department was willing to invest continually in their students. He thinks the investment will continue after he graduates.

29:33 Final Comments

John says prospective graduate students should feel free to reach out to him. He likes to help in any way he can. When you get your offers, the first thing you should do is celebrate, and get a round of applause. After celebrating, look over your financial offer, and look beyond stipend to health insurance and benefits. If you get multiple offers, compare them. Be confident about your acceptance into a program and don’t be afraid to negotiate. Know that you have power in these situations. Even though graduate students often don’t have much power, this is the situation where you do. You have all the power and you should use it while you can.John treated PhD offers like job offers because it’s also a job, in literal and figurative sense.

31:27 Conclusion

Working Hard and Playing Hard as a Grad Student in NYC

November 26, 2018 by Emily

On this episode, Emily interviews Nicholas Giangreco, a bioinformatics graduate student at the Columbia University Medical Center. Nick’s expenses in Manhattan are relatively high – such as spending over 50% of his net income on rent – but his stipend still allows him to spend on his priorities and still save money consistently. Nick lived very frugally while he was paying off his student loans prior to grad school, and now applies his thoughtful budgeting skills to enjoying life in Manhattan without breaking the bank or detracting from his research.

Links mentioned in episode

  • Personal Finance for PhDs Membership Community
  • Volunteer as a Guest for the Podcast

PhD_NYC_playing_hard

0:00 Introduction

1:15 Q1: Please Introduce Yourself

Nick Giangreco is a bioinformatics graduate research assistant at Columbia University Medical Center in New York City. He started his program in August 2016. His post-taxes pay is approximately $1,300 biweekly.

2:58 Q2: What are your five largest expenses each month?

Nick’s top expense categories are rent, health, transportation, and food. His miscellaneous and entertainment expenses are considerably low. He uses a spreadsheet to monitor his spending.

3:38 #1 Expense: Rent

Nick lives in a studio apartment located on-campus and managed by the university. He pays $1,200 for his studio, which is lower than nearby off campus studio apartments that are $1,500 to $1,600 rent. Nick recognizes that he could find housing options near campus for less than $1,200 monthly rent. He mentions his friends who share four bedroom apartments and each pay $600 for their room. Finding a place in New York City is challenging. If you don’t find somewhere on Craig’s List, you may need a broker and to pay the broker fee.

Nick says the majority of graduate students live on-campus. To accommodate the demand for on-campus housing, the university has three tiers of priority consideration for housing applicants. The first priority tier is international students, the second tier is students from outside the New York – New Jersey – Connecticut Tri-State area, and the third tier is students from within the Tri-State area.

According to Nick, living on-campus makes graduate student life easier. Nick has a 15 minute walk to work, and he avoids commuting on the subway. The university gives current residents the first priority to renew leases. Nick plans to renew his lease for his on-campus apartment.

11:38 #2 Expense: Health

Nick spends a few hundred dollars per month for pilates sessions. He sees a personal pilates trainer in the West Village and pays $100 per session. He goes to physical therapy and rehabilitation at the hospital at Columbia. The copay is $20, which adds up since he has an appointment every week.

Nick’s health insurance does not cover his pilates session, but he likes his personal trainer and gets value out of the sessions. He first tried going to pilates classes at the university’s gym for no charge, but he was dissatisfied with the generalized approach of group classes. He wanted something personalized for his needs, so it is his priority to budget for pilates classes.

14:23 #3 Expense: Transportation

Nick estimates that he spends $200 to $300 per month on transportation and travel, or as little as $100 in a month if he doesn’t leave New York City. He puts $20 on his subway card and adds as needed. Additionally, he takes taxis and Ubers to get around Manhattan. Though taking a taxi to the JFK airport can be expensive ($70), the subway takes two hours. He uses Amtrak to go to his hometown, but those tickets add up. He also looks for cheap tickets from Megabus.

18:55 #4 Expense: Food

Nick spends less than $200 per week on food. In his studio apartment, he has a kitchenette which has a stove but no oven. He doesn’t buy groceries that require baking. He buys non-perishables and items that keep well. Some of his go-to items are sweet potatoes, oatmeal, and popcorn. He takes out $20 per week in cash for use at the food trucks, which only accept cash. He buys gyros for $5 and coffee for $1 from the food trucks. He goes to restaurants or diners once or twice a week.

Nick looks for free food from graduate school events. He is part of a Slack group for graduate students in the department, where people share information about free food. He eats food at seminars, lectures when alumni are invited, and club events.

Nick’s kitchenette does change how he approaches his food budget. When he lived in Washington, DC, he lived in a house with a kitchen. He used to batch cook on the weekend and set aside portions of leftovers for the week. He would host friends for meals. In New York City, he doesn’t have room to host anyone and can’t cook very much. He microwaves sweet potatoes and makes rice and beans on the stove. He keeps leftovers from events. He doesn’t plan his food for the whole week, instead he plans by the day. Nick thinks he could plan better, but right now he needs to focus on his PhD work so he needs the convenience.

30:35 Low Entertainment Expenses

Nick says there is a lot to do in New York City. He doesn’t spend much money on entertainment because he does a few cheap activities. He goes to clubs and university events. He sees plays for $10 on the Columbia Medical Center campus. He saw Spongebob the Musical for $30. Though Nick has friends who go out for drinks every day, Nick doesn’t buy much alcohol.

33:30 Q3: What are you currently doing to further your financial goals?

Nick recently paid off all his student loans. Before starting his PhD, Nick lived in DC for two years. He lived a very frugal lifestyle, and took two and a half years to pay off his student loans. Now, Nick is working on his rainy day fund so he can create a financial cushion in his budget. He spends about $2,300 per month of his $2,600 monthly income, so he puts the rest to savings.

Nick keeps a budget in google sheets to log his expenses. He wants to become conscious of his spending habits. He is looking into passive investing approaches and learning about retirement. Columbia Medical Center provides graduate students the option to invest with Vanguard. Though there is no matching offer, he determine an amount to withhold out of his biweekly check. He called the financial office and asked explicitly about this retirement program applicability to graduate students, and he is considering it.

Nick tries to save $100 to $200 per month for his rainy day fund, and wants to increase this to $300 to $500 per month.

39:14 Q4: What don’t you spend money on that might surprise people?

Nick doesn’t spend much money on entertainment or alcohol. He takes it seriously that he is in New York City for graduate school, so he prioritizes his studies and his work. He doesn’t go to Brooklyn or the East Side, instead he goes to Central Park for free and finds cheap shows at comedy clubs. He uses the subway because this transit option is $20 to $30 less than taxis and Ubers. He will listen to podcasts while he’s on the subway.

43:07 Q5: What are you happy with in your spending and what would you like to change?

Nick is happy with his food spending and his entertainment spending. He has a social life and indulges in brunch with friends on the weekends. He wishes he could save more on rent, but he doesn’t want the responsibilities that come with living in a house. Landlord, roommates, and housing infrastructure problems add extra stress that he doesn’t want to deal with. He wants to concentrate on graduate school, and his studio apartment helps him focus. He also appreciates the security in his building, the community and the convenience. He lives on-campus and one block away from the subway. Ultimately, the convenience of the location is worth the high rent.

46:42 Q6: What is your best advice for someone new to your city who is budget-conscious?

Nick recommends living on-campus. He thinks the Columbia Medical Center bioinformatics graduate program pays well. He says the initial payment for first years is nearly $20,000 as a lump sum, which needs to be budgeted carefully. The Columbia Marketplace Facebook group is useful to find free and cheap items. The Grad Talk list-serve helps you find out about free and cheap items as well.

Nick says to enjoy yourself without going crazy, and to be mindful. Anyone considering New York City for a PhD program should know that grad school can be intense, New York City can be intense, but this is a time to work really hard while making good friends and good memories. Nick coordinates a Meetup group and leads an NYC chapter of an international organization. New York gives you access to broader networks and opportunities.

51:38 How do you budget your biweekly pay? How does it compare to other pay structures?

Nick used to work at the National Institute of Health in DC, where he monthly check. The biweekly pay does not change how he budgets, instead he enters his income twice a month into a spreadsheet instead of once a month. He had enough cushion money in his account to manage expenses, and knows that he will get another paycheck in two weeks. His spreadsheet helps him keep track.

55:41 Q7: Would you like to make any other comments on what it takes to get by where you live on what you earn?

Nick says it’s a great time to be a graduate student in New York City. So many people like to visit New York City, so it’s great for spontaneous reunions with friends. It’s easy to get out of the city if you want. New York City offers many opportunities, and you’ll interact with people from multiple universities, companies, and form a broad network.

57:48 Conclusion

Even in NYC, This Graduate Student Maintains a Super Frugal Lifestyle

September 24, 2018 by Emily

In this episode, Emily interviews Athena Pierquet, a rising second-year graduate student at New York University in English. In her first year as a PhD student, Athena lived on her $28,000 per year fellowship and save all of her smaller income sources, but her finances are facing a new challenge as she transitions out of subsidized university housing. Despite living in Manhattan, Athena maintains a very frugal lifestyle, minimizing her spending on groceries, transportation, entertainment, and recreation.

Links mentioned in episode

  • Personal Finance for PhDs Membership Community
  • Frugal Month
  • PF for PhDs Facebook Page
  • Volunteer as a Guest in Season 2

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Give your feedback on Season 1 and influence the direction for Season 2 through this form.

NYC frugal grad student

0:00 Introduction

1:15 Q1: Please Introduce Yourself

Athena is a rising second year PhD student in the Department of English at New York University. She lives in the Manhattan neighborhood Stuyvesant, or Stuy Town. Her overall income was $38,000 from several university sources. Most of her income comes from the MacCracken Fellowship, provided for all NYU PhD students, which was $27,526 this past year. She received a housing stipend of $5,500. Several scholarships and grants made up $4,000 of her income, and short term research contracts made up $1,000 to $2,000.

2:20 How is your income reported for taxes?

For taxes, Athena has to self report the MacCracken Fellowship and her other scholarships to the federal government. The university provides her a 1098-T form for taxes. Her short term research contracts are reported on W-2, but these are a minor part of her income.

4:08 Q2: What are your five largest expenses each month?

Athena’s five largest expenses are rent, food, books and supplies, incidentals, and going out for fun.

4:28 #1 Expense: Rent

Athena pays $1,100 per month for rent. This cost includes all utilities, except for internet. She shares a two-bedroom apartment in Stuy Town with another first year NYU PhD student. The market rate for her apartment is $3,500 per month, but since the apartment is in a university housing complex, the cost is subsidized by the university. However, university housing is only available to first year PhD students, so Athena is searching for new housing in Manhattan.

For her new housing search, Athena’s budget is $1,200 to $1,300 for a room in a three or four bedroom apartment. NYU will continue to provide a housing stipend of $5,500 during her second year, but in subsequent years the housing stipend will be replaced with income from teaching classes. In general, her income does not increase to cover the new housing costs.

Athena saved much of her income from her first year in anticipation of her move into the cut throat Manhattan housing market. To get an apartment in Manhattan, she needs $3,000 to $5,000 available. Securing an apartment requires payment deposits for first month’s rent and last month’s rent.

9:57 #2 Expense: Food

Athena’s food budget is $100 per week. This category broadly covers anything she purchases to eat. She includes groceries, coffee shops, restaurants, and take-out in her weekly food budget. She plans out her meals and makes grocery shopping a priority. She makes almost all of her food at home and describes some of her meals, such as fully loaded oatmeal and hearty, entree salads. Athena eats at restaurants only two or three times each semester. She has several frugal tips for going to restaurants in Manhattan and getting free food from NYU events.

20:30 #3 Expense: Books and Course Supplies

Athena’s spending on books and course supplies is about $300 per semester. Her expenses for books and course supplies are considered non-taxable income. As a literature student, she needs many books for her work. She estimates that if she bought every book she needed or wanted, she would be spending thousands of dollars. She frequently borrows from the library, gets used books, and finds resources online. Nonetheless, this was tricky to budget for because of different needs for different courses.

24:29 #4 Expense: Incidentals

Athena budgeted for unexpected expenses, which she describes as the impulsive book purchase, miscellaneous fees, and spontaneous entertainment. Since she set her budget week by week, she intentionally put $45 each week for incidentals. Typically, she only had one or two unexpected expenses each month. The miscellaneous category is a place to lose money if you’re not careful, in Athena’s opinion.

27:29 Problems budgeting for taxes while on a fellowship

Athena later learned that the $45 per week that she budgeted for incidentals was really what she needed for taxes. When Athena began first year of graduate school, she didn’t know how much to set aside for taxes. NYU does not withhold taxes for U.S. citizens in their PhD programs, so it was Athena’s responsibility to estimate how much she might owe in taxes and plan for tax season. This is a challenge faced by many PhD students receiving fellowship funding.

Further reading: The Complete Guide to Quarterly Estimated Tax for Fellowship Recipients

30:47 #5 Expense: Going Out for Fun

Athena budgeted $20 per week for going out, and spent $280 over one semester on happy hours and other social events. She went to bars with friends about once or twice a month for happy hour, where she would socialize for two or three hours. In her budget, Athena distinguishes drinks at a bar or restaurant from purchasing a bottle of wine or six pack from the store. She notes that at NYU, she has plenty of opportunities to enjoy free drinks and free food at events sponsored by the institution.

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34:36 Q3: What are you currently doing to further your financial goals?

Athena tries her best to live within her means. She only lives off of the MacCracken fellowship, about $28,000, which is her only guaranteed income source for 5 years. She puts her other fluctuating funding sources into savings and does not create her budget from it. Athena has a healthy cash savings account, and every now and then she moves it into an investment account with Vanguard for retirement and index funds that could be used for major purchases in 20 to 40 years. She needs her cash savings for her new apartment, new furniture, and irregular expenses.

38:19 Q4: What don’t you spend money on that might surprise people?

Athena doesn’t spend money on transportation. If it’s less than an hour walk, she will walk to the distance. The $2.75 to take the subway or bus is better spend on coffee, in her opinion. She won’t take cabs or ride share unless she absolutely has to.

She makes use of public spaces with internet access and working spaces, like the New York Public Library. Some people pay memberships to writers’ rooms and co-working spaces, or even a desk at home, but Athena has a list of go-to public spaces to work remotely.

Additionally, Athena doesn’t have a gym membership, and she won’t go to exercise classes. She avoids shopping and costly activities. Though she’s surrounded by high income earners in Manhattan, she reminds herself that she has more important priorities than the high expense lifestyle.

43:56 Q5: What are you happy with in your spending and what would you like to change?

Athena would like to change how she tracks her cash spending. Since some places are cash only, and some only take cards, Athena finds it tricky to document all of her expenditures.

She’s happy with how little she spends on exercise activities. Athena is a long distance runner, so she makes use of the long trails and paths throughout New York City. She has a deeply discounted New York Roadrunners membership, and recommends that others look into student discounts.

47:36 Q6: What is your best financial advice for a new PhD student at NYU who is budget-conscious?

First, Athena says that budgeting and spending conservatively is absolutely a must. Many daily necessities, like laundry and groceries, are more expensive than you might expect.

Second, she says do not buy in bulk! Buying only what you need will save money in the long term, as well as save space in small apartments.

51:17 Find out your summer funding situation

Athena recommends being aware of how you will be funded through the summer. In some cases, you will receive payments for only the nine months of the academic year. Some refer to the first summer after graduate school as the “summer of poverty,” so think about this when you get your offer letter. You may need to save during the academic year to get through the summer, or find summer work. Make plans at the beginning of the academic year.

Further reading: How to Financially Navigate an Summer

52:49 Q7: Would you like to make any other comments on what it takes to get by where you live on what you earn?

Athena says you need to be honest about your financial situation. Seeing wealth around you in NYC does not mean you need to spend like that too, or emulate what you see people doing around you. Athena takes the initiative to suggest more frugal activities, like going to coffee or happy hour instead of more costly brunches and dinners.

Athena does an end of the semester assessment of her budget that she finds highly valuable. She evaluates how she spent her money and considers how she can do better the next semester. It can be difficult to anticipate how expensive things will be ahead of time, so she has gone through a process to try things out and reassess her expenses.

58:00 Conclusion

This PhD Student Paid Off $62,000 in Undergrad Student Loans Prior to Graduation

September 10, 2018 by Emily

In this episode, Emily interviews Dr. Jenni Rinker, a mechanical engineering PhD currently working as a researcher at the Denmark Technical University. Jenni paid of $62,000 of student loans from her undergraduate degree while pursuing her PhD at Duke University. Her average payment was approximately $1,500 per month on a post-tax income of $2,700-$3,000 per month. Jenni shares her motivation for setting her lofty debt repayment goal and the practical strategies she used to accomplish it. After paying off her student loans, Jenni even saved enough money to take six months off from work post-defense.

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Links mentioned in episode

  • Personal Finance for PhDs Membership Community
  • Jenni’s Budget Spreadsheet
  • Five Strategies to Improve Your Finances Today as a Graduate Student or Postdoc
  • Volunteer as a Guest in Season 2

0:00 Introduction

1:10 Please Introduce Yourself

Dr. Jenni Rinker is a postdoc researcher at the Denmark Technical University. She attended Harvey Mudd University for undergraduate studies in engineering then went to Duke University for graduate studies. Her PhD is in Mechanical Engineering.

2:28 We’re talking today about your debt repayment journey. Can you tell us about this?

After undergrad at Harvey Mudd in 2011, Jenni had $62,000 student loan debt. She set the goal to repay the full debt during her PhD. She accomplished this goal, paying off the debt in 3 years and 7 months.

3:48 Can you tell us more about what kinds of loans you had?

Jenni kept a spreadsheet, a valuable tool that she used to track her debt repayment. She only had the option of unsubsidized student loans because she comes from a middle class household. At the time she started graduate school in September 2011, Jenni had $62,00 total from nine different loans. Federal student loans from Sallie Mae and Nelnet made up $28,000, at 6.8% interest rates. Jenni’s private student loans came to $34,000 total. Her single largest loan was from Alaska Advantage, a loan of $8,500 at 7.3% interest. She had several low interest (3-4%) private loans from Wells Fargo.

5:54 What was your income during your PhD?

Overall, Jenni’s post-tax income varied from $2,700 to $3,000 per month throughout her PhD. Before she started graduate school, Jenni was awarded the National Science Foundation Graduate Research Fellowship. This fellowship provides an annual income of $34,000 for 3 years. When she started, Duke University offered her income in addition to her NSF fellowship. After the NSF fellowship period ended, Jenni won another external fellowship through the Office of Science that offered $3,000 per month.

However, Jenni started graduate school in debt and did not have any savings or assets she could use to reduce her debt.

10:50 Why were you so determined to pay off student loans during grad school?

Although student loan repayment could have been deferred while she was in graduate school, Jenni was uncomfortable with debt and letting interest accrue. She thought that keeping the debt would limit her choices after graduate school. The student loans felt like a weight over her head that was growing every day, and she wanted the freedom that would come after debt repayment.

Jenni decisively started paying off her student loans as soon as she started graduate school. She saw that her income was higher than her monthly expenses, so she made it her priority.

13:53 How did you pay off your student loans?

Jenni committed to her financial philosophy that the money earned from her job goes to rent, utilities, food, loans and other essential expenses first and foremost. Money for her other interests had to come from side income. Jenni earned extra income as a technical copyeditor. She had private clients and worked for the American Journal Experts. She funded several trips from her side income.

Spreadsheets were Jenni’s most important tool. She had a spreadsheet for each year, where each month had a tab. She calculated that $1,300 per month needed to be budgeted for student loans in order to pay off the debt in 4 years. Her living costs, the “monthly nut,” were $800 to $900 per month. She kept frugal habits, such as rarely going out to dinner.

Jenni implemented the strategy of paying herself first. Right after receiving her paycheck, she made her loan payment so the $1,300 was out of her account immediately and she wouldn’t be tempted to use it elsewhere. However, Jenni paid her student loans instead of building up her emergency fund, which was drained after she needed a car repair.

Jenni paid her loans manually, so she could pay the highest interest loans first. Her biggest loan also had the highest interest rate, so she prioritized this one first. Though she had nine different loans, she focused on paying off one loan completely before paying towards another loan.

Her story is an example of the debt avalanche method. Jenni prioritized bigger loans with higher interest to pay off first. She was motivated by paying as little interest as possible. This is in contrast to the debt snowball method, where a person pays off the smallest loans first, to feel motivated by these easy wins.

Jenni also identified where she overspends. She would take out cash to be more aware of her expenses.

28:23 Did you have any speed bumps during your debt repayment journey?

Though Jenni had one instance where she paid for car repairs, she feels like she got lucky with no major financial setbacks. Paying her student loans was her highest priority, and she ended up paying about $1,500 per month on average over three years and seven months. She paid her loans back faster than she expected.

29:53 How did you feel after paying off your student loans? Did anything change in your life?

Jenni realizes that this is an unusual accomplishment. She posted on Facebook and got many congratulations. At the time she made the final student loan payment, Jenni was still working on her dissertation.

She was so used to immediately using $1,300 for student loans, that she started saving that amount each month for travel. After she defended her PhD, she had stress-free travel for 6 months. She went to Patagonia, Europe, and traveled around the United States. Jenni already had a job lined up, so her travel was a true vacation to celebrate finishing her PhD and repaying her undergraduate debt. Jenni learned that traveling is very important to her, so this experience rejuvenated her and put her in the right mindset to start her postdoc.

34:30 Is there anything you wish you had done differently?

Jenni wishes she had rebuilt her emergency fund after she drained it for her car repair. Overall, she’s satisfied with her debt repayment journey. She balanced frugality with having a good quality of life.

During debt repayment, Jenni allowed herself flexibility for how much she paid every month. In the beginning, her repayment was more aggressive but she relaxed as time went on. She knew that in an emergency, her family could support her and she could pay her parents back for financial help in a tough situation.

38:14 Did this experience affect how you approach personal finance?

When Jenni moved to Denmark, she stopped tracking her daily expenses so carefully and has allowed herself to indulge in treats and go to cafes.

However, her budget spreadsheet is still her most valuable tool. She created her own spreadsheet template that makes sense to her. Jenni briefly considered using software budgeting tools like Mint, but never ended up trying one out. By using her own spreadsheet that she updates manually, she feels like she has more control of her budget. This manual system forces her to actively consider how she’s spending her money.

43:00 What advice would you give to someone starting graduate school with student loans?

First, Jenni recommends that graduate students with student loans set realistic goals. Your income must be more than your expenses, and you still need to have a good quality of life. Figure out your “monthly nut” and compare it to your income. Then, identify your problem areas in your expenses.

Second, she encourages graduate students to reevaluate their financial strategies. As graduate students, we have to educate ourselves about finance and learn from our mistakes. If your financial strategy is unsustainable, you can change it.

46:37 Final Comments

Jenni’s inspiring story is applicable to anyone in any kind of debt repayment scenario. The financial strategies Jenni used can help graduate students pay off their own student loan debt.

47:47 Conclusion

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