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Is Podcasting a Lucrative Side Hustle? with Elana Gloger of Dear Grad Student

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In this episode, Emily interviews Elana Gloger, a 5th-year PhD student at the University of Kentucky and the host of the Dear Grad Student podcast. Elana and Emily discuss Elana’s motivation to start Dear Grad Student, how the podcast makes money and how much, and the podcast’s expenses. They both give advice on how to earn money from a podcast for someone just starting out and list examples of other types of side hustles grad students pursue and how generate a high pay rate over a short period of time. At the end, Emily shares a key strategy with Elana for managing her business finances going forward.

Links Mentioned in the Episode

Is Podcasting a Lucrative Side Hustle? with Elana Gloger of Dear Grad Student

Teaser

00:00 Elana: If you want to start a podcast, overwhelmingly, my advice is going to be, do it. It is awesome. It is fun. If you want to make money off of a podcast, it’s hard. That’s my biggest piece of advice. If you figure it out, let me know!

Introduction

00:20 Emily: Welcome to the Personal Finance for PhDs Podcast: A Higher Education in Personal Finance. I’m your host, Dr. Emily Roberts. This is Season 10, Episode 17, and today my guest is Elana Gloger, a 5th-year PhD student at the University of Kentucky and the host of the Dear Grad Student podcast. We discuss Elana’s motivation to start Dear Grad Student, how the podcast makes money and how much, and the podcast’s expenses. We both give advice on how to earn money from a podcast for someone just starting out and list examples of other types of side hustles grad students pursue and how to generate a high pay rate over a short period of time. At the end, I share a key strategy with Elana for managing her business finances going forward. In my business, I’m well into scheduling events for the spring term. If you have a position in a Graduate School or Graduate Student Association or similar—or have the ear of someone who does—please consider bringing my material to the graduate students and postdocs at your university or institute. I offer live and pre-recorded seminars and workshops on a variety of personal finance topics, all tailored for the PhD audience. I’ve noticed that my investing content, whether as a deep-dive workshop or as part of a comprehensive seminar, garners a lot of interest and questions. Most popular of all is my tax workshop for graduate students who are US citizens, permanent residents, and residents for tax purposes, which teaches them how to calculate and report their taxable income and determine which higher education tax benefits to use. If any of that piqued your interest, please start a conversation with me over email, [email protected], or visit PFforPhDs.com/financial-education/. Without further ado, here’s my interview with Elana Gloger of Dear Grad Student.

Will You Please Briefly Introduce Yourself?

02:21 Emily: I have a very special episode for you today, Elana Gloger is back with us. You know her as the host of the Dear Grad Student Podcast. She’s also a PhD student at the University of Kentucky, and we are talking today about her podcast, but specifically the financial side of her podcast and how it’s working out as a side hustle. And maybe some ideas about how you can best manage side hustle income or pursue side hustle income as a graduate student or PhD. So very, very exciting. Elana was last on the podcast in season eight, episode nine. So if you want to learn more about her personal finances, not just the podcast side, you can listen to that one, sort of a mini coaching session. But Elana, welcome back to the podcast and for anybody who is not a listener of your podcast, or didn’t hear the last episode, would you please briefly introduce yourself?

03:07 Elana: Absolutely. So, so, so happy to be back! I have recommended this podcast to so many people since I was last on it. But yes, hello. I am Elana. I’m a fifth year PhD student and I study health psychology at the University of Kentucky. I focus on how our immune system interacts with how we manage stress and regulate ourselves and how that determines how well or poorly we age. And I host Dear Grad Student, which is a podcast. And I’ll just give you my slogan, “for all grad students to celebrate, commiserate, and support one another through grad school.” And yeah, I started it in summer 2020, 6 months into COVID, feeling lonely. Wanted to complain with fellow grad students, and I missed doing that in the hallways between classes and I made a virtual space for that to be, you know, more than just Twitter. So yeah, I love to podcast. It’s a great creative outlet. And as we will discuss today, not a great side hustle for cash, but super, super fun.

What Inspired You to Start Dear Grad Student?

04:07 Emily: Yes. I feel the same way about my podcast. What inspired you to start Dear Grad Student, aside from just lonely during the pandemic?

04:14 Elana: Yes. Well, right. So that was sort of the first one, right? I was lonely. I missed complaining. The other thing is that I really needed something creative to occupy my time that I wasn’t just going to drop off. You know, I crocheted for a really long time and I loved that, but it was like, after you make a few blankets, it’s like, you’ve done it. You know? So it was like, what’s going to be the next thing? And what’s something I can do long-term, that’s going to be fun and relevant for me? And then the other thing, I mean, I did want something that was going to be a side hustle. I don’t make a lot of money as a grad student. We talked about this on your episode, we talked about it on the episode you are on for my podcast, it’s episode 27. We don’t make a lot, but I’ve made a little bit of money from the podcast, and it’s sort of incremental. So, maybe one day this will be, you know, a big dent, but mostly it was, I wanted something fun and creative. I wanted to feel fully me in whatever that was. And I wanted to do something that was impactful to other people, which luckily the podcast has been.

Return on Investment (ROI)

05:12 Emily: I think that ordering of your motivation is really crucial. That you wanted to create something that you’re passionate about. And also, if money comes from it, that’s cool. And that would be a nice supplement. Let’s talk more about how that’s actually working out. So I know from our kind of offline conversations, how much of yourself you put into this podcast. So let’s kind of talk about the ROI here. Like what are you putting in and what are you getting out aside from the feeling of creating community and helping people?

05:43 Elana: Yes. I mean, as a hobby, it’s incredibly fulfilling. Like you said, I mean, I could not be happier. I’m probably at one of the happiest points of grad school, not just with my own personal stuff going on, but because of this podcast, so absolutely fantastic and satisfying for that. Regarding time I spend, which is of course what you were alluding to, I’ve done a little bit better this year. I have shortened the length of my episodes. I’ve gotten some folks on my team to help me out. Last year, I was spending a solid 10 to 15 hours a week, basically unpaid, to do the podcast. This year, it’s a little bit closer to six to 10, depending on length of episode, depending on the hype I’m making for each episode, you know, communications and things. And regarding what that looks like financially, I mean, I’ve actually been making profit every month, profit quote unquote, every month since March.

06:34 Elana: So like individual months, I’m in the green, I would say. But over my whole chunk of this experience, I think I still am in debt, like 134, like that’s, my net is negative $134. And that comes from a lot of different things. And I’ve spent, I will say probably the minimal amount of money that I would spend on a podcast of this size. So it’s been a lot of time to be unpaid. I mean, you really have to love something to put this much time in and get no money and be in the negatives despite the popularity of the podcast over the last year.

07:10 Emily: Yeah. You know, I think that information might be surprising to some people who know how well your podcast has taken off and how well it’s doing and the fact that it is monetized. Just to know that, okay, it is great news the last six months or so, like you’ve made more money than has gone out. But one, that doesn’t account for your time spent at all, you’re not paying yourself directly.

07:33 Elana: Literally not at all.

Emily’s Podcast’s Business Role

07:33 Emily: But then two, like it does cost money to get a podcast off the ground. And so those initial expenses, you’re still paying yourself back for those initial expenses that you incurred near the beginning. Podcasting is definitely a labor of love, I would say for the great, great, great, great, great majority of podcasters, but yeah, it might be surprising to know that behind podcasts and behind bloggers and YouTube channels and all these things like, yes, there are ways to make money from this, but the percentage of people, the percentage of creators who are making any kind of substantial money is so, so, so small.

08:05 Emily: Since you’re disclosing, I may as well disclose that for me, the podcast is not a money-making endeavor. It actually costs me a lot of money directly to make the podcast. And secondly, I pay virtual assistants to work on creating the episodes with me. And so each episode probably costs me 150 to $175 in direct costs of paying assistants and other things like hosting and doing transcripts and so forth. And I’ve decided to incur that cost because this does supplement and support the rest of my business. So for me, the podcast is technically content marketing. So it’s me talking about things that are related to my business. Hopefully, you know, people listen to this, they get something out of it. And eventually they get around to somehow sending money my way through the various means that that could happen like speaking engagements. So that’s kind of my business model. The podcast is in itself as isolated, a money loser and a time loser, but it bolsters the rest of my business. I think to me, in a way, that’s worth it. So that’s kind of my perspective on the podcast financials. Is there anything else that you wanted to add about how you’re like managing the finances of the podcast?

Dear Grad Student Main Revenue and Costs

09:17 Elana: Yeah. I mean, I’m happy to be super transparent about like what my main revenue is, the costs that I’m incurring, things like that. So I have it broken down here in front of me and I just think it would be helpful to let people know like, what is the minimal cost as I mentioned? Like, you know, so people know that the podcast has a Patreon group. I currently have 17 active patrons and I allow people to contribute 1, 3, 5, or $10 a month to the podcast. And it’s listed on the Patreon page, all the things that you can do and the reasons that I’m, you know, trying to earn money. So I have 17 patrons that all have those choices. And last month I made $60 after taxes, which maybe sounds like a lot. It’s actually not. And that’s the most I’ve ever made in one month.

10:00 Elana: And I do have other ways of making money. Like I am an affiliate for you and some of your tax workshops, I promote BetterHelp and their therapy services, Magoosh which is a GRE prep service. I’ve worked with Instacart, things like that, but it is really hard to make money with an affiliate link. I think that you and BetterHelp are probably the ones that I make the most money off of. But it’s a lot. Because with, they say that it’s like 1% of the people that click will buy something. So a hundred people click on something, you might get one purchase. My rate is a little bit better than that because I’ve never had a hundred clicks and I’ve sold things, but it’s really hard.

What is an Affiliate?

10:37 Emily: I want to make sure we were clear about this. So like, when you say affiliate, people might not know like what that means. So an affiliate is like, you’ve decided you as the content creator have decided that you’re going to have an advertising relationship with another entity. But you only get paid if someone actually makes a purchase to, you know, BetterHelp or one of my tax workshops or whatever the different partnerships are. And so it’s like, by the way, for the listener, it’s really helpful if you are going to make a purchase anyway, if you actually do it through the link where you heard about it, right? Like give that person the credit, let them get the few, you know, the dollars or whatever it is that they’re going to get from that sale. That’s really, really helpful. So thank you for those of you who are doing that. This is different from maybe like flat rate advertising where like maybe an advertiser would pay you to run a commercial based on your listenership, like based on the exposure they think they’re going to get, but they’re not going to directly track sales. Two different models. But that’s how affiliate marketing works.

11:36 Elana: Yeah. I’m so glad that you explained that. That’s one of those things that like, it’s now normal knowledge for me, but like, this was all new for me a year ago when I was diving into it. It’s usually bigger podcasts or YouTube channels that if they have millions of followers and people just are like, yeah, the exposure is fine. And then whatever. And so those are my main sources of revenue. And like I said, the costs I’ve put in, despite making, you know, 50, $60 a month off Patreon and other things, I still haven’t broken even. So some of the costs that I’m accruing regularly are things like hosting the podcast on Buzzsprout and that’s $18 a month. I do use a social media schedule to make sure that I can have boundaries with the podcast and have things automatically post.

12:16 Elana: And that is, I think about $14 a month. Because I had to up that a little bit. And then there’s the stuff I pay for yearly. And this is where the big chunks come from. Hosting the website on Squarespace: $200 a year. Otter.ai is what I use for transcripts, which is a big must for me, that is $80 a year. And I pay my transcript editors, Kayden Stockwell, and Vishal Thakkar. And you know, there’s also things like patron benefits, which people are starting to sign up for the tiers where there’s a free mug, a free sticker or whatever it is. And that comes out of my pocket because I’m really thankful for anyone who is putting enough money towards the podcast, that it warrants a free item. And then the last way that I get revenue is merch sales. And so I have made probably $25 in profit from Dear Grad Student merch that’s on red bubble.

Redbubble Merchandise

13:10 Elana: The way that red bubble works is you upload artwork and then you can put it on any item. They handle the payment, the shipping, making the product, all of it. But you get a very, very little bit of the actual sale made. So that is a small place that I get some profit, but I don’t make a ton. And the podcast was never meant for that. So that’s okay. And you know, even if I did make more, probably wouldn’t pocket it, it would probably go to growing the podcast more until I was at like a really steady rate. So, it’s a balance and I’m doing the best that I can, but maybe don’t go into podcasting for money unless you already have a big following.

13:47 Emily: If there’s anyone listening who wants to support either one of our podcasts monetarily and wants to know what is the biggest impact action they can take, they are willing to part with some money. What can they do to make sure these podcasts continue? So for you, what’s your answer to that? I’m assuming it’s Patreon, is that right?

Patreon and Networking

14:05 Elana: Is, yeah, Patreon’s the biggest one. I do have a couple of affiliate links that pay me quite a big chunk of money. The most being from BetterHelp, but I’m not going to say like, if you want to support the podcast, I would ask you to please go to therapy. What I would rather is to have a relationship with you, and Patreon really allows for that. So you can contribute, like I said, 1, 3, 5 or $10 a month, which hopefully is in a range grad students or postdocs can afford. And it allows you to have a private message with me on there. There’s benefits like you can ask questions I put in the episode, you can know episode themes early. One of these days, I’m going to have special Patreon-only merch. So you really get some extra fun content. And it means a lot to me. I shout the patrons out every month on the podcast, I take special requests from them. So it’s also a benefit for people who really like the content that they know that I’m making. So Patreon is the biggest, and I think the most fun for me as well. So I really see it to be mutually beneficial.

15:05 Emily: Yeah. I think if someone wanted to send a message to you through their money that says, I support Dear Grad Student, the Patreon is the clearest way to send that message, and possibly the least expensive for the person sending the message. Because as you said, for some of the other things, you only get like a small payout compared to what the customer would be paying via the other entity. Of course, that’s how that works. To answer the question for myself, really monetarily, the best thing that comes out of me for the podcast, similar to what you were just saying, is networking. So it’s getting it’s when listeners refer me well, either when listeners themselves have the power to host me for an event with your university or your grad student group or whatever, or can refer me to someone at their university who can. Like those sort of bigger jobs and bigger payouts literally sustain the business. So that is amazing. And thank you so much for those of you who have made those recommendations.

Starting a Podcast and Knowing Your Audience

15:58 Emily: Let’s turn the advice to a different segment of the audience. Let’s say that someone else really wants to start a podcast and they want to make money from it. What is your advice for that person?

16:09 Elana: Great question. If you want to start a podcast, overwhelmingly, my advice is going to be, do it. It is awesome. It is fun. If you want to make money off of a podcast, you have to be really, really good at shameless self-promotion. You need to know your audience. So there’s a reason that I have Magoosh and BetterHelp and things like that, that grad students or people applying to grad school would benefit from. It’s a reason why the merch that I sell is on mugs and stickers because grad students have coffee and laptops. So you want to know what your audience would actually buy from you. And then there are websites like Podcorn. That’s P O D C O R N. I know there’s others, but this is the one I’ve used before, where other people that want to advertise on podcasts, even small ones will say, Hey, we have this thing we’re trying to promote.

17:01 Elana: And then us podcasters can submit a proposal to say, Hey, we want to promote it. Would you pay me X amount of dollars to read an ad? I have never gotten one of these, but I know other small podcasters who have, that spend and dedicate more time to it. So there are ways to do it. You can also get on YouTube with your episodes. And then if you have, you know, X amount of followers and you become a YouTube partner, that’s the way to get a little bit. You can have ads on your website, which I do not do, because I don’t know how, but technically that can also happen where Google analytics can track how much money each page makes. But it takes a lot of time to build money from that. So I think the biggest thing, if you want to make money from a podcast, maybe have a big audience first, know your brand, know your audience, and do things that would make sense for them buy. Like I’m not going to try to sell wellness things because grad students don’t have the extra money to try some tea. Like, that’s not going to work. So it’s hard. That’s my biggest piece of advice. If you figure it out, let me know.

18:04 Emily: I think that is great advice.

18:06 Elana: I guess my conclusion there would just be, there are so many other ways to make money as a grad student that aren’t related to this, like tutoring or transcribing things for businesses or podcasts or a research lab. Making things for an Etsy shop where you probably get a similar, you know, the content is something physical that you can send people. So it’s not like making money. Isn’t possible. Like, I don’t want the total takeaway message from this episode to be grad students cannot successfully have a side hustle. Because that’s not it, but we already have a full-time and a half job probably. So the time it takes to get something that is lucrative, we don’t have as much. That’s where it gets tough.

18:47 Emily: Yeah. I agree. Podcasting is an ultimately very indirect way to make money, if that is your goal at all. And until you get very, very big, you’re not really directly making money.

Commercial

19:00 Emily: Emily here for a brief interlude. If you are a fan of this podcast, I invite you to check out the Personal Finance for PhDs Community at PFforPhDs.community. The community is for PhDs and people pursuing PhDs who want to take charge of their personal finances by opening and funding an IRA, starting to budget, aggressively paying off debt, financially navigating a life or career transition, maximizing the income from a side hustle, preparing an accurate tax return, and much more. Inside the community, you’ll have access to a library of financial education products, including my recent set of Wealthy PhD Workshops. There is also a discussion forum, monthly live calls with me, and progress journaling for financial goals. Our next live discussion and Q&A call is on Wednesday, December 15th, 2021. Basically, the community exists to help you reach your financial goals, whatever they are. Go to pfforphds.community to find out more. I can’t wait to help propel you to financial success! Now back to the interview.

Finding Your Unique Space as a Grad Student

20:12 Emily: So you just mentioned a couple of great examples of ways that graduate students can have a lucrative side hustle that is not podcasting. I would say like generally speaking, the fastest way to make money is to sell services. So like you can immediately start making money if you are putting yourself out there for tutoring, like you just said. Or writing or editing services or coaching services, if that’s within your wheelhouse. Selling sort of directly your time or how you apply your time to like a project is the fastest way to make money. It’s not necessarily the most lucrative. Unless I would say as a subset of that, you look at what your really special skills are. Like, what makes you unique in the marketplace? And so for graduate students, like maybe that is some skill you’ve been developing during graduate school, like maybe it’s like super ninja data analysis, something or other, and you can sell that as like a consulting service. So that’s something else to think about. Like, if you want money now, go for a service. If you want a lot of money, what makes you unique? A lot of people can tutor. A lot of people can teach, what is it that you do that’s special?

21:22 Elana: And I would say as well, I mean with how big Academic Twitter is and how much advice there is out there, there are a lot of people doing coaching in that space. So now it’s even not just, you know, what’s unique about you, but what can you provide above and beyond what people are accessing for free? And I think that that would be the really tough thing. It’s why I am not offering that kind of thing because I don’t think anything I have to say is that unique. The podcast just gives me a place to say things that I hope everyone knows accessibly. And so it’s really hard to be unique. I think that that’s really something that people don’t quite understand. I don’t know if it’s that we all just think we’re special or what. But I’m having a very hard time on a regular basis figuring out what is unique for the podcast. And that’s something that I’ve spent a lot of time doing to make the podcast something. But when we think about like you said, services, it is hard to sell yourself. That’s why I’m not doing it. I’m selling, you know, the podcast, I’m selling merch, blah, blah, blah, because that’s something that is so hard. And I don’t know if I have the self-esteem for it. I mean, it’s tough, it’s tough.

22:24 Emily: That’s such a good point. I’ve had like, if this will help people who are feeling that way, I’ve had several episodes on the podcast, and I’ll try to link everything I can think of later in the show notes of people who have done things, like consulting, something very relatively high ticket for a graduate student, finding their unique space. And I think a lot of times that just starts with like, you talking about your work with people who aren’t necessarily your peers. So like pivoting, like out of academia and looking in the wider world where they have more money for higher pay rates and like asking yourself, how can my services help these people in this other area who don’t typically interact with PhDs and academics? And maybe what I do seem special. I don’t think it’s special inside academia, but maybe it is special in this other setting. And how can I connect with those people? And this often results in like amazing like work experience and growth experiences. I have an episode with Dr. Chris Caterine that I published recently, we’ll link in the show notes on yeah. Taking those skills that you developed in academia, outside of academia. And having them be really valued because they’re rare. They’re not rare at university, but they’re rare elsewhere.

23:32 Elana: Yeah, for sure.

Impact of Podcast on Personal Finances

23:33 Emily: You mentioned that in recent months, you’ve made something like $60 a month on average from Dear Grad Student. Is that impacting your personal finances at all at this point? Like, are you actually taking that money home? Are you reinvesting it somehow? What are you doing with it?

23:48 Elana: Yeah, that’s a good question. I mean, I’ll say sort of broadly, you know, I track everything for the podcast on this, like Google spreadsheet, because I don’t have a lot of money going out or coming in. So it’s very easy. There’s, you know, three or four lines filled out every month. It’s not high-tech. And because I’m tracking, oh, you know, what is my net gain or loss of the podcast since I started it in August, 2020, I know that I’m still like in the negative one thirties, like I mentioned. So right now, when I get paid from the podcast, it goes into my checking account and it just becomes part of whatever I’m paying off of my credit card or throwing into savings. I’m just replenishing at this point, even though it’s been long-term, like I bought the podcast website in February of 2021. Technically, you know, the $200 I spent I’ve made back, but in all with everything I’ve spent, I haven’t.

24:33 Elana: So right now, it’s just going into my bank account, like normal income, almost like I’m not even seeing it. When I get to the point of hitting zero, which, you know, cross fingers because we’re coming up on a one year of Otter and one year of the website and I’m going to start all over again. But when I get to $0 and I can start actually making profit and, you know, and getting somewhere, I think that will be a question of how much of this do I want to invest in the podcast for what? Right? What’s going to have the biggest gain and growth for the podcast? Like the website was a big one, huge. Transcripts, huge. So the question really will be what is going to be the thing that makes this income even higher? And from there, I can start thinking about investing or fun things or other things like that. But for right now, just replenishing, just trying to hit zero because, you know, I don’t want to be in debt for this. I don’t want to like regret, and I don’t, but I don’t want to be in debt from it. Even $130, like that’s a lot for a grad student.

25:34 Emily: May I make a recommendation?

25:35 Elana: Yes! Help!

Keeping Business and Personal Finances Separate

25:38 Emily: If listeners, as I was talking about earlier, want to learn more about this recommendation, I’m just about to make, I have a course inside my Personal Finance for PhDs Community called Best Financial Practices for Your Self-Employment Side Hustle. And you can find that course directly at pfforphds.com/S E S H for self-employment side hustle. So go there. But the basic basic basic tip is to have some separation between your business finances, and you do have a business, now, even if your business is in the red, you still have a business, and your personal finances. And so I totally understand what you’ve been doing because you’re still in the red net over time and it makes sense that you’re paying yourself back with whatever, you know, monthly profit you have. But once you get to that zero point, once you get to being in the black overall, my recommendation is to have a separate checking account where you’re running everything for your business through that.

26:28 Emily: So all the expenses are paid from there. All the income goes to there. At first, you may not pay yourself, right? Once you’re back to black, you’re not relying on this income, let it build up a little bit in that account. And then you can make decisions about, do I want to reinvest in something? You know, you can save up for maybe a bigger expenditure using that account. Or maybe the answer is no, I want to pay myself a tiny bit for the massive amount of time that I’m putting into this. I’m going to set a salary for myself. And it almost sounds like silly to say that because you know, when we’re talking like $60 a month level, like maybe you would have the ability in a few months to pay yourself a hundred dollars a month. Maybe you’d have that ability.

27:07 Elana: I mean that’d be incredible, because a hundred dollars goes a long way as a grad student.

27:11 Emily: It does. And especially a hundred dollars you can rely on. So this is not like, oh, maybe I’m going to get 60 or maybe 150, or maybe this other amount. When you have the separation between your business finances and your personal finances, once again, you build up some kind of buffer to, you know, ride out the ups and downs. You can make these regular salary transfers. And then maybe it starts out at a hundred dollars, but then maybe in six months, it’s 200 and then maybe it’s 500 and then maybe $1000.

27:37 Elana: It’s the dream, right? It’s the dream.

27:38 Emily: Exactly. And this is how I’ve handled my business as well. Like my salary, I didn’t pay myself a salary for a while, and for a while was a thousand dollars, and then it was 2000, and then et cetera, et cetera, we’ve gone up from there. But I think it’s so, so helpful just mentally to have that separation. Because you don’t feel like you’re being, like you mentioned earlier about like not wanting to put yourself out there and sell and stuff like that. Like, how well you’re doing with selling doesn’t have to immediately impact her personal finances. You can have this degree of separation. So, that’s the first tip.

Facilitating Taxes for Business

28:11 Elana: Yeah, that’s good for the boundary of it. I mean, I hear that and my first thought is like, Ooh, when do I have to start paying taxes on this kind of thing? But I know that that’s the next step. My mom can help me with that. It’s going to be okay. But I know that that is sort of the next step. And maybe that’s what I should have said. Like, I’ve thought about it. It kind of feels dramatic, but I think that I just need to let go of that mindset. Like it isn’t dramatic. Like you said, this is a business, you know, as much as it’s fun, and it really is a hobby. I mean, this is really a passion project for me. There’s income going in and out, and maybe I should start treating it that way.

28:41 Emily: It’s going to be a lot easier come tax time to have this easy record in this one bank account of all of your expenses. You’re not going to have to go hunting through your personal expenses to find all the charges from XYZ different services that you use. So like, that’s one of the main reasons to do it. One is the personal finance reason of the separation. One is the tax simplicity of like the tracking of it. I am very, like we said, this is September, 2021. I think you’re going to sound like you’re going to be in the black in 2021, right? Like overall?

29:10 Elana: Oh wow, I hope so. From your mouth to God’s ears. I mean, truly let’s hope so.

29:15 Emily: So, 2021, you get to file your schedule C and pay tax on this whatever amount of income it ends up being above your expenses. It’s going to be helpful to have that separate account. But yeah, separate account and eventually a salary that you can build into your budget.

29:32 Elana: I’m excited to tell you when I get there. I’ll definitely let you know, I’ll tweet at you. I’ll say Emily, it’s happened. It’s time. I made it.

It Takes Time to Build Something

29:40 Emily: Anything else we want to talk about in this episode about, you know, starting a side hustle, managing finances from a side hustle? Any other comments you want to make?

29:48 Elana: Yeah, I think my biggest thing is that it takes time. Don’t get discouraged if you are trying to build something. I mean, you know, when I started the podcast, I had 372 followers on my personal Twitter account. I ended up having my tweet go viral, which is really what started and launched the podcast. But it takes time, you know, over a year I’ve had like 26,000 downloads. I have almost 5,000 followers on Twitter, over a thousand on Instagram. But all of that has taken all of those hours I mentioned with basically zero income and being in the negatives. So don’t give up, if you have a passion project and you want to go for it and it might make you money, go for it. But you never know if it will or not. And I think that it has been so satisfying and fulfilling in my personal life that, you know, here we are over a year into me doing it. And I don’t even care that I’m in the negatives, but I’ll be super happy when I’m not anymore. So let the passion fuel it rather than the money. Because I feel like that spark will leave really quick if you become impatient with that part.

30:49 Emily: I totally, totally like could not agree more that when you start this kind of thing, creating content that maybe will eventually result in money, you have to be passionate about it to get it off the ground. You know, you mentioned earlier when you had the idea to start the podcast that you wanted something that you were going to stick with long-term. Frankly, a lot of people don’t stick with podcasting, long-term, right? Like most people produce a few episodes and then it’s a lot of work.

31:11 Elana: Yeah, the average is about seven. I saw that online. It was like a threat. It was like, the average is like, they’ll make seven and they’ll stop forever. And I remember when I published my seventh episode, I was like, yeah, watch me. You know, like it became like a dare to myself, and then when I got the followers, it was like, well, now people are expecting a weekly episode. And of course, if I was like burnt out, people are like, oh my God, like, we don’t care to take a week off. But generally I’m like, I have a schedule. I have a structure. People are expecting an episode and I want this to keep growing. So it fuels me.

Best Financial Advice for Another Early-Career PhD

31:41 Emily: Okay. So final question that I ask all of my guests and I asked this to you last time, maybe you’ll come up with something new.

31:46 Elana: I have something new. I’m ready to go.

31:48 Emily: Okay, good. What is your best financial advice for another early-career PhD? It could be something that we touched on in this episode or it could be something completely different.

31:56 Elana: Yes. So this is going to be sort of a bridge between the last episode and this one. You said that was season eight, episode nine. Okay. Everyone should go listen to it. It was a great conversation. So I think my best financial advice bridging these two together is follow a budget early, and listen to financial tips about how to grow wealth at any income. Ever since I was on this last podcast, I’ve been looking for other places where I can also learn about this. One place that I’ve gone, there’s a podcast and Instagram account called Her First $100K, which is kind of like a feminist approach to women building income, which is like, I’m living for it. Your podcast. I’ve listened to many, many, many additional episodes. Like, before I think I’d listened to like what I thought were quote unquote relevant. And now I’m like, just listen to more because you’re going to find bits and pieces, especially when you have like the Q&A section at the end, which may be, or may not be related.

32:47 Elana: I’m like, that’s where I’ve learned the most. I’ve now invested, I know you told me to stop putting money in my Roth IRA. And I did to keep that in my bank, but, I invested that in a mutual fund and I learned a lot about, you know, what to pick. So I think similar to my last advice, it’s about the little steps, but realizing that even at a small income, you can start making those steps. Even at a small income, you can build things and don’t be afraid to go for something. Don’t be afraid to try to make money on the side. There’s nothing wrong with that. And you know, at the end of the day, we’re all just trying to build the best lives for ourselves.

33:21 Emily: I love that. I love finding some people to follow who are having these conversations that feel relevant to you. So like I’m sitting in this like grad student, PhD, academic like perspective on this, but obviously you can learn a ton. And I learned a ton from people outside of that specific niche. And so finding someone else, I mean, there’s so many in the financial space content creators now, like you’re going to find someone that you can identify with, whether it’s Her First $100K, excellent, excellent brand. Whether it’s, they’re all these, like people, you know, people of color and like first gen, you know, college graduates, you know, if that’s the group you are in, like, you can find someone who’s speaking to that audience and will address your, you know, the particular issues that I might not be talking about. Because I’m focused on people in academia. So like assembling like a team of experts that you’re like listening to.

34:09 Elana: Yes, it’s my like mentorship team and they don’t even know about it.

34:11 Emily: Exactly. Excellent, excellent strategy. Well, Elana, it’s been such a delight to have you on again. I’m so glad we were able to do this. I don’t know when this is going to be released, but I will be on your podcast in tax season. So check Dear Grad Student in tax season for that one. And yeah, it’s just great to have you, and thank you so much for coming.

34:30 Elana: Thank you so much for having me again. I have loved this partnership that you and I have built and the collaborations back and forth. Your episode will be coming out on Dear Grad Student at the end of January. So really like, beginning of tax season for me, but maybe that’s actually middle of tax season for normal people who are on top of their finances. But yes, end of January. And then for anyone listening who has not heard of me or Dear Grad Student before, you can find everything for the podcast at deargradstudent.com, you can find me on Twitter @DearGradStudent or @Elana_Gloger. You can find the podcast on Instagram, @DearGradStudentPod. You can find me on Apple Podcasts or Spotify or anywhere. I’m really easy to Google. So I hope you’ll join me if this was interesting, and definitely listen to Emily’s episode on my podcast we’ve already done. You can find that at deargradstudent.com/episodes/27.

35:17 Emily: Perfect. Thank you so much!

35:18 Elana: Thank you!

Outtro

35:26 Emily: Listeners, thank you for joining me for this episode! pfforphds.com/podcast/ is the hub for the Personal Finance for PhDs podcast. On that page are links to all the episodes’ show notes, which include full transcripts and videos of the interviews. There is also a form to volunteer to be interviewed on the podcast. I’d love for you to check it out and get more involved! If you’ve been enjoying the podcast, here are 4 ways you can help it grow: 1. Subscribe to the podcast and rate and review it on Apple Podcasts, Stitcher, or whatever platform you use. 2. Share an episode you found particularly valuable on social media, with an email list-serv, or as a link from your website. 3. Recommend me as a speaker to your university or association. My seminars cover the personal finance topics PhDs are most interested in, like investing, debt repayment, and effective budgeting. I also license pre-recorded workshops on taxes. 4. Subscribe to my mailing list at PFforPhDs.com/subscribe/. Through that list, you’ll keep up with all the new content and special opportunities for Personal Finance for PhDs. See you in the next episode, and remember: You don’t have to have a PhD to succeed with personal finance…but it helps! The music is “Stages of Awakening” by Podington Bear from the Free Music Archive and is shared under CC by NC. Podcast editing by Lourdes Bobbio and show notes creation by Meryem Ok.

This Start-Up Centers Graduate Students and Pays Them Handsomely

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In this episode, Emily interviews Jin Chow, a graduate student at Stanford, and Stephen Weber, a graduate student at the University of Georgia. Jin is the co-founder of Polygence, a start-up that facilitates graduate students and PhDs remotely mentoring high school students one-on-one through well-defined research projects. Stephen has mentored five students and speaks to the advantages of Polygence as a flexible and lucrative side hustle. We discuss whether and how to tell your PhD advisor about a side hustle, and who is or is not a good fit for becoming a mentor with Polygence. Jin also briefly shares the story of how she co-founded Polygence as a graduate student on an F-1 visa. If you’re looking for a side hustle that’s convenient to balance with your graduate work, check out Polygence: they are hiring mentors now!

Links Mentioned in the Episode

grad student side hustle

Teaser

00:00 Stephen: You know, it’s kind of funny to say, but I’m getting paid to learn more about things that I would already be interested in learning about.

Introduction

00:12 Emily: Welcome to the Personal Finance for PhDs Podcast: A Higher Education in Personal Finance. I’m your host, Dr. Emily Roberts. This is Season 10, Episode 3, and today my guests are Jin Chow, a graduate student at Stanford, and Stephen Weber, a graduate student at the University of Georgia. Jin is the co-founder of Polygence, a start-up that facilitates graduate students and PhDs remotely mentoring high school students one-on-one through well-defined research projects. Stephen has mentored five students and speaks to the advantages of Polygence as a flexible and lucrative side hustle. We discuss whether and how to tell your PhD advisor about a side hustle, and who is or is not a good fit for becoming a mentor for Polygence. Jin also briefly shares the story of how she co-founded Polygence as a graduate student on an F-1 visa. If you’re looking for a side hustle that’s convenient to balance with your graduate work and want to help cultivate the next generation of researchers, check out Polygence: they are hiring mentors now!

01:19 Emily: If you have a pretty well-established side hustle, whether as a contractor with a company like Polygence or your own sole proprietorship, you may be wondering how best to manage that stream of income. This is especially true if you incur any expenses with respect to your side hustle. I have a course titled Best Financial Practices for Your Self-Employment Side Hustle that speaks to two chief areas of interest for people with this type of side hustle. 1: How to financially manage variable business income and expenses so that your personal finances aren’t negatively affected. This half of the course teaches some basic business and personal finance principles to keep everything orderly. 2: What type of self-employment retirement account option to use. If you are a super-saver who maxes out your IRA yearly and doesn’t have access to a workplace-based retirement account, you can actually use your self-employment income to open and fund an additional tax-advantaged retirement account. My course explains which of the several options is the best fit for a solopreneur side hustler. If you’d like to learn more about and purchase this course, please go to PFforPhDs.com/sesh/. That’s P F f o r P h D s dot com slash s for self e for employment s for side h for hustle. Without further ado, here’s my interview with Jin Chow and Stephen Weber.

Will You Please Introduce Yourselves Further?

02:54 Emily: I have joining me on the podcast today, Jin Chow and Stephen Weber. They are representing Polygence. So I first heard about Polygence a few weeks back when I was at a conference, I had the pleasure of speaking with another employee and learned what they do, which is providing mentorship opportunities to high school students and hooking them up with graduate students and PhDs. And the reason that we’re bringing this episode to you is of course, to tell you a little bit about the company, but also to let you know that this is a potential side hustle opportunity. We’re going to get into more of that momentarily. So Jin and Stephen, will you please take a moment to introduce yourselves a little bit further to the audience?

03:31 Jin: Awesome. Hi everyone. My name is Jin, really grateful to Emily for having us on today. A little background about myself, I’m originally from Hong Kong, came to the U.S. for college, studied Comparative Literature at Princeton for my undergrad, and I’m currently a PhD Candidate at Stanford, also in Comparative Literature. And in terms of research background, I’ve just been working mostly on French and Arabic literature. And then right now I’m putting my PhD on hold to work full-Time on Polygence. I’m one of the founders.

04:00 Emily: Yeah, super interesting. We’ll get back to that at the end of the interview. Stephen, go ahead and introduce yourself.

04:05 Stephen: Well, thanks for having me. My name’s Stephen. I’m actually a third-year PhD student at the University of Georgia. My research is focused on Parkinson’s Disease and the association of the immune system and potentially perpetuating that. And then before that I was actually a research professional at Stanford University. I worked with the stem cell Institute, teaching and training anywhere from undergraduates, to postdocs, to professors on application of a specific methodology. And yeah, that’s a little bit about me.

04:40 Emily: And what’s your role with Polygence now?

04:42 Stephen: Yeah, so now at Polygence I’m a mentor and I have been for about a year and a half and recently have moved into being a mentor affairs coordinator. And that’s where I’m at now.

How to Get Involved with Polygence

04:53 Emily: Yeah. So we’re going to hear more about what is this mentor role. But to back up a little bit, Jin, as founder, co-founder let us know more about Polygence, what it’s about, and how can graduate students and PhDs get involved with the company?

05:08 Jin: Totally. So Emily, I think you gave a really great overview of what it is. So we’re an online project-based learning platform where we connect PhD candidates, masters candidates, postdocs, and also people who already have their advanced degrees with really motivated and intellectually curious high schoolers to work on personalized research projects. And our mission on the mentor side really is to democratize access to the knowledge that’s in so many PhD candidates heads and also to give PhD candidates, graduate students in general, a chance to earn some side money because we know how not well universities pay PhD students and graduate students in general. And so on the mentor side, that really is our mission. And we want to make sure that students high schoolers from all around the world who are passionate about different kinds of academic disciplines can get a chance to connect with experts like yourselves, our listeners today. And to do something beyond the school curriculum and to learn something new, create something fun and cool. And so for, in terms of how mentors can get involved, we have an open rolling application season for any mentor to express interest on our website. We’ll put in the link in the show notes later. And also once you sign up, we have rolling interviews, you’ll meet with one of our team members and then we’ll onboard you.

06:29 Emily: It’s so unusual. I really don’t think I’ve spoken to anyone else who has centered the graduate student experience in the broader mission of a startup or a company. And of course it’s very like laudable that we want to help mentor and educate these up-and-coming researchers who are currently in high school and so forth. That’s all wonderful. But to hear that, okay, this was founded by a graduate student. You can, I guess maybe you want to introduce your co-founder in a moment as well, but founded by a graduate student and really again, centers that graduate student experience and the financial concerns of graduate students. So unusual. And I’m really excited to talk to you about that.

07:06 Jin: Yeah. Maybe I’ll just take three seconds to say a little bit more about my co-founder too. So I think the reason why we’re so centered on the graduate experience is because when we founded it, I was in the middle of it. I was in my second year of the PhD program and my co-founder, Janos, had just finished his PhD in physics. And so we both just knew so well how difficult it is financially as a graduate student. And also we both just love teaching so much, but didn’t get enough of that in our own respective programs. And so those two things coming together just made the graduate experience like front and center for us.

Stephen’s Role as a Mentor

07:36 Emily: Fantastic. Fantastic. So Stephen, not speaking as the founder, but speaking as someone who has been a mentor with Polygence and now has moved into an even bigger role. What has been your experience as a mentor?

07:50 Stephen: Yeah, I mean, I think that that’s one of the biggest questions. So I actually am a part of doing the interviews for potentially onboarding mentors. And so, you know, that’s a question that I get asked a lot is so why are you still here? You know, because I think for a lot of graduate students, their experience is TA ships, right? Wherein they are paid poorly for their time. And they’re expected to do a lot. And they often have that as an interference to their day to day. You know, especially someone who’s coming from the hard sciences where there’s a lot of really long days spent in the lab, for instance, it can be hard to juggle the responsibilities of that plus being a TA. And so despite having a really huge love for teaching, it can be really difficult to make that work.

08:37 Stephen: And it also is not quite as flexible as the schedule at Polygence, right? So at Polygence, you’re committing to hour-long sessions with students, roughly once a week, and you can make those times whenever is good for you. So I think that that’s part of why I’m still with it, obviously, but it also adds value to the fact that I get to still enjoy it each time. You know, it’s not just a, “I have to be here doing this.” This is something that I want to do. I feel like my time is compensated well. And I feel like I get to talk about things that I really want to talk about. Whereas as a graduate student, you’re often TAing for courses that may not be within your wheelhouse or may not be of specific interest. They might just be departmental courses that you’re just kind of asked to TA for. So I think that that’s another huge point of why I’m still here is that I feel like I get to not only talk about what I like, but also get to explore it in ways that are new and novel for incoming students.

Intangible Benefits of Mentorship

09:32 Emily: We’re going to talk more about sort of the financial side of this in just a moment, but I wanted to hear some more about like maybe the intangible benefits, the intangible experience, the warm fuzzies that you get from working with these students. Like you’ve done multiple cycles of this, I understand. So, you know, what is your enjoyment of the process?

09:52 Stephen: Yeah, so I’ve, what is it, five students now at this point and I’ve had three of them publish their work in high school-tier journals. And so, you know, for me, what I think is kind of like a part of it that you can’t really capture with, like the financial element is that you’re getting to be a part of the developmental process for people that have a passion similar to yours. And I mean, maybe I’m like the outlier, but when I was in high school, I can definitely say that I didn’t have this kind of opportunity. And so it was a really novel experience to be a part of the early foundation-laying of students who really want to pursue this. And not only do they get to learn more about a subject, but they also get to learn more about the ins and outs of the career itself.

10:37 Stephen: And I think for me that would have been hugely valuable to know here are skills that I could start working on now in high school to get ready for, you know, a long-term academic career. And I think that those are parts of the intangible that just feel like, you know, it’s paying it forward in a way of like, okay, so I struggled through and learned these things. Let me try to provide some insight for you that you can now take forward and maybe try to share with people around you as you go through the academic process.

Why this Side Hustle is a Great Fit for Grad Students

11:04 Emily: Wonderful. I also am reflecting on kind of my experience in high school. And I was fortunate that I did have research opportunities because I attended a particular school that offered that, but they weren’t like one-on-one, it was group. And I think that given my personality, I think a one-on-one setting would have been fantastic for me at that age. We talked about how the commitment when you’re mentoring a student through Polygence is approximately one hour about once a week, and that it’s flexible to be, you know, conforming to the mentor’s schedule. And I love this because one of the key key elements I think of a successful side hustle in graduate school is being able to schedule something that’s not going to interfere with, as you said, Stephen, your long days in lab. Like that really does need to be your priority. And so being able to do something around that is absolutely perfect. Is there any other reason that you can think of that this particular side hustle is a great fit for graduate students?

11:56 Stephen: There’s a whole host of reasons really, I guess, but you know, there’s some of the core ones are in addition to the flexibility of it all, it’s also an opportunity to maybe explore parts of research that your boss doesn’t really find interesting. You know, because for me, my area of research is very niche. And so as a result, I don’t get to explore some of the outside things. It’s not that I don’t have an interest, but now I’m getting, you know, it’s kind of funny to say, but I’m getting paid to learn more about things that I would already be interested in learning about. And, you know, those were opportunities really because, you know, some of the conversations that I’ve had with my students have actually turned around and been things that I was able to employ in my own research. And so, you know, those are things that just through the conversation, through the ever-evolving amount of information you’re getting from these students. And from that process of learning more about your own subject, I think it kind of pays itself back to you in addition to, you know, being compensated for that time.

12:53 Jin: I’ve heard from some mentors too, that like, especially for those who are thinking about building a career in teaching, whether in high school teaching or later in academia, obviously getting more teaching experience and connecting with young people is something that is really beneficial for their own sort of pedagogical development as a teacher and an educator. And obviously getting paid to get that experience. Our hourly rate is usually around $75 and above. And so that’s usually sort of both the financial and also the paying it forward and as well as the teaching experience piece is what I hear most from mentors.

13:29 Emily: Yeah. I was just thinking that like, you know, one of the things that you’re supposed to be doing in graduate school is being exposed to new ideas by networking and talking with new people and going to conferences and going to seminars and so forth. And this is just another way to have that happen, to have to be exposed to another like creative mind who’s not as encultured maybe yet to the way that we think in academia that can help you spark your own ideas. As you said, Stephen, to go back into your research to feed back into that. And so I just think this is again, another way of doing that kind of networking and exploration, but getting paid for it at the same time which is fantastic.

Financial Benefits of Polygence Side Hustle

14:06 Emily: So Jin, you just mentioned the pay rate, usually $75 per hour and above. Fantastic for a side hustle for a graduate student. Stephen, you said you’ve done five cycles of this mentorship program. And so what have you been doing with this side hustle money? How has this money impacted your financial life?

14:26 Stephen: Yeah, I mean, it, in a sense it provides a certain semblance of security, right? So, you know, as a graduate student, you don’t really make a whole lot, really, especially when you consider taxes and just having to pay student fees and all of this stuff. So basically that money basically affords the ability to have hobbies again, whereas before it could be difficult to do that. So I’ve done martial arts my whole life. So being able to pay for training at gyms, that’s sometimes a sacrifice that has to be made of, you know, if I don’t have any additional income, it may be hard to kind of balance that out. So that’s, you know, one place, it also just adds a little bit of actual savings to your life, which is, you know, an amazing thing to be able to have as graduate student is that you can kind of accrue that semblance of like, oh, I’m not living paycheck-to-paycheck anymore. So I think that those are two key ways that it’s been, you know, a nice opportunity for sure.

15:20 Emily: Yeah. I’m just thinking I’m doing tiny bit of arithmetic here. Okay. So $75 an hour once per week, we’re talking 300 a month if you’re doing this for a whole month. And I know, because this is cyclical, people might not be like continuously involved with mentorship, but let’s say you do it for six months out of the year. That’s $1,800 coming in for the year that you didn’t have before. And that goes a pretty nice far ways to contributing to an IRA, for example, where the max is $6,000 per year. If you wanted to invest it there are plenty of other good things you can do. Like Stephen, you just said improving your physical and mental health and you’re making time for hobbies and so forth. Lots of good things you can do with money, but that’s a pretty nice chunk of change, especially as we mentioned for the hourly commitment.

Commercial

16:06 Emily: Emily here for a brief interlude. We have a special event coming up on Friday, August 27th, 2021. It’s the fourth installment of my Wealthy PhD workshop series. The subject is debt repayment. This workshop is for you if you’re in debt of any kind and want to learn the best strategies for getting out of debt. These strategies are tailored to the PhD experience, particularly that of graduate students. We will cover student loans, of course, which are such a complex topic, as well as mortgages, credit card debt, auto debt, medical debt, et cetera. I’ll give you a spreadsheet that will help you work through in which order to tackle your debts, taking into account the type of debt, the interest rate, and the pay-off balance. We’ll also discuss how to sustain your motivation through a long debt repayment process. This is going to be a value-packed session. So please join us on August 27th. You can register at pfforphds.com slash wphddebt. That’s PFforPhDs.com/W for wealthy P H D D E B T. Now back to our interview.

How to Inform Your Mentor About a Side Hustle

17:22 Emily: So Stephen, we talked earlier about how flexible and low time commitment this is. Did you choose to tell your mentor that you were involved with this? Did you choose to keep it on the down low? Like yeah. How did the sort of time management work with you and your mentor?

17:39 Stephen: Yeah, that’s a great question. You know, I get that question from mentors all the time actually is how do you kind of balance this with other obligations? And I mean, I would 100% advocate for informing your mentor, right? Because I think without doing that, it’s not really going to be something that is going to feel comfortable for you, but this isn’t something that needs to be hidden, right? This is a teaching opportunity that your mentor is probably going to be very enthused about you doing, you know, especially if they’re not in need of you to be on a TAship. This is just further development professionally. It also affords you the opportunity to make a little bit of extra income, which as mentors will often tell you, it’s nice to not have students feeling like they’re starving. You know what I mean? And so I think that those are pieces that are important.

18:21 Stephen: And so I certainly told my mentor, and basically I just laid it out as this is not going to impact any of my day-to-day work. Because as I was saying before, you know, the flexibility of the scheduling affords you to be able to set this up well after anything that would be needed in your day-to-day. It can be done on weekends wherein you may not have as many obligations to your full-time position, whatever that might be. And so I think that that’s really how it should be approached, is that this is just a additional professional development opportunity. And I would wager that most mentors and most programs are going to completely support and advocate for that.

18:58 Emily: Yeah. I think that unless there’s an explicit prohibition on any kind of outside work for money, this is probably one of the first things that’s going to go over pretty well with a mentor because of the time commitment because of flexibility. Jin, have you seen other mentors take the same approach as Stephen or different ones? Do you have anything to add about how to approach your advisor with, “Hey, I’m going to take this opportunity”?

19:24 Jin: Yeah, I think definitely a lot of the other mentors that I’ve talked to have just made it very clear with their PIs, that this is not going to affect, or maybe this will even enhance, their own work. And especially those who are thinking about, again, a career in teaching, this usually just goes over really well with PIs. The only sort of difference is I think there are some mentors, if they have certain funding from certain foundations and sources that explicitly prohibit, let’s say outside work, then there have been some conversations where the mentor realized that they can’t actually get paid for the work. And they’re going to just volunteer and work with some of our scholarship students in the scholarship program. But in general, for most of our mentors, it’s gone over actually really well with their PIs. And most of our mentors will want to tell their PIs just in the name of transparency.

Anyone Who Might Not Be a Good Fit at the Moment?

20:12 Emily: To kind of expand on that question a little bit more, Jin. So you just mentioned, okay, there might be some limited circumstances where, contractually, graduate students are not permitted to be paid for outside work. Are there any other people who might be excited by this episode and thinking that they might want to work with Polygence, but that you know already would not be a good fit at least at the moment?

20:35 Jin: Yeah, so unfortunately we are not able to employ graduate students who are on student visas, just because with payment issues, we need everyone to have U.S. work authorization. So mentors who are on F-1 student visas or I think J-1 student visas as well. Sadly, the only way to get involved is through volunteering, which some of our mentors still do, but obviously we know that the financial reward is something that’s very important. And so that’s one thing that’s unfortunate. But for international mentors who are on OPT, CPT, or H1B visas or obviously on a green card, they are absolutely welcome to the paid side of the program. But again, just because of legal issues, we can’t with international students on student visas. Yeah. And I would also say in general, in terms of like what makes a good mentor, is someone who’s really excited about teaching, someone who likes connecting with young kids, and who has a little bit of extra time and energy to devote to this.

21:38 Emily: Yeah, absolutely. And if any international students or students on F-1 or J-1 visas are listening, I released an episode a few months back on what kind of side work is allowed for students on those visas. And it’s a very illuminating episode. So we’ll link it from the show notes, but yes, very clearly this would be considered self-employment income. And that is not a type of income that F-1 students can pursue except on OPT or CPT. So yeah, just want make that clear, but Jin, you’re kind of speaking from personal experience here. You know, you mentioned that you were an international student, at least when you first came to the States. So can you talk more about your experience founding this startup as an international student and someone pursuing their PhD? That’s a lot of things.

22:18 Jin: Totally. It was, I think emotionally, just so, dealing with American immigration is just, I think emotionally exhausting, and I’m still in the middle of it because now I’m actually in the middle of dealing with the green card process, which is a whole separate headache. But yeah, so I was on F-1 from undergrad until the beginning of my PhD. And then when I first established Polygence with my co-founder, I was still an F-1 and I just wasn’t getting paid. It was just sort of like a unpaid thing for the exact same reasons that we were talking about. And then when I decided I wanted to take time off and be paid by the company and do work on Polygence full-time, I then applied for part-time CPT because I wasn’t ABD yet. Like I wasn’t all but dissertation yet, so I couldn’t exactly just do OPT.

23:06 Jin: And so I was on part-time CPT for the first year of my full-time work with Polygence. And then I got married and then started the green card process after which I got the temporary EAD from work authorization thing. But all that to say, I think, yeah, navigating immigration and having an extra source of income as an international student, like I know full well to all of our listeners who are going through the same thing, like how much of an emotional drain it is. But there are ways to work around it. And sort of going back to our previous topic of how the department or how my own, you know, academic bosses dealt with it. They were actually really, really supportive of me actually taking time off even, partly because the job market is so dismal in the humanities that they’re like, if it’s one PhD candidate to fight for one job in comparative literature on a yearly basis, that’s, you know, a win for us. And so they were actually really supportive of me taking a break and helping me throughout the whole visa debacle.

Jin: What is Your Work-Life Balance and PhD Status?

24:14 Emily: So I definitely understand the pressures and the circumstances that led to you saying, okay, this is a solution. I need to take a pause in my program, do CPT for a bit. Are you back into pursuing the PhD actively now? Like what is your work-life balance going on right now?

24:32 Jin: Yeah, it’s still a little bit complicated right now. I’ve finally gotten to ABD. I was actually working somewhat on my perspectives and on my research during the first year of me being on CPT. But now that I’m all but dissertation, I can just take my time. I’m not being funded by Stanford at all. But I’m still sort of on paper enrolled so that I can still stay in housing and get health insurance, that kind of thing. But I am full-time working on the company.

24:59 Emily: Oh, that’s so interesting. Yeah. I didn’t realize you had that set up right now. So everybody hates this question. How long do you think it will take you to finish the PhD? Like when you have a full-time position and you’re doing this on the side, I know this is something that so many people get into when they are ABD, especially in fields like yours, where you don’t have to be in the lab and you’re not being funded by a grant and blah, blah, blah. So like just let us know a little bit more about how you’re managing both aspects of this work.

25:25 Jin: Yeah. It’s definitely a little hairy and tricky because I actually still have, I think one or two more courses that I’m supposed to teach at Stanford. But other than that I’m essentially just writing. And it depends on how quickly I write and how much time I can spare outside of working on the company. Right now, it’s not a lot of time that I can spare, just because I think the company just takes up all of my bandwidth and mind space. That being said, I definitely do want to finish it, because the research I’ve been doing and the novels that I’m working with are things that I care deeply about and derive a lot of intellectual satisfaction from. But I think it really is still a bit of a black box in terms of when I can devote myself to the extent that I would want to. And to the extent that the work deserves my attention while working on the company. So that is still a little bit unclear. I was thinking that maybe I could slowly chip away at the dissertation while working on the company, but that’s clearly not really happening. So I’m going to have to sort of kick the can a little bit further down the road.

Next Steps for Getting Involved with Polygence

26:30 Emily: Okay. Well, that was fascinating. Thank you so much for sharing. Let’s circle back to how people can get involved with Polygence if they want to. What is the next step, if they’re like, oh yeah, I’m really, really interested in becoming a mentor. I want to learn more.

26:42 Jin: Yeah. So the next step would to go to the link in the show notes. It’s our short mentor interest form. It takes three seconds to fill out. And once you fill that out, we basically ask you what discipline you’re in, where in your program. Yeah. What stage in your program you are, name, email, whether you have work authorization, very important. And then after that, we will ask you to schedule a 15-minute preliminary call with one of our mentor interviewers. And it’s where you can learn a little more about the program, ask questions about what students are like, what kinds of projects they do. And then after that interview, we will set you up on the platform with your own profile account. And then after that, we will start sending you students once we’ve done a background check on you as well. And then we have a lot of really cool mentor programming and scaffolding to help you get more comfortable with this kind of one-on-one Socratic project-based teaching model, where we offer sort of teaching demo preparation sessions, where we ask you to prepare a mock assignment. And we put you in groups with other new mentors, and maybe Stephen can talk a little more about those because he’s the leading a lot of them.

27:47 Stephen: Yeah. So the teaching demos, they’re the opportunity for incoming mentors who have been matched with a student to be able to kind of review some general tips and tricks essentially of, you know, how to kind of engage with the student initially, because we have a lot of mentors who come in with previous teaching experience, obviously, but with a particular format that we are trying to support. Sometimes it’s a little bit different, right? Because you mentioned earlier, Emily, about how like most of these teaching opportunities are typically in groups, which kind of affords a certain social flexibility. But when it’s, one-on-one, it’s a slightly different architecture, which requires, you know, a little bit more of a, like how do you motivate maybe a shy student or how do you engage with a student who’s very enthusiastic and maybe needs to kind of regain some semblance of focus? You know, those are just little things that can come up, but we, as, you know, mentor support team members, we want to make sure that mentors feel like they have access to the information that they’ll need to be as successful as possible with students, because their success very directly affects the success of the students. Right? So we want to make sure that we’re providing that kind of support.

Best Advice for an Early-Career PhD

28:55 Emily: I’m so glad to hear that you’re not just being thrown into like, as happens so often in academia, you’re just being thrown into a situation and expect that you already know what to do, and there’s no like clear way to go for help. Okay. That’s really good to hear. Awesome. So people know where they can go next and we will just wrap up by, I’ll ask you the same question that I ask of everyone that I interview on the podcast, which is what is your best financial advice for an early-career PhD? And Jin, why don’t you go first?

29:22 Jin: That is a million-dollar question. I would say be on top of your savings and make sure that you are saving at least a little bit every month. I know a lot of people, you know, also have student loans to deal with and other things. But I think what was really helpful for me is like really learning how to budget and make sure that on a weekly basis or even on a daily basis, I know how much is coming in and out of my accounts. And also if you’re able to, you know, have a little bit of fun as well, be kind to yourself because I think being a PhD student or any graduate student is really hard mentally and intellectually. And if you have, you know, a little bit of extra funds, whether it’s through Polygence or some other side hustle, treat yourself to something from time to time and just be kind to yourself because this is a marathon, not a sprint.

30:11 Stephen: Yeah. Well, for me, it works out best to use an Excel sheet honestly, right? For the budgeting. And I think that it’s good to kind of orchestrate what is good for you. For some people, they want to spend more money on food. Some people want to spend more money on free time, hobbies, whatever it might be. But I think kind of looking at what you have available to yourself, setting aside, obviously, a column for savings just for who knows what, but, you know, as Jin was saying, being able to kind of establish something to give yourself a break every once in a while and provide yourself some semblance of excitement, I think is really key. Because once you have that, you won’t feel the need to maybe overspend unnecessarily in certain segments of your life. And so I think that that can really be a great way to get the most out of what you have available as a grad student. For sure.

31:00 Emily: You both articulated that so well. Thank you so much for joining me on this episode and I hope that you have a great season of recruiting mentors. Hopefully, a few from this podcast.

31:10 Jin: Thank you, thanks for having us.

Outtro

31:10 Emily: Listeners, thank you for joining me for this episode. PFforPhds.com/podcast is the hub for the Personal Finance for PhDs Podcast. On that page are links to all the episode show notes, which include full transcripts and videos of the interviews. There is also a form to volunteer to be interviewed on the podcast. I’d love for you to check it out and get more involved. If you’ve been enjoying the podcast, here are four ways you can help it grow. One, subscribe to the podcast and rate and review it on Apple Podcasts, Stitcher, or whatever platform you use. Two, share an episode you found particularly valuable on social media, with an email listserv, or as a link from your website. Three, recommend me as a speaker to your university or association. My seminars cover the personal finance topics PhDs are most interested in, like investing, debt repayment, and effective budgeting. I also license prerecorded workshops on taxes. Four, subscribe to my mailing list at PFforPhds.com/subscribe. Through that list, you’ll keep up with all the new content and special opportunities for Personal Finance for PhDs. See you in the next episode! And remember you don’t have to have a PhD to succeed with personal finance, but it helps! The music is Stages of Awakening by Podington Bear from the free music archive and is shared under CC by NC. Podcast editing by Lourdes Bobbio, and show notes creation by Meryem Ok.

Why and How to Increase Your Retirement Account Contribution Room

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In this episode, Emily presents why and how you should increase your retirement account contribution room. She gives a compelling compound interest example calculation that illustrates why you should start investing early in your career and reviews the types of tax-advantaged retirement accounts you might have access to and why you should use them if you can. If you would like to increase your available contribution room in tax-advantaged retirement accounts and you are self-employed, the last part of the episode is for you. You can open a tax-advantaged retirement account through your business, even if your business is new or tiny or unincorporated. Emily compared the three most popular self-employment retirement accounts and evaluated which is most advantageous for a solopreneur side hustler, as so many PhDs are, in a video training she recently added to the Personal Finance for PhDs Community. In this episode, she tells you about the training, what motivated her to create it, and how to avoid making the same mistakes she did with her self-employment retirement account. You can access the training by joining the Personal Finance for PhDs Community at PFforPhDs.community.

Links Mentioned in This Episode

retirement account contribution room

Welcome to the Personal Finance for PhDs Podcast: A Higher Education in Personal Finance. I’m your host, Dr. Emily Roberts.

This is Season 7, Episode 9, and today I don’t have a guest but rather am going to tell you why and how to increase your retirement account contribution room.

I’ll give you a compelling compound interest example calculation that illustrates why you should start investing early in your career. I’ll review the types of tax-advantaged retirement accounts you might have access to and why you should use them if you can.

If you would like to increase your available contribution room in tax-advantaged retirement accounts and you are self-employed, the last part of the episode is for you. You may not be aware, but you can actually open a tax-advantaged retirement account through your business, even if your business is new or tiny or unincorporated.

I compared the three most popular self-employment retirement accounts and evaluated which is most advantageous for a solopreneur side hustler, as so many PhDs are, in a video training I recently added to the Personal Finance for PhDs Community.

In this episode, I’ll tell you about the training, what motivated me to create it, and how to avoid making the same mistakes I did with my self-employment retirement account. You can access the training by joining the Personal Finance for PhDs Community at PFforPhDs.community.

I highly recommend going through the training if you are looking for more retirement account contribution room. It might even convince you to start a self-employment side hustle for that express purpose. This episode is specific to the US and is not tax, legal, or financial advice for any individual.

Without further ado, here’s my episode, on why and how to increase your retirement account contribution room.

Why You Should Invest for Retirement Early in Life

To build my case, I need to start by showing you why you should invest for retirement early on in your life.

There is an example I use in my seminars that makes a big impression on at least a few people in the audience.

This is a compound interest calculation, and you can follow along with it and play with some numbers of your own using a compound interest calculator such as the one at Money Chimp, which is linked from the show notes.

Compound interest calculations model the exponential growth of money over time with a given rate of return. It’s a way of modeling the returns you can get in the stock market, for example, though this calculation has a steady rate of return and your rate of return on stock investments would fluctuate quite a lot year to year. It’s a good model if you’re calculating returns over long periods of time.

So here’s the example:

Let’s say you’re able to save and invest $250 per month. That’s 10% of a $30,000 per year stipend or salary. You have no starting balance with your investments, and your money gets an average annual rate of return of 8%. You do this over five years, for example while you’re in grad school or a postdoc.

After five years, you have contributed $15,000 and your money has grown to $18,369. That might not sound too impressive yet but just wait!

Now, let’s take that $18,369 and let it keep growing with an 8% average annual rate of return. You’re not going to add any more money to this particular pot. Let it ride for 50 years this time.

The balance in your investment account has now grown to $990,000. You heard me right! The money you contributed over just five years has, given enough time and a good rate of return, grown to just shy of one million dollars! This is the power of compound interest.

If you’d like to read this example for yourself and dissect it a bit, I’ve linked an article from the show notes about all the assumptions and so forth.

Here’s the takeaway point, though: Don’t discount any amount of money you are able to invest during grad school or your postdoc. Whatever money you manage to invest early in life is going to have an outsized impact on your wealth in your older years. So start early and save at as much as you reasonably can.

Of course, you’re not limited to investing for retirement to an early five-year period of life. I hope that you will continue to invest throughout your career in larger sums than $250 per month. That doesn’t take away from the importance of starting early.

Why You Should Use a Tax-Advantaged Retirement Accounts

That’s the case for investing in general. Now I’m going to tell you why you should use a tax-advantaged retirement account for your very long-term investments.

What do I mean by tax-advantaged retirement account? Basically, the federal government gives a tax break to incentivize people to fund for their own retirements in particular. Money that has been contributed to a tax-advantaged retirement account is shielded from income and capital gains taxes.

These tax-advantaged retirement accounts go by many names, such as Individual Retirement Arrangement or IRA, 401(k), 403(b), 457(b), Thrift Savings Plan or TSP, and there are even more.

If you invested in a regular taxable investment account, you would pay your full income tax on the money you invest, plus every year there might be some small bites taken by income or capital gains tax. How large the tax bites would be depends on what you’re invested in, how long you’ve held the investment, and how high your overall income is.

Instead, with a Roth tax-advantaged retirement account, you pay your full income tax on the money you contribute, and then the money grows tax-free while it’s in the tax-advantaged retirement account and you can withdraw it in retirement without paying any income or capital gains tax.

A traditional tax-advantaged retirement account allows you to deduct your contributions to it from your taxable income in the year you contribute. The money grows tax-free while in the tax-advantaged retirement account, and then you pay ordinary income tax on the withdrawals in retirement.

It is a great strategy to use a tax-advantaged retirement account for money that you’re sure you won’t need access to until your retirement. While in any given year the tax you might pay on investments in a regular account might be fairly small, the cumulative effect on your investment balance over decades of this is a bit like a death by a thousand cuts. Plus, once you are in your peak earning years, it’s quite a valuable tax break to be able to deduct your contributions to a traditional tax-advantaged retirement account.

The tax break on the growth in a tax-advantaged retirement account alone typically amounts to tens or hundreds of thousands of dollars over the course of an investing lifetime. This again demonstrates the power of compound interest, because the biggest part of the difference is not in how much you pay in tax, but in how much that money could compound and grow if you were able to leave it invested instead, which is what a tax-advantaged account does.

Add to your investment balance some hundreds of thousands of dollars more if you are able to use Roth and traditional tax-advantaged retirement accounts to selectively pay ordinary income tax in retirement and/or your lower-earning years instead of in your peak earning years.

What Is Contribution Room?

I hope I have convinced you of the power of investing and specifically inside a tax-advantaged retirement account.

Now, I’ll define a term I’m going to use quite a bit in the remainder of this episode: contribution room.

Contribution room is the maximum amount of money you are permitted to contribute to a tax-advantaged retirement account in a given year.

For example, graduate students and postdocs who are not employees of their universities or institutes are not extended retirement benefits, so their only tax-advantaged retirement account option is an IRA. If you are under age 50, the annual contribution limit to an IRA is $6,000 in 2020.

Graduate students who are employees of their universities or institutes are only very rarely extended retirement benefits; it’s worth checking into but don’t get your hopes up.

If you are an employee in the private sector, it’s typical to have access to a 401(k), perhaps even with a matching program. If you are under age 50, the annual employee contribution limit to a 401(k) is $19,500 in 2020. Your total contribution room between a 401(k) and an IRA is $25,500.

If you are an employee in the non-profit sector, such as at a university, it’s typical to have access to a 403(b), perhaps with a match or a fixed contribution by your employer. If you are under age 50, the annual employee contribution limit to a 403(b) is $19,500 in 2020. You might also have access to a 457(b). If you are under age 50, the annual employee contribution limit to a 457(b) is $19,500 in 2020. Your total contribution room between a 403(b), a 457(b), and an IRA is $45,000.

You can see that the contribution room available to you as a full-time permanent employee is much, much greater than if you are a fellow or graduate student. This is why there is such a focus on contributing to 401(k)s and similar and less so IRAs.

Now we come to the question of how to create more contribution room. Of course, you only need more contribution room if you are currently maxing out the contribution room available to you.

When I was in grad school, I never maxed out my IRA. So if you are maxing out your IRA as a grad student, please hear me: You are a rock star. I am not telling you that you have to contribute more. I’m only going to show you how you can if you already want to.

If you are maxing out a 401(k), etc., you are also a rock star. But if you want to contribute even more to make up for lost time or hasten your retirement date, I can show you how.

Self-Employment Retirement Accounts

The specific strategy I’m teaching you today is about self-employment retirement accounts and how they can supplement your IRA, 403(b), etc.

But to have a self-employment retirement account, you have to own a business. That could sound like a really fancy, complicated thing, but it definitely doesn’t have to be. All I mean is that you file a Schedule C with your tax return, assuming your business is unincorporated. You might describe yourself as a freelancer, an independent contractor, a gig worker, a solopreneur, or self-employed.

You know as well as I do that lots of graduate students and postdocs have side hustles to supplement their pay, and many of those, whether the person thinks about it this way or not, are businesses. Again, if you file a Schedule C with your annual tax return, this information is for you.

If you aren’t a business owner and have no plans to become one but you know a grad student or PhD who might be interested in this strategy, please share this episode with them!

I’ve covered the two main requirements you should check off before pursuing a self-employment retirement account: 1) that you own a business and 2) that you want more contribution room in tax-advantaged retirement accounts.

My Story and My Client’s story

I’ll tell you what motivated me to first investigate self-employment retirement accounts a few years ago.

When my husband and I were in grad school, as I mentioned earlier we never maxed out both of our IRAs. So even though I did have some self-employment income by the end of grad school, we had no need to open a self-employment retirement account.

We defended in 2014, and in the year following, my husband was a postdoc employee and I had self-employment income, so we had our two IRAs plus access to a 403(b), and we didn’t get anywhere close to maxing out that contribution room.

Halfway through 2015, my husband took a job at a start-up that offered a 401(k). That was when our household income really jumped up. We knew we would need more contribution room than just our IRAs to meet our retirement investing goal of 20%.

However, the 401(k) offered by my husband’s job was and is really expensive. It’s offered through Edward Jones and composed of American Funds, both of which are notorious for charging high fees. And the company doesn’t offer a match.

So in 2015, I read up about self-employment retirement accounts and opened one for Personal Finance for PhDs. We had a lot of options in where to open the account and which funds to purchase within it, so we could keep the costs really low. And that’s been our tax-advantaged retirement investing strategy for the past five years. We can meet our retirement investing goal using our IRAs and my self-employment retirement account. If we do ever need more contribution room than those accounts provide, we will use the expensive 401(k), but not until.

Your motivation to use a self-employment retirement account to increase your contribution room might be different from mine. Honestly, I didn’t imagine that any graduate students, for example, would want to contribute more than the $6,000 IRA ceiling.

But I was wrong. One of my recent coaching clients through The Wealthy PhD, a grad student, maxed out her 2020 IRA, but had some additional money that she was interested in getting into a tax-advantaged retirement account. She did freelance work on the side of her role as a graduate student, so I suggested that she look into self-employment retirement accounts.

Self-Employment Retirement Account Options

Our conversations throughout that program on this topic inspired me to create a new training inside the Personal Finance for PhDs Community titled “Self-Employment Retirement Account Options.” You can access the training by joining the Personal Finance for PhDs Community at PFforPhDs.community.

As you can tell, I love to encourage PhDs to invest early on in their careers, even during grad school or a postdoc. I also love teaching about taxes. So this training is a perfect crossover point between my two favorite personal finance subjects, and it stretched me quite a bit as well as I learned lots of new things.

The objective for “Self-Employment Retirement Account Options” is to help you choose which self-employment retirement account type is right for you and your business. I haven’t mentioned it yet, but there are at least half a dozen high-level options and many of those have various permutations.

As I was sifting through these options to decide what to include in the training and in what depth, I kept in mind my coaching client who inspired the training. There is a lot of information out there about self-employment retirement accounts, but it’s largely intended for people who work full-time in their business, like I do, or even for small businesses with employees.

What I decided to do with the training in the Personal Finance for PhDs Community was to create it with a side hustler in mind instead—a solopreneur who has only a few thousand dollars in self-employment income—but who wants to maximize their retirement account contribution room even on that smaller income. When you frame the question that way, I believe the best choice becomes much clearer.

I included in the training detailed information about the three most popular self-employment retirement account types. The less popular account types are not ideal for a side hustler or solopreneur. The types I included are SEP-IRAs, SIMPLE IRAs, and one-participant 401(k)s.

Across these three account types, I compared the type of business they are ideal for; their employer, employee, and overall contribution limits and formulae; whether a Roth version is an option; and their deadlines to set up. For each account type, I also calculated the overall contribution limit for someone whose net business profit is $24,000 per year, an amount that highlights well the differences among the plans.

I also show you how contributions you or your employer make to a retirement account offered through your primary job affect your contribution room within each of the types of self-employment retirement accounts. This information is not the type you uncover by reading quick summaries of various account types, but it is crucial for a side hustler.

Ultimately, I recommended one account type over the others. I present whether that account type can be opened at 13 of the most popular brokerage firms today and a few specifics about the account at each of the firms where it is offered, such as what fees are charged. All of that is to save you a bit of research time when you are actually going to open your account.

I admit I did not do any research on the best place to open my self-employment retirement account. I opened it with Vanguard, which is where I had all my other investments. It was quite surprising to me when I looked around at other brokerage firms to find that Vanguard is not necessarily the best option.

The very last module in the training shows you how to use a certain IRS worksheet to calculate your contribution room, and I show four calculation examples. This module is really in the weeds, but should be super helpful for someone who trying to put as much money as legally allowed into their self-employment retirement account.

I actually didn’t know about this worksheet a couple of years ago when I accidently slightly overcontributed to my self-employment retirement account. Once I realized my mistake, I had to reverse that contribution in a slight panic right before the tax deadline. I don’t want anyone else to go through that process or overcontribute and not catch the mistake, so that’s why I included this module.

Summary

Let’s come back around to the compound interest illustration that I relayed at the beginning of this episode. Given the assumptions in that example, investing $250 per month for five years and then letting the portfolio grow for fifty years resulted in a balance of almost one million dollars.

Whatever your saving rate, increasing it by $250 per month is going to have a very impressive outcome, either in more wealth in retirement or achieving financial independence even earlier.

If your budget has no room for additional investing right now but you have a bit of time on your hands, consider pursuing a self-employment side hustle such as consulting; freelance research, writing, or editing; tutoring; baby or pet sitting; or gig work.

To invest $250 per month in the type of self-employment retirement account that I recommend, you only need to net $269 per month through your business. Let’s round it up to $350 per month to account for income and self-employment tax.

If you earn $15 per hour after expenses, you can earn $350 in 23 hours of work, or less than 6 hours per week.

At $25 per hour, that’s 14 hours of work in a month or between 3 and 4 hours per week.

If you charge $50 per hour, which is quite moderate for some of the types of work I mentioned earlier, you can earn $350 in just seven hours of work per month. Increase it to $100 per hour, and you’re down to less than 1 hour of work per week to meet your goal.

If you think that charging $50 or $100 per hour is outlandish, you’re probably anchoring against what you’ve been paid as an employee and/or for work outside of your unique skill set. Capitalize—literally—on the skills you built or are building during your PhD to command higher pay rates.

Do you think you can find between 1 and 6 hours per week to devote to a side hustle over just five years if it can become an extra million dollars fifty-five years from now?

If you’re already there with your self-employment side hustle or will be soon, please consider joining the Personal Finance for PhDs Community to take the Self-Employment Retirement Account Options training. You will learn which self-employment retirement account is best for you and your business and where to open one to protect your investments from taxes and maximize their growth over the decades. You can access the training by joining the Personal Finance for PhDs Community at PFforPhDs.community.

Why and How to Start a Coaching Side Hustle as a Grad Student, Academic, or Researcher

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In this episode, Emily interviews Cheryl Lau, a PhD student and branding and content coach serving graduate students, academics, and researchers. Cheryl assists her clients with their service-based side hustles, and our interview today is on why and how to start a coaching business on the side of your PhD training or full-time job. Cheryl identifies two mindset shifts that new coaches might need to make before they dive into their businesses and the first three steps they should take. Cheryl shares her story of figuring out personal branding following a quarter-life crisis and the financial impact that her own coaching income has on her grad student finances.

Links Mentioned in the Episode

Teaser

00:00 Cheryl: And that’s what I realized that, “Oh, wow. I actually have some answers and suggestions and tips. Maybe I can help people on that.” So, what I did first was actually started working with people for free. And I saw that, well, one of my clients actually was able to get a paying client for her own business. And that’s when I realized, you know what, I can charge for this.

Introduction

00:23 Emily: Welcome to the Personal Finance for PhDs podcast, a higher education in personal finance. I’m your host, Dr. Emily Roberts. This is season seven, episode five, and today my guest is Cheryl Lau, a PhD student and branding and content coach serving graduate students, academics, and researchers. Cheryl assists her clients with their service-based side hustles, and our interview today is on why and how to start a coaching business on the side of your PhD training or full-time job. Cheryl identifies two mindset shifts that new coaches might need to make before they dive into their businesses. And the first three steps they should take. Cheryl shares her story of figuring out personal branding, following a quarter-life crisis, and the financial impact that her own coaching income has on her grad student finances. You can find out more about Cheryl and her business at cheryltheory.com. Cheryl and I met through the self-tenure community run by Dr. Chris Cloney. And speaking of coaching, Chris is actually my online business coach. If you want to learn more about starting and running an online business as an academic or researcher, definitely check out Chris’s resources at gradblogger.com and selftenure.com. What Cheryl and I cover in this interview dovetails very nicely with some resources I’ve released this fall inside the Personal Finance for PhDs Community. If you run a business as a side hustle, whether coaching or otherwise, you may be interested in my new course, Best Financial Practices for Your Self-Employment Side Hustle. I’ve covered two topics so far how to budget with a variable side income and how to choose a self-employment retirement account. If you are maxing out your IRA this year and don’t have access to a 401(k) or 403(b), I highly recommend the latter module. To view all the benefits of being part of the community and sign up, visit pfforphds.community. Without further ado, here’s my interview with Cheryl Lau.

Will You Please Introduce Yourself Further?

02:30 Emily: I’m really excited to introduce you all today to Cheryl Lau. She is a branding and content coach focusing on PhD, students, academics, and researchers. And specifically today, we’re going to be talking about coaching businesses. Now, I just said, Cheryl herself is a coach, she helps other people who are also coaches, and I also serve as a coach. So, we have a lot of coach talk going on today. And just to frame this a little bit, Cheryl specifically works with people who doing coaching or other service based businesses as a side hustle. So, this is absolutely something that you can do on the side of your graduate work, your PhD training, your full-time job. That’s perfectly okay. So, I want you to keep listening to this episode, even if you’re initially thinking, “Wait, why would I become a coach? What could I possibly coach someone about?” No, that’s what we’re going to be talking about today. So, you’ll probably have your mind expanded a little bit about the possibility of you starting a coaching business, and Cheryl’s here with us too, to help us do that. So Cheryl, will you please tell the audience just a little bit more about yourself?

03:32 Cheryl: Sure. So hi everyone. My name is Cheryl and I am originally from Toronto, Canada, but right now I am based in Hong Kong. So, originally I studied psychology at the University of Toronto, and now I am starting my PhD in Social Welfare at the Chinese University of Hong Kong. And online, I am a brand and content coach or strategist, and I basically help academics, graduate students, and researchers to really show up online confidently and build a brand and a side hustle business that really makes an income and an impact.

What is a Coach, and What is a Coaching Business?

04:05 Emily: So perfect. Thank you. Okay. So, Cheryl, what is a coach, and what is a coaching business? Because I know a lot of people, my audience will never have hired a coach for anything, they aren’t coaches themselves. So, what exactly are we talking about?

04:18 Cheryl: Sure. So the pure, pure, pure definition, if you search on Google, I’m sure the definitions will be something along the lines of empowering the client to make a decision for himself or to empower clients to really think on their own and think about how they want to achieve their own goals. So, that’s like the pure, pure definition of coaching. But how I like to look at a coaching business is basically using your own preexisting skills, knowledge or experiences to help someone solve a problem. And that could be in the form of coaching, mentorship, or teaching. So, basically if you’ve been able to get a result for yourself or for others and you can help other people achieve that same result, you can start a coaching business on that.

04:59 Emily: Yeah. So, a coaching business could be drawn out of professional expertise, certainly, but it can also kind of be drawn from expertise that’s developed through your personal journey and then expanding that beyond just yourself, working with other people, learning from other people. And I would say that latter describes, you know, my journey as a personal finance expert, right? Like I don’t have any certifications when it comes to like the financial stuff, but I’ve spent enough time in this space, talked with enough people, listened to enough great resources that I consider myself an expert, and bill myself as an expert in that area. So really, you know, you don’t have to be a professional in the area that you ultimately coach in. You just have to be, well, frankly, you just have to be more competent than your clients, really. I’ve heard it said that, to be a coach, you have to be just one or two steps ahead of the person you’re trying to help. So, like in the financial realm, you don’t have to be a certified financial planner. If you want to coach people on their budgeting, you have to be like pretty good at budgeting. You don’t even have to know about investments or all the other stuff. So, you can sort of narrow the scope of what you’re going to be coaching on based on the actual expertise that you do have. Don’t feel like you have to be an expert across the board at everything, right?

06:11 Cheryl: Yeah. And I totally agree with that. I feel like there are maybe a few different ways that people can look inside or in the past and assess where they can draw, they can derive a coaching business from. So, maybe like you said, your personal experiences or maybe achievements you’ve accomplished. Let’s say, for example, maybe you were a TEDx speaker. You can teach people how to become a TEDx speaker or get invited to speak at TEDx events. Or maybe if you’re really just naturally gifted at something, maybe you’re just a naturally good listener, so maybe you have a particular strength and you’re really upbeat and motivating and uplifting to other people. You can support people by being a listener. Perhaps you can become a life coach eventually. So, there are many different ways you can look at your skills, your achievements, or your strengths. And I think by looking at those three areas, you can kind of start thinking about what are things I can help people solve a problem on?

Why Coaching is a Good Side Hustle

07:05 Emily: Absolutely. So, let’s get back to like the idea of the coaching business. Why would someone want to pursue this while they have a full-time job or while they are in graduate school, for example? Like why is this a good side hustle?

07:20 Cheryl: So, as graduate students or academics, your time is very, very valuable. And by being able to start a coaching business on something that you already know by using your preexisting knowledge, skills, or experiences or achievements, you’re not starting from scratch. You’re not learning an entire new craft from stage zero, but rather you’re already building on top of what you already know. So, the learning curve is a lot faster. And that said, you really do not need an original idea. So, contrary to maybe startups where you need something that’s very new and fresh and original, here, your coaching business model or the problem that you’re helping to solve for other people. It’s usually kind of mundane. It’s nothing that new. So, maybe for example, for me as a brand and content coach, there’s many people helping others in marketing or starting an online business or side hustle.

08:17 Cheryl: So, the idea itself is not new, but in fact, where there is competition, that means there’s more demand for that service. And so, because time is so valuable as a graduate student or a PhD or academic, by building a business that doesn’t require you to learn that much skills upfront, you can save a lot of time. And also by working closely with your clients, whether that’s one on one or in a group setting, you’re really able to help pinpoint what are areas that people are getting stuck on and you can really answer their questions and help them resolve issues as they come up really quickly. And as a result, your clients are getting much faster results and much higher quality results than if you were to just create an ebook and give them all the information and they were to implement it on their own. Because challenges do come up, limiting beliefs and self-doubts do come up. But if you’re able to coach them through those limiting beliefs, then they’re able to get results much, much faster. So, those are a couple of reasons people might consider starting a coaching business.

Active vs. Passive Coaching Income

09:17 Emily: Yeah. You made a couple great points in there that I wanted to follow up on. One is regarding like the value of your time as a researcher. Service-based side hustles in general, they’re the fastest way to make money on the side when you’re literally trading your time for money. So, you know, you mentioned this in contrast to like for instance, writing ebook and publishing it and maybe generating passive income over time. That’s another way to help people, but they’re very different approaches and you can charge a lot more for one-on-one or small group services than you can for an ebook, for example. And you’re literally just trading like your hours for money. And so it’s very, very fast. You can build it very quickly, turn it around. Of course, you need people who want your service.

10:03 Emily: But it’s a very quick way to make money and more reliable, I would say, then doing something like trying to generate passive income from an ebook. And I think another point that you made in there that I wanted to pull out is that the way that you’re serving people is different than them just trying to learn something on their own. They probably have already attempted to learn and take action on whatever the subject area is that you are coaching in. Like in my sphere, in personal finance, maybe someone listens to my podcast, other podcasts, maybe they love to read about personal finance, maybe they read books. But there is still a disconnect between absorbing that information and actually implementing it in their life. And so if someone is at that stage of, “Well, I’ve taken in a lot of content, but you know what, I’m just not making changes in my life, and I want to.” That might be a place where a coach could step in, like I could step in, and help that person get to that next step. So, they’re both valuable, but it’s very different approaches for helping people achieve their results.

11:03 Cheryl: Yeah, totally. And you know, there are so many different ways that a person can make money online using your own skills and experience and knowledge. But one thing that’s very unique about coaching is that, or one benefit I should say, is that by serving your audience in such a high touch, high accountability, high personalization manner, even the quality of the results that your clients will get will be a lot better than if they were to do it on their own. And because of that, the testimonials that you’ll get in return at the end of your work together will be much better. And your testimonials are very important, especially when you’re building a coaching business because other people want to see that, “Hey, this person can actually help me solve a problem and get me really good results.” And so testimonials are really important for the marketing aspect of your coaching business.

Flexible Working Hours

11:51 Emily: I think another thing that you haven’t necessarily touched on yet, but is another point in favor of coaching as a side hustle, is that it’s very scalable in terms of time. Like you can spend an hour a month coaching if you want to, or you can spend many hours per week and that could be your side hustle. And so, it’s different than, you know, a side job, let’s say where someone else is dictating your schedule and the amount of hours you should work. It’s completely up to you as the business owner to dictate how many hours you’re going to work per period of time.

12:20 Cheryl: Yeah. That’s a really great point because the flexibility of the coach is just incredible because all you really need is wifi and Zoom basically. So, by being able to, basically honestly, you can work from anywhere. You can be a coach anywhere, as long as you have the internet, even the startup costs that you need to start a coaching business are quite low compared to other business models. You don’t need that much tech. You don’t need that much software. You just need Zoom and internet, basically. You can easily package later on if you choose. So, you can package what you’ve taught and coach people on into a digital course, a passive product. But after you gain more experience, after you really pinpoint what are areas that people really struggle with and what are questions that come up over and over again, and you take notes on those issues and challenges that come up, you can easily create a digital course or digital product based on your experiences as a coach. And you can sell that much better, as opposed to just creating a course upfront and not really knowing if it’s going to be able to help people get results.

Mindset Shifts to Start a Coaching Business

13:22 Emily: Yeah, I totally agree. We’re talking to like graduate students, a lot of people and other PhDs, and they might be thinking like, who, “Who am I to be starting to be starting a coaching business, what is this? So, what are some of the mindset shifts that someone in my audience who is sort of intrigued by this idea? What do they might need to work on in their mindset before they’re able to really embark on a coaching business?

13:44 Cheryl: So, you just mentioned basically imposter syndrome: who am I to start a coaching business? And I think that is massive. And I think one other, I guess, belief that goes hand in hand with imposter syndrome is the idea, or basically the fear of judgment. So, what are people going to think if I start a coaching business? So, one perspective shift that I would really like to offer your audience today is to think about who are you trying to work with versus who are the people who might potentially be making judgments about your business? Because ultimately whatever you do in your life, there will be people who are making judgments about you, even if you’re not doing anything. Even if you’re not doing a coaching business, you’ll still receive judgment. So, the question is how much time and concern are you giving to the people who you’re trying to serve versus the people who really aren’t going to become clients in the long run?

14:32 Cheryl: And so, I would really encourage the audience who might be thinking of starting a coaching business to really think about, “Okay, this is a target audience I want to serve and how can I actually get my message and/or work in front of them so that they can see the value of my work?” As opposed to just worrying about what people are going to think, especially those who are really just never going to become fans or supporters of my work, because there’s definitely people who would never really see the value of coaching. So, that means that they’re unlikely to become paying clients or part of your audience. So, if you are really worried about what are people going to think, I would urge you to just to just focus on the impact that you can make and the audience that you want to serve, as opposed to worrying about people whose opinions really have no bearing on you serving that particular audience.

Navigating Imposter Syndrome

15:17 Cheryl: And also, as we mentioned, imposter syndrome. One really easy way to navigate this imposter syndrome is to remember that imposter syndrome really roots from feeling like you’re not credible enough to start this coaching business. But if you just remember that you’re starting a coaching business based off of your preexisting skills and knowledge and experiences, these are things that you’ve already done before, and you’re simply helping other people do the exact same thing. So, if it really is an issue that comes up, one thing that I encourage all of my own clients to do is to start working with people for free first. That way you can actually make sure that you can help people and get them results and not worry about, “Oh my gosh, can I really help people?” But by having actual evidence, concrete evidence that you can get results for other people, you are not only running your business in integrity, but you’re also able to work through that imposter syndrome by seeing that, “You know what, I can do this.”

16:13 Emily: Some people around you might be saying, “Wait, would anyone find value in the coaching that you’re providing?” But like you said, if you actually start working with clients and on a free basis or low-cost basis to begin with, then you can prove to yourself and the people who might be questioning around you, “Oh yes, I do help people get results. Like this is what I’ve done. This is what I’ve helped them do in the past.” You have the receipts basically. Once you start working with people and you can keep track of those testimonials and keep track of their results, that can both encourage you and help you answer to people who are wondering really what you’re doing here.

16:48 Cheryl: Yeah. I love that point. And you know what, very recently, I think about two months ago, I was meeting with an old classmate. So, my classmate said, “Wait, people actually pay you for this?” And I’m not gonna lie, I was pretty taken aback when I heard her say that. Because for many, many months, I’ve been working on my business and I’ve been working with clients and helping them get results. And to suddenly hear someone I used to be friends with question the validity or the legitimacy of my business was really shocking. But then in order to snap back into the swing of things, I reminded myself that, “Hey, you know what, I do have the receipts, just go on my website and you’ll see all these testimonials.” And I remember once again that I have worked with people, I’ve helped them get results.

17:35 Cheryl: And as a result, I’m able to run my business in integrity. And I think that’s really important for people to remember that you are focusing on people that you can actually help as opposed to faking your way into getting clients. Because, as opposed to just signing on every single client that is in sight, really focus on helping people that you can actually help so that imposter syndrome doesn’t come up and you can actually see the clients achieve amazing transformations.

18:01 Emily: Hmm. I totally agree about being selective about the clients that you take on. I think just coaching overall is kind of an unknown industry, or at least maybe among like the academic audience, it might be a little unfamiliar. So, I think the question of like, “People pay you to do that?” I can understand why you’d be a little taken aback by that, but I don’t think it was probably meant in offense, just like, “Oh my gosh, like there’s an industry around people getting paid to do this thing?” But like we were saying earlier, you know, for people who really want that high touch interaction with a coach, then yes. They decide at some point some of them that it is worth it to them and they choose to pay for it. So, it’s the decision of your clients, not the people around you.

Commercial

18:44 Emily: Emily here, for a brief interlude. If you are a fan of this podcast, I invite you to check out the Personal Finance for PhDs Community at pfforphds.community. The Community is for PhDs and people pursuing PhDs who want to take charge of their personal finances by opening and funding an IRA, starting to budget, aggressively paying off debt, financially navigating a life or career transition, maximizing the income from a side hustle, preparing an accurate tax return, and much more. Inside the Community, you’ll have access to a library of financial education products, which I add to every month. There is also a discussion forum, monthly live calls with me, a book club, and progress journaling for financial goals. Basically, the Community exists to help you reach your financial goals, whatever they are. Go to pfforphds.community to find out more. I can’t wait to help propel you to financial success. Now, back to the interview.

First Steps Toward Starting a Coaching Business

19:47 Emily: Let’s say that we’ve talked someone into, “Okay, I’m going to consider starting a coaching business. I have my area of expertise, my area in mind that I want to coach in.” What are some of the first steps that that person should take towards starting this coaching business?

20:02 Cheryl: So, I would say the first step is really getting clear on what do you want to coach on? And I think that if you want to gain more clarity on that, one of the steps that you can take is to really identify an achievement or a process that you’ve undergone and just map out that process step-by-step. What are the steps that you took or different areas or components that contributed to that final result? So, really just write down what are the different steps or parts of you being able to achieve a certain result or solve a specific problem for yourself.

20:35 Cheryl: And that will become kind of like your framework or methodology that you can walk people through to help them get results as well. Because ultimately, the goal is to be able to help someone through a process that is unique to you and something that you’ve done for yourself as opposed to teaching something that you haven’t really done for yourself. So, I think the first step is to really identify what are the key steps or key areas that have led you to where you are today. And then the next step would be marketing and sales. So, perhaps you can be on social media to share your services, to talk about your program, and to talk about how you’ve been able to get results for yourself. And really just share how excited you are about the program and why this worked for you and why it will work for other people who are struggling with something similar as well.

21:22 Cheryl: And finally, just delivering a really awesome coaching experience for a client. And I think those are the very fundamental steps that people can take when they’re just starting out. I mean, there are so many different things that you can do. You can start a webinar funnel, you can start an email list, you can create a podcast or YouTube channel. There are so many different things you can do to market and promote your coaching program. But I think at the core of it, having clarity on your offer, being able to share insight on your first few clients and also deliver really good results with people. I think that’s the core. The first few steps that people should look into first.

Finding Your First Few Clients and Charging for Coaching

21:55 Emily: I also think that there might be some people in the audience who are a little bit nervous about, you know, you used the word marketing. Like a little bit nervous about kind of putting themselves out there as like this coach in this certain area. You know, you mentioned earlier taking on your first few clients for free. So, I sort of view that as like an exploratory process, both for the coach and the people being coached. The coach is sort of investigating, is this something, you know, like you said earlier, can I provide value? Can I help this person achieve results? Do I like it? What do I think my time is worth? They’re kind of exploring through that process. And then of course you do need to start charging and I would say pretty soon. You know, don’t do that for very long. Can you talk to me about those first few clients? Maybe how to find them and then also the transition between doing that for free and then starting to charge for it.

22:44 Cheryl: Yeah. The interesting thing that I’ve learned about working with people for free is that because they’re not necessarily financially invested in your program, the chances of them staying committed throughout the entire process is not as committed as someone who has actually invested money into your coaching program. So, what I would suggest when you’re finding beta clients is to really be selective about it. So, invite people as opposed to just shouting it from the rooftops and hoping that people will inquire about it. So for example, what I did was actually, I looked at my current audience and I would recall the conversations I had with people and identify two or three people who I think would be a good fit and really fun to work with. And I send them a personalized message and say that, “Hey, this is my goal. I really want to launch this paid program in a few months time. But first I want to make sure that this actually works. So, based on our conversation so far, here’s what we talked about. And I think that this will be a really helpful program for you, and it will be complimentary, it’ll be for free. And in return, I just would really love for feedback and a testimonial if I provided value.” And so that’s how I would go about inviting people to be clients, your first few beta clients, you could say.

Transitioning from Free to Fee-Based Coaching

23:58 Emily: And how about that transition to starting to ask for money? I think that’s a really intimidating one for everyone, self-employed people–especially people who have been cultured by academia to believe that they should be giving away their work for free.

24:14 Cheryl: Yeah, that is a very, very interesting topic to talk about because you know, how I did it was I simply worked with people for free first and got the testimonials. And that just gave me the full-fledged confidence to tell people that, “You know what, here are the results I was able to help people achieve, both internally in terms of mindset and externally in terms of what they’re able to achieve online or for their own personal goals. And here’s why I am so confident in my work.” I think for someone who is starting a coaching business, just being very confident in yourself is something that is very important when it comes to marketing or selling your program. As long as you truly believe that you’re able to get results with people, as long as you truly believe in the impact of your work, I think that that energy can exude and can translate and people can tell. People can really tell when you’re confident in your work. But for someone who might be a little bit nervous about it, what I recommend is, I think pricing is a tricky thing. But what I recommend is just to pick a price that you are comfortable saying and sharing with people and just stick with it. No need to compare your prices with other people. Just pick a price, a number, it’s very arbitrary, to be honest. Just pick a number and then increase from there. As you gain confidence, continue increasing your prices and have it reflect the value of your work.

25:32 Cheryl: So, I think for people who might be nervous for charging, start low and increase as you go, that might be a way to go about it. Of course, please charge. Please charge for your time and the value and impact that you’re going to make for people. But when you’re just starting out, it might be a little trickier. But over time, you’ll recognize the value and impact of your work. And as a result, your prices will go up naturally as well.

Free is Okay at First, But Start Charging Soon

25:57 Emily: Yeah, I definitely agree. Okay. So, what we’re pointing out is, okay, free is okay at first, but put a limit on it. Start charging somewhere, and increase it. Whatever you feel, whatever you think you can say with a straight face, maybe after talking yourself up a little bit, start there and then increase it. I’ll say two quick anecdotes about that. One was from when I started my speaking aspect of my business. I decided to offer a free seminar to three clients. It was based on what was convenient to me geographically. And then I said, “After that, that’s it. I’m done doing things for free, and I’m going to be charging, and this is the price point.” So, I did that. One school turned me down. So, I gave two free seminars, and then I started charging. And in those first few months of starting to pitch myself and telling people about the seminar content and stuff, I was laughed at, and I was told that my prices were not appropriate a couple of different times. But I sort of knew that they were appropriate based on what I’ve learned about the market pricing.

27:00 Emily: And I just kind of had to persevere through that and, you know, ultimately, just a few months later, was able to earn that amount that I had been asking for, and then have increased my prices every year, since then. So, talk with a lot of people, once you’re ready to start charging. Cast a wide net for potential clients, and don’t be discouraged if the first two people you talk to don’t like the price point. That’s okay. Just keep pitching it and keep putting it out there, making sure of course that it’s reasonable for the market that you’re in. So, that’s one anecdote for my business.

27:32 Emily: Another that I’ll relay is Dr. Jen Polk, whose brand is From PhD to Life. She is a career coach specializing in PhDs. And I remember her saying that when she started this, this was probably about 10 years ago, she started doing this. She asked people, her first paying clients, for $10 for an hour of work. And that was the price point. And she is a huge advocate of people increasing their prices and charging what you’re worth and so forth because she did start out with like way, way, way, undervaluing herself right out the gate. And I think she did that for a little longer than she would like, which is why she’s always telling people the advice that we just gave, which is just increase, increase, increase. As you were saying, as you grow in confidence, as your pile of receipts of great testimonials grows and grows.

Origin Story of Cheryl’s Coaching Business

28:17 Emily: So, I totally think your action steps were were wonderful and right on the point. And now I want to get to a little bit more of your story. Out in the front of this interview, we wanted to talk about coaching more generally, but now I want to hear a little bit more about your story. And especially now that you’re starting a PhD program, what your coaching business is going to look like on the side of your graduate work. So, can you tell us more about your story of starting your business?

28:40 Cheryl: All right. So, let’s bring it back to a few years ago when it really started for me through a quarter-life crisis, essentially. So, what had happened was I was actually in law school. I finished my undergrad and I went straight into law school because I was in the mindset of, “Oh my gosh, what a prestigious career.” That was the mentality I had back then. So, I immediately jumped into law school without really thinking about, “Is this a really good personality and career fit for me?” But, you know, lesson learned. But fast forward a year later into law school, I realized this really was just not the right fit for me. I mean, it was very interesting to learn about the law, but being a lawyer is a completely different story. And after my internships, I realized that I just cannot do this. And so I made the very difficult decision to drop out of law school, and this was late 2018.

29:29 Cheryl: And I realized at the time, “Wow, what am I going to do with my life? Essentially, I entered my quarter-life crisis at that point. And I was dabbling in the internet looking at career websites. And I found the term personal branding. And that was very interesting to me. I’ve never heard of the concept before, but I thought, “You know what, let me try to build an online presence. I don’t know where it’s going to go.” So, what I actually ended up doing was creating a YouTube channel to share my experiences about navigating parents’ expectations, making difficult life decisions. The channel does not exist anymore, but what happened was that I was actually building a slow and steady audience on Instagram and YouTube, and people were asking me questions. They were asking me questions about, “Wow, how did you have the confidence to show up online? Like, I really want to share this experience or that experience, but I’m just so scared. Or, “How are you able to grow an audience on social media?”

30:18 Cheryl: And that’s when I realized that, “Oh, wow, I actually have some answers and suggestions and tips. Maybe I can help people on that.” So, what I did first was I actually started working with people for free. And I saw that, “Wow, one of my clients actually was able to get a paying client for her own business.” And that’s when I realized, you know what, I can charge for this. And that’s how my coaching business came about. I officially launched my paid program in March of 2019 and have been charging ever since. And fast forward to today as a PhD student, this is a side hustle for me. And my PhD is my first priority right now, but that said, my side hustle is a large source of income for me compared to my stipend. And just having that extra income, it’s able to help me feel more financially secure. Especially with such uncertain times right now, just having that sense of security is very comforting for me.

31:15 Emily: Absolutely. I don’t know how your stipend is at your university, but there are plenty of places here in the U.S. where graduate students are not paid a living wage, barely paid a living wage. And having a side hustle, especially like we talked about earlier, one where you can immediately start making money trading your time for money can really help you through. Through feeling more financial security, as you were just saying, through being able to, you know, enable some pleasures in your life that you want to pay for, to enable saving. Like there are all different kinds of goals that you might put in place for your side hustle income. So, I’m really glad that you mentioned the financial aspect of this too.

Learn More About Cheryl Theory

31:56 Emily: So, where can people find you online, Cheryl, if they want to learn more about your business and your work?

32:01 Cheryl: Alright. So, I can be found mostly hanging out on Instagram. So, you can find me @cheryltheory. And just for a fun fact, my last name is not theory, but it was simply because all of the variations in the full name was taken. So, I had to pick an Instagram handle name. So, I decided to call my business name Cheryl Theory because back in high school, I thought, “One day I’m going to have my own theory.” So, that was just a running joke for myself. So, I created my business name, my username as Cheryl Theory. And you can also find me at my website, cheryltheory.com.

Best Financial Advice for an Early-Career PhD

32:37 Emily: Perfect. So final question, Cheryl, that I ask all of my guests is what is your best financial advice for another early-career PhD? And it could be related to something that we’ve talked about today, or it could be something entirely else.

32:51 Cheryl: Sure. So, I think if I were to tie in a piece of financial advice related to the topic we were talking about today, is starting a coaching business can really bring in an extra source of income that can create so many different opportunities and options for you. But that said, one mistake that I see time and time again when it comes to new coaches, is that they get stuck in consuming information and not actually taking action on it. So, this is more so a business advice as opposed to financial advice, but I think it ties in with your coaching side hustle. So, instead of just waiting for you to feel ready and waiting to listen to another podcast or watching another YouTube video or download another PDF guide, just take action on what you’ve learned in those pieces of content, and actually just move forward. And if you fail, fail fast. And if you have to make tweaks, tweak fast.

33:42 Cheryl: The point of the matter is to take action really quickly and refine as you go so that you can keep moving forward. Because the interesting thing is that rather than having a step-by-step checklist that you can follow, and if you check off all the boxes, you’re going to get the coaching business success. That’s really not how it works, but rather there’s so many different ways that you can make money online. Just find what works for you and commit to it. So, continue taking action and not get stuck in information consumption or analysis paralysis.

34:08 Emily: Thank you so much for joining me Cheryl. This was a great conversation. I really hope that some people in the audience are going to start businesses based on, you know, hearing this. If you do, please let me and Cheryl know. And thank you. Yeah. Thank you again, Cheryl for joining me.

34:23 Cheryl: Thank you for having me.

Outtro

34:24 Emily: Listeners. Thank you for joining me for this episode. Pfforphds.com/podcast is the hub for the Personal Finance for PhDs podcast. There, you can find links to all the episode show notes and a form to volunteer to be interviewed. I’d love for you to check it out and get more involved. If you’ve been enjoying the podcast, please consider joining my mailing list for my behind-the-scenes commentary about each episode. Register at pfforphds.com/subscribe. See you in the next episode! And remember you don’t have to have a PhD to succeed with personal finance, but it helps. The music is Stages of Awakening by Podington Bear from the free music archive and is shared under CC by NC. Podcast editing and show notes creation by Meryem Ok.

Best Practices in Side Hustling During Graduate School

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In this episode, Emily interviews Lourdes Bobbio and Meryem Ok, two PhD students who work on this podcast as virtual assistants. Today’s conversation is all about side hustling! Lourdes and Meryem each give their perspectives on why and how they started side hustling, how they manage their time, and how they handle their self-employment income with respect to taxes and budgeting. Throughout the interview, you’ll get a behind-the-scenes perspective on how this podcast is produced. The end of the interview is a discussion of the unexpected benefits Lourdes and Meryem have experience from working on the podcast.

Links Mentioned in the Episode

side hustle grad school

Teaser

00:00 Meryem: Every once in a while, if I need to make an extra purchase or a gift, I will kind of rationalize with myself, “Okay, I was able to make some extra income this month with the side hustle so it’s okay to spend that extra money.” And essentially that’s not a super cut and dry method, but it sort of helps me at least to rationalize my additional expenses and not get too anxious about finances during grad school, which is really, really nice to have that cushion outside of my usual budget.

Introduction

00:36 Emily: Welcome to the Personal Finance for PhDs podcast and higher education in personal finance. I’m your host, Dr. Emily Roberts. This is season six, episode 18 and today my guests are Lourdes Bobbio and Meryem Ok, who are both PhD students and work with me as virtual assistants on this podcast. Today’s conversation is all things side hustling. Lourdes and Meryem each give their perspectives on why and how they started side hustling, how they manage their time, and how they handle their self employment income with respect to taxes and budgeting. Throughout the interview, you’ll get a behind the scenes perspective on how we produce this podcast. We close the interview discussing the unexpected benefits. Lourdes and Meryem have experienced from working on the podcast. Without further ado, here’s my interview with Lourdes Bobbio and Meryem Ok.

Will You Please Introduce Yourselves Further?

01:31 Emily: I’m bringing you a little bit of a different interview today. This is the first time on the PF for PhDs podcast. We have had three people on the call at once, that is two guests interviewees, and it’s really special to me because the people I’m interviewing today are my virtual assistants who work on the podcast with me, Lourdes Bobbio and Meryem Ok, and they’re both PhD students. We’re going to get into more about side hustling today, like the side hustle that they do with me and their experience with that, maybe their experiences side hustling with other people. So yeah, we’re talking side hustling today and I have my two guests with me. I’ll have you introduce yourselves, so Lourdes, why don’t you go first?

02:10 Lourdes: Hi everyone. My name Lourdes Bobbio. I’m a fifth year PhD candidate at Penn State University in the Department of Materials Science, and I work on additive manufacturing of metallic materials.

02:23 Emily: Yeah. Lourdes was actually a guest on a previous podcast episode and we will link that from the show notes. We did a budget breakdown with Lourdes, so we talked through her budget there in State College and Meryem, please introduce yourself.

02:35 Meryem: Hi, my name is Meryem. In 2016 I started the MD PhD program at the University of North Carolina at Chapel Hill — go Heels. After completing the first two years of med school in 2018, I started my PhD in UNC-NC State’s joint Department of Biomedical Engineering. Currently I am working in the Magnus Lab, developing tools to better understand human intestinal STEM cell fate. And I’m happy to say that I’m officially a PhD candidate as of two days ago.

03:05 Emily: Yes. Congratulations! We will record and release this in August 2020, so it’ll still be fresh news by the time this episode comes out. I’m just delighted to have you both on.

Why Side Hustle In Grad School?

03:17 Emily: First question here is why did you decide to start side hustling in graduate school? Why don’t we still go with Lourdes first?

03:25 Lourdes: Financially, I was doing actually pretty okay with my stipend. As Emily mentioned, I was previously on an episode where I discussed my NDSEG fellowship, and so I generally have a somewhat higher stipend than my peers and State College has a generally low cost of living. So financially I was doing, in terms of I had enough money to live on and for extras and to save, but the reason that I got into side hustling was so that I could have money to contribute to a Roth IRA. I think Emily has done an episode on this earlier in the year, but as of this current year 2020, fellowship recipients are now eligible to contribute to a Roth IRA, but previously they were not. I started one before I was being paid on fellowship and I wanted to try to contribute at least a little bit of money monthly to that, so having that side hustle, self employment income helped me to be able to do that and continue to contribute, even though I couldn’t with my general fellowship income.

04:32 Emily: That’s so strategic. I love that. It is the advice that I was giving out for people who had multi-year fellowships, is to consider that self-employment side hustle. Meryem, why’d you decide to start that side hustling.

04:44 Meryem: For me, I guess coming into medical school, I had actually taken a gap year and was able to transfer a lot of those funds into starting an IRA, so for me, it was less of a strategic approach and more just that I’ve really always had a lot of interests in gaining new skills and collaborating with other people outside of my primary career interests. I think specifically, actually, as far as video and podcast editing, I was inspired by my dad who is always the one recording all of our family memories and making home videos. And he actually founded and produced a public access TV show called Turkish American TV. That’s been going on for 15 years, completely as a passion, volunteer project. I remember many times he’d rope me into his projects and show me how to use video and editing software, and I really just felt lucky to have his guidance. I feel like I inherited his eye for detail since that’s helped me be more confident in marketing myself as a freelancer who just really genuinely enjoys editing. I guess for me, just as someone who needs to have hobbies and tasks outside of work, I wanted to try something new and also make a little extra income in line with my career development goals.

06:03 Emily: Maybe we should say what you all actually do for me with the podcast, to give you credit where credit is due. As the listeners know, I conduct the interviews for the podcast, but kind of everything that happens after that, I hand off to you two. So you do all the video and audio editing of the interviews, and you compile the show notes, which are actually full transcripts. It’s more work than it sounds actually. We use an automated tool to generate the first transcript, but then you go through with a careful listen and make it actually readable, which I really appreciate. And you also write the social media posts that we do for each episode, and you schedule things. There’s a few other tasks in there too, but those are the major pieces of work. It’s been an amazing help for me.

How did you find your current and previous side hustles?

06:44 Emily: I know how you two landed this side hustle, which is that I reached out to my mailing list when my last VA decided to leave the position. Thankfully, she gave me a lot of notice. I reached out to my mailing list and said, “Hey, podcast listeners, do you want to work on the show?” And you two both volunteered to do a trial episode and ultimately your work was great, so I hired both of you. But I don’t know if that’s the first side hustle you’ve had in graduate school, or whether you were even particularly looking for that kind of side hustle, or really how it came about kind of from your end, so why don’t you tell us. Lourdes?

07:19 Lourdes: I had done a couple of side hustles through freelancing websites. There was actually one particular one that was captioning and transcription of usually short audio files through this company called Rev. It’s basically just pick and choose these audio files and you get paid. It’s a very low paying job, but it was something that I did just sort of in my spare time. When I heard about the opening on this podcast, I was like, “Hey, this is perfect. This is like what I was doing before, but on sort of like another level and sort of a next step up.” It seemed like a perfect fit for what I like to do in general anyway, just on a higher level.

08:07 Emily: Yeah. Meryem, how about you?

08:09 Meryem: Yeah, that’s so funny, because actually that’s the first time I’m hearing this. For those who don’t know Lourdes and I actually went to undergrad together, so the fact that we serendipitously ended up as virtual assistants for the same podcast and kind of working together was phenomenal to experience and to find out. For me, I also was trying to look into doing these things independently through similar websites, but it was not really a sustainable effort or something that was really worth the rate that they were paying. And I felt like it’s so much more useful to be able to use these skills and also benefit from all of the knowledge that I’m gaining as I’m editing these episodes, which is relevant to us as graduate students trying to better our personal finances. Really it was a no brainer when I saw that email from Emily and reached out and I’m just so glad that it worked out and that we were able to take turns, Lourdes, and still have an activity shared together despite the distance and the years since college.

09:15 Emily: Yeah, that’s why I reached out to my list first, to try to hire for this position. I hoped that there would be people who would actually be interested in the material as well as having the skill set to work on the episode, instead of going with an independent agency or something, which I could have done, maybe if it hadn’t worked out, initially. I wanted to go to people who I sort of had a relationship with, and actually it happens to be the fact that I had corresponded with both of you over the years before that — we mentioned Lourdes had been on the podcast and Meryem has been on my mailing list for a long time, so we had exchanged emails and I think had call or two in that time. It was really helpful that I knew your names at least, when it came time for people to apply for that position. Meryem you have, since we started working together, taken on another podcast editing position, why don’t you talk about how that came about?

10:08 Meryem: Yeah, that’s right. Actually, I owe it to you, Emily, for alerting me to another side hustle opportunity in podcast editing with the AcaDames podcast, which is another awesome podcast focusing on women in academia. Earlier this year, I remember Emily sent an email to us, letting us know that AcaDames was looking for help since their previous student executive producer was graduating soon, and they wanted to have somebody to overlap during that period of transition. I reached out to them about that position and thankfully we were a good fit. Now I just feel really lucky that I get to work with these two amazing podcasts. My work with them partially involves editing, but also involves a little bit more of administrative and social media management work. I’ve just learned so much from both podcasts and I’m excited to be involved. And also again, benefit from all of the career development advice that I’ve been receiving just by working with both of them.

11:09 Emily: Yeah. I think it’s kind of interesting that for these positions, this podcast virtual assisting position and the AcaDames one, it sounds like we’re looking for someone who’s going to be doing a multiplicity of different things and you come in with maybe some subset of the skills, like Lourdes, you had the transcription type experience, but then we’re asking you to learn a bunch of other stuff which expands your skillset overall, even if you’re not going to be career podcast editors. I assume you’re going to do something with your PhDs, but it’s nice to have that kind of side work, I think.

Balancing Side Hustles, Grad School, and Personal Life

11:36 Emily: Between the side hustle, your graduate work, everything else that’s going on in your life. I know you two are both in relationships — Meryem, you recently got married. Lourdes, you’re engaged. You have a lot of stuff going on in your lives. And so how do you fit in this side work that you’re doing, along with everything else? Lourdes?

11:55 Lourdes: I guess for me, what attracted me to the side hustle specifically was that it’s something that I can work on from home. I don’t have to go anywhere to do anything, and I can kind of fit it into my schedule. It’s very flexible. Emily is super nice, in that she gets us a lot of heads up time between when we get audio files and when they’re going to be released. So there’s a lot of flexibility in the position, which is definitely something that I was initially looking for in side hustles, as well, when I was doing the more freelance, low paying transcription job, it’s something I could do just in my own time, so that’s been helpful in terms of being able to work it into my schedule, work my schedule around it.

12:38 Lourdes: Also, like Emily mentioned, I’m engaged, but for the last year I’ve also been long distance, and so I’ve had a little bit more free time. It’s also been really great during this work from home time, to have something else to do. Now that you’re pretty much primarily at home, we’ve all been at home, things can get a little bit stale, but having a lot of different activities to do has been really helpful in managing my own mental health. I don’t feel like I’m only at home to do work and I get to sort of have some variety in my day, so that’s been nice.

13:22 Emily: How about you Meryem? How do you do the time management aspect?

13:25 Meryem: Yeah, I want to echo everything that Lourdes said. I think it’s really nice, even without a pandemic, but especially during a pandemic, to just have something else to turn to when you need a break from grad school or just want to use a different skill set for a bit, or just kind of escape from the world. And right now, especially because of COVID, I tend to work a later shift in lab, and my understanding is Lourdes does as well, so the rest of our work is pretty much done remotely, which makes it easier, but also I have to be a little bit more diligent about priority setting and setting boundaries, because it is so easy to kind of just switch between projects both between my main job as a grad student and then my side hustles and leaving room for my personal life.

14:07 Meryem: Usually I’ll try to do this by reserving chunks of time to work on the podcast editing, either in the mornings or late in the evenings after my shift and maybe the weekends to kind of catch up, which is very useful for particularly busy weeks. I think just like setting deadlines and trying to stay organized to prioritize all the things that are going on is helpful. I will say that I recognize that it’s probably easier for me to manage everything that I have to do given that I don’t have too many responsibilities outside of my work and extracurriculars right now. I don’t have any human babies, but I do have a fur baby named Sabine, but she’s pretty self sufficient. I think overall it is pretty much managing expectations with myself and now with my husband, but overall I think, much like Lourdes said, you get into a workflow and we do have a lot more time at home so that does help a lot.

15:06 Emily: I’m just thinking how I would answer if I asked this question of myself, of how do I manage my time? Because I do have two human babies and no childcare in a pandemic and it is definitely more challenging now than it was a few months back to be handling my schedule. But I think what Lourdes brought up initially, the fact that in our schedule we have basically a two week cycle from when I get the raw interview to you two and then we have a two week process before publication, and Ithink that really helps. I know a lot of side hustle jobs are really quick turnaround, like super short deadlines, and it’s not even really so much on your end, like I’m giving you guys a lot of time. I need a lot of time to do my part of the process as well, because I can’t necessarily jump on a response right away, because it’s just a busy long day every day right now.

Commercial

16:00 Emily: Hey, social distancers, Emily here. I hope you’re doing okay. It took a few weeks, but I think I have my bearings about me in my new normal. There is a lot of uncertainty and fear right now about our public and personal health and our economy. I would like to help you feel more secure in your personal finances and plan and prepare for whatever financial future may come. You can schedule a free 15 minute call with me at PFforPhDs.com/coaching to determine if financial coaching with me is right for you at this time, I hope you will reach out, if only to speak with someone new for a few minutes. Take care. Now back to our interview.

Budgeting Side Hustle Income

16:46 Emily: Okay, so personal financial show — let’s talk about the money that’s associated with the side hustle income. What are you doing with the money from your income? Does it have a particular job to do in your budget or how are you handling it generally? Lourdes, why don’t you go first?

17:01 Lourdes: In general, I put most of my side hustle income into savings, whether that be more long-term savings or shorter term savings, kind of depends. If I have an upcoming trip, it might go a little bit towards that. In general, how I work my budget is that, I pay myself first, in that I put money aside for savings first, and then any money leftover is my money that I get to spend for the month.

17:31 Lourdes: One of the tips I learned from the first episodes I edited was a side hustle episode, I think it was Allie Judge, and she mentioned how she holds off on paying herself her side hustle income until the month after she’s earned it. So sort of working on a delayed schedule, in terms of using the money that she’s earned. After I heard that, I’m like, that’s a great idea, so ever since then, I’ve been doing the same thing, where I count basically any money I earn in August goes towards my September monthly budget. That helps me in terms of planning and not using the money before I’ve actually earned it. That’s how I mainly handle it in terms of budgeting.

18:22 Emily: Yeah. Thank you. Meryem, how does it work in your budget?

18:26 Meryem: I’ll be totally transparent in that I don’t necessarily have a specific allocation for my side hustle income, because for me it was primarily a chance to essentially have a hobby and use a different skillset. But I kind of do try to visualize it in a way that permits me to have those extra side expenses during the course of the month that you might not otherwise be able to do. For me, it’s kind of a mental exercise, and I do have the money go straight into a savings account that I don’t really touch, but every once in a while, if I need to kind of make an extra purchase or a gift, I will kind of, I guess, rationalize with myself like, okay, I was able to make some extra income this month with the side hustle, so it’s okay to spend that extra money and think of my extra purchases outside of my needs in terms of how much of my work and effort that is worth. And essentially that’s not a super cut and dry method, but it helps me at least to rationalize my additional expenses and not get too anxious about finances during grad school, which is really, really nice to have that cushion outside of my usual budget.

19:41 Emily: Yeah. That trick, that mental framework of translating the cost of a purchase into your time, or maybe number of episodes, or however you want to structure it, is a really powerful one, a really common one for people sort of were advanced in their personal finance skills to think about really carefully, like whether they want to make a purchase and how they want to spend and so forth to translate into time. That’s a really good tip.

20:07 Emily: I’m particularly thinking about this question of how to handle your irregular income with respect to your budget because, so in August 2020, I launched a community PFforPhDs.com/community, if you want to find out more about that, but every month I’m creating new content for it. Right now I’m working on the September content, which is on how do you handle your irregular income with respect to your budget?

20:28 Emily: Lourdes, the tip that you gave is basically the first one that I’ve already put into this, which is count up your income from one month and put it towards the next month budget, that you got from Allie. It’s absolutely perfect, because you never know when something could go wrong with your side-hustle income. Like if one of you became ill, for example, maybe you need to skip an episode. That’s not a problem for us, but it would be a problem for your budget if you’d already spent the money that you expected to come in. That’s number one, baseline tip for handling side hustle income is give it a delay. Meryem, you’re doing a similar thing by putting it directly into savings, and then later on thinking about, well, how do I want to spend it, or do I want to keep it here? Different articulation, but kind of the same principle there. I’m really glad to hear that.

Side Hustle Income and Taxes

21:13 Emily: Now we come to one of my favorite subjects within personal finance, which is taxes. So you two are both self-employed, you are contractors for me, and Meryem, now you have this other contractor, essentially you’re like a real true contractor working for multiple people with the same skillset. Self employment taxes are kind of a whole other ball of wax. You’ve been doing this for a year, do you have any systems that you’ve put in place or just what are you doing with it, with respect to your taxes? Lourdes?

21:40 Lourdes: For me, it’s a little bit of two different things. I generally set aside about 30% of my self employment income for taxes. That’s taking into account the about 15% self employment tax and then income tax being around 12%. But also, I am on a fellowship that requires me to pay estimated taxes quarterly, and so at the beginning of every year, I basically estimate how much — well, I know how much I’m going to earn from my fellowship, and then I basically estimated how much I anticipate earning from doing this virtual assistant for the podcast. Basically, I have ahead of time, I know how much I have to set aside each month for both my fellowship income and this side hustle income. I immediately put that into savings and I just don’t touch that money. It’s not even money that I think about. And then I tend to over save just a little bit in terms of taxes, just because I’d rather have a cushion. Last year, I think I was off by like $150 just because of other things. I also have some investments that will change throughout the year and change my tax situation, but I do tend to oversave just so I have that little extra cushion and I don’t have to take it out of other pockets of my savings. Then if I have extra money left over, I kind of use it as my own personal tax refund. So the government isn’t giving me any, but I have some extra money left over in my tax pot. I use that and just reallocate it usually to different savings categories.

23:23 Emily: Yeah. I handle my income from my business exactly the same way, so it sounds like you’re just incorporating the self employment tax issue into your existing structure for paying quarterly estimated tax. Meryem, I want to give you a chance to answer that one as well, because I know this is shifting for you right now,

23:39 Meryem: Actually I’m absorbing all of Lourdes’ tips because for me, I just, in the month also started receiving fellowship non-W-2 income. Prior to that, I wasn’t really thinking about estimated quarterly taxes as much because I didn’t have to deal with all of that. But now moving forward for tax year 2020 into next year, I will have to kind of be thinking about that. Even though the actual amount of taxes that I’ll from the side hustle income will be less than the amount that is necessary to be able to pay estimated quarterly taxes — so my original strategy was just to collect all of the receipts that I’ll receive from PayPal and then make sure that I back calculate the amount that I have to pay for the self employment tax and pay that come tax season. That original plan is fine if you know that you’re not going to owe the amount that you would need to, to not have to pay fees for not paying estimated quarterly taxes, but I like the strategy of kind of building it in so that by the time tax season does roll around, you’ve already paid everything.

24:45 Meryem: I actually think that I’m going to adopt that policy rather than shifting it and waiting until tax season. And as for my other side hustle with AcaDames, their structure is also changing since they’re recently going through the process of incorporating and becoming an LLC. Previously, and currently during the transition, I’m being paid through W2 income because it’s very easy to me to be able to do that as a UNC student and the cohost, or at least one of the coasts now is based at UNC, so it was really easy to deal with that through payroll and not have to worry about freelancing or independent contracting. But I imagine that that will also shift within the next year as they’re making this transition into becoming an LLC. So having all of these strategies in place now will probably be really useful moving forward.

25:38 Emily: Yeah, that’s good for me to know. Interesting. I should mention also, I just brought up the Personal Finance for PhDs Community, but for the last several years, I’ve had a workshop available for individuals on quarterly estimated tax and helping them fill out their estimated tax worksheet and form 1040. That workshop is now coming under the umbrella of the community. So anyone who’s wondering about how do I file quarterly estimated tax on my fellowship, that’s where to go for that particular workshop PFforPhSs.com/community. And I just told you, I’m thinking about in September, the training that I’m going to release on handling your irregular income with respect to your budget. Later on this fall, I’m planning on doing another full workshop on the self-employment side hustle that is so common for graduate students and PhDs, and how to handle that for your taxes, so a whole other tax workshop just on this topic of self employment taxes. That’ll be available if anyone needs help with that sort of thing. I’m really excited about creating because I’ve been doing my own taxes as a self employed person for a number of years, so I have a basic familiarity with it and I’m excited to do a bit more research to figure out how it works for other kinds of businesses as well. That’s where to find out more info there.

Unexpected Benefits from Side Hustling

26:54 Emily: As a second to last question here, have there been any benefits to doing a side hustle that you didn’t anticipate when you first took on the position? Lourdes?

27:05 Lourdes: Specifically for this podcast, Emily interviews a wide range of guests and a lot of them also have social media that they promote. I’ve been able to connect with some of the different guests on social media, just as a result of sometimes promoting the episode. They’ll see that I promote it, and then we connect, we end up talking, following each other on Twitter. That’s been like something I didn’t really expect to happen, but it’s been really cool because q lot of them are fellow grad students, and then just getting into that academic sphere of Twitter has been really interesting just to see all these different graduate experiences from people all over the country and all over the world. That’s been one of the most unanticipated benefit from this particular side hustle.

27:57 Lourdes: And then also, as has been brought up multiple times, I think Meryem brought this up, just learning a different skillset that’s something very different from what I do in my normal day to day graduate work. And I, in particular, am starting to figure out what I want to do after grad school. I’m a fifth year student going into my sixth year, so I’ve been leaning towards maybe some more like alt-academic jobs, and being able to have this completely different skill set is definitely something that I think adds to my resume and adds to potential job options and sort of also gives me ideas of what other type of work is out there. Along with what I was mentioning before Emily does have so many different types of guests on the podcast, just seeing what opportunities are available to graduate students after they’ve defended and after they graduated, has been really interesting and something that I hadn’t even considered or even thought of prior to really getting to know some of these guests through the podcast.

29:04 Emily: Yeah. That’s really great for me to hear. I know that this too was an unexpected benefit for me of doing the podcast is I didn’t expect it to be such good networking. I knew some things that would happen from it, but not the networking aspect, so I’m really glad that you’ve been able to tap into that as well. So Meryem, how about you?

29:24 Meryem: Yeah, I agree completely with the networking component as this amazing side benefit of being involved with editing the podcast. And I think for me also, I just find it inspiring how relevant the episodes have been in my own personal journey as a student, often in real time. In fact, I’ll never forget that the very first trial episode that I edited was with Dr. Katie Wedemeyer-Strombel about her decision to change labs and how to prepare for the unexpected in grad school. And it just so happened that that exact same week that I was editing that episode, my former PhD advisor surprised that our lab with an announcement that she would be leaving UNC and moving across the country, and all of this was happening while I was trying to plan a wedding with my fiance, and now husband, who had just moved down to Chapel Hill to start a new job, to be with me after we’d been long distance for so many years. And anyways, it ended up working out and I was able to switch into an amazing collaborating lab and stay at UNC, but unbeknownst to Katie, her advice at that time was so timely for me and helpful for me as I was going through that transition. So I always rave about the podcast to pretty much every grad student I come across and I try to send along helpful episodes and resources to them if it sort of just happens to come across in conversation. It’s just amazing to me how many times that, that has just happened, where I’m editing an episode and realizing, wait, I really need to pay attention. This is really relevant to my life right now.

31:00 Emily: That’s really good to hear. Of course you told me at the time that that episode was striking you in that way and I’m so glad that I could help. I think that, as Lourdes, as I was saying earlier, I’ve been doing this podcast for about two years now and I have quite a few interviews under my belt and it’s not always the same type of person, as you were saying. It’s a lot of different kinds of personal finance stories coming from a lot of different sorts of people who have been in academia for a time at least. There is a good trove of episodes there, that you might find something useful to your current situation, if you do a little diving into the archives.

Best Financial Advice for Early Career PhDs

31:34 Emily: Last question here, which, you know, I ask of pretty much all the guests who come on the podcast. I’ll give you a chance to give your answers as well. What is your best financial advice for another early career PhD? And we’ll go to Lourdes first again.

31:48 Lourdes: For me, I think one of the best things for me is having a yearly budget. At the beginning of the year, and I’ve been doing this for quite a few years now, I lay out my plan for the year financially on a spreadsheet, and it really helps to be able to see a longer term plan for my money for the year. I think, especially with self employment income, side hustling, it kind of gives you an idea of…Maybe I have a trip planned later in the year, or I have some big event that I’m going to need to save up money for, and being able to more strategically allocate your money on a larger scale rather than just month to month. I think that’s been one of like a strategy that I’ve been employing for a couple of years now, and it’s just been super helpful for me, and it’s something that I will see myself doing like far into the future

32:44 Emily: That is, I think, typically a good piece of advice, but I want to know how it’s going in 2020.

32:50 Lourdes: It’s been interesting to say the least. There have been a lot of…I had some trips planned that have gotten canceled, so I have this extra money, but also different expenses that I didn’t anticipate come up. And it’s been a little bit of am eye-opener in terms of plans change as the year goes on, but I think sort of having that framework to begin with helps me realize that even if…I go back to this budget every month, it’s the same spreadsheet I use for my monthly budgeting, so it changes and updates and it’s a very fluid document, but just having that outline there to begin with has also been something that provides some structure, especially when the year got so different than what everyone anticipated.

33:43 Emily: Yeah, I also use the year as the sort of standard timeframe when I talk about irregular expenses, so expenses that come up non monthly, and you and I talked about this in our interview from a year or so ago. I think it’s a great strategy to think about what budgetarily is coming up for you — trips, as you mentioned earlier, or maybe some other kinds of irregular expenses, so you can anticipate them over the course of about a year. So yeah, I like that time frame as well. Meryem, how about you? What’s your best advice?

34:12 Meryem: Yeah, so my best advice is probably to be honest with yourself and keep an open mind about your personal finances. A wise friend once told me that disappointment happens when our expectations don’t match up with our reality, which was really helpful for me to hear at the time, as an optimist, because I used to feel a lot of guilt or disappointment if I couldn’t maintain an unrealistic budget, or if I couldn’t resist making an impulse purchase on something that maybe wasn’t necessary, but made me or someone else really happy. But I also think it’s really important for our mental and physical wellbeing to work towards a healthy relationship with money, which I know can be particularly challenging on a grad student’s stipend. So with that in mind still, I think as best as you can try to be honest with yourself and set realistic goals for yourself, not based on anybody else’s priorities or spending habits, but whatever matches your needs. That being said, if something really isn’t working for you, that’s probably a good time to have an open mind and try to adapt, effective strategies from others. I guess I would say it’s okay to experiment and even take calculated risks, while figuring out what works best for you, but being honest yourself and keeping an open mind is probably my best financial advice and general life advice as well.

35:44 Emily: I love that as well. I often think about the mismatch between expectations and reality, and how that provokes us, so I try to keep my expectations low, basically. I really love that advice and I think that’s unique. I don’t think we’ve heard that on the podcast before, but I think it’s perfect. And something that graduate students can sometimes be discouraged around their finances because they are working with such a low income, it’s for such a long period of time, and I talk a lot about investing and saving stuff and that’s just out of reach for a lot of graduate students, but they can implement your advice, Meryem. They can like learn to just figure out what’s going to work for them in managing their own finances right now and carry that skill set and that habit, whatever it is that they determined as the right system or whatever, forward into their career and post-PhD income, and hopefully have a lot of financial success at that time, having been honest with themselves and really using the time in graduate school to get to know what their preferences are with respect to managing their finances. That’s good advice for anybody, anytime. You can always implement it.

36:46 Emily: I’m so glad to have had you two on the podcast and thank you so much for volunteering to do this. Thanks for coming on.

36:53 Lourdes: Thank you, Emily.

36:54 Meryem: Thanks Emily.

Outtro

36:56 Emily: Listeners, thank you for joining me for this episode. PFforPhDs.com/podcast is the hub for the personal finance for PhDs podcast. There you can find links to all the episode show notes, and a form to volunteer to be interviewed. I’d love for you to check it out and get more involved. If you’ve been enjoying the podcast, please consider joining my mailing list for my behind the scenes commentary about each episode. Register at PFforPhDs.com/subscribe. See you in the next episode, and remember, you don’t have to have a PhD to succeed with personal finance, but it helps. The music is stages of awakening by Poddington Bear from the Free Music Archive and is shared under CC by NC. Podcast editing and show notes creation by Lourdes Bobbio.

This PhD Candidate Paid for Her Wedding with Her Research Side Hustle

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In this episode, Emily interviews Rebecca Brenner Graham about side hustling to pay for her wedding while a PhD candidate in history at American University. In addition to working on her own dissertation and serving as a teaching assistant, Rebecca used her skills as a history researcher in a self-employment position assisting an economics professor at another university. Rebecca had to quickly learn how to manage her time and energy well across all her different professional roles and her personal life. If you are planning a wedding as a graduate student, you’ll also enjoy hearing wedding planning and budgeting tips from both Rebecca and Emily.

Links Mentioned

side hustle wedding

Teaser

00:00 Rebecca: The piece of advice that I’m just learning and wish I had known sooner was that unpaid opportunities are almost always not worth it. Full stop.

Introduction

00:20 Emily: Welcome to the Personal Finance for PhDs podcast, a higher education in personal finance. I’m your host, Dr. Emily Roberts. This is season six, episode 14, and today my guest is Rebecca Brenner Graham, a PhD candidate in history at American University. Rebecca has always side hustled to supplement her stipend, but she kicked it up a notch in her fourth year to pay for her wedding. We discuss how Rebecca balanced her time and energy among her own dissertation work, her teaching assistantship, her self employment gig as a researcher for an economics professor, wedding planning, and the rest of her life. Listen through to the end here, how Rebecca’s wedding went and some wedding planning tips from both of us. Without further ado, here’s my interview with Rebecca Brenner Graham.

Will You Please Introduce Yourself Further?

01:07 Emily: I am so delighted to have joining me on the podcast today Rebecca Brenner Graham, who is going to be discussing with me, her wedding, her recent wedding, and how she ended up paying for that on her Grad student stipend, and actually on more than just her grad student’s stipend. So Rebecca, thanks so much for joining me on the podcast today and will you please tell us a little bit more about yourself?

01:27 Rebecca: Thank you so much for having me, as I was telling you. I’m a long time listener and it just occurred to me that I might have something useful to add. I went to college at Mount Holyoke in Western, Massachusetts as a women’s college. There, I double majored in history and philosophy, and then I went straight into my history graduate school. I’m now starting my fifth year of the PhD. I was able to do the public history master’s combined with my doctoral coursework, which is one of the reasons that I love my department at American University. My dissertation, if anyone’s interested in that, is on Sunday mail delivery from 1810 through 1912 as a lens into religion, state relations. Because I got my masters in public history, I’ve also had some museum gigs on the side, on top of working as a TA in the American University Department of History. That’s about it.

Side-Hustling as a History PhD

02:27 Emily: Yeah. Is that typical for people in your department to be taking on museum jobs or outside gigs like that.

02:33 Rebecca: It’s typical in the sense that being atypical is typical. So there’s not one way to do it. There’s not one way to make it work. Like one of my classmates does a bunch of oral histories of basketball players for money. Some of them are like older and married or have houses. For me, especially brcause I came straight from undergrad, in order to have enough money to not be worrying about it constantly, I have had part time work every year on top of the TA-ing.

03:06 Emily: Okay. That’s good to know. So basically what you’re saying is the stipend that you’re receiving is not sufficient across the board. No one is doing this on just the stipend. They either have outside sources of income from a spouse or something, or maybe past savings, or they’re currently taking on side hustles. Right?

03:22 Rebecca: So I can think of two classmates who, and this is not a coincidence, they’re the two in the department that are younger than me, that haven’t had that much part time work. One of them is extremely frugal and the other one decided to take out loans on top of the stipend. I adore my department, like I am so happy to be there, at the same time we do have the second lowest stipends of all history departments in the greater DC area.

03:49 Emily: Okay. Yeah. Glad to hear that balance of like, Hey, it’s worth it, we’re doing it, but this is what it takes to get it done. Side hustling for you, other solutions for other people, but glad to hear that.

Getting Engaged During Grad School

04:01 Emily: Okay, you’ve given us a little bit of a brief career history, coming straight from college into graduate school, doing your master’s and PhD right in a row. Where does your relationship factor into this?

04:12 Rebecca: Going way back for a second, we actually met in a summer program in Washington, DC when we were 16, like for high school students. We ended up at college near each other. His name is Brandon, and Brandon went to UMass Amherst. We were together for the first half of college, and then we broke up, just seeing other people, didn’t think or know that we’d get back together. We ran into each other a couple of years later and the summer after graduation, we ended up getting back together. Then six months after that, he moved from New York to DC in order to be with me. And even before Brandon and I got back together, I had to facetiously told friends that I need to pass my dissertation proposal, even before I get an engagement proposal. And this was even before I was in a PhD program, this is when I knew I wanted to do a PhD.

05:04 Rebecca: So third year of graduate school, toward the end of the year, I was about to become all but dissertation, ABD, and we had already gone ring shopping. I thought we might be getting engaged soon. And then I ended up getting engaged a few weeks before my prospectus defense. So at the end of my third year of grad school, I was ABD and also engaged.

05:30 Emily: Yeah. I really love that you were, I know you said facetiously, but you were thoughtful about this, right? You had an idea of how you wanted your career to play out and also how your relationship, whoever that was with, how you wanted that to play out. And it’s good to hear really that, um, your husband made that sacrifice when he was your boyfriend of moving to where you were so that you could prioritize your career and he was going to figure it out and it’s not necessarily common story. I’m really glad to hear that.

06:00 Emily: I’m reminded of when I got engaged which was also during graduate school. My husband, we had sort of decided together that we were going to get married, moving towards that direction, but he wanted to wait to propose until he also achieved candidacy. So I was further away from that. That actually didn’t happen for me until my fourth year of graduate school, I think, just the way my department works. But he was like, no, I got to get, I have to get my prelims out of the way, and then I can think about the engagement. So he had the same thought process as you, but from the opposite perspective, in our case.

06:34 Rebecca: I think it’s an autonomy of time thing because even if it’s the same work across the board, you have, I think in most programs, you have more autonomy of time after that ABD mark.

06:45 Emily: Yeah. I think for my husband, it was that, but also just the stress of preparing for the prelim and writing whatever he had to write and doing whatever we had to do, like oral defense or something, I don’t remember the details for him, but just to get past that stressful thing, he wanted it off his plate, so he could enjoy the process of being engaged and planning the wedding and not having to juggle those two things simultaneously and know that, yeah, there’s going to be a few more years here until we have to repeat that process for the dissertation and ultimate defense. With respect to your actual timing of your wedding, like how long were you guys engaged for?

07:25 Rebecca: We got engaged in March, 2018. For about a month, we were actually planning with my parents, and my mom in particular is quite traditional and they were generously willing to pay for it, but it became clear, especially to me very quickly that coordinating with them and negotiating priorities was more labor, and especially more emotional labor, than actually making money myself and working towards paying for it. We also decided in between that March and April period that the things that we cared most about relating to our wedding were not that expensive. Like making the ceremony go how it was important to me was a higher priority than venue or the number of people who were coming. So eventually, I guess around April, when we started planning and paying for it ourselves, we got a date on the calendar. We got married a year and I guess two or three months, not great with numbers, I guess a year and three months later on June 30th, 2019.

08:43 Emily: Okay. So yeah, we are recording this in August, 2019, so this is really fresh for you and that’s exciting. This is definitely a tip for other people who are going into the wedding planning process of anyone who contributes gets a say. If you don’t want that party to have that say in that particular way or whatever, if there are strings attached to that gift, sometimes it is easier to simply take on all of the finances on your own. That’s the decision that you made.

Paying for the Wedding through Side-Hustling

09:12 Emily: We’ve already kind of gone over that your stipend was not really enough to live on, at least in the lifestyle that you want, and you were already side hustling. Did you have a plan for like how much more money did you need to bring in either in total or on a monthly basis to be able to pay for the wedding?

09:28 Rebecca: We looked at it a little backwards, in retrospect. It was more like however much money we have to delegate toward this, that is how much that we could pay. Brandon and I split it almost exactly evenly between us with a few exceptions. If there was something that was really important to him or really important to me. I paid for Ketubah the Jewish marriage contract. I paid for our pre rabbinical counseling. He paid for our entire rehearsal brunch because that was not something that I was tied to doing. On my end, my stipend from American when I started was $19,000 per year, and now currently thanks to our union it’s $22,000 per year, which is actually a huge difference just in the four years or whatever that I’ve been a TA. I really didn’t give it that much thought about, will I be able to afford this? It was more if I can’t afford it, then I won’t do it, and we love each other, and we want to get married, and that’s the most important thing. I have another classmate in my program who literally eloped at one, but I don’t really know the details on that. Also around this time, I was reading those books by Jen Sincero, have you ever read her books? The first one is called “You Are a Badas” and the second one is called “You Are a Badass at Making Money” and they’re —

11:00 Emily: Actually, I’ll interrupt you just for a second. I literally just finished “You’re a Badass At Making Money”, like last week. So I’m a little late to the Jen Sincero game, but I did read it and enjoyed it. I’m trying to figure out what I want to incorporate. So yeah, please go on.

11:15 Rebecca: Oh, that’s so exciting. I’m glad you liked it. In spring 2018, this was when her money book came out, the green one. She’s a little bit more, I don’t know if the word is capitalist than I am, but she’s also in line with my feminism. A central takeaway from Sincero’s work is that sometimes you have to jump and then create the net for yourself. That’s what happened when we decided to pay for our own wedding. So around the time that we had made that decision, I was reading a bunch of Jen Sincero. A major advantage of doing a history program in DC is that a lot of people email the department to offer work opportunities. So then in May, 2018, I heard about a summer job working for an economics professor at George Mason to do research on 19th and early 20th century labor history. My dissertation is on 19th century and early 20th century religion-state relations, and there was a lot of overlap with that labor history. I ended up working for her over the summer and then she offered for me to stay for the coming school year, like this past school year 2018-19. My advisor helped me negotiate a 50% salary increase for that, so that was my side gig that took a lot of time and essentially paid for my wedding. But it was also a completely pleasant experience working for this economist.

12:55 Emily: Yeah. I want to hear more about the logistics of how this side hustle worked. For you with American, because you’re a TA, does that mean that you’re not working/not being paid over the summer?

13:07 Rebecca: Oh yes.

13:09 Emily: Okay, so you’re already dealing with an academic year only stipend. So —

13:13 Rebecca: Last year I had a fellowship from my department for summer research. This year I did not, which was my why my reaction was “Oh yeah”, because that was the situation. But last summer I had a $3,500 fellowship from my department and then $5,000 from this professor George Mason.

13:35 Emily: Okay, so in your summers, at least last summer, you had a balance of working on your own dissertation and also doing this other work for this other professor, but I’m wondering, because you guys are at different universities, what was the actual relationship between you and this professor or the grant? Were you a W-2 employee or was this a self-employment situation?

13:58 Rebecca: It was a self employment situation, so I got taxed on it pretty heavily.

Researching as a Side-Hustle

14:04 Emily: Yeah. So that’s definitely a couple of things I want to talk further about with that, because I don’t really know that well, how this works. I think you’re the first person I interviewed for the podcast who has done research, like very similar skill set and everything to what you’re doing for your dissertation, and as a graduate student, but as a self employment project. Can you just talk to me a little bit more about what the differences are between that self-employment gig and maybe what you typically do as a graduate student?

14:36 Rebecca: In terms of the content itself, it was really just teaching versus researching. This past year I TA-ed class about the presidents and then I TA-ed History of Memory, and that whole time I was researching 19th century labor history. The biggest difference in terms of how much it affects me is that the side gig did not withhold any taxes. So as a graduate student, I’m cobbling together a bunch of opportunities to approach like 40[K per year, which is really great for grad school, I paid $4,000 in taxes last year, and that was most of my money.

15:23 Emily: I’ll make a couple elaborations on that for anyone who is looking into self-employment, which, if you’re going to do a side hustle, I kind of think self-employment is the way to go, because you have a lot more control over your schedule over how much you’re going to work. But the flip side of that is you have to take a lot more responsibility yourself when it comes to the financial side of things. One of the main things is that you need to pay a lot of tax and no one is withholding that tax for you, so two notes there. The first is that, with self-employment stuff, it’s not like income tax and you know that, so I’m speaking to the audience, but it’s not like income tax where you’re not taxed on the first chunk of income you take in, then you’ll have a low tax rate on the next chunk, then you’ll have a higher tax rate on the next chunk. That’s the graduated income tax system. You will still pay income tax as a self employed person, so just add that on top of whatever the rest of your income is. It’s going to be in the 12% or maybe even the 22% bracket, depending on how much money you make. But in addition, you have self employment tax, which is, I believe 15.3% on everything. The first dollar that you make as a self employed person, 15.3% of everything. So it’s not like that graduated system. It ends up feeling like you pay a lot and you do pay a lot in tax because of these two different types of tax that you end up paying income tax and self employment tax.

Emily: For anyone who is making a significant self employment income like you did, you have to set money aside for tax. You have to prepare for that. You have to do the calculations because you don’t want to be surprised at the end of the year with…I mean, you can be very pleased that you made all this money through selling employment, that’s amazing, but you have to be prepared for the tax side of things. One thing I’ll recommend actually for anyone who is either self employed or who has a fellowship who doesn’t have income tax withheld, I have resources on my website about paying quarterly estimated tax. You can go to the site and search for quarterly estimated tax. You’ll come up with like my main article on that. It’s designed for people who have fellowship income, but people with self employment income can take a lot out of that as well. And if you want a little bit further help I’ll link from the show notes, actually have a workshop on helping people pay quarterly estimated tax. Again, to not be surprised at the end of the year with a huge tax bill. It helps you estimate the amount of tax you’ll have to pay and also pay through it quarterly.

17:37 Emily: Okay, so Rebecca, that was a little bit of a diversion just because this is my wheelhouse about taxes.

17:41 Rebecca: That’s very helpful. Yeah.

17:44 Emily: I actually was a little bit for curious, because I think what I was asking, I didn’t phrase quite right earlier, was about, so the difference between your dissertation work, which you are either receiving a fellowship for, or maybe not being explicitly paid to do in your primary role as a graduate student versus the self employment relationship, this contractor relationship you have with this professor. I guess what I’m asking about is like intellectual or academic ownership over that work. Are you going to be on papers? Just because it’s an unusual way to be doing research, as a self employed person, but still in an academic setting, but it’s at a different university. So that’s why it was sort of interesting and complex.

18:24 Rebecca: I find it to be really common, particularly in Washington DC where we have a lot of federal archives. Since I started grad school in 2015, I’ve honestly lost track of the number of professors who’ve emailed the department literally from as far as Australia and asked our grad students to do work for them. Now I don’t do it unless it’s $30 per hour, but I used to do it for like $12, $15 per hour before I knew better. And as far as I know, we never get even an acknowledgement because we’re a human in the right location who has used archives before, and isn’t going to mess it up when researching.

19:12 Emily: Gotcha.

19:13 Rebecca: For my dissertation, I am the author.

19:16 Emily: Right. So it’s really just by virtue of where you’re attending graduate school and the skill set that you have,that you have access and people, as you were saying from all of the world want some access and they’ll use you, hire you to be a conduit for helping them with that work. But in terms of the academic ownership, because you’re being paid and again, as a contractor, it sounds like you sort of relinquish that. They’re going to be completely in control of the scholarship side of things. You’re not apparently even getting an acknowledgement, which I feel like it definitely deserves an acknowledgement at minimum, but okay.

19:50 Rebecca: That’s just the random people from California or whoever who can’t fly into DC.

19:54 Emily: Yeah, totally. Okay. So now I have a better idea about this.

19:57 Rebecca: It’s not even taxed sometimes, because it’s not enough money to be taxed, but I’ve done that a lot of times. And then my research gig at George Mason, I have a relationship with this person now. I don’t know when her book will be done, but I’ll be in communication with her. And I definitely felt like I was a part of the project, even though for the argument of the book, that’s entirely her argument, I’m just providing the facts that she then integrates into her analysis.

20:29 Emily: Yeah. I guess I’m also wondering like maybe you know for her situation, why wasn’t she working with a graduate student at our own institution? Like her advisee or something like that.

20:39 Rebecca: She wanted a historian. She’s in an economics department and she specifically reached out to history departments because she wanted reviews of historical literature by historians. And then also just that change over time analysis that my department trains me to do.

21:01 Emily: Gotcha. Okay. Yeah. This is really, really interesting to me.

Commercial

21:06 Emily: Emily here for a brief interlude. I am just bursting with this news. I have launched a community for personal finance for PhDs. The community is for PhDs and people pursuing PhDs who want to level up their practice of personal finance by opening and funding an IRA, starting to budget, aggressively paying off debt financially navigating a life or career transition, maximizing the income from a side hustle, preparing an accurate tax return, and much more. Inside the community, you’ll have access to a library of financial education products I’ve made in the past, and I’m going to add new trainings that library every month. There is also a discussion forum, a monthly live calls with me, a book club, and progress journaling for financial goals. Basically, the community is going to help you reach your financial goals, whatever they are. Go to PFForPhDs.com/community to find out even more. If you’re listening to this in real time, you have the opportunity to become a founding member of the community at a discount. The price is going up on August 15th, 2020, so don’t delay. Go to PFForPhDs.com/community for all the details. I can’t wait to help propel you to financial success. Now back to the interview.

Research Side-Hustles and Career Advancement

22:29 Emily: I guess the other sort of big picture question I wanted to ask you about side hustling is, so the side hustling is necessary financially — for the wedding, for living your life — do you think it’s giving you more than that? Like is this actually advancing your career in some way?

22:46 Rebecca: That’s a fantastic question and I really hadn’t thought about it. I mean, the economics people at George Mason, like their department is a completely different environment than mine, so it’s educational, just in that sense to meet more people in different places. Overall, the research work definitely was not expanding my skillset. It probably expanded my content knowledge a little bit, but it wasn’t that much more than whatever I had to be familiar with for comprehensive exams, because I did all of that time period. For the George Mason people I earned, what was it? For the whole year it was $15,000. And the previous year, before I was engaged, my side hustle, during my third year of graduate school paid $1,500, so literally take off a zero, and that was writing an exhibit for a museum. That was fantastic experience that definitely advanced my CV/resume and what I know how to do.

23:56 Emily: Gotcha. So there may be a little bit of a trade off there. This is not surprising that the things that benefit you more as an individual, there may be a trade off on the money there. You’re being paid more, but —

24:06 Rebecca: In my experience, that is correct.

24:08 Emily: Yeah, so I mean, hopefully that’s not the case. I wish for everyone to have a side hustle that pays really well and advances your career and all that, but sometimes you may have to trade off one or the other, but it sounds like at least at the very, very minimum you’ve expanded your network, right? You’ve met more people. You’ve worked closely with this one individual. So maybe that’ll come into play later on. Who knows about that.

Time Management and Side-Hustling

24:31 Emily: So I want to move now to talking about how you, how you manage your time. You’re obviously a long time side hustler, but it sounds like you really maybe stepped it up, maybe stepped up your hours to make this additional money in this past year to be able to fund the wedding that you wanted. Can you talk to me a little bit about how you balanced your dissertation work, your TA role, the side hustle, maybe multiple side hustles, if you’re still doing other ones, and then of course, just the rest of your personal life.

24:59 Rebecca: I have noticed for a while that it comes down to two things. One is time management, which I’m sure seems pretty straight forward. And the second is the kind of energy that the opportunity is giving you. I have felt for a long time, this is also just my personality, that if an opportunity is giving me a lot of positive energy and genuinely feel like I can do anything, but if it’s not, and sometimes things take away from my energy, then that becomes a real challenge. I remember at the beginning of last school year, last fall, actually around this exact time, last year, I majorly had not figured out how that balance was going to work. I was so stressed that I ended up giving up caffeine for several months, even though coffee is my favorite thing, because I was just so energized and stressed all the time that it was just miserable. And just not knowing how I was going to balance my time all year.

26:03 Rebecca: Also, the way that we ended up doing our wedding, and I’m sure we’ll talk about this later, it ended up working out great, but we accepted a lot of favors from people. Like a friend did the photography, a friend did the flowers, a family friend officiated our service. And when you rely on people, even if they’re really close friends and family, it’s just really stressful to maintain the relationships. I never wanted to feel like I was a burden on people. That created a lot of stress and the most challenges very early on, but over the course of the year, I think I just adjusted. Also second semester, I had this past TA assignment for a fantastic, really supportive enthusiastic professor. She’s Eileen Finley at American University and she was just a breath of fresh air twice a week, and that made a huge positive difference in my ability to find positive energy and manage my time well.

27:08 Emily: I think that’s an excellent, excellent point that you’re making. I wonder to make it any more applicable for the listener, can you tell in advance what kinds of activities are going to give you energy? So you can kind of filter, like I’m not gonna accept this opportunity because it seems like it’ll be draining. Have you figured out any kind of framework around that or is it just have to try it and then see?

27:31 Rebecca: I’m definitely not an expert on that in the sense that I am still figuring that out. So this is not what you asked, but I could break down what an average week was like. I think both semesters my TA at AU, that was Tuesday and Friday, so then I would often go to George Mason where they gave me a desk, which was nice. And that way I felt like I had community there. I almost always went once a week. I didn’t go more than once a week, very often, but it was typically on a Monday, Wednesday or a Thursday really. And then one or two days I would actually get to do my own work on my own dissertation. And I ended up, um, drafting one chapter out of six first semester and one chapter out of six second semester, but I really have much higher hopes for this coming academic year when I’m not planning and paying for a wedding. I hope to be able to draft more than one chapter each semester.

28:31 Emily: That actually does sound like really good progress to me. I take it you are going to take the side hustle down some. You’re not trying to make as much money in the upcoming year as you did last year.

28:41 Rebecca: I ended working for George Mason at the end of the school year, because it was an academic school year position, but also during second semester, I allocated some time toward applying for fellowships just because everyone told me that that’s what you do when you’re going into fifth year. I actually got three out of four of the ones that I applied for. One of them is through the same people at George Mason, so that ties into what you said about like making connections helps. One is from Mount Holyoke College where I did my undergrad work. It’s specifically from the history department. There that’s the biggest fellowship. They’re basically paying my rent for the coming year. And that will hopefully really allow me to focus on my actual dissertation work. Then the third is a research grant from my department at American. I’m really trying not to take on side hustle work like I did last year. Though, I did have a potentially paid opportunity fall into my lap for this coming year, but it hasn’t fully developed yet and I need to prioritize my dissertation because I wasn’t always able to work on it as much as I wanted to this past year.

29:58 Emily: Yeah. Congratulations on winning those three fellowships. Are you continuing to TA in addition to accepting those fellowships?

30:05 Rebecca: This coming year is my last year of TA-ing.

30:08 Emily: Yeah, it’s a great point for anyone who is looking to side hustling during graduate school and especially for you where your progress on your dissertation is up to you. You’re ABD, it’s at your own speed. There is a danger of devoting too much time to making money on the side and not enough time to actually progressing through your current career stage so that you can get a full time job and have an actual salary.

30:33 Rebecca: It’s a balance to strike for a few reasons. One is I get the most work done when I can take myself out to the pizza place next to my apartment and buy my favorite pizza, or get coffee and a bunch of different coffee shops, or buy a nice new planner for myself to organize my life. You have to have some cash flow, at least in my experience in order to be your best student.

31:00 Emily: Gotcha.

31:01 Rebecca: And I think the other reason is that I actually want to go into public history and museum work rather than academia. So in order to get more relevant job experience, that’s also a balance to strike for me.

The Financial Side of Wedding Planning

31:15 Emily: For sure. Yeah. Thanks for pointing that out. So we’ve been talking about the side hustles and the wedding you added, you know, $15,000 to your wedding fund. It sounds like more or less for this past year and it just was a month or so ago. So how was it, how did the wedding go?

31:30 Rebecca: We got married at the Hamilton Restaurant in downtown Washington, DC. It’s around the corner from the White House and it’s both a restaurant and a concert venue. And I would highly recommend to anyone looking to have a great wedding at a minimal cost to get married at a restaurant that has a concert venue because under one contract we had our venue, the food, they provided the cupcakes, they included the open bar. There was a guy that was — so, I thought we had a lights guy and then a sound guy, and I just realized when I was telling my husband about this interview, that those were actually the same person. So it came with a lights guy and the sound guy. The venue was really great.

32:18 Rebecca: I was really happy with my dress. I found it for $130, which I’m really proud of. One of my bridesmaids asked me what I was envisioning and I described sort of a shorter dress, but also a sun dress, but also beautiful. And she pulled up one on Pinterest and was like, “do you mean like this?” And I was like, “yes, that’s exactly what I’m looking for.” Then, a few days later she texted me that it was 75% off online. So that’s how I got my dress from $130. A different bridesmaid took me veil shopping and I got one for $30. I would say for any brides out there, don’t spend a lot of money on the veil because you’re only going to wear it once. One of my aunts bought my shoes for me at Macy’s or something as a gift.

33:09 Rebecca: The most important part of the whole wedding experience to me was the ceremony and it’s hard to describe why that is. I guess, I mean, it’s a Jewish life cycle event and I did not have the traditional bat mitzvah, but I identify very strongly with Judaism, and my husband’s one of his parents is Jewish, but he didn’t grow up with a lot of religion, so I would describe it as Jewish with an interfaith twist. The way I think back on our ceremony is that there are a few events in life that are really deeply, very important, and for one of those to go so well, I appreciate that it went flawlessly so much. I think the ceremony itself, which we have a link to the video, actually that I can send you if you’re interested, I’m just so happy with how it went. We had a family friend officiate and play guitar and sing. My cousin, who is also a bridesmaid, did the Hebrew. An aunt and uncle made our chuppah for us as a gift to us. My dad sang a song during it, actually. It was like everything I could have imagined, and I’m so grateful for that, and we made it happen ourselves.

34:31 Emily: Yeah, that’s something to be really, really proud of, obviously. What I’m hearing, as someone who has also planning a wedding, is that it sounds like you DIY-ed, in terms of accessing your community and asking people to contribute, the parts of the whole experience that were most meaningful to you, but also the ones that their contribution was particularly, again, meaningful or personal, like singing a song, for example. And also not particularly a ton of work, versus your choice of venue, where you combined the restaurant and the venue and all the staff is there and everything is, as you said, under one contract. That was a way that you made a really simple decision that made the planning a lot, lot easier. I did the opposite thing with my wedding, so I know that it’s a lot of work and a lot of money to do things the other way. So anyone who’s thinking about planning a wedding, I think that you went about this in a very positive and thoughtful and way that paid off, it sounds like, really well.

35:34 Rebecca: What was your wedding venue, if you don’t mind me asking?

35:36 Emily: Yeah. So we had two, first of all, because one, we got married in the church and two the reception was at a different location. So it’s already dealing with two different locations, right? We actually had our reception at a museum of natural history in Raleigh, North Carolina, which was awesome.

35:52 Rebecca: I’ve been there, actually.

35:55 Emily: Yes, it’s a fantastic museum. I was so excited. I grew up outside DC, so I’ve been in love with the natural history museum as part of the Smithsonian forever, so to have a chance to do that in a similar museum in Raleigh was so much fun. The venue was really, really fun, but it was an outside caterer. It’s a lot of work. Rentals were a whole separate thing. Getting it all done in one place, I think, was really smart. It saves a lot of time, saves a lot of money. And as I said, then you chose to DIY the parts where people could actually really contribute instead of, for example, asking for people to contribute on the food or, you know, there’s other ways to do this kind of thing that could be a little bit more work for everyone rather than just, oh, I’m giving you this wonderful gift of a song or the shoes or whatever it turns out to be. I appreciate hearing that. And it sounds like you had a wonderful time and I’m happy that everything worked out with the side hustle and everything. Any final comments on the wedding and the side hustle?

36:50 Rebecca: Just a quick, funny thing that came to mind is that one of my closest friends who did our flowers, she was literally a few days away from getting her doctorate. Her name’s Arlisha and she got her doctorate in history a few days after my wedding. Her final year of dissertating, she literally texted me and was like, I’m taking up flower arrangement as a hobby while I finished my dissertation, can I do this for your wedding? And I had not previously cared about the flowers, but I was like, yes, if you want to, go for it. She did an amazing job. Just the aesthetics of the room, I think looked so much better because Arlisha’s dissertation side hobby was flower arrangement.

37:34 Emily: Yeah. I think in the academic space, we talk a lot about mental health and self care and so forth, and that’s a really fun, healing, stress-relieving thing to potentially do that, hey, can also help out a friend or even become a side hustle , if you want to. I had an interview recently with someone who decided to turn her baking hobby, as a graduate student, into a business. So it’s the same kind of thing, right? You have something you enjoy doing, it’s a stress reliever for you, why not turn it into something a little bit bigger?

Final Words of Advice

38:02 Emily: Final question here, Rebecca, which is, what is your best financial advice for another early career?

38:08 Rebecca: The piece of advice that I’m just learning and wish I had known sooner was that unpaid opportunities are almost always not worth it. Full stop.

38:20 Emily: Yup.

38:20 Rebecca: Also, as a PhD student, you have to do your doctoral requirements and dissertation, but there’s really nothing else that you have to do. And if you have different wedding preferences from your parents, just do it your own way. And if some customs from your religion are meaningful, just stick to those. If others aren’t…our wedding was really a growth opportunity for me and I’m proud and thankful for how it went.

38:50 Emily: Wonderful. No need to elaborate any further on that, Rebecca. Thank you so much for sharing the story on the podcast with me.

38:56 Rebecca: Thank you so much.

Outtro

38:58 Emily: Listeners, thank you for joining me for this episode. PFforPhDs.com/podcast is the hub for the personal finance for PhDs podcast. There you can find links to all the episode show notes, and a form to volunteer to be interviewed. I’d love for you to check it out and get more involved. If you’ve been enjoying the podcast, please consider joining my mailing list for my behind the scenes commentary about each episode. Register at PFforPhDs.com/subscribe. See you in the next episode, and remember, you don’t have to have a PhD to succeed with personal finance, but it helps. The music is stages of awakening by Poddington Bear from the Free Music Archive and is shared under CC by NC. Podcast editing and show notes creation by Lourdes Bobbio.