Personal Finance for PhDs

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This PhD’s Money Mindset from Childhood Has Served Her Well Through Multiple Phases

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In this episode, Emily interviews Dr. Judy Chan, a PhD and staff member at the University of British Columbia. As a child of immigrants to Canada, Judy learned early on the virtues of hard work, saving, and the value of a dollar. She applied these principles consistently while she earned her PhD, started her business, and became a parent—to great effect.

Links Mentioned in This Episode

Teaser

00:00 Judy: And it was hard. I do feel that I have more advanced knowledge than my average colleague or my friend, and even going to the bank, they didn’t really take me seriously when I asked them questions. Or they assigned a very junior financial advisor to me when I actually knew all the answers myself. But I didn’t have enough money to get more experience. I don’t know. Is it just my money, my net worth, or my look, or my age, but I was never able to talk to someone who’s more experienced. So I had to do a lot of my own learning.

Introduction

00:49 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 9, Episode 5, and today my guest is Dr. Judy Chan, a PhD and staff member at the University of British Columbia. As a child of immigrants to Canada, Judy learned early on the virtues of hard work, saving, and the value of a dollar. She applied these principles consistently while she earned her PhD, started her business, and became a parent—to great effect. We have a special event coming up on Sunday, July 18, 2021! It’s the second installment of my Wealthy PhD Workshop series, and it’s on everyone’s favorite subject: investing! This workshop is for you if you want to learn how to start investing, particularly if you are a grad student or postdoc who is not covered by a workplace-based retirement plan like a 401(k) or 403(b). I will also teach you about passive investing, which is the most effective, least expensive, and most time-efficient manner of investing. Even if you’re not a novice investor, you can use this workshop to double-check that your current investing strategy is appropriate for your goals. Furthermore, we will discuss the relative merits of discount brokerage firms, roboadvisors, and microinvesting platforms. This is going to be a value-packed session, so please join us on July 18th. You can register at PFforPhDs.com/WPhDinvest/. That’s PF for PhDs dot com slash W for Wealthy P H D I N V E S T. By the way, after you register, you’ll be asked if you want to upgrade into a membership in the Personal Finance for PhDs Community. I do recommend this upgrade because you will have access to the recording of the previous workshop in the Wealthy PhD series, among other things. That workshop on financial goals will help you figure out if now is the right time to start investing or whether you should instead be focusing on saving up cash or paying down debt. Again, please go to PFforPhDs.com/WPhDinvest to register for the workshop this coming Sunday.

Book Giveaway Contest

03:19 Emily: Now onto the book giveaway contest! In July 2021 I’m giving away one copy of Get Good with Money: Ten Simple Steps to Becoming Financially Whole by Tiffany ‘The Budgetnista’ Aliche, which is the Personal Finance for PhDs Community Book Club selection for September 2021. Everyone who enters the contest during July will have a chance to win a copy of this book. Over the last year or so, I’ve become quite a fan of Tiffany’s. I am a loyal listener of her podcast, Brown Ambition, which she co-hosts with Mandi Woodruff, and we read one of her self-published books last September in the Book Club. I was thrilled when her first traditionally published book became a runaway bestseller this past spring, and I knew I had to schedule it into the Book Club. I hope you will join us inside the Community in September to follow The Budgetnista’s plan to become financially whole. If you would like to enter the giveaway contest, please rate AND REVIEW this podcast on Apple Podcasts, take a screenshot of your review, and email it to me at emily at PFforPhDs dot com. I’ll choose a winner at the end of July from all the entries. You can find full instructions at PFforPhDs.com/podcast. Without further ado, here’s my interview with Dr. Judy Chan.

Will You Please Introduce Yourself Further?

04:43 Emily: I have joining me on the podcast today, Dr. Judy Chan. She’s a staff member at the University of British Columbia, and she is going to kind of tell us about her life through a financial lens. So we’re going to start with her childhood, we’re going to go all the way up to now. It’s a real pleasure for me to speak with Judy today because, you know, I interview a lot of grad students and recent PhDs on the podcast, and I love it, but I also love getting to hear from people who are more than a few years removed from that because they have a perspective on, you know, the post-PhD stages as well. So I’m really happy to welcome Judy to the podcast. Judy, will you please introduce yourself a little bit further for the audience?

05:20 Judy: So my name is Judy. I am a staff member at my university, UBC, and I have a side business and I am also a busy mom of two kids. Parents around in the city, so yes, busy, and that’s me.

05:38 Emily: Yeah. Great. Well, we’re going to hear your kind of whole life story coming up and we’re going to insert some financial advice for anyone, you know, coming up on that stage as we go through. So Judy, as everyone in therapy will do, let’s start with your childhood. You know, tell us about your childhood and how it, you know, helped you develop a money mindset.

06:00 Judy: I think I grew up in a very hardworking household. My dad was a restaurant owner back in Hong Kong and I remember him. We would hardly see him. He worked 18 hours a day. I remember him sleeping in the back storage area. But he worked really hard. And we didn’t see him. He doesn’t take days off. I remember we are the only business that opened on Chinese New Year day in the whole entire street. We can go in the middle of the road and play. So that’s how I grew up. I remember not spending any time off meaning that I was actually helping early in the restaurant throughout the Chinese New Year.

Childhood Memories and Life Lessons in Canada

06:45 Emily: Yeah. Tell us about what happened upon your parents immigrating to Canada.

06:49 Judy: I think I also learned big lessons because we are very fortunate that growing up, like we were able to move to Canada in a pretty good, solid financial stage. I remember we got a house. In Hong Kong, we lived in apartments, so we got a house here. Everything was good. My parents, my dad was telling us that he’s retired now. So looking back, it was like he worked really, really hard for 15, 20 years, and then he was able to enjoy his retirement in Canada. He also opened a restaurant for a very short amount of time. We helped out. But it was all very good and fun memories. It’s hardworking, but it was a really good memory for us. Every time when I see people who, other people who also grew up in the restaurant, I think we have some shared memory there.

07:41 Emily: I see. However, you did not take that route in your own life. So I’m wondering, you know, looking back on your childhood, I’m glad you have such positive memories, but what have you taken from that about how, you know, you’re raising your own children?

07:56 Judy: Raising my own children, we just have to work really hard and be very sensitive to money. I remember back then getting wholesale, on average, is actually more expensive than trying to get your cans of pops from the super market, from the big retail supermarket, where the retail price is lower than the wholesale price. So my dad would take us to the big supermarket and we would be loading, like hand carry, trays and trays of pops and juice to bring it back to the restaurant. So my dad got us helping all the time and he would tell us, this is how much we are buying. This is how much we are selling, and this is the price difference. And this is how we mark up, or he doesn’t say it, he just said, look, this is how people do business.

08:49 Judy: And people might pay $10 for a burger, but it may only cost us a dollar. But if we can find ways to cut the cost down to 80 cents, that’s an extra 20 cents for us, for the family. So when we go out, my kids are very lucky. They grew up, I think they are in a very privileged space, but we will continue to remind them that things that we get, there’s a huge markup out there. And we may be able to make it on our own, or like clothings or other things, at a lower cost. So telling them the value of the product that we are getting every day.

09:31 Emily: Yeah. So, it sounds like you had some real, you know, organic lessons around cost and value and the value of the dollar and what, you know, what you can add to the situation because you grew up in that entrepreneurial family, and that’s also something that you’re instilling in your children.

Funding During Grad School

09:47 Emily: So let’s move on to your university days. You were at UBC for undergrad and grad school. Tell us about your funding situation during grad school.

09:56 Judy: Oh, grad school was amazing. I didn’t know that there’s so much funding available for grad students. There’s scholarship and fellowship and TA ship. There’s also a lots of smaller scholarship that I never realized. I think in the way, undergraduate in order to get scholarship and fellowship it’s very competitive. My experience is that grad school is so much easier. And so there’s funding and scholarship everywhere, just apply to them and start saving. So again, in my situation, I was lucky enough that I started as early as six years old, I was able to continue to see the numbers in my bank book, bank account, grow. But I do feel that for most grad students that, hopefully, you will get enough fellowship and scholarship for your basic needs. And there are other source of income around campus. Like I work at UBC now. So I see there’s actually a lots of employment opportunities out there and use them to start building your own wealth, your own saving. Those are extra income that you don’t need now. The basics should be covered by your fellowship, scholarship, and the extra money should go towards the savings, if possible.

11:24 Emily: Yeah, I totally agree that probably there’s going to be a lot of work in the life of a graduate student. You know, there’s going to be your work and your dissertation. There may be an assistantship that you’re performing. Hopefully you’re applying for fellowships and winning some of them on top of that. Maybe you have a side job. There’s a lot of different opportunities. Now, some of those opportunities might be restricted by the, you know, the rules of where you’re living. So one, you know, in the U.S., international students, they’re not going to be allowed to have those side jobs, right? It’s only the, you know, 20 hours per week on campus that they’ve been granted. That’s it. Another thing would be like, if your university, or rather your department, restricts outside work in some manner. So you of course have to check into your, you know, specific situation there. But yes, there are a lot of opportunities in theory for graduate students. I also want to ask you, so did you continue to live with your parents during graduate school, or did you get your own place?

12:16 Judy: I continue to live with my parents.

12:19 Emily: So I ask this because I know that Vancouver is an incredibly high cost-of-living city, and that a grad student stipend may not be enough to support someone if they are living independently. And so that’s a real boon to your finances that you stayed in the same city, I’m sure it was partially by design that you did that. Yes. And you had that opportunity. So that’s wonderful. So you were able to work and save and, you know, live with your parents and yeah. Any advice that you have for a current graduate student or an entering graduate student aside from just apply, apply, apply?

12:56 Judy: I also worked really hard. Like I did my research during the daytime, and then I definitely carved out time to do my teaching assistantship, of the fellowship. There are times that I was doing more hours than what my department allowed. But I did work six days a week, seven to seven sometimes or later into the evening. And I was very disciplined. Any money that I earned on the side, I would spend it, you know, let’s go out for a drink, but they would go straight into my savings account.

Side Business as a Franchisee

13:34 Emily: I also understand that, you know, you mentioned during your college years, you were doing a lot of tutoring as a side job, but you also started a business during graduate school as a tutor. Can you tell us about that and why you decided to take that on?

13:46 Judy: Everything is luck, but then it’s also an opportunity. Like I was doing a lot of tutoring, and I noticed there’s a gap and there’s something that is not available here. And a friend introduced me to a franchise, and I think my friend actually asked me, wanted me, was asking me to be a manager to help him out. But I looked at the franchise, I love it. I like it. I really, I really felt the gap that I noticed myself. So I started a franchise, and at that time with my boyfriend then, he always wanted his own business. It doesn’t matter what it is. That boyfriend is now my husband. So, it worked out quite well. And to be honest, now that I look back, I take risks, but it’s all very calculated risk. Running a tutoring center has minimal cost. There’s no inventory. You just need to rent a space, very minimal decoration and renovation. So, I started a tutoring center when I was in the middle of my PhD.

15:00 Emily: Wow. And, you know, you said that a friend initially approached you about this opportunity. Was that a friend who was also in grad school or somebody from another, oh, wow. Okay. So, did he also have a tutoring center locally?

15:12 Judy: So he started, he looked into the franchise and then he started, he became a franchisee. So, then I asked him, well, how can I be one too? So he was also a grad student at that time.

15:27 Emily: Wow. This is a fascinating idea. I’ve never thought about people becoming franchisees during graduate school, except I’m now remembering that I actually knew someone who did that in a different business. So when I was in graduate school, I was friends with someone who was a franchisee for PhD Posters. I don’t know if they’re still in existence, but they had multiple locations around the U.S. And it’s a poster printing service. And so it wouldn’t be, you know, it would be grad students usually affiliated with the university and they would, you know, drop off posters that people ordered to the various lab spaces. And anyway, it seemed like a great kind of business model for a grad student wanting to run a side business. And it sounds like your business was also, you know, in a similar way, a little bit of overhead for the space, but I’m imagining you paid contractors, right? To do the tutoring. So that’s not any, you know, serious payroll costs. Yeah. Interesting.

Investing and Self-Learning Personal Finance

16:17 Emily: Okay. So when, you know, you’re getting to the end of graduate school, it sounds like you had a healthy savings account at that point. Do you want to tell us, you know, what your net worth was? Or were you doing any, like investing, or was it strictly just cash savings?

16:31 Judy: It was, oh, whoa. I started looking into mutual funds. Someone introduced me to the idea of mutual funds. My dad did a lot of stock trading. So I understand the buy low sell high idea. But he only knows about the trademark that’s in Hong Kong. He has no idea how the Canadian or the American system work. So I wasn’t able to get any support from him. Like, he doesn’t understand the system. And he’s, I don’t know, he doesn’t share much about how he managed his finances. So I had to learn everything on my own. And it was hard. I think, I do feel that I have more advanced knowledge than my average colleague or my friend, and even going to the bank, they didn’t really take me seriously when I asked them questions.

17:23 Judy: Or they assigned a very junior financial advisor to me when I actually knew all the answers myself. But I didn’t have enough money to get like more experience. I don’t know if it’s just my money, my net worth, or my look, or my age, but I was never able to talk to someone who’s more experienced. So I had to do a lot of my own learning. But I was lucky during our grad years, one of our technicians in the lab, he’s a very advanced investor. So there were a few of us, we would spend our afternoon tea time. Oh, by the way, I studied food science. So we would spend our ice cream time talking about finance. So there are a few of us who would exchange ideas on what can we do with our money, stocks, mutual funds. But I had to do a lot of my own learning.

18:30 Emily: And so that process did start during graduate school.

18:33 Judy: Yes. Officially start in graduate school. I’ve always been curious and interested about trading, buying stocks, but I just didn’t have enough confidence as a high schooler. I think in high school, I was already keen to know more, but it was, no, I would say I started in undergrad, in college, that I wanted to know more.

18:57 Emily: Yeah. That’s a really kind of interesting combination of like, seeing an example from your parent and getting some of the mindset of the importance of investing from your parent, yet not being able to receive the practical help because of being in a different context. I hadn’t heard of that before, but yeah. So it’s actually for you maybe a little bit the best of both worlds, because you got to be inspired by your parents, but still had to do all the legwork on your own to figure it out. Which of course means you really internalize what you’re learning.

19:25 Judy: I also learned how to do my own income tax when I was in high school. I had to help my parents because English is not their first language. My parents actually relied on me to look for an accountant. And I am someone who loves numbers and money. And so actually read into personal income tax when I was in high school. And so yeah, I had to do all that education on my own. So till today I still do my own income tax.

19:52 Emily: Yeah. They certainly, you were forced to grow up, and it’s benefited you. Right?

19:57 Judy: Thank you. Yes.

Commercial

20:00 Emily: Emily here for a brief interlude! This announcement is for prospective and first-year graduate students. My colleague, Dr. Toyin Alli of The Academic Society, offers a fantastic course just for you called Grad School Prep. The course teaches you Toyin’s 4-step Gradboss Method, which is to uncover grad school secrets, transform your mindset, uplevel your productivity, and master time management. I contributed a very comprehensive webinar to the course, titled “Set Yourself Up for Financial Success in Graduate School.” It explores the financial norms of grad school and the financial secrets of grad school. I also give you a plan for what to focus on in your finances in each season of the year that you apply to and into your first year of grad school. If this all sounds great to you, please register at theacademicsociety.com/emily for Toyin’s free masterclass on what to expect in your first semester of grad school and the three big mistakes that keep grad students stuck in a cycle of anxiety, overwhelm, and procrastination. You’ll also learn more about how to join Grad School Prep if you’d like to go a step further. Again, that’s the academic society dot com slash e m i l y for my affiliate link for the course. Now back to our interview.

Finances Post-PhD: Real Estate Advenures

21:27 Emily: Okay. Let’s talk about the post-PhD phase. But we’re not going to quite get to kids yet. So let’s talk about your finances, you know, after you finished grad school.

21:37 Judy: Yes. So it was time to get married. Looking back, my boyfriend then, my husband now, he said I was crazy. Because we just started a new business. We were still very young, and before we got married, because we were in a very stable relationship, we knew we were going to get married. It’s just a matter of Judy finishing her PhD. Everything was on hold until I was able to finish my PhD, and my choice.

22:06 Emily: I think that’s a common story.

22:09 Judy : And then sometime around that, after the business, before my PhD, before we got married, I said, “Let’s get an apartment. We need to get into the real estate market.” The real estate market in Vancouver has been crazy for the last 15, 20 years. It’s been always up with a little dip, a little dip, but it’s always up. So I said let’s go buy our first apartment. So we got our first apartment, and one of my criteria is we need to have a tenant in the apartment. It will be a bonus if there’s an existing tenant in the apartment. We would just carry over the rental lease. So we did that before my PhD was done, before we got married.

22:58 Emily: Wow. So I’ve learned that this, this term is house hacking. Buy a property, live in it with your tenant. And whether that is, you know, in an apartment where you’re sort of, it’s a roommate situation. That could also be like a multi-family if you went that route. But yeah, really glad to hear that you used that strategy. It’s one I’m very excited about, learning more about this spring. We did a focus on, well, I’m not sure when this will be published, so it’s either in the past or upcoming, but in March, 2021, we are reading The House Hacking Strategy in our book club, inside the Personal Finance for PhDs Community. So if that hasn’t happened yet, listeners check that out if this strategy interests you. I’d like to know some of the numbers on that. Like how much did having a tenant there help you out? You know, was it worthwhile to sacrifice, you know, the privacy and so forth?

23:47 Judy: Yes!

23:48 Emily: And how many years did you do that for?

23:50 Judy: So we had the tenant for less than a year, and then we got married. So we moved into, we asked the tenant to leave because we need to get into, that’s our place. So that’s when I officially moved out from my, our parents, same for him. He was living with his parents. And then, so we got married, I finished my PhD. Finished PhD, got married, and you know, all those orders are important in Chinese culture. So, and then I was pregnant. And then when I was pregnant, I was in the elevator in the apartment, and I go, no, I don’t want my kids to grow up in an apartment. I want my kids to grow in a house. You know, this is why we come to North America. We want to live in a house. And then I did like very quick, it wasn’t too hard to find out that we can actually afford a house. If we rent out the basement, that fits into what you just told us now, the house hacking, because the tenant will basically be able to pay for the difference that we have to pay in our mortgage. That’s it? Why not? Right? We got to sell our apartment, get a bigger house. The rental that we can get from our basement will pay for the difference. So it was a very logical change or purchase for us, for me.

From House Hacking to House Upgrading

25:14 Emily: Yeah. It enabled you to upgrade your housing situation, get more space and so forth without having the full, full burden of the cost solely on your incomes. And so how long did you stay in that arrangement?

25:26 Judy: We stayed in that arrangement for about four years. That was after my second kid was born. And, again, I’m so lucky. I have a girl and a son. A girl and a boy. And then at that time I had that illusion, because I came to Vancouver, Canada when I was 14 and my parents put us in the basement. I was happy. Like my sister and I, we were just happy to be in the basement. So I had that illusion that I can put my kids in the basement. So we can ask our tenant to leave. They can go into the basement. But I forgot that in between five years old and 12 years old, I cannot put them in the basement. So we, at that time in the main floor, we had two bedrooms. So, we really need a third bedroom, because you know, two kids. So, and then we were really lucky again. We were looking for, it was about time to upgrade, oh, by the way, my money advice, any extra money we have, we put it into our mortgage. So, when I shop for mortgage, I really look for a very flexible repayment method. So any extra money goes in, we actually, every month we pay more than we need to. And then at the end of the year, we also put all the savings into the house.

26:51 Emily: That’s on top of investing though. Right? Because you’re still, were you doing any like retirement stuff through your work?

26:57 Judy: Yes, yes, yes, yes, yes. Retirement stuff. Take advantage of the retirement pension plan at work and then putting any extra money into the mortgage. So we were able to, four years into the house, we were able to upgrade to a bigger house.

27:17 Emily: So that strategy, it sounds like is because you knew that you would be not in that house for decades, you knew you’d be changing. And so you get the mortgage paid down. So you have a lot of equity to go into your next property. Is that the idea?

27:29 Judy: No, no. We didn’t know that. Like, when I purchased the house with the, I call that a smaller house with the two bedroom in the main floor and two bedroom in the basement, I really thought that my kids would grow up in the basement because I enjoyed it as a teenager, but I forgot about that “in the middle” time. And so, when it was time, when I needed to have two bedrooms, one bedroom for my son and one for my daughter, I felt that we need, to upgrade the house. And having so much of the mortgage that’s been paid down, helped us upgrade our house.

28:06 Emily: Gotcha.

28:07 Judy: I paid it then, what was the reason, I just don’t want to own that much money. I have extra money, then just pay down the mortgage because everything that I pay then will go straight to the principal, and then I don’t have to pay interest on them.

28:24 Emily: Yeah, absolutely. I’m inquiring about this because, you know, we are in a super low interest rate environment right now.

28:32 Judy: Yes.

28:33 Emily: What was your interest rate at that time?

28:36 Judy: 2.5. It was super low. Yeah. It was super low. Yeah.

28:40 Emily: So this was really about you, as you just said, not being comfortable with holding that much debt and as you know, I’m tracking through your story, this is the first debt that you’ve actually taken out, right?

28:50 Judy: Yeah.

28:50 Emily: Yeah. So you’re just, you’re just a naturally debt-averse person. And this is part of that.

28:58 Judy: But at the same time, it doesn’t matter. Okay. Let’s say just pick a number. 3%. 3% is pretty low. I see where you’re going, why don’t I put the money into the stock market? I have to earn 6% return because I have to pay tax on that return in order for me to earn that 3%. And so to me, and the stock market is known to be volatile. It’s not a guarantee. So on one hand I feel that I am getting that guaranteed 3% saving instead of putting the money in a stock market that I need at least just like rough number. Right. I need at least 6% because I have to pay tax on my, on my earning. And I don’t want to do that calculation. I don’t want to worry about that.

Business Updates and Additional Family Expenses

29:53 Emily: Yeah, no, the guaranteed return on debt repayment is very attractive. I agree. So we’ve talked about, you know, real estate changes. Let’s get an update on your business, you know, from that time period.

30:08 Judy: Business was going well. It was going well, we were happy, word of mouth. We were able to generate the money that we forecast. It was going well. Until the pandemic. I have to admit, pandemic has a huge impact on our finance right now. But it’s okay because I do have a stable job at the university.

30:30 Emily: Yeah. So you have your full-time position. Was your husband’s full-time job the business, or did he have a job in addition to that?

30:35 Judy: No, very soon once we made the decision to go into the franchise, and as we were doing our renovations and as we’re getting the prep work going, he had a full-time job at that time. He felt that he needed to dedicate, and he wanted to. And I said, sure. Because I knew he always wanted to be a business owner, and I was doing my PhD. So it made sense that there’s a dedicated person at the business. So he’s full-time there.

31:06 Emily: Gotcha. And let’s talk then about the addition of the children. And you’ve already mentioned that that’s caused some real estate, you know upheavals, but you know, how else have your finances changed upon having children?

How Have Your Finances Changed Upon Having Children?

31:20 Judy: A lot. A lot. Children are very expensive for financial life. Yeah. It’s like daycare. Daycare is expensive in Canada. You know, every month is one TV, right? Every month is one iPhone, if you have to compare it to material. Also because, in Canada, the illusion is we can get a whole year off, but the whole year off for me also means a significant pay cut, right? Yes. Legally, we can get the time off, and then we will go back to having a job, but there’s a difference in income. So, that was okay. Because I think the business was doing well, and I have enough savings. I never need to worry about that. But I have to say that every month that the childcare, the daycare fee, was hard to swallow in the beginning. Whoa, that’s another iPhone. That’s another TV. So, it’s expensive to have kids.

32:26 Emily: So then what happened with your finances overall? Does that translate to a lower savings rate or, you know, did you change your lifestyle during that period?

32:36 Judy: I think we had to change our saving strategy. Like we just have to put more expenses, and less saving. Yes.

32:45 Emily: Yeah. So I have two children, they’re ages four and two. Of course, pandemic year is a weird year, and we’re not paying for childcare right now, but I am looking forward to my daughter turning five and starting kindergarten. And maybe there’ll be some, you know, before or aftercare, I don’t know, but I’m really looking forward to that state-sponsored childcare that’s coming. I’ll still have to pay for the little one for another, you know, few years, but yeah, it’s a really, really significant bite. And so it’s kind of a, you know, it’s a phase of life, right? When you have to pay for childcare, it’s a phase of life you have to accept. Yeah. Your savings rate is going to be lower than it would have been, but Hey, once the expense goes away, you just can put all that money back into savings and your rate will shoot up.

33:28 Judy: Oh, Emily, I don’t know when that will be, when we can get into that stage. Because when they are four and two is the daycare. When they are five to nine is all the extra curriculum activities. My daughter, she dances. Her first dance dress that she needs for her performance was more expensive than my wedding dress. That’s it. That’s it. That’s expensive.

33:57 Emily: Yeah. I’ve heard that too. Both about expenses with kids, is that, yeah, the daycare is a lot of the beginning, but also just shifts later on to being other things. And then also, you know, the intensity of the parenting is much more like it’s physical when they’re young, but it’s very emotional when they’re older and you just have different kind of roles to play as they age. And how old are your children now?

34:18 Judy: They are 10 and 12.

Financial Advice for First-Time Parents

34:19 Emily: Okay. And so what is your advice for someone, you know, anticipating the birth of their first child or who has young children, you know, financial advice for that person?

34:30 Judy: For kids stuff? I would say, I feel a lot of people, they would like to invest into one thing like a car seat, a stroller. I would say, go ahead, buy that luxurious thing that you really want for your kids. But everything else, get hand-me-downs. Get it from your friend. Because they grow up so fast. They grow up so fast. They don’t need all these fancy little cute dresses. And by the time you actually can fit into the dress, we live in Vancouver. So the summer time we only have three sunny days ever. Like hot sunny days. I mean, I remember we had so many cute little dressed that we really couldn’t use them. So, hand-me-downs. Get hand-me-downs.

35:11 Emily: Yeah. I think we followed your advice for our children. The one big, nice expensive thing that we bought was a Bob stroller. Right. Jogging stroller. And then everything else, we did buy new cribs, but we bought like Ikea, like bottom of the line, like so simple, stripped down Ikea cribs and tons and tons of used clothes. We were so fortunate to be, you know, sort of passed used clothes and then we pass them on to the next family afterwards. That’s exactly it worked. Yeah. Yeah. It’s a wonderful boon, if you can get into a parenting community that does that sort of thing. But yeah, I do think we followed your advice. We picked one thing that we wanted and everything else was just really just as cheap as we could get it.

35:49 Judy: And then the other one advice, well, for me that works really well, is I told my kids that I would pay for their education, for their readings, and everything. Because I think my mom was really frugal to a point that looking back, there are moments I go, mom, you know, you could have spent a little bit more money on my education. Because I think we have PhDs. So we care about education. So I really wanted to let my kids know. I am willing to spend money on things that are important to me. And the thing that is important to me is your education. So they know, they know that they can go into the local bookstore, we call it the bookstore. They can buy almost anything in the bookstore, including toys, you know, the bookstore has so many other gadgets. But they take advantage of it. And I actually allow them to, you know, as a bookstore, we will buy something educational. So I don’t, when it comes to book, I have no limit for my kids. Yes.

36:52 Emily: And is there any other advice that you want to add in at this stage for new parents or parents of littles?

36:59 Judy: The phone is a very attractive thing. You know, it’s just one phone. You have so many toys in there, but stay away from it as much as possible. Get your toys from your friends. Get your free toys from your friends. That costs very little money. And, for me before the pandemic, I’ve been strictly using cash in front of my kids. I carry cash. I really want to show them the exchange of money. But during the pandemic it was a lot harder, but they are older now. I think they understand the money, they have some understanding of money, but before the pandemic, I strictly used cash, especially in front of the kids.

37:44 Emily: Yeah. I think that’s a really good tip. Actually, so I mentioned, my daughter is four, she turned four during the pandemic. And at four we were like, okay, we’re going to start really teaching her about money. Like, what is this concept? You know? But because it was during the pandemic, there was no way that we wanted to handle cash coins, anything. So we did get a toy that, you know, represents money, but it’s something that I feel she’s missing out on a little bit now. And I want to somehow, you know, establish that for her later.

38:11 Judy: Well, four is still young. Right? So you still have a lot of time. There’s no hurry. And yeah. She still has a whole lifetime to learn about money.

Best Financial Advice for Another Early-Career PhD

38:22 Emily: Yes. So Judy, thank you so much for this interview. I loved hearing about kind of your journey and your advice. To wrap up my interviews, I always ask my guests, what is your best financial advice for another early-career PhD? It could something that we haven’t mentioned so far in the interview or something you just want to circle back to and emphasize.

38:40 Judy: You don’t really need to spend money on things that you need to impress other people. You know, just really know what is important to you and what you need. Really understand what you need and what you want, the difference between the two. I mean, I’m not saying that you cannot get the thing you want, but knowing that this purchase is what I need, and this is a purchase that is what I want. And have that differentiation in your head, in your mind. I think that’s already a very good start.

39:11 Emily: Yeah. I think that’s an incredible insight. Especially, to me, I always think about this when it comes to recurring expenses like recurring, fixed expenses. So, you know, we talked about housing a bit earlier. So what in your housing cost is a need, and what is an upgrade to that, a want? And I think it’s important just to keep in mind in case you ever come upon a situation where, you know, you want to cut back, you’ll know, okay, well, you know what, the house actually is bigger than what we needed at this point, or the car, or whatever it is. Like if you differentiate between, okay, well, I could have this, I can afford this, you know, more of a want thing right now, but just to keep in mind. Yeah. There is a way that I can scale this down, you know, should it come to it in the future. Like you said, to differentiate in your mind, I really like that advice. And will you let us know, you know, about your business and you said, you know, it’s a little bit on the skids during the pandemic, give us kind of an update on that and where people can find you if they’re interested in learning more about it?

40:06 Judy: Well, my business is more catered to kids. And so it’s a reading center, we specialize in fostering reading and writing. We have lots of books. Good levels from the state. And so it’s called Reading Town, it’s a franchise and, and I love reading with kids. And we have programs that are good from Kindergarten all the way to grade 12. Lots of readings. Yes.

40:38 Emily: Yeah. Thank you so much for letting me know about that. And thank you so much for joining me today.

40:41 Judy: Thank you, Emily.

Outtro

40:43 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 and instructions for entering the book giveaway contest. 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. If you leave a review, be sure to send it to me! 2. Share an episode you found particularly valuable on social media, with a 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 and show notes creation by Meryem Ok.

How to Eat Well on a Grad Student Budget

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In this episode, Emily interviews Jen from the Budget Epicurean (formerly College-Approved Food) about her experience as a grad student. Jen finished a master’s and spent several years in a PhD program, but decided to leave before completing her dissertation. They discuss her reasons for leaving and the career she built and what role finances played in the decision. In the second half of the interview, Jen gives her best tips for eating well on a grad student budget, including curating go-to meals and ingredients, where to shop, how to track prices, and what kitchen appliances are the best bang for your buck.

Links Mentioned in This Episode

grad student food

Teaser

00:00 Jen: I almost tripled my income within two years of leaving the program. It was very exciting to get those paychecks and say, oh wow, this is what real money feels like.

Introduction

00:17 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 9, Episode 4, and today my guest is Jen from Budget Epicurean. Jen finished a master’s and spent several years in a PhD program but decided to leave before completing her dissertation. We discuss her reasons for leaving and the career she built, plus what role finances played in the decision. In the second half of the interview, Jen gives her best tips for eating well on a grad student budget, including curating go-to meals and ingredients, where to shop, how to track prices, and what kitchen appliances are the best bang for your buck. I have found through facilitating my workshop Hack Your Budget that early-career PhDs are highly interested in food spending. I poll the attendees about what budget category they most want to discuss, and food always comes out on top, plus the vast majority of the frugal tips submitted are related to food. I think this is because grocery spending is typically the largest variable expense category in a grad student or postdoc budget. It’s quite gratifying to try out a new frugal strategy and immediately see the effects on your spending. In fact, Season 4 Episode 13 with Dr. Brielle Harbin was devoted to the subject of meal planning, and I almost always interrogate my budget breakdown guests on their cooking and food shopping habits.

01:51 Emily: Keep in mind, though, that your frugal journey should not end or even necessarily start with food spending. I am a firm believer that you should re-evaluate your large, fixed expenses, such as housing and transportation, before any other categories. It may take a long time, a lot of research, and even some money up front to reduce your spending in one of those areas, but once you do make a reduction, that lower spending level is locked in indefinitely and requires no conscious action by you to maintain. That is the big advantage of reducing fixed expenses first. However, I also love the idea of using frugal strategies in the kitchen to start what I call a frugal stack, which is when you use variable expense reductions to leverage yourself into fixed expense reductions. If you would like to learn more about strategic frugality and frugal stacking, check out the Personal Finance for PhDs Community at PFforPhDs.community. I taught these strategies as part of two monthly challenges held near the end of 2020. I also devoted a chapter of my ebook The Wealthy PhD to frugality; it discusses the philosophy of frugality and gets into really nitty-gritty strategies for each one of your budget categories. I hope you will join us this month inside the Personal Finance for PhDs Community PFforPhDs.community.

Book Giveaway Contest

03:30 Emily: Now onto the book giveaway contest! In June 2021 I’m giving away one copy of The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach, which is the Personal Finance for PhDs Community Book Club selection for August 2021. Everyone who enters the contest during June will have a chance to win a copy of this book. If you would like to enter the giveaway contest, please rate and review this podcast on Apple Podcasts, take a screenshot of your review, and email it to me at emily at PFforPhDs dot com. I’ll choose a winner at the end of June from all the entries. You can find full instructions at PFforPhDs.com/podcast. The podcast received a review recently titled “Preparation and survival!” The review reads: “Excellent resource to get prepared for graduate education and to navigate it. I think the specifics of your personal situation and institution will always vary. So some things you take with a grain of salt, however, the biggest asset of the pod is the variety of people interviewed. People from different backgrounds and programs and the amount of topics covered. Most of these topics are discussed behind closed doors and in private, but this podcast makes you remember you’re not alone and there are way more people out there navigating difficult situations like you.” Thank you to this reviewer, and I fully agree that the strength of this podcast lies with the guests! I really appreciate my guests being transparent about this taboo topic. Without further ado, here’s my interview with Jen from Budget Epicurean.

Will You Please Introduce Yourself Further?

05:10 Emily: I have joining me on the podcast today Jen from Budget Epicurean. And we kind of ran into each other on Twitter. And I realized that Jen would have a lot to say to us on the podcast. So that’s why I invited her on. And she is both a former grad student and, as you can tell by the name of her blog, Budget Epicurean, has a lot of content to offer us on managing a budget with respect to groceries, with respect to cooking, food spending. So we’re going to learn about both these things. Why did Jen leave her graduate program, and then what are the food tips that she can give us for, you know, eating well on a budget? So I’m really excited for this interview. Jen, will you please introduce yourself to the audience a little bit further?

05:59 Jen: Sure. Thanks Emily. Yeah. I was a graduate student for a very long time. My mom’s a nurse, my dad’s a chemist, so I’ve always been interested in science and knew from a young age that I wanted to go to grad school, get a PhD, run a lab. So that was kind of my path. And I got my undergraduate degree in biology and then I pursued a master’s degree right after, also in biology, and then got into a PhD program in genetics which was wonderful. I loved being in school and learning, but I realized after about a year of talking with the other graduate students, the other postdocs, and even some of my advisors who said funding kept getting tighter and tighter. Tenure-track jobs were almost non-existent anymore. And it just seemed like a big struggle. So it took me about two and a half years to decide, it was a really hard decision, but I did not complete the PhD program. And we can get more into that later. But throughout all this time, I was also blogging because I love food and cooking. So it started out in undergrad as College Approved Food, that most of it you can make in like a dorm room. And it’s just kind of grown from there and morphed over time into the Budget Epicurean as my personal cooking skills and interests expanded.

What Were Your Career Aspirations at the Start of Grad School?

07:24 Emily: One thing I love about blogging, and I used to blog about personal finance, is that you have this wonderful record to look back on, you know, years later. When you can’t quite remember as well, you know, what was going on day-to-day, you have that blog. So it’s so fun that you were focused on food for all those many years and that you have the record of it. So I want to go back to, you know, when you started graduate school, you said you were basically going straight through, undergrad, master’s, into a PhD program. What were your career aspirations? Was it definitely to have a tenure-track job or, you know, was that the only thing you were there for, or what were you thinking when you started the PhD program?

08:00 Jen: So early on, I guess I just had this dream of having my own labs and writing papers and grants and, you know, like I’d cure cancer someday or some kind of fabulous scientific discovery. It just seemed so interesting and just a thing I wanted to do. And then the more I got into it, it’s kind of, they say, you know BS is bull crap, and then MS is more crap and then PhD is just piled higher and deeper. And the longer you go, the more narrow your focus gets on your field. So you know a lot about a little. And so my ideas of big discoveries kind of just became more like fixing this one little problem that we don’t know enough about. And I think that was the further I got, the more I saw people in the end goal as like a professor, as someone running a lab and saw what their lives were. They don’t actually do the science anymore. They’re lab managers and money managers and politicians almost to a point. So I think that’s where the kind of disillusionment started.

09:19 Emily: Yeah. I think, you know, I had a similar trajectory, I would say at the beginning of grad school, like came in wanting to run my own lab, not necessarily in academia, but just to be doing research. And I realized as you did that, once you’re at the top of that, you know, hierarchy of your own lab that you are not doing the day-to-day in the research. And so I then started thinking, oh my God, I actually sort of idealized a postdoc as like the perfect job. And of course there are, you know, staff scientists, those positions can exist, although they’re not super common in academia. So for me, it was never about like academia and like the tenure-track and so forth, but rather about doing research. That was until I got sick of doing research and decided never to do it again later on. But yeah, I’m just thinking about like, I’m sure you considered this because you took a lot of time for this decision, but what were the jobs that you maybe could have had without the PhD? And did you just still have that sense of like, no, I’m going to be overeducated by that point, according to what your interests were? Was that kind of how the decision was made? That even if you didn’t stay in academia, if you finished the PhD, you would still be pigeonholed so much?

10:30 Jen: Yes. I think that ultimately is why, because I did finish a master’s program before going into a PhD program, so not everybody does that. So I had the masters already, so I knew I was that like one level above a college degree, which was, you know, good financially-speaking and did lead to the career path I’m currently in. But not wanting to go the full PhD without wanting one of those “You need a PhD to do it” jobs. I was lucky we had a group that was called careers, alternate careers in science, something like that where once a month they brought in people. So I saw a couple of different options of people who, you know, were clinical scientists in pharma and they advise drug companies or clinical illustrators for textbooks and things like that. But none of those really spoke to me. So I kind of got into that thought process of, okay, well, if I finish the PhD, then there’s nothing really at the end of this tunnel, so I should stop now.

Role of Finances in the Decision to Leave Grad School

11:31 Emily: Yeah. Again, I see myself so much in this path because when I went through the same career exploration process, I did identify a career track that I was like, well, that sounds really cool, and I do need a PhD to do it. Or not need, but you know, it’s helpful. And so I decided to keep going kind of with that in mind. And of course after I finished my PhD, I started my business and it has nothing to do with that career track or anything. So it’s just so interesting, like that can make all the difference is really seeing a career that you’re interested in. Obviously, why would you finish it if you didn’t think there was a career on the other end that needed the degree and that, you know that you were super passionate about? So what role did finances play in this decision?

12:12 Jen: So, there are definitely pros and cons to going straight through. Sometimes I kind of wish I had just taken a few years off after undergrad or after the masters to try and get a career and see if I liked it and then go back. But I think it was also helpful that I had just come out of undergrad where, you know, you’re very used to living on a low income. So going into the master’s program, I think I made $12,500 per year. Which now seems completely absurd, but this was in Ohio and my rent was only $350 a month. So it was doable.

12:47 Emily: What year was that? Or years?

12:50 Jen: 2010 to 2012.

12:53 Emily: Okay.

12:54 Jen: I believe. And it was an attic. So I was literally just living in an uninsulated attic apartment in Ohio. So, you know, my electric bill was probably almost that. But then going into the PhD now I was making 20 something in Colorado. So this is circa 2012 to 2014, something like that. And it just was getting very difficult. I was starting to think about wanting a house someday. I met my future husband there. So we’re thinking about, you know, buying a house, having a family, getting married. And we were both graduate students at the time. So even combined, we were 40 ish. So it was just really difficult to save anything or feel like, you know, you could start doing those adult things as a grad student. So that’s one of the many things we discussed was, okay, if we want to buy a house, we need more income.

High Attrition Rate Amongst Grad School Cohort

13:53 Emily: And you mentioned to me when we were preparing for this interview, that most of your friends left grad school too. Was there a pretty high attrition rate from your cohort?

14:02 Jen: Yes. we had four start and, to my knowledge, only one is still in the program. And the year after us I believe they had the same, they had four people start and only one is still in the program. And now six, seven years later the one person who stayed is still not graduated and had switched labs twice already. So.

14:28 Emily: And do you think that finances are playing a role with those decisions as well? I mean $20K a year, you know, 6, 7, 8 years ago in Colorado, not a low cost of living area, by any means. It sounds quite difficult, even as you said, in a two low-income, two low-income household combined, I still think that would be quite difficult. I’ve just been thinking a lot recently about the strain that we put–“we,” academia–puts on our young, our trainees, of the financial strain that we put on them and the effect it can have on our mental health, our career outlooks. Obviously the financial directly affecting that, even physical health because, you know, food security can be an issue. Housing security. So, yeah. Did you talk about that sort of thing with your cohort mates?

15:21 Jen: We didn’t really, I mean, we weren’t close enough to talk about the numbers and the details, right. But I know I’m the only one who stayed, I think a large part had to do with, he had a lot of family support. Family lived in the area, so he lived with them. So even though he was married and had a kid with another on the way there was, you know, no costs for housing, he had support to help watch the children, to support, to get food and things. So I think that probably helped him a lot, that, that low-income didn’t matter as much. He had that social safety net. One of the other girls who dropped out it was because she got pregnant along the way and got lucky that her husband got a pretty high-paying job about halfway through her first year. So they were comfortable enough that, you know, they said the amount that she was making wasn’t worth the stress it was putting on her. So she left and didn’t come back. So I think that if you don’t have that type of support or other income, it’s really hard to make it as a grad student.

16:22 Emily: Absolutely. It sounds like you, and you know, these other friends, you mentioned like you’re starting to kind of lift your heads up and say, what do I want the rest of my life to look like outside of my career, and what finances are needed to support that? And is grad school currently, or in the future, going to take me to that financial place that I want to get to? And you know, I’ve had a previous interview actually, we’ll link it in the show notes, with Dr. Scott Kennedy, where he talked about, you know, his aspirations initially to become a faculty member, you know, tenure-track, and just realizing as he started his family that a postdoc and, you know, an assistant professor position was not going to cut it for him and his wife and three kids and so forth.

Improved Finances and Current Career Trajectory

17:06 Emily: And so, I mean, so he changed career tracks and he’s very satisfied with that and is paid very well. But yeah, sometimes, you know, the decisions you make when you’re 22, 23, 24 years old, you’re not thinking super far, like you might be thinking decades ahead in your career, but not necessarily about how things might change in your personal life. And they can change very quickly when you’re in your twenties. And a lot of people are, you know, forming families and so forth. So yeah, I just, I find that really interesting. So, you know, what career have you had after leaving your PhD program and how are your finances looking now?

17:39 Jen: Yeah. So once I had made the decision that, yes, I did need to leave. I didn’t want to just jump ship, right. I didn’t want to have zero income. So I started looking at other options and as I said earlier, having the master’s already really helped because that gave me a leg up and a lot more options beyond just, you know, being a research tech, cleaning beakers at a university somewhere. Not that that’s a bad thing. But I think it was actually through one of the people who came to talk to us. It was someone who worked for pharma as the medical monitor for clinical trials at a pharma company. And so I started looking into clinical trials, which prior to then I hadn’t really thought about. Every drug that’s approved, that’s what they have to go through. And so I looked into, you know, how does that happen?

18:27 Jen: What are the different careers you could do on the pharma side, on the site side? And I just had good timing. I found an opportunity with a research group, very close to where I was and interviewed. And even though I had no research experience, clinical research experience, I had the master’s degree. And so I convinced them that I could learn quickly and they decided to go ahead and take a chance and hire me as a research associate. And I loved it. It was the first time I ever had patient interaction with people in a clinical setting. And it was just so much fun and it was a very eye opening moment of like, this is like the thing. This is the thing I want to do.

19:08 Emily: Wow. And it sounds actually like, you know, based on, you mentioned your parents’ careers earlier, that it’s kind of an interesting melding of the two, like still doing research, but having patient interactions, like probably, yeah. They probably both do each side of those things, right?

19:21 Jen: Yes, yes. It was perfect. So I still get to read scientific papers. I still get to browse Google Scholar. It’s just, you know, looking at the background of my drugs and standard of care and being on the cutting edge of research is so much fun. So yeah, it was a very good fit. And having the masters, I think is the thing that really pushed me into it. And then once you’re in clinical research and you have years of experience, then the whole world opens up to you. So I’ve switched companies several times, moved up in the ranks and now I’m in essentially a clinical coordinator management position. And so I think doing that was an excellent choice. I don’t know that I could have done that right out of undergrad. So ultimately I’m glad it all worked out the way it did. But I almost tripled my income within two years of leaving the program. Because I mean working full-time, I think I started at like 40. So just by getting a job, a 40-hour-a-week research assistant job, I had doubled my income there. And then after I had a year of experience, I went to a different company and then I was at like 58 or something like that. So yeah, it was very exciting to get those paychecks and say, oh, wow, this is what real money feels like.

20:43 Emily: Yeah. Incredible. And that’s the thing that, you know, I often talk the income jumps that can come along the PhD process, but guess what, if you’ve been living on a grad student stipend, almost any job is going to pay you quite a bit better than that. So yeah, I’m sure that did feel incredible.

Commercial

21:02 Emily: Emily here for a brief interlude! This announcement is for prospective and first-year graduate students. My colleague, Dr. Toyin Alli of The Academic Society, offers a fantastic course just for you called Grad School Prep. The course teaches you Toyin’s 4-step Gradboss Method, which is to uncover grad school secrets, transform your mindset, uplevel your productivity, and master time management. I contributed a very comprehensive webinar to the course, titled “Set Yourself Up for Financial Success in Graduate School.” It explores the financial norms of grad school and the financial secrets of grad school. I also give you a plan for what to focus on in your finances in each season of the year that you apply to and into your first year of grad school. If this all sounds great to you, please register at theacademicsociety.com/emily for Toyin’s free masterclass on what to expect in your first semester of grad school and the three big mistakes that keep grad students stuck in a cycle of anxiety, overwhelm, and procrastination. You’ll also learn more about how to join Grad School Prep if you’d like to go a step further. Again, that’s the academic society dot com slash e m i l y for my affiliate link for the course. Now back to our interview.

Best Tips for Eating Well on a Budget

22:30 Emily: So let’s switch focuses now and talk about the food side of things, the subject of your blog. And so I’m going to kind of let you like drive this half of the conversation, but like, what are your best tips for us in terms of shopping, cooking, whatever it is, as I said earlier, eating well on a budget?

22:45 Jen: Yeah. So I’m also lucky there. My mom is a fantastic cook, and I grew up in a household that we were just very thrifty and frugal and creative. So I got to use all of those skills to feed myself, you know, better than ramen all throughout college. So my house was always the place to go for dinner parties and game nights. And I love hosting, so I had to find ways to, you know, feed six of my grad student friends without, you know, we can’t afford $60 worth of pizza every Friday. So I think one of my best tips is to just try new things. And eventually you will find some recipes that you like, and put those on repeat. So for your standard meals, I have tons of like cheap ingredient lists and less-than-five-ingredient meals on my blog. Things like stir-fried rice. That is just infinitely possible to mix it up. You can put beans in it, you can put whatever meats are on sale in it, and whatever vegetables. It’s good with canned or frozen seasonal produce. So find those couple of recipes that are very flexible, that you almost always like, it’s easy to cook, and that saves you tons of time and money. If you just say, okay, it’s Tuesday, I’m hungry. What can I make? And you just have these like three, five things that you just know you have on hand in the house.

24:10 Emily: One of the things that you just mentioned that I thought was really key was short ingredients lists. Because I know when I started cooking, and I did not have extensive cooking experience growing up or through college. I was always on like a meal plan, so I didn’t have to really cook outside of that much. So when I started with that, I was looking at whatever, I don’t know, standard recipe at that time books. And they would have like 10, 15 ingredients for like a recipe. And it would be cool and like taste good at the end, but the work that went into handling all those different ingredients, and also just the fact that I did not have a stocked kitchen and it would be like, oh, you know, three different spices for this one, you know, meal. And they’re like several dollars each and I had to pick them up and so forth.

24:55 Emily: I realized that it was the wrong approach, looking back at it, and now I cook much, much more simple meals, usually that have usually, you know, much shorter ingredients lists. And I think that’s really a key when you’re just starting out. And yeah, like I said, your pantry is not already stocked with, you know, the sort of esoteric like spices that some fancy recipe might call for. So I really love looking at yeah, five ingredients or less, like those kinds of recipes. And I also really like the idea of having some kind of generic base kind of meal that you can then tweak and alter with, depending on what you have on hand, or as you mentioned, what’s on sale. Something that’s flexible, like a stir fry. Do you have some other examples of that? I’m thinking like salad, you know, that works too.

25:39 Jen: Yeah, for sure. Salads are a great one. You can, you know, can a corn, can of black beans, suddenly it’s Tex-Mex. If you got, you know, walnuts, cranberries, some kind of cheese, salads are great to mix it up. Whatever proteins on sale. I love chickpeas or, you know, a little flank steak. You can get those for a couple bucks, slice it up. It makes a great salad. Soups are really great. If you’re a person who likes soups that’s always a good kitchen-sink meal. Like I don’t know that I could think of anything that you couldn’t throw in a soup and make it work. Casseroles are also great. Omelets, you would be surprised at the things you can put in an omelet and make it delicious. I’ve had like leftover French fries that normally taste terrible. Chop them up and throw them in an omelet. Now they’re basically hash browns. So yeah, I love meals like that. We still have them all the time.

Time Management Tips for Food Shopping and Cooking

26:30 Emily: And so what’s another kind of suggestion, maybe on the time management side of shopping and cooking, which I know can be a real challenge for graduate students?

26:40 Jen: For sure. So again, I would start with what you like, and then branch out a little bit from there. So a list is very helpful if you’re the type of person who likes lists to keep you focused and not spend eternity at the store. Plus it’ll keep you from, you know, just being confused in front of the spice rack, like there are 7,000 things. What do I get? Like, you look at your list, you know, I need like salt, pepper, cinnamon, that’s it. So having that also keeps you from spending money because grocery stores, you know, want you to spend more money than you intended and having a list can help not do that, although I still do.

Process for Making a Grocery List

27:23 Emily: And what about when you’re making that list? Like, what’s your process for that? Like, are you looking at the circulars that are produced by, you know, I don’t know how many different grocery stores you kind of cycle through, but is that, is that another strategy that you use, like shopping multiple stores? Like, let me know how you’re doing in terms of making a list, how you do that with your budget in mind.

27:42 Jen: Yeah. So I have a number in mind that I’m trying to hit every week, right? So let’s say you only want to spend 50 to $70 a week for one person. So you should definitely look at the circulars because stores have what they call loss leaders. So it’s usually whatever’s in season or they can get a lot of, and they want to use that to get you in the store. So like it’s wintertime and cabbage is on sale and Brussels sprouts are on sale. So they’re super, super cheap per pound. So you start with those things and say, okay, what can I make with those things? I can make soup. I can roast them as a side dish. I can put them in a casserole, and just come up with some ideas for meals. And so I would then make a list of, okay, I want this thing, this thing, this thing, they’re all on sale.

28:33 Jen: Check your pantry as well. So like, you know, I have some pasta noodles still, so I’m going to make pasta one night. So I don’t need to buy that, but, oh, I don’t have any sauce. I’ll put a jar of that on the list. So between what you need that’s not in the house and what’s on sale, you can then kind of build your meal ideas around that. And then when you’re at the store, you can look around because, you know, sometimes I’ll find deals that weren’t advertised in the circular, but they have, you know, there’s like a markdown on pineapple because it didn’t sell well enough or whatever. So I’ll pick up some of that too. So I think the idea of flexible meal plans is what works best for me. I’m not like, okay, Monday I will have oatmeal and then sandwiches. And then a tuna noodle casserole. It’s more like, I’ll probably make tuna noodle casserole this week.

Using a Price Book

29:23 Emily: Another strategy that I use. So, my husband always makes fun of me. I do not know the prices of things. I don’t like look at price when I’m shopping, especially in something like a grocery store. So it’s really important for me to kind of study the prices because it’s not something that I like naturally will just absorb. Like he just naturally absorbs that. He knows the last time we bought this, we paid this. The price I see in front of me is lower or higher. That helps me know when to buy it or not, or to skip it. But I actually have to use a price book. So especially when I am, so we recently moved to a new state. And so we were kind of like, well, we don’t know what the prices here are. So we started using a price book again.

30:02 Emily: It’s not something I do all the time, but just to check out, okay, well, this is what we’re paying over here, studying the receipts, basically. This is what we paid for this food at this store. This is what we paid for this food at this store. Okay, that price is the same every week. Okay, sometimes that price is lower and sometimes it’s higher. We need to like pay attention to when it goes to this level and then we can buy it. So the price book to me is really helpful as someone who does not naturally incline to, you know, notice the prices of food to know when something is a good deal or something is not a good deal. Because for me, if it’s not going to appear on the circular, unless I have that price book, I’m not going to know if it is a good price or not a good price.

30:37 Jen: Mhm, that is an excellent point. Absolutely. And I think I’m like, I must be like your husband. I just know in my brain like, oh, last time I bought Italian dressing, it was about 1.50 and it’s, you know, 10 for 10 while on sale. That’s a dollar. So I’ll just get three of them. Should last for, you know, until the next sale comes around. But if that’s not a thing you notice then a price book is definitely a good idea. And I would suggest a price per unit as well. Because sometimes they do get you there. You assume, you know, the big package, cheaper per ounce, but maybe it’s not, maybe you should get two of the one-pound bags instead of one of the two-pound bags. And that’s one way to know for sure.

Finding Your Go-To Stores

31:17 Emily: And one strategy that I just mentioned with that was shopping multiple stores. And so I’m wondering, you’ve lived in multiple places now, someplace for your undergrad, master’s, PhD, maybe you’ve moved since then. How have you found like your go-to stores in those new areas?

31:34 Jen: So I think it’s a lot of the mental price book thing. So we did move around a lot. We’ve lived in Colorado, Connecticut, and now we’re in North Carolina. And so when I go to a new place, I usually do go to all of the grocery store options at least once just to see, you know, what’s the layout, what do the prices look like? How far is it from home? And then I kind of choose the best one based on prices and now a little convenience, because we have that wiggle room in our budget to sometimes pay a little bit more just because it’s closer. But yeah, so I would definitely recommend going to the stores, just checking things out, write down in your price book the things you commonly buy. So that’s another way that you’ll know your eating habits like, oh, I always buy chicken and spinach and milk and bread.

32:20 Jen: So those are the things you’re buying every week, even if you’re only saving 10 cents, 20 cents every week, that’s going to add up. So I usually go to our Harris Teeter because they have pretty good prices. They have regular rotating sales on things we use all the time. Then I supplement once a month, once every other month with Aldi, which is one of my favorite discount grocers. And they’re expanding, they’re in most of America by now. So they just have great super cheap prices on your common everyday staples, like canned tomatoes, canned beans. So those are my two I use most frequently.

33:01 Emily: I’m glad you mentioned that you were in North Carolina. I did not know that. I did grad school in North Carolina at Duke. And so actually when my husband and I first got married, the closest grocery store to where we lived was a Harris Teeter. So we were doing a hundred percent of our shopping at Harris Teeter, which I do not think was a good idea, especially because we were not, again, paying attention to the sales cycles and so forth. It was just, it was all about the convenience of that being like super, super close. So after we started paying attention, after I started paying attention a little bit more to the grocery prices, we mixed in Kroger in North Carolina and Costco and Aldi. And so we would not definitely hit up, you know, Kroger and Costco and Aldi every week, but it would maybe be kind of on a two-week rotation.

33:45 Emily: And yeah, another kind of vote for Aldi. I recently moved from Seattle to Southern California. There were not any Aldis in Seattle, I don’t think, that I was aware of, but there is one really close to where we live now. And so I’ve been, like, as soon as we got here and we were like, oh my gosh, there’s an Aldi again, like we are so excited to be able to go back to Aldi. So yeah, definitely that’s where we do, like, our kind of primary shopping, I would say. And then sort of supplement it with like a regular, you know, grocery supermarket kind of situation.

Tips for Meal Prepping

34:11 Emily: I asked earlier about time management and I was thinking about like, I don’t know, meal prep or like bulk cooking, batch cooking. Do you have any tips around that for someone who maybe is just cooking for themselves and has a busy schedule? I know when I was in graduate school, a big problem for me was staying on campus till, you know, post-six, post-7:00 PM and coming home hungry. And what do you do in that situation?

34:36 Jen: Yeah, absolutely. So I think as a grad student, if you don’t eat leftovers, you should start now. I think I only met one person who refused to eat leftovers and they spent way too much money on food. But that is the best way to just make sure you always have something ready. So I would say, seek out things that freeze well. Things like pasta bakes and soups and chilies, and even some casseroles, and you can make those things in bulk. And honestly for one person, that’s not very difficult. You make one pan of, you know, like a rotini bake or lasagna, and you can eat some then, have some for tomorrow, and then freeze the other half. And that’s 2, 3, 4 more meals for you. So you can start out with cheap Tupperware or even Ziploc bags. The way I do it now is not necessarily cooking whole meals, but I batch prep when I make ingredients.

35:33 Jen: So say I’m making rice for stir fry and burritos this week, and I need like a cup or two cups of rice. Well, I can cook like six or eight cups all at the same time and freeze it in Ziploc baggies. And then next time I need rice, I don’t have to cook it. It’s already made, I just pull it out of the freezer, stick it in the microwave. And that saves me 40 minutes of not having to boil rice next week. So if you’re making things like that, I would say definitely batch it and freeze it if you can.

Go-To Kitchen Appliances

36:05 Emily: And also with, you know, someone budget-conscious in mind, what are your go-to like kitchen tools or small appliances that you would say are good for facilitating the kind of things we’ve been talking about?

36:19 Jen: Yeah, for sure. It’s a little hard looking back now, now that I have the luxury of so many things in my kitchen. But I would say if you can only get one thing right now, probably a pressure cooker is my absolute favorite accessory right now. And the newer ones that are super fancy and have a million things that can do are great, but you don’t need a super fancy one. Like I have an ancient pressure cooker from my grandma and it gets the job done. But that will definitely save you time. You can cook something like a roast from frozen in 30, 40 minutes. It’s amazing. So that helps you maximize your freezer usage of foods like that, and it’ll save you money because you can make your own dried beans. My biggest problem with dried beans was that they take so long. You’ve got to soak it overnight, put it in a Crock-Pot for hours. You can take dry beans, stick it in the pressure cooker, and 40 minutes later, you’re good to go. So the price per pound of dried beans is way better than canned, and a pressure cooker makes them almost as convenient. So that would be my top one right there.

37:35 Emily: That’s a good tip. I’m like pulling out my Amazon like wishlist, like, oh, I need to add one. Because I don’t have a pressure cooker right now. Oh yeah. That sounds really. Because I have far too many times left, you know, some meat or something frozen until way too late and have to kind of scramble and remake the plan. So I mentioned, I don’t have a pressure cooker, but the appliance that I used most when I was in graduate school, and I think it was something like $40 when I received it, was a slow cooker. And I really liked that too, because it was so easy to cook in bulk, again for one person or two people. Like you can cook one meal in a slow cooker and it’s going to last you all week pretty much in terms of like taking it for lunches or whatever.

“Leftovers” Avoid the Takeout Trap

38:13 Emily: So that was my, like, when I started using that, it like completely changed my like cooking life. It made things so much easier. And I really, like we mentioned about like, you know, freezing meals and having things ready also, you know, leftovers. I don’t even like the word leftovers. I love eating leftovers, but I don’t like calling them leftovers. I feel like it’s really pejorative. Like they’re like an afterthought. No, you intentionally created food than you needed, you know, initially. And you had a plan to eat it like over time. I love that because yeah, I think a big sort of trap is being hungry and not having anything really easy to go to at that moment. Especially as I mentioned, like coming home from lab late, I remember when I was blogging at some point and I mentioned something about cooking.

38:56 Emily: Like, you know, not eating out, basically. Like not eating out for convenience. I remember I got a comment from a grad student like, well, what do you do? Because you know, when you get home from lab, like you have to be, it’s late. Like you’ve got to be hungry. And I was just like, oh, I realize I never cook at that time. I always had something already ready to go in the fridge and the freezer because yeah, I came upon that situation over and over again. And I would be tempted to grab takeout on my way home if I didn’t know that there was something there waiting for me that was appealing.

39:25 Jen: Yeah, absolutely. And, the Crock-Pot would be my second for sure. They probably are a little bit more affordable, but yeah, you can make a lasagna in a Crock-Pot. You can make a huge batch of chili or soup or casserole or cook a whole chicken and shred it up and save it for later. So yeah, just having a bag or a Tupperware you can pull out of the freezer, the refrigerator, whatever, you know, it’s eight 30 at night. You just need something before bed. That is definitely a huge time saver, huge money saver.

Find What’s Cheap Per Pound Near YOU

39:55 Emily: Do you have any other tips around budget, budget, cooking, shopping, eating?

40:00 Jen: I would say just look, I mean, there are so many resources on things that are generally cheap per pound. Take those lists, but compare them to what’s near you. Just because the internet says eggs are cheap, that might not be the case where you live. Just because, you know, carrots are supposed to be cheap, maybe they’re not in Canada, I don’t know. But find the things near you that actually are cheap per pound and just keep trying different ways to make them until you find one you like. Because if you can make your average cost per pound lower, that’s going to make your cost per meal lower. And that’s going to be much friendlier to your budget.

40:38 Emily: I have to say, I’ve been doing this recently with cabbage. I’ve been on the website, like Budget Bytes, a lot recently and noticing a lot of cabbage recipes coming up on there. So I was like, okay, I need to find a way, because I never ate cabbage earlier in my life, but yeah, that’s the one I’ve been experimenting with recently. Haven’t quite found the thing that we love yet that’s made of cabbage, but maybe I’ll try one or two more before I give up.

Best Financial Advice for Another Early-Career PhD

41:01 Emily: Okay. Well Jen, thank you so much for giving this wonderful interview. As I ask all my guests at the close of our interviews, what is your best financial advice for another early-career PhD?

41:13 Jen: I would say, learn all you can about investing, but then do it. I spent far too many years just reading, reading, reading, but never actually opened an IRA or a Roth. I had a savings account, you know, but it wasn’t much. And even if all you can do is $10 a month, you know, at least I would have had something building, because time is your biggest ally and don’t let it slip away. Just do it. Open it. That’s what I told my sister. She’s six years younger than me, and she probably already has more than me in her retirement account. So just do it.

41:51 Emily: Yeah, that is perfect advice. I see the same thing with many, many people who come to me, come to my material that they know kind of what they’re supposed to do. They’ve been reading about it, but that step of getting off the sidelines and doing it is really where they get kind of held up and tripped up. And I guess my message to like that same audience is like, you don’t have to be perfect from the start. You don’t have to have the perfect investing strategy figured out. It’s much better to get started imperfectly and figure it out as you go along than do everything perfect right from the start. However, the start is two, three years later than it could have been if you had just been willing to, you know, take the leap. So I’m really glad you mentioned that, it’s yeah, a very, very common problem.

42:35 Emily: I don’t know. Maybe it’s a PhD thing, like a grad student thing, like wanting to do the research and wanting to be right and wanting to not mess up. And I certainly understand that. I actually did mess up when I first opened my IRA and didn’t catch my mistake for like a year, but you know what, I’m glad I started when I did, even though I didn’t do it right at the start. And I’ll mention actually for anyone who’s, you know, hearing themselves in that situation. I have a challenge inside the Personal Finance for PhDs community that is specifically about opening an IRA. So if you join the Community, PFforPhDs.Community, you can go to that challenge and find a six, I think it might be seven, actually, seven-step process. This is exactly how you open an IRA. This is what you need to do, the decisions you need to make at these different points.

43:17 Emily: This is how you research it. It points to resources I’ve created that are inside the Community. So it just, for exactly that problem, people getting off the sidelines. And so it just provides a little bit of accountability, too. Like you kind of go in there and you call me and say, okay, I’m taking the challenge. I’m going to do it. And then by the end of the month, I’m going to be asking you, did you finish? Did you go through all the steps? So thank you so much. Thank you so much, Jen, for this interview. And it’s been great talking with you and hearing about your journey and hearing these great grocery budgeting tips. Thanks.

43:46 Jen: Yeah. Thanks so much, Emily!

Outro

43:48 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 and instructions for entering the book giveaway contest. 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. If you leave a review, be sure to send it to me! 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 and show notes creation by Meryem Ok.

Pursuing Your Passion in a Financially Healthy Manner

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This episode is a podcast swap! Emily’s guest is Dr. Stephanie Schuttler of Fancy Scientist. Emily and Stephanie interview one another on the financial challenges of a career in wildlife biology and how to pursue your passion while preserving financial balance and health. They discuss the necessity and prevalence of volunteer and pay-to-play experiences in wildlife biology and how to have realistic expectations about the job availability and compensation at various levels of education. Stephanie is an expert in careers in wildlife biology, but this conversation is applicable to PhDs who are following their passions into many other competitive fields.

Links Mentioned in This Episode

Teaser

00:00 Stephanie: In this field, so much is about those experiences. So if you really want those pay-to-play experiences, because, I mean, some of them are super cool, you could focus more on getting into a school that’s more affordable and do some of those things rather than go to a really expensive school.

Introduction

00:21 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 9, Episode 3, and today Dr. Stephanie Schuttler of Fancy Scientist and I are publishing a dual interview! Stephanie is a wildlife biologist-turned-science communicator and expert in careers in wildlife biology. We have a great topic: How to pursue your passion in a financially healthy manner. Stephanie gives the financial and career lay of the land for wildlife biology, a popular and competitive field that requires volunteer and pay-to-play experiences prior to being admitted to graduate school. Even completing a graduate degree in wildlife biology doesn’t necessarily lead to the type of job young people dream about when they enter the field. Sound familiar? Stephanie and I discuss how to limit the financial risk of pursuing a career in a field that you are passionate about.

I have some exciting personal news, which is that I finally received my full vaccination course against COVID-19! I have to say, it was tough to watch my friends and acquaintances who have university and hospital affiliations receive their vaccinations over the last several months while I was waiting for them to become available to my age bracket in California. But my turn finally came. I am ecstatic that my parents are visiting us this week, whom we have not seen in person since November 2019.

01:51 Emily: Prior to COVID, as you likely know, I gave in-person seminars and workshops at universities. I honestly wasn’t sure how my business would fare without being able to travel and with universities facing the uncertainty that they did early on. As it turned out, in the 2020-2021 academic year, my speaking services in the virtual format were more in demand than ever, particularly this last spring. I feel really, really fortunate about that! My calendar is now open for engagements in the 2021-2022 academic year. I am of course offering virtual events, which I assume will continue to be popular. I’m not sure if professional development events and conferences are switching back to being in person this year to any degree, but if they are and I am asked to present, I will certainly consider it. I am over the moon about how I have adjusted my offerings for early-career PhDs this year, which you can check out at PFforPhDs.com/speaking/.

02:53 Emily: First, I got honest with myself about my most popular seminar, The Graduate Student and Postdoc’s Guide to Personal Finance. The Guide is my comprehensive overview of multiple personal finance topics. I was trying to cram it into 90 minutes, but it really is a two-hour seminar with Q&A. It’s great for the end of a workday, not so much for a lunch hour.

03:15 Emily: Second, I clarified the topics for my in-depth seminars, which are financial goals, investing, debt repayment, saving, and cash flow management. Each of these seminars comes in a one-hour lecture and Q&A version or a two-hour workshop version. The workshop version includes the teaching from the lecture version plus spreadsheet templates, worksheets, and/or small group discussion prompts. These seminars work well as stand-alone events or part of a series.

03:45 Emily: Third, I took my tax seminars off my slate of offerings. This is honestly a big risk for my business because my annual tax return seminar was second to The Guide in popularity and always drew my biggest audiences. The preparation of an annual tax return and calculating estimated tax on fellowships are my audience’s most universal financial pain points.

04:10 Emily: However, I am not leaving you in the lurch with respect to tax education and assistance. Stepping back from giving live seminars on this topic actually enables me to scale the delivery of the help. In place of these live seminars, I am licensing access to my pre-recorded workshops on the same topics. I have been offering these workshops for the past several years, and I know that they are even more effective than live events in guiding graduate students and postdocs to their goal of an accurate tax return and up-to-date income tax payments on their fellowships. Please keep these workshops in mind as we draw closer to tax season for 2021. If you would like to book a virtual or in-person event with me or recommend me to your graduate school, postdoc office, or graduate student association, the best place to go is PFforPhDs.com/speaking/. From there you can learn about all my seminar offerings, read reviews from previous event hosts and attendees, view my speaking fees, and schedule a call with me to discuss your event. I look forward to partnering with you this year to deliver high-quality, high-impact financial education to the early-career PhDs at your university, in your association, or at your conference.

Book Giveaway Contest

05:29 Emily: Now onto the book giveaway contest! In June 2021 I’m giving away one copy of The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach, which is the Personal Finance for PhDs Community Book Club selection for August 2021. Everyone who enters the contest during June will have a chance to win a copy of this book. The Automatic Millionaire was one of the first personal finance books I ever read, and it had an enormous impact on my financial mindset and behavior. The path to becoming a millionaire is not necessarily quick or easy, but it can be simple and automatic. I can absolutely credit the key strategy that this book teaches as the reason my net worth is as high as it is today. I hope this book effects a similar result for you. If you would like to enter the giveaway contest, please rate and review this podcast on Apple Podcasts, take a screenshot of your review, and email it to me at emily at PFforPhDs dot com. I’ll choose a winner at the end of June from all the entries. You can find full instructions at PFforPhDs.com/podcast. Without further ado, here’s my interview with Dr. Stephanie Schuttler.

Will You Please Introduce Yourself Further?

06:49 Stephanie: Hi, I am Dr. Stephanie Schuttler, and I am a wildlife biologist, and now I’ve turned a science communication entrepreneur. A brief background of myself is that I kind of stumbled into this career. I didn’t know I wanted to be a wildlife biologist until my last year in college when I decided to study abroad and I randomly chose a wildlife management program in Kenya. So that changed my life. And I knew from there that I had to go to graduate school. So I got some experience doing three different types of internships over the course of three years. And then I went to graduate school to get my PhD at the University of Missouri, where I spent close to seven years there, followed by one short postdoc and one long postdoc, lasting, probably about, honestly, seven years. Yeah, so my short postdoc was at Missouri and my long postdoc was at the North Carolina Museum of Natural Sciences where I got to work on a lot of camera trap stuff that I talk about today. Yeah, and now the last part is I started my own business last year. I’ve been blogging for the past few years and I officially made it a business last year where I spread knowledge about science communication, I educate people, I started kids’ programs, and then of course I help people in their wildlife biology careers.

08:20 Emily: Fantastic. What is the name of your business?

08:23 Stephanie: A Fancy Scientist.

08:25 Emily: Great. I’m really excited to speak with you, Stephanie, today because are subject is kind of, you know, the finances of pursuing a career in wildlife biology, but it’s a little bit more general than that really, because we’re really talking about how to stay sort of financially balanced and healthy while you’re pursuing a passion that is not necessarily, or immediately, lucrative. And in fact might, you know, you might be paying for, in the form of your education, you might be paying for career experiences. So that’s kind of our general topic. So even if those of you who are coming to the podcast are not in wildlife biology, like still stick around because this is going to be generalizable information.

09:03 Stephanie: Yeah, absolutely. I would even add that our field can be more lucrative in terms of going to graduate school than other fields. Like I’ve heard about people who are getting their PhDs in English and their TAships get paid just so poorly. So a lot of the experience and advice here will definitely transfer over.

How People Develop a Passion for Wildlife Biology

09:25 Emily: Yeah. Let’s talk more about specifically how wildlife biology is positioned because it’s a science field, of course, which you might immediately think, oh, like you make money in science, of course. But on the other side of it, it’s a very competitive field and people follow it because of long-held passions. So let’s talk more about that. Like how do people develop their passion for wildlife biology and pursue that?

09:47 Stephanie: I think people develop it usually from a young age. That’s what happened for me. I always loved animals and I love nature. And like I said, I didn’t discover it until a career as later on. Like when you’re young, people always say, like, why don’t you become a vet if you really like animals? So I didn’t know it was a career option. Some people do, but when you track back to like, why people want to do it, it usually has to do with those experiences of being outside in nature when you’re young. And actually a lot of wildlife biologists, a lot of them start off like hunting and they just spend a lot of time outdoors. So I think that a big reason why people are so attracted to the field is that they think they will be spending a lot of time outside.

10:35 Stephanie: And this is definitely true for some careers. It depends on what level of education you have, and of course, what job you have. But in general, the more education you have, the less time you spend outside. It’s like an inverse relationship. And you know, we get really cool experiences. A lot of us get to travel. Of course, some of us get these really close interactions with animals that regular people can’t have, or even just accessing different types of places. Like some of the field sites I’ve been to would have been difficult to visit as a tourist and some of the experiences you have. So yeah, I think that’s what’s really attractive about it. And you’re right. It’s really interesting because there’s so much push for STEM education and especially getting People of Color and girls interested in STEM because our field is not very diversified.

11:33 Stephanie: And a reason to advocate for STEM careers is often actually like finances, that it’s a really financially beneficial career. But again, it totally depends on what you do, and wildlife biology is not very lucrative. And it’s just simply because there’s not a lot of money in wildlife and conservation work. A lot of our employment is nonprofits. The universities and, I mean, universities, you can definitely get paid well. And any of these jobs you can get paid well. But in general, if you think of like disease research, there’s going to be so much more money from the U.S. government and other sources to invest in like medical research than there is in saving wildlife. So, that’s really the big difference. But I think most people go into it because they love it so much. And that’s what I always said. I knew I wasn’t going to make a lot of money, but I loved it so much. So that’s why I went into it.

12:38 Emily: It’s so important to go into these kinds of career choices with your eyes wide open as to what the possibilities are, including the financial possibilities. So it sounds like people, maybe from the time they’re children, have a very like romantic idea of what this career is going to be, but the reality does not necessarily line up with that, especially as you advance further and further.

12:57 Stephanie: It’s interesting though, that you said that about like the romantic version, because I have a book, Getting a Job in Wildlife Biology: What It’s Like and What You Need to Know. And I had a review on there recently, it wasn’t a bad review, it was a four-star review, so it was good, but it was a parent that bought it for her daughter and she read it first, and with the intention of getting it to her daughter. And after she read it, she was kind of like, I’ll leave it up to my daughter to read. And her review was all about how realistic I was. And, and that’s exactly why I wrote it because people have this really romantic view of what wildlife biology is, like myself growing up, I saw Jane Goodall. And I mean, Jane Goodall, isn’t really considered a wildlife biologist. She’s more of a primatologist, but still that’s what you imagine it to look like, or Steve Irwin. And the reality is you’re not doing those types of things. So I pride myself on telling the truth, and I don’t want to dissuade anyone from entering this field. I just want them to know like what it’s like going into it.

Volunteer and Pay-to-Play: Are They Really Required?

14:01 Emily: So, one thing that I learned from our prior conversations is that in your field, it’s very common for people to have to do volunteer experiences or even pay-to-play experiences, to get into graduate school, to get a job, to advance. And this is not necessarily as common in other areas. So could you please tell us more about what, you know, what does pay-to-play mean? What are the kinds of volunteer experiences that people may be required to have? And are they really required?

14:30 Stephanie: Yeah, absolutely. This is a really hot topic right now. I personally think that you cannot get into graduate school without having some sort of experience. And in order to get that first paid experience, honestly, you really need experience for that. And you can, I would say you can get it in college if you volunteer with a lab and you get college credit for it. So that’s essentially not totally volunteering. And there are some work-study programs in colleges as well, but really to get your first experience, you need to volunteer. And that’s just the unfortunate reality of it. And this is a big problem because it discourages diversity from our field. So, I’m in no way, like advocating for these experiences. I just feel like that’s the reality of the situation. So there’s lots of experiences. And even our museum, when we had interns in our lab, we did have money for some of them.

15:27 Stephanie: And I constantly applied for grants to get money to pay interns, but they don’t come through. So either like I would have people email me and be like, I’m so interested in your research. Can I help you out? Or I would have a lot of research to do, and I would come across people and offer them experiences to help me with this. And there are exchanges in other ways. Like I write them letters of recommendations and I invite them to be on journal publications and stuff like that. But yeah, we can’t afford to pay for everyone. So it’s hard to deny people experiences who want them. But also, the pay-to-play thing is that some experiences are so desirable that they can afford to charge for them. And I do think there are some sort of scammy experiences out there where they profit off of it, but there are also legit scientists who are working in another country and they have to pay for the field site and the food costs and things like that.

16:35 Stephanie: So I’ve seen job advertisements where you get to maybe go to like South Africa for a summer and you have to pay to stay there. And they mention that it just covers the field costs and they’re not making money off of it, but still, I know a big reason why I got certain opportunities was because of my experience in Kenya. I had a study abroad program and an internship in Kenya. And Kenya was, it really was volunteering because I did get paid, but I got paid a Kenyan salary. And then I did have to pay for half of my airfare. So it ended up being a year where I didn’t make anything. And yeah, if I didn’t have those experiences, then I would have not had like my graduate school experience of studying forest elephants. So if somebody who comes from a financially disadvantaged background really wants to do something like work internationally, honestly, it’s really tough because those experiences are more desirable and people are willing to pay for them.

17:42 Emily: Yeah. You outlined a couple of reasons why these experiences exist. It really sounds like the field is in a bind. There’s not enough funding coming in for all the work that needs to be done, sort of from above, but from below, from the people coming up the ranks, there is an eagerness for people to do the work, even if it’s on a volunteer basis, even if they have to pay out of pocket for it. But it sounds like this just comes back to a funding squeeze, right? And the field being so popular and competitive. Those things combined have set up the conditions for this system to develop. And I agree with you. It sounds nightmarish, actually, for someone who doesn’t come from a financially advantaged background. And it’s a little bit like, you know, in the recent, I don’t know, last decade or two, there’s been so many more conversations about unpaid internships and the elimination of unpaid internships in most fields because they’re not great for anybody. Especially people who, you know, can’t afford to do them. But it sounds like that hasn’t quite touched the field of wildlife biology yet. Because these are essentially unpaid internships like on steroids, because you actually have to, in some cases, pay to access the site or what have you.

18:53 Stephanie: Yeah, absolutely. And that’s, like I said, that’s a huge conversation right now. And I think it’s especially difficult for nonprofit organizations because, you know, they obviously always need more funding. And they have been under attack, like posting unpaid internships. And I understand both sides. Like I understand that people need to get paid for their time, but I also don’t think it solves the diversity problem because if you’re just taking experiences away in general, then anything that is available is going to be so, so, so competitive. So it’s like a lose-lose situation.

Financial Risks in Pursuing a Wildlife Biology Career

19:32 Emily: Yeah. It definitely sounds like that. Okay. So we’ve kind of talked about the downsides to the field of kind of relying on these volunteer and pay-to-play experiences in the pipeline, at the beginning of the pipeline. To get into graduate school, you need to have some kind of experience. To get that first experience that maybe you get paid, well, you have to have an unpaid experience before that point. There are downsides to the field of like losing out on having great scientists, budding scientists who could be part of the field, maybe being turned away for financial reasons. What are the financial risks that are posed to an individual who tries to pursue a career in wildlife biology?

20:06 Stephanie: I think, I mean, just going into debt or living paycheck to paycheck constantly, that’s like super common in our field, but I know many people who have gone into debt for these like pay-to-play experiences or to do a volunteer experience, but they don’t have the means to cover themselves financially while they’re doing that experience. And it affects your entire life. The opportunities, I guess, like they kind of go away, but they manifest in different ways. So like once you get your PhD, well actually after your master’s too, like I talked about my friend, Rebecca, a lot of times you have these temporary opportunities, and it’s really difficult to get things lined up financially. And it’s a very demanding career. There are always things that you could be doing for your career, especially once you get to like the science route of doing more research-based things, then you are going to want to be working on your publications and things like that to get you that next job. So you don’t necessarily have the time to be able to like take on another job. So I mean, it’s really just that you have the potential to go into debt. People do go into debt, and then they don’t have the finances saved to be able to keep going, in the future, if opportunities don’t line up.

21:40 Emily: Yeah. This does remind me of the general like pursuit of the tenure-track in some fields where you need a PhD to get, and your goal is to get, a faculty position, but the employment opportunities, if you don’t end up, you know, landing that faculty position, are non-existent, very rare, not very lucrative. And so it’s like, yeah, if the stars completely align and you get that job that you’re going for, it all works out. But for most people who pursue that, it’s not going to work out. And so you have to realize that going in, it doesn’t mean you can’t like, you know, shoot for the stars and everything, but you need to have some kind of nets and backup plans and safety. Because the stats are that a tenure-track position is not going to work out for the vast majority of people who pursue one. And so it seems like there’s, you know, an analogy here with the field, the career in wildlife biology,

22:33 Stephanie: Do you see any additional downsides or risks?

Debt and Opportunity Cost: Loss of Compound Interest

22:38 Emily: I mean, mentioning, going into debt like you did is absolutely perfect. But to me there’s another layer on top of that, which is the loss of opportunity to get compound interest working for you. So if you go for many years in your twenties and into your thirties, maybe doing temporary work and underpaid work, and maybe you’re accumulating some debt, or even if you’re not, but you’re not doing anything like on the saving, investing front to get ahead with your finances, then that’s lost time. That decade or so is lost time. And it’s possible to make up for lost time, but you just have to save so much more later. But what if you end up, maybe in your thirties, in a job that pays, as you mentioned before, $50,000 a year, when you were hoping for something that paid more or was more stable or something like that? Like that’s where you are, and that’s what you have to live off of and save off of after that point and still try to make up for that lost time. So I think that people can be financially successful at all different kinds of salary levels, but like we were talking about earlier, you just have to be realistic about what the opportunities are, the salary opportunities are in the field that you’re pursuing, and also in your backup plans, if that primary plan doesn’t work out that well. So yeah, the loss of time to get compound interest working for you is the main one that I see there.

23:48 Stephanie: And I think that people in our field don’t think about that stuff at all and even, or I know they don’t think about that stuff at all. And even like talking about the loss of time with your first starting salary. You really don’t have at least a good first starting salary. I had a starting salary in graduate school, but like how most jobs work is you get your first job, and that’s your starting salary. And then that’s like the bar for you to negotiate a higher salary every job that you get. So for myself, when I graduated from my PhD, I was, what, thirties, close to 30. And you know, my husband who is an electrical engineer, he had been in his career for, for several years already. So not only are we getting paid little when we’re starting out, but we’re starting out later in age.

24:45 Stephanie: And another thing is people don’t do retirement investments either. So my dad grew up poor. His dad died when he was younger, and he had his brothers to take care of. So he was always like financially worried, and he always had us read financial books and stuff like that. So I’ve had a retirement account since legally you can have one, I think maybe 16 or 18. But yeah, like we’re not taught that. Like, you’re right. Like nobody’s talking about this stuff. And they, like, my friends would be like, well, I’ll get it through my job, when I get my first job, but some of my friends didn’t get their first jobs until they were close to their forties, and your retirement compounds. And that’s really where the money comes from. So if you are waiting a while to start that, then you’re missing out on a lot of that income compounding.

25:42 Emily: Yeah. And I think, again, to generalize, like this is something that I see with graduate students all the time, postdocs all the time is that there’s an optimism about what the future salaries are going to be post-PhD, post postdoc. And I certainly have the same optimism for them. But the other thing that happens as you age, generally speaking, is that your life gets more expensive in a variety of ways. You know, maybe you buy a house, maybe you have a child, maybe you have to take care of aging parents or other family members, like, so even if you do see a post-PhD, jump in salary in whatever field that you’re in, it might not go as far as you were hoping that it would. And so to me, my attitude is more like, you know, work with what you have now, that is, try as best you can to live a sort of financially balanced lifestyle and do some of that retirement investing or paying off debt or whatever it is that your goal is while you still have a lower salary, while you’re still in graduate school. And yes, like I do hope that that higher salary comes, the permanent job comes and it will all be much easier later, but just in case it’s not, let’s get started now so that you have that time, as we were talking about for, you know, your money to compound, or at least your debt to not compound as much.

26:54 Stephanie: Absolutely.

Commercial

26:57 Emily: Emily here for a brief interlude! Heads up, fellows: The next quarterly estimated tax payment deadline is Tuesday, June 15, 2021! This one always catches me by surprise because quarter two, strangely, is only two months long, while quarter four is four months long. Yet, a full quarter’s payment is due on June 15th. If you aren’t having income tax withheld from your stipend or salary and haven’t yet filled out the Estimated Tax Worksheet in Form 1040-ES, now is the time to do so. The worksheet will tell you how much you can expect your tax liability to be this year and whether you are required to pay estimated tax. If you need some help with the Estimated Tax Worksheet or want to ask me a question, please join my workshop, Quarterly Estimated Tax for Fellowship Recipients. It explains every line of the worksheet and answers the common questions that postbacs, grad students, and postdocs have about estimated tax, such as what to do when you switch on or off of fellowship in the middle of a calendar year. Go to PF for PhDs dot com slash Q E tax to learn more about and join the workshop. Now back to our interview.

Advice for Pursuing a Financially Risky Career

28:13 Stephanie: Okay. So knowing that this is a financially risky career, what do you think, like, what’s your advice to people who want to pursue it in like, they’re absolutely sure they want to do this and maybe they don’t have a financial safety net or they don’t come from a really, really wealthy background? What can they do?

28:33 Emily: I think the first thing to acknowledge is that you, as an individual, are a whole person and that you have needs and desires that are perhaps independent of this career in wildlife biology that you want to pursue, or any kind of competitive and perhaps not lucrative kind of career. And what I mean by that is that I would love for you to pursue like your career kind of passion, but just as you’re doing that, keep in mind that you still have needs as a person. You have financial needs, you have relational needs, you have spiritual needs, health needs, all these things matter as well. And I think there’s a tendency for people, especially when they’re younger and in their twenties and so forth, to drive hard at their career goals at the expense of some of these other areas of life. And it will catch up to you, eventually. You will reach age 30 or age 40 and realize that you have some deficits or dearths in these other areas, because you were trying to sort of suppress your needs and desires in those areas for so long to pursue this career.

29:35 Emily: So I don’t think that’s healthy and don’t do it. So try your best. Right? And so we’re going to talk about the finances, but there’s all these other areas of life as well. So don’t forget that you’re a whole human and you’re more than just your future career or job in wildlife biology. So that’s kind of the first thing to keep in mind. So, as we’re talking about sort of financial health and financial wholeness, as you pursue these careers, I do think you need to create your own safety net and your own financial security and backup plans as you go. And so that may mean that it will take you a little bit longer to get to graduate schoo, for example, if that’s like your next goal. Maybe you might take an extra year instead of, you know, taking a one or two year gap, take a three or four year gap between finishing undergrad and that graduate degree, for example. And that’s to build up more of your own financial security in the meantime.

30:25 Emily: And so one of the things we talked about earlier, these pay-to-play or volunteer experiences, is it possible for example, for you to plan around that and say, I’m going to have a summer job? Maybe it’s not even a job, I’m going to have a summer experience, and it’s going to cost this much money, or I’m going to be paid this much, but my lifestyle needs are this much. And how can you save in advance for that? And what kind of job can you have when you’re not actively engaged with these experiences? How can you pursue a job and a career that will allow you to have the experiences, but still give you some financial stability in the meantime? And one of the things I end up talking a lot about, and that I’ve learned a lot about from people I’ve interviewed on my podcast is regarding money mindset and limiting beliefs.

Navigate Limiting Beliefs

31:06 Emily: And so a limiting belief that someone in the field of wildlife biology might hear, and they might even get this from your work, again, the realism, is I can only ever have a temporary job and I can’t have a job the other seven or eight months of the year, because that’s not in my field, whatever. But maybe there is a way for you to build a job or an income or a career in that part of the year and still have that balance where you want to do, you know, these special experiences in the summer or the spring, or what have you, but still be making money in the other part of the year. And honestly, I think one of the most accessible ways is what you and I are now pursuing, which is entrepreneurship. So maybe there’s a way to have, you know, set up your own stream of income.

31:45 Emily: Maybe you work on it more intensely in one part of the year and less intensely in the other part of the year. And you can create that balance for yourself to still allow you to pursue the experiences in the career that you want to have, but still be making money in the other part of a year or a little bit, you know, while you’re having those experiences still. So that’s one idea. The other one is about this debt, you know, either going to have experiences or on the flip side, maybe not paying down student loan debt that you’ve accumulated in the past. I mean, we’ve had a student loan debt crisis that’s been building and building ahead of steam for a long time, but especially in the last decade. And, you know, in the last decade, I think many people have come to realize, you know, your student loans, your education, especially at the bachelor’s level is not necessarily an investment.

32:30 Emily: It’s not automatically an investment. You can’t pursue any bachelor’s at any price and, you know, be sure that that’s going to pay off. Same thing for graduate degrees. You know, your home is not always an investment. There are things that used to feel safe that used to give you a path to the middle class that are not there, they’re not guaranteed any longer. And so I think you have to be really, like, in thinking about pay-to-play experiences as an extension of student loan debt. So like I’m taking out student loan debt to pursue my education. I’m taking out some kind of personal loan or consumer debt to pursue this experience that I want to have to get into graduate school. You can think about them sort of analogously. And so one rule of thumb that works for student loan debt that maybe you could extend to, if you’re going into debt for these experiences in wildlife biology, is don’t take out more debt than one year, your first-year starting salary.

33:20 Emily: That’s like the rule of thumb for an undergraduate degree. And so if you’re, you know, going into a little bit better or forgoing salary to pursue these volunteer pay-to-play experiences, can you keep the debt level down to one year of your current salary or lower? Is that possible? So like, so yes, pursue these experiences, but make sure you’re not giving yourself carte blanche, right? To spend and go into as much debt as you might want to. You’re sort of putting some checks and balances on yourself along the way to make sure that you’re not getting in too far over your head.

Consider the Cost of Your Education

33:56 Stephanie: Yeah, absolutely. And actually one of my big, I have a lot of advice for people, something I think that people should do is not worry about the school so much. Like a lot of students are super obsessed with like, what’s the best graduate program or what’s the best college to go to. And I honestly think that students should really, especially at the college level, focus on getting in the school that’s going to cost them the least, because like you mentioned your degree doesn’t necessarily pay off. If you’re going to invest, you know, $120,000 for a college degree and you can get the same result with one that’s going to cost you $10,000. I mean, I actually regretted for a long time, my experience because I didn’t know what I was doing. I didn’t know what I wanted to be.

34:49 Stephanie: An, I even applied poorly to schools. I applied to like only Ivy league schools because that’s what I knew. And the only schools I got into were my local state school and other schools that cost like $30,000 a year or a semester. And I was like, okay, I’m just going to start from my state school because I don’t know what I’m doing. And then it also felt weird to dorm at my state school, which is like 20 minutes down the road from me. So I stayed with my parents and I regret not having the college experience, but I also love that I don’t have debt and that it was, I mean, I paid, I think a thousand dollars a semester for school. So in the long run it definitely was worth it.

35:34 Stephanie: And in this field so much is about those experiences. So if you really want those pay-to-play experiences, because I mean, some of them are super cool. You could focus more on getting into a school that’s more affordable and do some of those things rather than go to a really expensive school. And this is true for graduate school, too. And graduate school in science, you do get paid, you get a stipend, but you get paid different amounts according to the different schools and even according to the different programs. So I was actually not in the wildlife biology program for my PhD, or in the department. I was in the biological sciences department, and they had a fellowship. So I was paid a lot more and I didn’t have to TA. And that played a huge role in me deciding to do that as opposed to another program where I would have to TA and get paid less.

36:31 Emily: I think that’s a great point. Both at the graduate and the undergraduate level. It’s more about what is the actual work that you could be doing? Who can you be working with? Rather than maybe the name of the school. And of course the finances come into play as well. Because again, I think my basic point here is like shore up security for yourself as you go as best you can to keep you on this route, as long as you want to be on it in pursuit of a career in wildlife biology. So that if you get to the end, let’s say of your PhD and you realize, okay, I can get the permanent job. I’ve achieved all my goals. Everything is wonderful. Well, you have some good, you know, financial, a nest egg behind you perhaps, or at least not as much debt as you could have been in.

37:15 Emily: That would be great. But if you get to that point and you say, Nope, I’m going to exit this career now. I’m not going to have the type of job that I thought I would have. I’m going to have some other type of job. At least you won’t have the financial regret behind you of, oh my gosh, I pursued this school, that school, they didn’t pay me well enough. I spent too much on this experience. Yeah. I think what you said is perfect is like focus more on the experiences. If you want to go for, you know, a less expensive college education, but save your dollars for some pay-to-play experiences that are really high impact, then that makes a lot of strategic sense to me.

FIRE: Financial Independence, Retire Early

37:45 Stephanie: Yeah. And another route, I think we talked about this in our chat, you talked about an acronym FIRE.

37:51 Emily: Yeah. So FIRE stands for Financial Independence Retire Early, or Early Retirement.

37:57 Stephanie: Yeah. So you could either do that or do a sort of hybrid model. And I interviewed somebody who did something kind of similar to that, inadvertently. He didn’t, I mean, he didn’t retire early, but he had 20 years in a corporation that was a really good job. And he participated, he volunteered in the Citizen Science programs on the weekends and in his spare time. And his corporation actually paid for him to go back to school. So he did get a degree in environmental sciences. But when he was finished and on the job market, he got the second job he applied for. And I could not believe that I was like, oh my gosh. Wow. And it was because of those volunteer experiences, he had so much experience that he was like leading groups and organizing events and stuff like that. So that all translated really well.

38:48 Stephanie: So you could start off in a more lucrative career and volunteer with conservation organizations, with Citizen Science, and make enough money then where you can take a less lucrative career. Or if you’re a real go-getter in today’s world, like, I mean, there’s really not a financial limit to like what you can do online and with entrepreneurship and stuff like that. Like, it is tough to do, but it’s, I mean, there’s so many like millionaires who are six-figure earners from selling courses online, and in practical stuff, too. Like I remember I was listening to this one podcast, this woman, she had a podcast all about goats and she made six figures just from selling a course on how to raise backyard goats. And she had like, she had like different courses, too. So it’s like, you know, you just don’t think like, oh wow, like you can make a lot of money off of information and goats, but you can. So there’s a lot of opportunities out there.

Combining FIRE with Passion Careers

39:52 Emily: Yeah. What I think is really interesting about the FIRE movement and combined with like these sort of passion careers, whether it’s wildlife biology or whether it’s maybe some other things you want to get a PhD in. So if, you know, the most intense people in the FIRE movement, the goal is to retire in about 10 years, not retire necessarily, but become financially independent in about 10 years. That would be like a fast goal. So you get out of college when you’re 22, you know, by 32, if you’re really intense about it and chose the right career, maybe you were an engineer or something like that. You could be retired by that point or, you know, financially independent, optional to retire at that point. Now that is a route to free up the entire rest of your life from age 32, to whatever, to do anything that you want.

40:37 Emily: As long as your lifestyle expenses don’t creep up to the point they exceed your investments’ ability to support you. And so that is where you could spend the next 50, 70, a hundred years of your career working in wildlife biology in any kind of capacity that you can achieve knowing that your finances are already taken care of. And that’s a very unconventional route, right? But I think it’s something that maybe more people should consider if their passion is in a field where it’s so difficult and so competitive to get a full-time position. And, you know, I think it also goes back to the realism discussion we’re having earlier. You know, maybe there’s something about wildlife biology or whatever field that you’re in that you would like that romantic version, but you are not so enamored with the reality of having a career in that field version, and maybe becoming financially independent allows you to experience the romantic versions of the career, you know, of rather the field to a great extent without having to commit to having to earn in the career and doing maybe the work that’s not quite as exciting to you.

41:43 Emily: And so that’s, I don’t know, it’s a very like interesting idea. I actually did meet someone one time at a financial bloggers’ conference who had reached financial independence in his early thirties through, whatever, he’s like a finance guy or something. And he was telling me, oh yeah, I’m considering going back and getting my PhD in some completely unrelated area because I can do whatever I want now, essentially. It doesn’t matter if I get a stipend or not. I can support myself. He can pursue anything he likes. And so I’ve never really like discussed this idea with anyone in terms of PhDs before, but I think it’s, I don’t know. It’s not the most outlandish thing.

Wildlife Bio: Career or Lifestyle?

42:19 Stephanie: Yeah, absolutely. And I actually, I mention this in the last chapter of my book is, like you said, maybe you don’t want it as a career, too. And maybe that’ll actually be more satisfying to you. So I had this talk with this very prominent biologist and he was talking about his friends, how like they’re traveling all over the world and showing him all these cool pictures and all these cool places that they’ve been to. And one of the countries that he said was a country that he does a lot of work in. And I was like, you work there, you’re like always traveling there. And he’s like, yeah, but I am in like conference rooms, I’m in meetings. I’m not going to see like this beautiful waterfall or go to the beaches. So again, it might be that romantic version of like, once you get higher up with your education, you’re going to be doing like more administrative work.

43:10 Stephanie: And you’re going to be writing scientific papers and writing grants and stuff like that. And, to be honest, that’s sitting behind a desk writing. So I just want people to like really understand what it’s like and what they’re getting into. And, yeah, like, if you’re really driven because you want to travel or have cool experiences with animals, there are Citizen Science vacations, Earth Watch does this, that you can pay for that give you those opportunities. Like you can pay to work with a sea turtle biologist and help him tag turtles or help them tagged hurdles. And so you can still have these experiences. But you’re not the one leading them, which actually might be nice because then you don’t have to worry about like all the logistics of setting everything up, and yeah. And managing people and things like that.

44:03 Emily: Yeah. I love that idea. And it’s just kind of thinking outside the box, right? Like how can I get to have this lifestyle that I want? Does it have to be my career, or can it be something I do on the side as you’re building a career in another area? Or I’ve retired from my career. And so now I can do it afterwards. I think that’s a really exciting idea that you can be in wildlife biology in more ways than just a full-time professional scientist.

44:32 Stephanie: You’re so right, too, about your, your life choices changing when you get older. I talk to a lot of young people who are like, I don’t need to live in a big house. Or maybe not necessarily live in a big house, but you do want more things as you grow up. Like you want more stability and things like that. You don’t want to be moving around all the time. And like, even myself, I didn’t want to have children, but yeah, like I want to be stable and I want to stay put and not going from here to there all the time.

45:02 Emily: Yeah. What I often repeat on my podcast is money gives you options. And so really what you’re doing when you, for instance, take out a bunch of student loan debt and then go into even more debt for these, like, pay-to-play experiences and eventually go into graduate school. And you’re there for a long time. And then, you know, all the things that you might have to do to get this final career that you are going for, if all that while you’re just accumulating debt and you’re not putting money into retirement, you’re basically hamstringing yourself into this career has to work out, or I am sunk, you know? And instead if you try to pursue it, but in a more balanced manner in terms of finances and other areas of life, you can get to that point, maybe when you’re done with your PhD and say, okay, I have options. I can still pursue this career that I’ve been going for. I can get another type of job because you have built up some financial stability along the way. So it gives you options. You don’t feel like you’re stuck in just the one type of job that you’ve been going for that whole time, which might not even be available to you.

46:06 Stephanie: Absolutely.

Best Financial Advice for Another Early-Career PhD

46:08 Emily: Okay. Well, as we’re wrapping up the interview, Stephanie, one thing that I ask all of my guests is what is your best financial advice for another early-career PhD?

46:18 Stephanie: I think probably the best is, and this is where I always tell people to start out in this career, is to look at the jobs out there now that they ultimately want. And I have a tool on my website for this it’s called the Job Tracker. And you basically just like write down, or you copy and paste, like what jobs you like, how much they pay, what your education is. And then, in my course, I actually, I also have a budget planner too. And like, see if you can afford that career and see if it works out to be the type of lifestyle that you want. So really like copy the salary and the location, and look up houses in that area and how much they cost, and see if this fits into your lifestyle. But again, like really get an idea of like, where you want to end up. So there’s no surprises and you can pivot more easily along the way if you decide, okay, I love this, but I really want to make more money. Which is okay, because, like I said, some of these jobs, they pay very little and it can be difficult to live with those jobs. I knew somebody who had what other students thought was like an absolute dream job, but she was just so sick of not making money.

47:38 Emily: Absolutely. I love that advice. It goes along with the general theme of like being realistic. Okay. So where can listeners find you, Stephanie?

47:49 Stephanie: They can go to fancyscientist.com or just Google, fancy scientist I’ll come up and they can contact me any way. I check all my messages. I’m happy to answer their questions. And I love hearing from people.

48:02 Emily: And what is the title of your book?

48:05 Stephanie: Getting a Job in Wildlife Biology: What It’s Like and What You Need to Know.

48:10 Emily: Great.

48:11 Stephanie: Very blunt. Well, thanks so much for doing this. I had a good time talking to you and I learned a lot.

48:17 Emily: Thank you. It’s exciting to me to learn about a new field and kind of wrap my mind around like particular financial challenges within that field.

Outro

48:26 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 and instructions for entering the book giveaway contest. 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. If you leave a review, be sure to send it to me! 2. Share an episode you found particularly valuable on social media, with an email listserv, 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 and show notes creation by Meryem Ok.

Where PhD Candidates Are Full-Time Employees with Benefits

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In this episode, Emily interviews Dr. Veronika Cheplygina about the differences between how universities in the Netherlands and the US financially support their PhD students. In the Netherlands, PhD candidates (beyond the master’s level) are full-time employees under a 4-year contract that specifies their pay and benefits. It’s a secure position with only slightly lower pay than other types of positions. Veronika explains the financial and psychological benefits of this system and describes her lifestyle while she completed her PhD, which included purchasing a home. Prospective PhD students who are interested in doing their PhDs in the Netherlands should listen through to the end of the episode for application advice.

Links Mentioned in this Episode

phd candidate employees

Teaser

00:00 Veronika: You know, when I was doing my PhD and I saw this PhD Comics for the first time, I didn’t recognize the whole situation of like people hunting for free sandwiches. It’s not a lot compared to industry, but it’s also decent. And you can sort of take care of your basic needs.

Introduction

00:24 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 nine, episode two and today my guest is Dr. Veronika Cheplygina who holds a PhD in computer science from Delft University of Technology in the Netherlands. Veronika and I explore the differences between how universities in the Netherlands and in the US financially support their PhD students. In the Netherlands PhD candidates beyond the master’s level are full-time employees under a four year contract that specifies their pay and benefits. Veronika explains the financial and psychological benefits of the system and describes her lifestyle while she completed her PhD, which included purchasing a home. This is the perfect time of year for prospective PhD students in the US to consider broadening their search to include universities in the Netherlands and other countries with similar funding models.

01:24 Emily: On June 6, 2021 at 4:00 PM Pacific, I’m conducting an interactive workshop on choosing the optimal financial goal for you to work on right now, whether to save up cash, invest or pay down debt. I’m a firm believer that you should work on only one or a minimal number of financial goals at any given time, especially when you have a limited income like while in graduate school or a post-doc. Prior to the workshop, you’ll prepare your balance sheet, which is a record of all of your assets and all of your liabilities.

01:56 Emily: During the workshop, I’ll present my eight step financial framework, which I developed specifically for early career PhDs. I’ll show you how to break down your balance sheet to determine which step in the framework you’re currently on and what financial goal I suggest that you work on next. This workshop is for PhDs at all career stages, from rising graduate students through to PhDs with real jobs who are members of the Personal Finance for PhDs Community. If you’re not yet a member, you can easily join the community at PFforPhDs.community, and find details about the event under the course title, the Wealthy PhD workshops. If I get a good response from this first workshop on my financial framework, I’ll plan more of these live workshops for community members, which will be deep dives into money mindset, investing, debt, repayment, cash savings, and cashflow management. Sign up for the community today pfforphds.community, for access to the workshop on June 6th and much, much more great content.

Book Giveaway

03:05 Emily: Now onto the book giveaway contest. In May, 2021, I’m giving away one copy of “Bad With Money: The Imperfect Art of Getting Your Financial Sh*t Together” by Gaby Dunn, which is the Personal Finance for PhDs Community book club selection for July, 2021. Everyone who enters the contest during may will have a chance to win a copy of this book. Today is the last day to enter. The Bad with Money podcast was first recommended to me by one of the participants in my program, The Wealthy PhD. I think it’s going to generate a lot of great discussion in the book club. So please consider joining us pfforphds.community. If you would like to enter the giveaway contest, please rate and review this podcast on apple podcasts, take a screenshot of your review and email it to me [email protected]. I’ll choose a winner at the end of may, from all the entries you can find full instructions pfforphds.com/podcast. Without further ado, here’s my interview with Dr. Veronika Cheplygina.

Will You Please Introduce Yourself Further?

04:09 Emily: I have joining me on the podcast today, Dr. Veronika Cheplygina. She’s currently an assistant professor in the Netherlands, and she’s actually going to teach us today how the path to the PhD in the Netherlands compares to the path to the PhD in the United States, which of course I can represent that position. I think this will be really interesting to our American listeners, listeners in other countries, to compare these two paths, especially for anyone who has not yet embarked on the PhD. But I also think it’s going to have value for people who are already in graduate school in the United States, because there’s a very different view of graduate students there that we could really benefit from adopting, to a degree. We’ll see where the conversation goes. Veronika, thank you so much for joining me and will you please tell the listeners a little bit more about yourself?

05:01 Veronika: Thank you so much for having me it’s a pleasure to be here. As you said, I’m currently an assistant professor at Eindhoven University of Technology. My background is in computer science. I did all of my degrees in Delft, which is a different university of technology, also in the Netherlands. This was followed by, I got my PhD in 2015, followed by a two year postdoc and then, the tenure track, which I’m currently doing now. I am however, also leaving my tenure track in favor of a tenured associate professorship in Denmark, in Copenhagen, where I’m starting in February, 2021. I think that sums it up.

Overview of the Path to the PhD in the Netherlands

05:49 Emily: Congratulations on the new position and the upcoming move. We’re recording this in December, 2020, so I think you’ll have completed that by the time this is out so wonderful. Let’s get an, a quick overview of the educational path to the PhD in the Netherlands. Let’s start at the bachelor’s level: how much time does it take, how is it funded? Would you please answer that?

06:15 Veronika: Sure. Usually for the university level, there’s a three year bachelor program. It is formally separated from the master’s programs, which can be one or two years, but I think in practice, usually universities offer matching masters for different bachelor programs. I think most students end up doing the matching masters. It’s rather usually that the bachelor’s and the master’s are done together in five years or so, then that the master’s is as part of graduate school as in the US.

06:52 Veronika: And then after master’s, some students may go on to do a PhD, which would be typically a four year full-time trajectory. I think it’s different from the US in that you don’t really have a lot of courses anymore, as you would have had the research component in your master’s. Perhaps you might do some career development courses and such, or like an in depth summer school. From the time you’re, well at PhD researcher, I should say you were actually a university employee, and I think that makes a big difference for the experience.

07:36 Emily: Yes, absolutely and we’ll get into that quite a bit more. Then what about the funding? So you just said at the PhD level for the PhD training, you’re a full-time employee. What’s going on with the bachelor’s and master’s equivalent earlier than that? Is that funded by the student? Is it funded by the state? How’s that?

07:56 Veronika: The bachelors and the masters is a combination of the student and the state. I think the current tuition fees are around, for a domestic, and by domestic, I mean European union plus people with an eligible residents permit, that would be about 2000 euros a year in tuition. And the government contributes to this for the universities. So universities get funded centrally depending on the number of students there. I think the fee for non-EU students is quite a bit higher, but still, probably not at the level of many US schools. Then for the PhD, it’s an employment position which needs to be funded beforehand. As professor, you would need to acquire some kind of grant from a funding agency. And if you have that guarantee that you have this financing, then you can advertise a position. As a starting assistant professor, if you don’t have any kind of startup package from the university or already a grant on your own, you cannot say I’m recruiting grad students. Yu might have a master’s students will, of course need, will need to do a research project, but the PhD students, PhD researchers rather, you would need to finance yourself.

09:37 Emily: So to draw a contrast with the system in the US, it seems like for you all at the bachelor’s and master’s level, that’s where people are really viewed as students, right? You’re a learner you’re there to consume the product of the university and develop yourself, as a scholar. And it’s relatively inexpensive compared to here. There’s a big, big, big distinction between the master’s level and the PhD training level before you’ve actually completed your PhD in that it’s treated as a full-time job for your position and you’re going to finish in that time, it sounds like. Does anybody ever go over that amount of time or is it very firm? You’ve got four years you’re going to finish.

10:21 Veronika: Well, you get your salary for four years, unless there have been some special circumstances. For example, if you would take a 80% full-time working hours, you probably would have a longer time. Your salary will stop after that. It doesn’t mean you will necessarily defend your thesis in that time, but most people do aim to submit within then. Of course, this doesn’t always happen depending on your personal circumstances, et cetera, but I think it is doable in four years, given that you don’t have lots of courses and teaching, you would be required to help out a little bit in the department, but that’s not your main occupation. I do have to of course say that this is based on my model of how I experienced things, and I’m sure there are also departments that try to deviate from this, but this is how it should be and how I’ve seen it work in several places.

11:23 Emily: I see. Yeah, it seems like the contrast here, I guess, is that you have the opportunity to be paid at the master’s level. If you’re already, typically, if you’re already enrolled in a PhD program, you’re going through, what would be your master’s. You have the opportunity to receive a stipend usually during that time, but it’s not much. I’m curious about how much in the Netherlands, the PhD students or trainees, you know, PhD employees, PhD researchers are being paid compared to what’s enough to get by on, because definitely here, it’s a question mark, whether you’re going to be above or below that line as still a graduate student. How is the pay compared to if you had a full-time job that wasn’t PhD training?

12:11 Veronika: I think it’s a little bit less than, so for example, for, for me in computer science, industry jobs would be paid a little bit more. I think, compared to some other jobs, maybe straight after master’s, it’s not that much of a difference. I looked up, there are salary scales for these PhD positions, I looked it up just before, and it’s about 2,400 euros, before tax for the first year of the PhD. And it’ll go up to like 3000 to the last year. Of course the amount of after tax will depend on several other issues, like if you own property, et cetera. I think it should be, definitely if you’re sharing a living space with somebody else, it should definitely be okay. When I was doing my PhD and I saw this, PhD Comics for the first time, I really didn’t recognize myself…I didn’t recognize the whole situation of people hunting for free sandwiches everywhere. It’s not a lot compared to industry, but it’s also decent and you can sort of take care of your basic needs.

13:39 Emily: Yeah, I think that’s maybe the most impactful statement you could make in terms of to the credit of the system that you have there, is that it does not feel like what’s going on in PhD Comics. That’s wonderful.

Psychological Benefits to Being Treated as an Employee during the PhD

13:51 Emily: Okay, so you’ve said that once you get to the PhD candidacy stage, you’re a full-time employee of the university. What do you think is the psychological benefit of being viewed and legally treated as an employee versus as a student, like in the earlier stages? Let’s leave aside the financial for now, but just the psychological,

14:15 Veronika: I think it’s a good thing that you are in the same kind of position as your supervisors. I mean, you have, even though they will, of course be in the higher salary scale, you kind of have the same rights and I think that makes for a more equal playing field. Also several things you would not really necessarily need your supervisor’s permission for. Of course, it’s good if you inform them if you are ill or so, but actually that kind of thing would be arranged centrally by a party outside of the university. It just feels like you’re less dependent on your supervisor in personal matters. There’s just a bit less things to worry about. You can concentrate more on doing your job, your research and your life outside it.

15:16 Emily: Yeah. I’ve actually been reflecting on this recently. I had another podcast interview within the last few weeks and I believe it will be published recently before this one. It was with Laura Frater and she said something in that interview that’s really stuck with me since then, which is to not view yourself as a student while you’re pursuing your PhD. Because, and this is my interpretation of what she was saying, if you view yourself as a student, you sort of have an out for doing normal, like adulting things, like taking care of your finances and maintaining your relationships and keeping your body and mind healthy and so forth. Because we think of this, in the US we think of being a student, like being an undergraduate student as this just like magical period, when all you have to focus on is your education and no time passes and you stay healthy and everything’s wonderful, which is realistically not at all the case, especially when you do this for five, 10, whatever years into your twenties and thirties. I think that merely that switch alone of like, no, I literally am a full-time employee of this university – I’m receiving benefits, I have decent pay, would be a massive sort of, it’s like a graduation out of adolescence, when you’re not being considered a student anymore. That’s how I’m thinking about it. Does that strike a chord with you at all?

16:41 Veronika: That’s very true. I think generally, I tried to limit my hours also during my master’s, but it would definitely be the case I would study in the evenings and weekends, whenever. I think once I started this job, I would just come to the office between 8:30 and 5, which is when my supervisors were there. I just assumed that that was normal. I didn’t have like homework in the weekend and because I was in a small lab and I didn’t really have other PhD students to compare to, I didn’t really realize that people were maybe working on their projects the whole time. For me, there was no expectation to do this. This is definitely something that gets deviated from in some labs. But indeed I think just the realization you’re getting paid to do research for 40 hours a week, it’s also in your contract, that that helps with drawing a boundary there.

17:50 Emily: That actually reminds me of, I did a post-bac fellowship, so a year between when I finished undergrad and when I started graduate school, I did a post-bac fellowship at the National Institutes of Health. And it was a very different feel of an environment than a university feel, at least in my corner of that. People did work, I don’t know if it was 40 hours, but it was daytime office kinds of hours, maybe a little bit longer, that I could see. And I didn’t feel pressure to be staying super late. I would come in for eight or so hours a day, do my work, go home. Really, I was able to have some pretty good work-life balance during that time, which was not at all what I experienced during graduate school, where there was much more pressure to be working longer and just be doing a lot more. It sounds like more of a kind of professional environment rather than an environment that’s focused on the training or the trainee situation. Does that make sense?

18:48 Veronika: Yeah, that sounds that’s consistent with my experience

Commercial

18:54 Emily: Emily here for a brief interlude. This announcement is for prospective and first year graduate students. My colleague, Dr. Toyin Alli of The Academic Society offers a fantastic course just for you called Grad School Prep. The course teaches you Toyin’s four step Grad Boss method, which is to uncover grad school secrets, transform your mindset, up-level your productivity, and master time management. I contributed a very comprehensive webinar to the course titled “Set yourself up for financial success in graduate school”. It explores the financial norms of grad school and the financial secrets of grad school. I also give you a plan for what to focus on in your finances each season of the year that you apply to and into your first year of grad school. If this all sounds great to you, please register theacademicsociety.com/Emily for Toyin’s free masterclass on what to expect in your first semester of grad school and the three big mistakes that keep grad students stuck in a cycle of anxiety, overwhelm, and procrastination. You’ll also learn more about how to join grad school prep, if you’d like to go a step further again, that’s theacademicsociety.com/Emily for my affiliate link for the course. Now back to our interview.

Labor Contracts for PhDs

20:21 Emily: You mentioned earlier that there there’s a contract, like there’s a labor agreement for people pursuing PhDs. What are some of the elements of that contract?

General Benefits

20:31 Veronika: It’s the same labor agreements basically for all people in academic research. There’s a salary scale that corresponds to the kind of level you’re working at. That’s a different scale for PhDs. In comparison, so I told you that last year a PhD would get 3000 before tax per month, as an assistant professor, who’s just starting and you would get, I think 3,700. So it’s quite a flat ladder. There’s also a pension buildup. I have to confess that I haven’t really looked into how it’s done because I kind of trust that it’s done well, so it’s not something I haven’t had to worry about.

21:23 Veronika: The number of hours that you work and the number of vacation hours, you can take are fixed in there. You can also trade some vacation hours for some other benefits, like for example, extra pension. And then you get sort of like a tax advantage. There’s maternity and paternity leave, 16 weeks for maternity leave. And for paternity, I think it’s five days at full pay and then you can take a number of weeks off at lowered pay. There’s also a sick leave. So I think you can be something like 40 weeks at full pay if you need to, and then also longer at a lower pay. Lots of things like this. Basically life things that can come up, there’s usually a provision for.

22:29 Emily: Yeah. I think that must sound like a dream to a lot of PhD students and maybe even postdoc fellows right now who are in the US who are not treated as employees, or at least not as full-time employees of the university and just to have those benefits spelled out explicitly. It’s very patchwork here. In some places, maybe especially if you’re covered by a contract that’s been negotiated by a union, it can be very clear. I don’t think the benefits would be as high as that because just in the US we don’t get as much leave and so forth, but they would at least be clear.

23:03 Emily: But in many, many, many places, it’s not at all clear what your benefits would be, and it’s not until as an individual you come on to, okay, well, I’m pregnant, so I need to figure out what the maternity leave is going to be, or, okay, I need to take a leave of absence because I’m ill — I have no idea am I going to be paid? Unless you’re covered by probably a union contract, you probably wouldn’t know that until you actually encounter the situation, what the benefits might be. I think that clarity is just so, so helpful. And even on the vacation, like that’s even as a smaller issue, but something everyone encounters every year. That often has to be just negotiated one-on-one with your advisor and sort of oftentimes completely up to that person, whether or not they’re going to grant it or what you have to trade off for it. It sounds wonderful just to have the transparency.

23:56 Veronika: Yeah. I imagine that creates inequalities if you have to do it on a case by case basis, and also depending on how rich the field and the PI is. Here, there’s no difference between social sciences and technology and another thing. The agreement is the same for all academic institutions.

24:20 Emily: Yeah, I just left out something that would be super, super important. It wasn’t part of my personal experience during graduate school, but many, many PhD students here experience funding insecurity. They, they might have funding for a year, but they didn’t know what’s going to happen after that. Maybe they have funding every academic year, but in the summers, they have to scramble to find a certain grant or something. You can feel very precarious when you’re sort of careening from term to term, not really sure where the next paycheck is coming from in the upcoming term.

Funding Guarantee as a PhD Employee

24:48 Emily: You mentioned earlier that a PI couldn’t even advertise a position until the funding has been secured for all four years and so that is a massive difference. Actually in that way, it sounds even better than regular employment, like at-will employment, because I would imagine it’s unusual for a PhD student to be let go from that position, a PhD candidate to be let go, unless something has really gone off the rails with their performance.

25:15 Veronika: Usually you would have an evaluation after a year, and if you show progress in the project, then usually it’s fine and you can continue for the other three. It’s actually more secure, it’s a more secure contract that you won’t get right out of university, because you would maybe have a series of temporary contracts for industry.

25:39 Emily: Anything else you wanted to add on that question?

25:42 Veronika: Oh, yeah. About the financial insecurity. So it is possible here that if you are a student and so often students from China, and there are also some from Brazil, I believe, but they get like a scholarship from the government to come here and their salary is paid through that scholarship. This is possible, but then they, they come to the professor with their scholarship. And then they would be paid, the conditions there would probably be different than for most PhD positions. It’s less common and it wouldn’t be advertised as a PhD position because the person comes with it themselves.

Cost of Living Adjustments

26: 31 Emily: I see. In our prep for this episode, you mentioned to me something about cost of living. So earlier you said that, you know, there’s this agreement that’s been negotiated. I don’t know if it’s between universities and the government or who the parties are, but it’s a set schedule. It’s a set contract that all employees, PhD employees are under. Does the pay vary by city or is it the same everywhere?

26:57 Veronika: It’s the same everywhere.

26:59 Emily: Okay, so there is a consideration for cost of living in terms of how your lifestyle is going to be while you’re pursuing the PhD.

27:07 Veronika: So in the pay that you get there, so consideration for it, but of course, if you live in Amsterdam, it will be much more expensive than if you live in Colonian.

27:19 Emily: Yeah. Gotcha. That’s a little bit interesting, I guess, that there wouldn’t be any adjustments for cost of living.

27:27 Veronika: Yeah. Perhaps I’m not sure if that’s the case. So I know like in the UK, there’s a London allowance because London is just so much more expensive than the rest of the country. I’m not sure we have that here. I also imagine that the differences in the bigger cities are not as big. Like if you would go out more into like a more rural area, then the prices go down very quickly, but then you’d have to commute much more as well.

Veronika’s Personal Finances During Her PhD

28:04 Emily: We’ve talked very generally about the system country-wide and what you observed in your experience during your PhD. Can you tell me how your finances kind of went during your PhD? Were you able to live comfortably? Were you able to save?

28:20 Veronika: Yeah, I think it was quite okay. It was definitely an upgrade from my master’s. Then, I had a part-time job, but I had also the stipend from the government. It was enough to cover my expenses, but with the PhD things went better straight away, especially after the first year, because that’s, when you make the largest jump in your salary. I did also move out from a more student-like apartment to a more adult-like place. So my costs went up then, but I think I was still able to save a little bit.

29:03 Veronika: And actually, in the last year of my PhD, I was able to apply for a mortgage, which was very surprising to me at the time. This is because, after three years in the Netherlands, if you have…Normally for a mortgage, you would need a permanent contract, which you, of course don’t have as a PhD student. But after three years of temporary contracts, you can be seen as a kind of freelancer and the bank averages your salary. At that point in time, my PhD student salary average over three years was sufficient to get a small mortgage for an apartment. In current days this would not be possible because of how the prices have increased recently and I think you also need to have a much larger down payment now then rules used to be. I got very lucky. I definitely don’t want to say everybody in any place anytime can do this, but this was of course a combination of several favorable circumstances after which my living costs actually went down back to like the student apartment level, but for an adult-like place. So that’s been very good.

30:35 Emily: Yeah. That’s a wonderful accomplishment. As you said, circumstances had to come together to make it happen, but it did! Wonderful!

Can a US Citizen Do Their PhD in the Netherlands?

30:43 Emily: If there is a listener, let’s say in the US not in the EU, who’s thinking “This sounds amazing! Why would I deal with the system we have here in the US when I could go there?” Is it possible for an American to complete their PhD in the Netherlands?

30:59 Veronika: I don’t see why not because the vacancies are open to everybody in the world. Sometimes there are some EU specific grants, so if the EU gave you a grant, they want you to employ European citizens, but other vacancies do not have this restriction. I’ve been in groups where there were also people from the US doing PhDs, so I don’t see why that’s a problem. I guess you need to find out first about more specifically about the master’s requirements. It seems to be fairly standard, but I don’t think it’s a hard rule. So I do know of somebody from the US who didn’t have a master’s, but he had some additional research assistant experience, which sort of was sufficient. But this was of course also a couple of years ago.

31:52 Veronika: All the open positions they are listed on academictransfer.com, that’s an aggregator from all of the universities. I guess about the master’s thing, there’s always an administrative contact and the professor, so you could always contact the administrative one to check. Outside of these positions, of course you could always contact a PI if they have any upcoming vacancies, because they might be interested in writing a proposal together with you about something, or they already know something is coming up, but they have not gotten the official documents yet, so they cannot advertise it yet. It’s always worth approaching people want to work with, I think.

32:40 Emily: Yeah, that sounds amazing. And actually just the simple fact of there being a central database of all open positions is incredible. Again, in favor of like transparency and wow, making things so much easier for the applicant, so that sounds great. And I should mention, we’ll link in the show notes, because I’ve done a couple other interviews with Americans who have done their PhDs in the EU. I think they’re both in Sweden actually. But anyway, some similarities, so I’ll link to those from the show notes as well.

33:10 Veronika: For sure Sweden should be similar.

Best Advice for an Early Career PhD

33:13 Emily: Veronika, I like to end all my interviews by asking my guests, what is your best financial advice for another early career PhD?

33:22 Veronika: I would say it’s good to look at examples. Of course you need to get over some kind of hurdle of talking about finances, but it would be great to see what are other people spending on different things and how it works, or what kind of insurances and pension schemes and investment things people have. Yeah, I think you can learn a lot from that and it shouldn’t be such a difficult topic to discuss

33:55 Emily: Yeah. Another vote in favor of openness and transparency around these issues. Veronika, thank you so much for joining me on the podcast. It was so interesting to me to learn more about the system that you went through and congratulations again on your new position.

34:10 Veronika: Thank you very much.

Outtro

34:17 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 and instructions for entering the book giveaway contest. 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. If you leave a review, be sure to send it to me. Two, share an episode you found particularly valuable on social media, with an email list serve, 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 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. 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.

How to Financially Transition to Grad School as an Underprivileged Student

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In this episode, Emily interviews Rutendo Chabikwa, a first-year PhD student from Zimbabwe at the University of Oxford and the host of the podcast So, You Got A Scholarship? The topic is the financial aspects of transitioning to graduate school. Emily and Rutendo list start-up costs, explore the financial “hidden curriculum” of grad school, and discuss financial habits to establish and how to do so. This episode has a particular focus on underprivileged and/or international students.

Links Mentioned in This Episode

Teaser

00:00 Rutendo: If there’s something that you think somebody might cover, even if you don’t think somebody might go cover it, just ask. That’s definitely something I think underprivileged students can fall behind on simply because some of us have to cover a lot of gaps, not coming from families with people that have done PhDs or some of us who will be first-generation graduates to even begin with.

Book Giveaway Contest

02:19 Emily: Now, onto the book giveaway contest. In May 2021, I’m giving away one copy of Bad with Money: The Imperfect Art of Getting Your Financial Sh*t Together by Gaby Dunn, which is the Personal Finance for PhDs Community book club selection for July 2021. Everyone who enters the contest during May will have a chance to win a copy of this book. I’ve listened to a few episodes of the Bad with Money podcast, and I’m looking forward to reading and discussing this book because Gaby has such a different perspective and approach to personal finance than I do. If you’d like to enter the giveaway contest, please rate and review this podcast on Apple Podcasts, take a screenshot of your review, and email it to me at [email protected]. I’ll choose a winner at the end of May from all the entries. You can find full instructions pfforphds.com/podcast. Without further ado, here’s my interview with Rutendo Chabikwa.

Will You Please Introduce Yourself Further?

03:24 Emily: I’m delighted to have joining me on the podcast today Rutendo Chabikwa. She is a first-year PhD student at the University of Oxford. She’s from Zimbabwe. So we are going to discuss in this episode the transition into graduate school, some of the financial stuff that goes on in that time, especially for underprivileged students. This is going to be really great episode. Rutendo and I have actually spoken before because I was on her podcast. She has a podcast called, So, You Got a Scholarship? and my episode of season three, episode one. So we’re doing a swap here. I’m so glad, Rutendo, to have you on my podcast. Welcome. Will you please tell the listeners a little bit more about yourself?

03:58 Rutendo: Thank you so much, Emily. Glad to be here. Glad we could do this. My name is Rutendo. Yes, I am a first-year PhD student, or DPhil as it is called, at the University of Oxford. I’m from Zimbabwe. But basically I have been an international student for the past about 10 years, starting with my two years of high school. Did that in Canada. My undergrad was at upstate New York at St. Lawrence University. So I have a bit of U.S. experience in there with also a couple of study abroads. And then my master’s was in London at the LSE and then now I’m here for my PhD. So it’s a bit, quite of a long trajectory over there, and I am studying information communication and the social sciences. So basically things to do with the internet, digital media, and political participation.

Costs for Anyone Starting Grad School

04:42 Emily: Wow. Okay. Yeah. Fascinating. Thank you so much. So we’re going to jump right in with talking about the financial startup costs for entering graduate students. And obviously you’ve done this before at minimum for your master’s and now again for your PhD. So you’re quite familiar. Let’s talk about this in three layers. One would be for just anyone who’s starting graduate school that didn’t require a move. Two, someone who did need to move to get to graduate school. And then three, someone who had to move internationally to start graduate school. So we’ll layer those on. So what are some costs in that first layer of just anyone who’s starting graduate school?

05:16 Rutendo: Yeah, absolutely. So anybody that is starting, I mean, there’s the obvious in terms of just generally your life in grad school, household items. I know that sounds very minimal, but it can be actually something that builds up and that we underestimate as well as, you know, your working equipment, your laptop. Right now, we’re in a pandemic, so everybody’s sort of working from home, but even outside of pandemic, generally grad students need to have really well stationed, you know, workspaces for your work. Books, and not just books that are not just textbooks as well, because you might have costs to do with like your research topics. Sometimes you might prepare having your own book to highlight or write in, things like that. And obviously we can talk about ways of minimizing those costs later, but definitely anybody going there, your stationary, books. Definitely.

06:07 Emily: Yeah. Well, I’ll add, you know, in the U.S., and you can tell me if you’ve experienced this at LSE and Oxford, but a lot of graduate programs in the U.S. seem to require some fees to be paid upfront. Like even before you ever get your first paycheck as a graduate student, you owe hundreds, maybe a thousand dollars of some kind of fee, which is just, I wish they set the system up differently. But it is that way in many places.

06:33 Rutendo: Absolutely. This is actually, I mean, even before actually getting accepted, right? So these fees, even for applications alone, so there’s that, and then getting accepted, the deposit fees. Sometimes you might be lucky enough to get a waiver. Sometimes not so lucky. They could, you’re right, go from a few hundred dollars to a large sum of your tuition as well. And then I think there are also, depending on your institution, fees, such as for student association fees as well. Those are definitely something to consider and look up how your institution works on that.

07:09 Emily: Yeah, those are the kinds of fees that I was referring to, like a recreation fee or an activity fee, or even sometimes the health insurance premium here, you know, it needs to be paid upfront. That can happen. So that could add up to a sum. The thing about that is that you can know in advance, right? So as soon as you figure out which school you’re going to go to in April, or whenever you do that, you can start asking what is the amount of money that I need to give you before I get my first paycheck? Now, I don’t want to say that everywhere is that way, because it’s not. But it’s definitely something worth figuring out as early as you can.

07:44 Rutendo: Absolutely. And also to find out from the different sort of stages, right. There’s fees, your department might have some type of fee or, I mean, if you come into something, I guess like the Oxford system, you might also try to talk to your college, see if they have any kind of fees or which is a different sort of department or different area. So to make sure that you’re checking boxes with different offices and different levels of the institution to make sure that you have that. Always definitely ask for that.

Startup Costs Associated with a Move for Grad School

08:09 Emily: Hmm. Yes. Okay. So let’s add a move on top of that. If you are moving, what kinds of, you know, startup costs are associated with that?

08:17 Rutendo: Oh, absolutely. Transport for sure. However way you’re getting there. Moving costs, shipping costs. In order to save money, you might have to use money. So in order to save money on buying all new items, for example, let’s say for your house, your desk, it might be cheaper to move with them, but that’s also a cost. So there’s, you know, you need to juggle that and, you know, do your tallies and do your trackings and write that out and see what’s cheaper and what’s easier for you and most convenient. So those moving costs are definitely a thing. Some people, I mean, I guess if you’re moving, then you’d have to consider things such as deposits on rent, rental fees. There might be costs as well for even finding a place to stay if your institution doesn’t provide that. Some people might work through agents. If that’s easier and safer for you, obviously different cities, different countries have different rules and regulations.

09:10 Rutendo: But I’d say that’s definitely a big thing to consider. So, and then the different taxes. Council tax in some places. I know in the UK, council tax is sort of like a big thing, which is one of the bills to do with, you know, your household that you need to consider and that you need to kind of look up at if you know, what’s easier and cheaper for you. If you’re a student, generally, depending on what household you’re living in, you can get a waiver for that. The process on that also requires research. I think the biggest expense is definitely if anybody moving, let’s say cities right now, would be things to do with, with living, added on to what we talked about before.

Different Scales of Moves

09:47 Emily: Yeah. I’m actually thinking back because there are different like scales of moves, right? So I’m thinking back to when I started graduate school, which I was living within a long drive, it was like a four-hour drive from where I was living before to my new graduate student city. So I was just able to drive with my stuff in the back of my car, did not bring any furniture. You know, it was pretty like low-key in terms of the actual transit costs. And then also I got into an apartment complex where they were doing, they didn’t require like a massive upfront deposit. It was some kind of like student special, you know, kind of thing. Like, so I feel like my move, which I did with no savings. I had like my last paycheck that was going to get me through two months, you know, to my first graduate student paycheck.

10:29 Emily: I did that without, you know, any real strain. I didn’t really buy furniture. I kind of lived without furniture for awhile, but that was a really, really low-key, low-scale kind of move. And like there can be, and we haven’t even talked about moving countries yet, but you can go way, way up on that scale. If you have an entire, you know, household, if you have stuffed move, if you’re flying and you have to ship your car, like plus as you just said, you know, I’m thinking about like Boston, where many people go through brokers and have to pay some kind of fee. Like, I don’t know if it’s a month’s rent like upfront just for that plus like the deposit, which could be large. Like, moves can vary so much from, I would say maybe a couple hundred dollars up to like thousands of dollars easily without even going, again, international. So like, that was my experience. I somehow like skated by with very little like actual outlay of money. What was your experience in this most recent move?

Rutendo’s Recent Move: 3 Suitcases

11:20 Rutendo: The most recent move? I could only fly with three suitcases. Somehow Emirates had a really great deal. So I could fly with three suitcases. In that, I made sure that I had my coffee pot because that’s always an essential, I had my bedding and my clothing, including my winter clothes. I knew winter clothes would be actually quite a big expense. So made sure that I had that over here. And then I didn’t have to buy furniture, thankfully, because I’m living in a student flat. So my apartment is actually furnished, so that’s great. But the biggest expenses now came into trying to, I guess, kind of make it feel like a home. Pots and pans, that that was not provided. The couple of basics. So it was a bit costly, but honestly, I guess not as costly as my master’s move, which is a whole different situation because I was not in student accommodation, which we could talk about later, the advantages and disadvantages of that.

12:13 Rutendo: So, this move was definitely slightly easier. But I did have quite some costs. And I did want to say there’s another cost that I think people, not even just internationals, might have to consider. If you’re changing things like your different insurances that you have, your health insurances. If you’re switching, you might need to do a bit more. So that’s also a cost that you need to consider, I guess, talk to your family about, or if you’re by yourself, figure that out how are you going to deal with those.

International Moves for Grad School

12:39 Emily: Yeah, absolutely. Okay. Let’s add that third layer on of now the move is an international move. Anything else you want to add about that particular cost?

12:47 Rutendo: Absolutely. Visa expenses. Sounds like just this one thing that you have to pay for, but then you need to consider the medical expenses within those. You need to consider health insurance within that. Some visas, like for example, the UK visa you have to pay, I think now it’s up to 500 pounds for every year of your visa. And so if you’re getting a five-year visa, it’s quite expensive. So you need to consider that. And then consider obviously things, things like flights you need to consider expenses to do with opening up a new bank account. You can get free bank accounts thankfully, but navigating that system. So, and if you’re going to a new country that you’ve never been to, I would say always make sure that you are able to have money to move around. So transport, to be able to do a couple of things in the first few weeks that you’re there. Add this to everything else that was mentioned before deposits: first month’s rent, household items, textbooks, and all the good stuff.

Challenges for Underprivileged Students Starting Grad School

13:46 Emily: Yeah. Wow. It can be quite a list here. So let’s now focus in particular on underprivileged students. What are the, you know, particular challenges that they’re going to have when they start up grad school?

Challenge #1: Funding

13:57 Rutendo: I’d like to talk about this in four different groups. So the first one is funding. I think this is the biggest thing to even begin with. Sometimes you can have funding for a year. Make sure you understand what your funding structure is as an underprivileged student. You want to know what is included and what is not included. Make sure that when they say it’s just tuition, you’re aware that it’s just tuition and you need to consider how you’re going to live and where that money is going to come from, what opportunities there are for RA ships, TA ships, how much they pay. And so to navigate that, before even I think I would say accepting and finalizing your offer. The different reasons why underprivileged students, you know, can have more difficulty navigating the funding structure, especially if you’re international, there’s that added layer. One of the things is that if you’re from certain countries, for example, I’ll give you the example of myself as a Zimbabwean. I am from a country that was formerly the Commonwealth and is no longer slash officially in the Commonwealth. So there are a lot of funding things that I could qualify for, but I don’t qualify for anymore. And so I needed to understand what I could get and what I couldn’t get. The offer I got, right now it covers tuition. My tuition is covered by the lab that I’m a part of. I’m a part of the computational propaganda lab here. However, there is no stipend. So for me to get a stipend, I need to work my maximum number of hours as an RA. And so that’s something I had to think about. Do I want to not have 20 hours a week to do my research, but to be an RA?

15:21 Rutendo: And so you need to be able to think about the time factor and how that is affecting or adding onto your work. Fortunately, my RA actually allows me to do the work in my research field. So it’s not like I’m spending 20 hours a week doing something that has nothing to do with my research, just so I can pay bills. However, I do need to do this so that I can pay bills. And so there’s that aspect as well of funding. And then one of the things I am consistently aware of is that my funding is pretty much dependent on grants that the lab has. And so that might be perceived as somewhat of a risk. However, it’s a bit of a new situation, not a new situation. It’s something that the lab has done for years. And so this is just how a lot of students in my lab are funded. But just me understanding that it’s not coming from a specific fund, is very useful for me to know what I can do and what I can’t do. So to ask those questions for funding.

16:14 Emily: Yeah, I totally agree. And I think this is, how funding works. It actually varies quite a lot by where you are the field that you’re in the type of university that you’re at. And so like, I am just thinking, Oh wow, I should really create a resource that’s like all just how funding grad school works. And I’m thinking to myself, do I know the full picture? Because I know things very well for certain fields that I’m close to, but like to know the full picture I think is very difficult. So for anyone, really, you do need to understand how funding works in your field, in that school, in that specific situation, where it’s coming from, what you have to do to get it, like you were just saying, how reliable it is, who it’s depending on? You know, if there’s a downturn in enrollment, are TA positions going to go away?

17:01 Emily: If your lab doesn’t get that next grant is like, that, you know, sector of your funding going to go away? Are there any guarantees? You know, guarantees at least in the U.S., they vary quite a lot. Some people get them. Some people don’t. Depends on the field. Depends on the school. Not getting one is not necessarily a bad sign. Although certainly getting one is a great sign. So there’s just a lot of layers to this. And yeah, I think the less versed you are in it, the more, yeah, you’re kind of flying by the seat of your pants, and it’s worth investigating for sure. Probably at an earlier stage than we’re talking about right now, we’re talking to basically rising or matriculating graduate students. And this is something you should ideally try to figure out kind of before you even apply so that you can, you know, know that you’re applying to the right places that have the right funding structure for you.

Challenge #2: Research

17:45 Rutendo: Then the next piece for me is research. Your actual research, but also I do need to say maybe this is in my field as a social scientist. I do not know how things work for sciences or humanities. But generally funding in terms of money and personal finances, there are things that your department, you know, some people can self-fund for a lot of things. So for example, some software that we use, some people in my department will say, Oh yeah, the software is fairly cheap. And I just subscribe this much a year. For me, that takes quite a bit out of my budget, you know? And it is part of research. It is actually part of a research cost. So things like that. However, I guess the best way to go about it is to talk to your department about it and understand what you need for your research.

18:27 Rutendo: If anything, if you think anything at all is tied to your research, talk to your department about it because they should be able to support you through that. But definitely I think as an underprivileged student, if I hadn’t spoken to other people who have navigated the system before, I would be worried about buying such software, for example, or I would be worried about managing the cap on the research fund that I have to be able to do field work and get those needs met as well. And so I think that’s definitely something that, you know, you kind of learn as you navigate the system. Yeah.

19:02 Emily: Yeah. Absolutely totally agree. Ideally, get someone else to pay for everything. And if not, at least you ask and then, you know, well, this is not something that we cover. And then you get to decide, you have to decide if it’s something that you’re willing to do out of your personal funds. But just apply, apply, apply, I would say, for funding. You know, extra grants. A lot of times travel in U.S. institutions sometimes comes down to the student to fund. Like, you know, summer trips to here or there to do their research. Basically, you’re going to get a grant for it, or you’re not going to go. I don’t think that too many people fund those things by themselves, but the smaller costs, like you were saying, like software or some kinds of equipment. Yeah. You should definitely be asking, at least, that your department will do it.

Challenge #3: Professional Development

19:44 Rutendo: For sure. The third one is professional development, and these are things that are not necessarily tied to your work or your research, but you need to do to begin to build up your CV or your presence in the field. And so some of the things might include, some courses offered through either online courses offered through either organizations or sometimes schools do actually offer these, but you still have to pay for them. So I know my library offers different professional development courses and, you know, each of them cost like about 15 pounds, a course. And so imagine taking about, you know, four or five of those a year. For some people, that could add up quite a bit. There could be things like attending conferences as well, that are not necessarily hosted by your school. It could be things like attending events.

20:37 Rutendo: I mean, I know I’m saying attending now, they’re all on online. Some thankfully are free, some still aren’t, which is still a cost for a lot of people. And so even though these things aren’t necessarily tied to your research, these are expenses that some students have actually footed themselves, but I don’t think it’s necessary for you to always do that. And this is, once again, when we talk about applying for assistance. But when it comes to applying, I do want to point out that the information isn’t always out there explicitly to say, Hey, there’s money. You can apply for this. So if there is something that you think somebody might cover, even if you don’t think somebody might cover it, just ask. The chances are that somebody will know where the answer is. Even if it’s not, you know, on the website that says, Hey, we offer professional development funds. But that’s definitely something I think underprivileged students can fall behind on simply because some of us have to cover a lot of gaps, not coming from families with people that have done PhDs, or some of us will be first-generation graduates to even begin with. And so we might have a lot more things and a lot more sessions or professional development work that we need to do but not enough money to actually pay for those things. And so there are a couple of costs entailed in that.

21:52 Emily: Yeah. And when you say ask, I just wanted to point out, who? Who should the people ask?

21:59 Rutendo: A supervisor, I would say start with your supervisor as the first port of call is your supervisor. Your department might have somebody that’s in charge of your program as well. I don’t know how different institutions work, but generally there’s someone that’s not necessarily your supervisor, but oversees your actual program. Those are the people to talk to you. And then if it’s things that are very just professional development focused, career services. I know a lot of schools have career services departments.

22:24 Rutendo: Those places are actually really great, whether you’re an undergrad or a PhD student. They know a lot about what’s going on. And so definitely those three, start off with those three. One of them will be able to assist.

22:36 Emily: Yeah, I would also add older students, students ahead of you. If they’ve done a conference that you want to go to, just ask them if they had it funded from somewhere. If they say, no, that’s not necessarily the final word, but if they say yes, then you’ve gotten a really good lead. And I would say also, you know, the person in charge of the program at my school that was called the Director of Graduate Studies, DGS. That person has an assistant. That is the person who knows everything going on everywhere. So that is the person to befriend to get on your side to advocate for you. That person is going to be an amazing resource just generally, but specifically with respect to funding and knowing how everything works behind the scenes.

23:17 Rutendo: That is definitely true. There is always that one person in administration who’s a great person to know. And I agree with that. Finding those people is very useful.

Commercial

23:28 Emily: Emily here for a brief interlude. Taxes are weirdly, unexpectedly difficult for funded grad students and fellowship recipients at any level of PhD training. Your university might send you strange tax forms or no tax forms at all. They might not withhold your income tax from your paychecks, even though you owe it. It’s a mess. I’ve created a ton of free resources to assist you with understanding and preparing your 2020 tax return, which are available at pfforphds.com/tax. I hope you’ll check them out to ease much of the stress of tax season. If you want to go deeper with the material or have a question for me, please join one of my tax workshops, which you can find links to from P F F O R P H D S.com/T A X. It would be my pleasure to help you save time and potentially money this tax season. So don’t hesitate to reach out. Now, back to our interview.

Challenge #4: Emergencies

24:34 Emily: Okay. And we had a fourth one, right?

24:38 Rutendo: Now, the last one has nothing to do with all of these other things, but it’s emergencies. These happen. And sometimes, especially as a student, as an underprivileged student, if you’re moving somewhere new, you might have used most of your money for moving in and getting settled, but emergencies do happen. And this actually recently happened to me whereby I needed to go to an emergency room. Thankfully, it was not COVID-related. So just have to say that in a pandemic, just to make sure. However, you know, I ended up being able to talk to my welfare team here at the college and they covered a lot of the costs for a lot of things that I didn’t even know they could be covered for that are emergencies simply because I wasn’t ready then when that happened.

25:25 Rutendo: And so I think it’s really important that we understand that whatever emergencies we face to be able to be open about them, to the best of our abilities and you know, and obviously balance keeping your privacy and your private information private, but also letting letting the right people know to give you assistance. Because while some people might be able to just write their families and, you know, call up home and say, Hey, look, I need an extra, this amount of money. Some people might not be able to. And so to know that most universities will be, there will be some funds somewhere. I know my university has something called hardship funds for things like that. And different levels of it that you can apply for, but definitely the understand that emergencies for underprivileged students can be something difficult to navigate and challenging as well.

26:13 Emily: Absolutely. Absolutely. Could not agree more. I think in the U.S. it’s becoming more common, but I wouldn’t say it’s totally common, that universities or graduate schools have either emergency grants or emergency loans available. It’s not everywhere, but it’s definitely, definitely worth inquiring about because it’s, yeah, it’s becoming more and more popular to set up those kinds of things. As we understand, not everyone has the means to cover an emergency in cash or has access to debt even to finance an emergency or has family to fall back on or whatever the case may be. Yeah, not everywhere, but definitely worth asking about.

People are Your Best Resource: Talk to Them 

26:53 Emily: Okay. Yeah. Anything else you wanted to add about sort of helping, you know, underprivileged graduate students prepare for starting graduate school or, you know, make it to the end? Because finances are a big reasons that people leave PhD programs.

27:08 Rutendo: I mean, I would say that, you know, the most important thing in terms of getting a hold of your finances is also just, you gave the advice of talking to older students in one of the specific categories for professional development. But in general, talking to as many students as you can, once you accept it, try to connect. If there are any people that you see online, if you’re on Twitter, for example, you know, when somebody says I’m doing this program, try to connect with them. I set up a couple of Zoom calls with third years and second years and even people that had just finished their PhDs in my department, just to talk to them, just to hear about their experiences and, you know, students, you know, not just underprivileged students, but everyone just to know about the experiences outside and inside to know what I need to prepare.

27:51 Rutendo: And so I think that’s part of your research and getting so that you really understand your finances. Especially if you’re going to be doing some form of RAing or TAing, it’s important to talk to somebody that has done it so that you understand such as the salary structures as well. Because, you know, sometimes they tell you, this is how much you get paid pro rata, but you don’t even understand what pro rata is, for example. And so it would be useful to talk to people. So I’d say, that your best resource is people that have been through the very same system as well. And just understand the general lifestyle that helps you understand the costs, you know. So just asking them what they do in general, how much things cost, ask people where they go shopping, what things they had to buy, things like that would be very useful as you are preparing to go, and helps you definitely understand your finances, even before you start.

Establishing Good Financial Habits in Grad School

28:40 Emily: So the last thing we wanted to talk about was establishing good financial habits at the start of graduate school. Both what those habits might be, and how to actually go about establishing them, which is really the key. So let’s talk about what habits are great to establish at the beginning of graduate school, and for each one, how people can do that.

Habit #1: Track Your Expenses

28:57 Rutendo: Okay. I think the first habit is to track your expenses.

29:02 Emily: I always say that number one as well.

29:03 Rutendo: Which is, I must actually say, something I got from your podcast. So I listened to this podcast before doing my PhD and honestly like it’s, I went on a binge and it has been very useful for me. And I learned to track, just track. So what I did was I had the first month of not knowing, you know, what is needed or no projections, not knowing how much I might be able to save, just to track everything I bought. It sounds tedious, but you do need to track. And so the how, I think there are different ways of doing this. The way I did it was I used Notion. So I made a table and this sort of like budget looking thing in Notion, even though it wasn’t a budget, it was what I was spending.

29:50 Rutendo: And I had categories for each thing. So groceries and toiletries. So I knew that week one, this is what I spent. Week two, this is what I spent. So that helped me also see an average about on average per week, what am I spending on this? And then I kept my subscriptions. So knowing what subscriptions, you know, I have, and then during that month also making sure am I actually using them, like I have Spotify premium. Do I actually use it? How important is this feature for me? And then there were miscellaneous as well. Things that I, you know, that I’m spending on this month that I won’t necessarily be spending on next month, but just to understand that how much cushion and move room do I have in my budget for that? So I wasn’t going to be buying pots and pans every month, for example. But I kept that in there. That helped me understand an average. Because there will be some things that I will need to pick up throughout the month that are not in necessary, you know?

30:40 Rutendo: So having all of that. The other way you could do your tracking is to use the budget apps, you know, the ones that you connect your bank accounts to an app. I think in the U.S. it might be mint that most people use. In the UK, I use money dashboard. Personally, I find that to be really good. It has, you know, web interface and app interface, and it’s fairly automatic. And so habit number one is track. Just, you know, just to understand exactly what you’re spending. Don’t try to, and don’t lie about anything. If you spend, if you spend money, I spend money on sparkling water because I love sparkling water and I don’t have a soda stream. I wrote that down just so that I actually understand how much money I’m spending on sparkling water. Things like that.

31:32 Emily: Yeah. Completely could not agree more. And I would say when you’re choosing like this manual method, which as you said, can be tedious. I think there’s a lot of power there in the tedium and staying close to the expenses. But if you know yourself and you know that you’re not going to do it, you know, you’re not going to do this daily or multi times per day or whatever it is, and you decide to use mint or you need a budget or something similar, that’s okay. Know yourself, know what’s sustainable for you. And just choose something that, as you said, can become a habit and it is, you know, less maintenance to use one of these automated systems, yeah. But whatever can become easiest for you to sustain. I know for example, I kind of fall on this manual tracking side of things. My husband will not do that. So for us keeping a joint budget together, it has to be software, or it’s not going to get done. But it is a habit. And when we use software, we do check it. So whatever you think is sustainable for you in the longterm.

Habit #2: Understand Your Expenses

32:22 Rutendo: Right. Absolutely. And then the second habit would be connected to the tracking. So after the tracking comes the budgeting. And that’s something that I have found to be very useful. So I then moved, after understanding my expenses, I then, you know, created like a, okay, so per month here’s how much I want. Here’s, you know, on average how much I think I need for groceries, how much I need, I think, for this and this and that. And then I then moved it into the automated system. The automated system for me was easier simply because there were things that I could grab, let’s say, and sometimes forget to enter. I was afraid I’d forget to enter manually because I was no longer in the tracking phase. I was now in, you know, I’m technically still the tracking phase, but you know what I mean?

33:04 Rutendo: Like in the actual making sure I understand how much I spent of what phase. And so I moved that understanding to money dashboard and had all the different categories. And, you know, it’s been very useful, but like you said, even if you do automate something, it’s a habit. So I do check my money dashboard just to make sure that an expense has gone into the correct category or into the category I want it to go into by the categories I’ve set in my budget. So, and also just to see how far I have, how much do I have left this month for this specific thing?

33:35 Emily: One thing that I think is really valuable about tracking, and also budgeting to an extent, is even if you don’t really think you need to do it right now, you may, six months from now, want to look back at that data and, you know, get some insights from it because of a decision or something you have to make at that point. So, it’s just a good thing to make a habit, you know, make as low maintenance as you possibly can, just so you may want to use that data in the future you’ll have it.

34:03 Rutendo: Absolutely. Yeah, one thing I do understand that because of, I do regret not having had a budget during my master’s degree because it was in the same country, so I really have no excuse. So, I couldn’t actually say how much I spent on groceries on average. You know, now I can say that and now I can. And so I do agree. It is nice to just have that data at some point. You never know what you might do next in a couple of months or a couple of years even.

Habit #3: Save

34:30 Emily: Yeah. What’s the next habit on your list?

34:33 Rutendo: The next habit on my list is to save. This one is a bit, I think people, people go about it different ways. I know that the advice generally is pay yourself first, which I understand is great advice. As somebody who’s not that wealthy, not even, let me not even put a “that.” Who is not wealthy, who is mostly just doing enough to get by, paying myself first is actually quite, quite difficult, even on my budget categories. What I always do know is that I always have some little leftover. So I do this thing that I actually learned again from another guest on this podcast, which is at the end of the month, whatever I have leftover in my checking account, I put into my saving and I start from zero with my new paycheck. That is my saving. And then there’s also the other way that I save, technically kind of like save/invest, is through this app called Moneybox.

35:31 Rutendo: I think the U.S. equivalent might be Acorn. I don’t know if that’s what they do, they round up your expenses and sort of, kind of like quote unquote invest it for you. It’s not like you’re investing in big, very risky, you know, things. You’re not making like $5,000 worth of investments, but it is quite nice to just see that number go up. You know, if I buy something and then there’s 20 pence left, knowing that that 20 pence is going to do something. Because also, at the end of the day, in my head, in my budget, anyway, that was a round figure, right? That was not necessarily 0.8. you know. And so, that sort of save and invest model, I find it to be very useful, to always try and save. And it’s useful to save, even if you’re saving very little, because once again, emergencies do happen.

36:19 Rutendo: And then it also is useful to try and strive towards getting to that three to six months worth of expenses, which is something you don’t always start with. Especially if you’re somebody that’s not coming from a wealthy background. You don’t always start out with being able to have three to six months worth of expenses in your savings account. But that little bit counts. Just that little bit counts, and hoping that emergencies don’t happen. Knock on wood. You will get there through I guess some of the other things we’ll talk about.

36:44 Emily: What I really like about that articulation. Now, of course I am an advocate of pay yourself first. I definitely am. But what I like about how you’ve set things up is that saving is not, even though it’s the last thing you do with your money each month, it’s not the last thing on your mind. You know throughout the month that you have that intention of doing it at the end. And so I’m sure it affects your behavior. Oh, well, I want to be able to save a little bit more this month. So I’m going to really try to come in under budget on this category, because I know that’s going to enable me to save this much more. And so what I like about that is that it’s still an intentional thing that you have throughout the entire month, even though you do the action at the end.

37:20 Emily: And I think that, you know, sometimes that’s just how you need to start. And when you’re living essentially paycheck to paycheck, you know, there’s a possibility you might spend your entire paycheck that month, if something odd came up and you can’t, you really can’t, you know, set anything aside in advance. It’s okay to do that system. As long as it’s working for you most of the time, most of the time that you’re able to save something at the end of the month and increase that savings as you were just talking about. I think, you know, it’s, it’s a way it’s a way to start. It’s a way to start saving,

37:47 Rutendo: Right. Also, just to actually say that that’s what I’m doing now, because I’m just starting out. So my intention right now is, because technically I’m still settling in. So there are still odd expenses that are coming up here and there since I’ve been here for a couple of months, but I don’t think that’s what I’ll be doing, let’s say, next year, this time. By then I will have, you know, very few things that come up and I will now know exactly what I can save, even if I’m still living paycheck to paycheck, which then just becomes something I do first. And so this is definitely something transitionary, but yeah.

38:18 Emily: I think it’s also easier as you learn a new city to become more frugal with time. You know, you mentioned earlier, well, where do you shop? That’s a very key question. Maybe when you first move to a city, you don’t know the least expensive places to shop, or the places that have the sales at this particular day of the week. You don’t have that insight. And so, you know what you’re spending on groceries, for example, in month one, you might be able to spend much less by month 13 because you figured out a few of those tricks. And so don’t think that just because you’re starting out completely paycheck to paycheck, that you’re going to be that way forever, because you will learn over time if you’re, you know, if you’re minded in that way.

38:53 Rutendo: Absolutely.

Habit #4: Learn How to Be Frugal

38:54 Emily: Okay. So do you have another habit on your list?

38:56 Rutendo: Yes. Which you actually kind of got to, which is understanding the best way you can be frugal. I put it in a different category than saving because the saving is something very technical, but the other habit you can do is try to find out how best you can reduce costs. It doesn’t matter how little it sounds. You know, for example, Spotify premium, normal is 9.99 pounds, student is 4.99. You might think, okay, that’s not much, but it is, it sort of adds up. So if you know what, just that extra amount of time it takes for you to sign up to student, if you need that. If you use that. Or knowing exactly where to shop, right? And if you go to the store and we’re like, here, we have reduced shelves where you can get fruits and vegetables that are technically about to go bad, kind of like the shelf date really, saves a bit more, you know, I could buy an avocado for 40 P or I could buy it for two pounds 70.

39:47 Rutendo: So then I get two avocados, instead. You know, something like that, just, just being as frugal as you can. If there are books that you want to buy, trying to get them second hand, instead of getting them new. You know, or if it’s something that you actually don’t need to be writing in and that you just want to browse, consider getting it from your library instead. If you’re fortunate enough to be living in, you know, even in a pandemic, some libraries are doing, you know, click and collects or things like that. So try to do that. So just finding ways to be frugal, no matter how small the amount seems, definitely adds up. And the other technique, and this is cash backs as well. I know that some banks do different cashback things with, you know, different retailers or you could actually sign up for like I think in the UK there’s TopCashback or something I think is also a U.S. thing online.

40:44 Emily: I use Rakuten.

40:46 Rutendo: They do have that. Yes. Yes. So things like that definitely, you know, for things that you’re going to buy anyway, might as well get a percentage of it back it’s really useful. And these things I know they seem very minimal when you think about you’re like, Oh, it’s 5%. It adds up. It adds up, and that 5% could be something that goes into your savings, for example. Fine. If you don’t want to spend it on something new, that’s how you end up getting to your three to six months worth of, you know, expenses of savings. So.

41:16 Emily: I was just going to say, tie any little frugal, you know, tactic that you implement to directly increasing your savings rate. If that’s your top goal at the moment, right? So if you, as you were just saying with Spotify, for example, you know, you reduce it by $5, whatever it is, Hey, why don’t you pay yourself first $5? Because you were spending that anyway. So that’s the way you can kind of transition between these two systems, or save at the end of the month. Hey, my grocery budget was this, but I came in, you know, $10 lower because I’ve learned all these frugal things to do. Okay. Your $10 at the end of the month gets to go into your savings. Yes. I love that idea. Yeah. Did you have another habit?

A Note on Side Hustling

41:52 Rutendo: Well, technically it’s not a habit, I guess, because a habit would have to be things that you do consistently, but then to try and be on, this is the last thing under this question, to try and do like side hustle type of things. I don’t know if I could classify that as a habit or a thing. But also, I mean, obviously you have to consider how much time it takes away from your work, because, you know, first and foremost, you are a student. But if possible, you know, there are different ways. Some people do short-term consulting things. I know for me, the thing that has helped me right now is a short-term consulting gig which I know, you know, at the end of that will help me build up my savings so much faster than, you know, saving the little bits off of my paycheck and things like that.

42:34 Rutendo: And so to find out where your skills lie, if somebody wants help with like a couple of editing, copyrights, things like that, that you could take away just a couple of hours of your time to do. Not necessarily to make that become the focus, but only if possible. And this is something that sometimes is also really a sign of privilege as well, actually, rather than something I’d advise underprivileged students to do, because sometimes you have more things to deal with, honestly, than side hustling. So this is why I’m not saying this is necessarily a habit, but if you feel that you do have that privilege of time and space and mental capacity to do that, then do so. But don’t necessarily, please, if there’s something you can’t do feel obligated to.

43:16 Emily: Yeah, absolutely. I mean, you’re primarily in your degree program to get that degree. So I always say about side hustling, like, don’t do anything that’s going to jeopardize your progress toward that end goal. But if you have the capacity, it can be a really great supplement. And like you were saying, I think that sometimes graduate students you know, they end up devaluing what they’re capable of doing because they’re being paid such a low, you know, rate through their stipend or whatever. If you can do consulting, as you were just saying, or employ your skills in another non-academic capacity, especially, you might be able to command a fairly high pay rate, at least compared to what you’re getting through your primary work as a graduate student. And so don’t think that a side hustle is going to be 20 hours a week or 10 hours a week.

44:03 Emily: It could be, as you said, two hours a week and still make a really big impact on your budget. If you select it very carefully, really employing what makes you unique in the marketplace. Now I will say, because we’ve been talking a lot about international students in this interview, in the U.S., international students are extraordinarily limited in what they’re permitted to do in terms of making money outside of their primary position. That is, they really can’t do anything unless it’s been approved through like CPT, like OPT kind of situation. So I’m not encouraging international students to side hustle to work for money, but there might be ways that you can set up passive income sources that it’s not actually exchanging work for money, but other ways you might be able to make money. You mentioned cash back earlier. Credit card rewards are a thing.

44:51 Emily: They can be fairly lucrative. I’ve had a couple episodes in the past on that. So I’ll link them from the show notes. International students would not be able to do that day one arriving in the U.S. because you have to work on your credit score first. But after a year or two, that might be a possibility as like a passive income source. So you are going to have to be a little bit more creative in your thinking about side generating side income as an international student, but it is still possible. Maybe it’s worth looking into again, if you have the time and the energy to do so.

45:19 Rutendo: Precisely. Yes.

Best Financial Advice for Another Early-Career PhD

45:22 Emily: Okay. Rutendo, thank you so much for this wonderful interview. I think we’ve gotten so many insights out of it. I will ask you for one last one, which is what is your best financial advice for another early-career PhD? And that can be something that we’ve already touched on in the interview, or it can be something completely new.

45:39 Rutendo: I would say, we’ve already talked about this. If there’s a chance that you don’t have to pay for it, don’t. It doesn’t matter what it is. Just ask if there’s a chance that you don’t. Because it doesn’t matter how many times you track something, how many times you budget something, if you can get it from somewhere else, all these other habits, all these other things will be better as a result of you not necessarily having to go out of your way to do this. So that’s the biggest thing for me.

46:04 Emily: Absolutely. I think, you know, maybe a more broad category of term for this is just negotiation. Like you can kind of think about it that way, because you’re just sort of ferreting out, you’re feeling out, is there a possibility that someone else can foot this bill for me? Is there another creative way that I can get this paid for by someone else? I know in the U.S. we don’t have a strong culture of negotiation at all in terms of like sales or anything, but I know that other countries, it’s more of a common thing that you learn in your childhood. And so if that’s your, you know, personality, maybe you can think of it that way as just feeling out what are the possibilities here, financially? What are the parameters of this space? Yeah. And oftentimes that’ll be to your advantage. I mean, you’re not going to get anywhere by not asking. That’s for sure.

46:46 Rutendo: Definitely. And I mean, I do just want to say that, especially for underprivileged students, the one thing I do want to say about the reason I’m giving this advice and I put it, so plainly is because a lot of us it’s about our mindset. A lot of us were, you know, I mean, let me not say a lot of us, but then for me, the problem I had to get over was knowing that I had to work for certain things and then sort of feeling that I am not allowed to have certain things, just the social conditioning, right? That I’ve already come this far as like a Black African woman. Now I have to ask again, if they could pay for this conference. Now I have to ask again, but really just, there are people, you know, once I started talking to people that have been doing this for four years and some people for generations because the families had already navigated the system. This is actually what the system is the afford to support you, to become the best that you can be as a researcher, as a student, as whatever it is that you’re doing.

47:40 Rutendo: And so it’s not necessarily, I hope that a lot of people realize it’s not in sense of entitlement, but really just to understand that there are systems of support that might not be explicitly said, you know or stated that they are there, but they really are there for you. And to help you with your finances. And like you said, Emily, at the beginning of the interview, a lot of people are beginning to understand now that finances really impact underprivileged students’ experiences in these institutions. And they are open to that and open to discussion and negotiation. So.

48:12 Emily: That was so well put. Thank you so much for this interview, Rutendo. It was a pleasure to speak with you again.

48:16 Rutendo: Thank you so much. Thank you for having me. I appreciate it.

Outro

48:23 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 and instructions for entering the book giveaway contest and submitting a question for the Q&A segment. 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. If you leave a review, be sure to send it to me to 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 taxes. Four, subscribe to my mailing list at pfforphds.com/subscribe. Through that list, you’ll keep up with all the new content and special opportunities for Personal Finance for PhDs. See you in the next episode! And remember, you don’t have to have a PhD to succeed with personal finance, but it helps. The music is Stages of Awakening by Podington Bear from the free music archive and is shared under CC by NC. Podcast editing and show notes creation by Meryem Ok.

Can I Qualify for a Mortgage with a Short-Term Fellowship or on an F-1 Visa?

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In this episode, Emily shares a few clips from the first-time homebuyer Q&A that she hosted with Sam Hogan on May 6, 2021. Sam is a mortgage originator with Prime Lending (Note: Sam now works at Movement Mortgage) specializing in graduate students and PhDs, an advertiser with Personal Finance for PhDs, and Emily’s brother. The first pair of questions is on whether having three years left on your fellowship offer is required to get a mortgage. The second pair of questions is on qualifying for a mortgage if you’re on an F-1 visa. These questions are among the most common that Sam receives.

Previous Episodes with Sam Hogan

Introduction

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

This is Season 8, Bonus Episode 1, and today I’m sharing a few clips from the first-time homebuyer Q&A that I hosted with Sam Hogan on May 6, 2021. Sam is a mortgage originator with Prime Lending (Note: Sam now works at Movement Mortgage) specializing in graduate students and PhDs, an advertiser with Personal Finance for PhDs, and my brother.

Sam has been on the podcast before in Season 2 Episode 5, Season 5 Episode 17, and Season 8 Episode 4. As Sam has gained experience working with PhD clients over the last few years, he’s been able to get mortgages approved in scenarios that didn’t seem possible a couple of years ago. We’re using this bonus episode to update you all on this evolving situation.

What you will hear next is me reading questions that were submitted over chat during the Q&A call and Sam’s answers. We selected these questions because they are among the most common that Sam receives. The first pair of questions is on whether having three years left on your fellowship offer is required to get a mortgage. The second pair of questions is on qualifying for a mortgage if you’re on an F-1 visa. There were a few dozen people on the call so you will hear some background noise as well.

If you would like to attend a Q&A call of this type, please sign up for the Personal Finance for PhDs mailing list at PFforPhDs.com/mortgage/. I’ll be in touch over email about the next scheduled call. As of now we anticipate holding another one in June 2021 and periodically after that.

If you would like to get in touch with Sam directly regarding your own mortgage, you can call or text him at (540) 478-5803 or email him at [email protected].

Without further ado, here are the clips from the first-time homebuyer Q&A call with Sam Hogan.

Conclusion

Thank you, Sam, for giving your time and expertise to this call and thank you, participants, for your excellent questions! If you, listener, are interested in attending a Q&A call for first-time homebuyers in the near future, please go to PFforPhDs.com/mortgage/ and register for my mailing list. I’ll be in touch over email when we schedule the next call. If you would like to contact Sam directly regarding your own mortgage, you can call or text him at (540) 478-5803 or email him at [email protected].