I'm often asked by incoming PhD students how I budget $$$ to make ends meet while on a T32- or NRSA-equivalent salary from the NIH.

For 2020/2021, that's $25,320 annually.

H/T @EpiHenri for editing & encouraging me to post!



#PhdChat #PhdStudent #AcademicTwitter #YNAB

Before I jump in, here are some caveats:

(1) I recognize my privilege: I had no student debt coming into my PhD. In undergrad, I was lucky enough to get a full ride

For my masters, I paid out-of-pocket for everything because I had just come from a six figure job

(2) With 2-weeks vacation/year and 40-hour work weeks, $25,320 = $12.66/hour

Not a livable wage.

Some students make more ($20/h) but are capped at billing 19h weekly. Also not livable.

Neither rate is commensurate with the experience that most PhD students bring

(3) Many students, especially students of color, end up doing uncompensated academic service or just plain uncompensated work

(4) Many students do identical work to but are paid less than research assistants (RAs). Some RAs become students and undergo major pay cuts because the system can later only recognize them as students

(5) Lastly, everyone's budget is personal because they reflect their privilege (e.g., lack of debt, families/partners on whom to lean financially) and priorities (e.g., dependents, mental health).

Money is in the eye of the beholder: $25k can feel like rags or riches.

I make no judgments on how you spend your money. Nor do I claim expertise!

Lattes?
Shoes?
Demolition derbies in the back country?

Been there. Done that.

And honestly, let's be real. More like:

Big medical bill
Sibling in dire need
Moving expenses

Also been there. Also done that.

This is just my current journey:

I can only live comfortably on $2,110 monthly b/c I have:

(1) No dependents
(2) No car (more on this!)
(3) An insanely cheap 1 bedroom apartment that I split w/my partner
(4) Very old tech that I haven't replaced recently
(5) Live in Baltimore, which has a low-ish cost of living

$2,110 breaks down to the following monthly.

FIXED ESSENTIALS
$355 — Rent
$ 40 — Electricity, gas, laundry (split)
$ 18 — Internet (split)
$ 50 — Phone
$330 — Taxes (~15%)
$320 — Groceries

Then, there are variable expenses:

$50 — Gifts for others
$ 3 — Spotify duo (musician partner pays $9)
$ 74 — For whatever I want (aka fun)
$ 80 — Eating out
$ 10 — Charitable giving
$ 60 — Fitness
$100 — Physical and mental health copays for chronic things

More variable expenses:

$25 – Professional development (e.g., books and memberships to societies like @GLMA_LGBTHealth)
$40 – Skin / hair care
$30 – Home goods
$85 – "Whoops, I forgot something" fund

And then, annual costs that I save up for bit-by-bit:

$34 – Adds to $400 for xmas gifts
$59 – Adds to $700 for a visit home
$17 – Adds to $204 for @YNAB and @Dropbox
$14 – Adds to $168 for my personal website
$16 – Adds to $576 every 3 years for a new phone

Finally, I put what's left into savings:

SAVINGS
$300 — About 14% of income

Soooooo, I don't spend that *exact* amount in each category monthly. There's some fudging along the way, and I try to roll with the punches (thanks @YNAB!)

For example, if we needed to replace our A/C unit, I might move money into Home Goods from skin care, "whoops", gifts, and charitable giving.

I'd also like to be saving for a house or retirement right now, but I've spent the last three years building a 8-months emergency fund.

In my first year as a PhD student, our medical insurance was not covered, and I did not have a stipend. I worked a ton as a teaching assistant, tutor, consultant, and waitress — I also saved very little and couldn't focus on my research. On Medicaid. Razor thin edge.

In my second year as a PhD student, our medical insurance was covered (thanks Ellen). I still had to juggle multiple jobs and continued to save very little money but a bit more than before. It was nice to have some buffer.

As a 3rd year student, I was supported on a training grant & could focus on research. I continued to TA but no longer tutored, consulted, or waitressed. With a stipend, extra work hours == extra money, which I saved into getting a month ahead and the emergency fund.

I decided to get a car recently. For the immediate costs, I took 3 months out of the 8-months emergency fund. For the monthly costs, I realized that I need to increase my income from $2,110 to $2,500 monthly. That calculates to ~26 hours extra work monthly at $20/hr (incl. taxes)

My budget would need to change drastically if I were to:

– Lose my very affordable housing
– Have a child
– Be fiscally responsible for my family
– Have a big medical emergency
– Not have my medical insurance covered by JSHPH
– Have a lot of student loans

The budget would become much less comfortable and I'd need to cut down on "optional" areas like savings and fun money. Savings is actually needed for buffer, and even though $74 monthly isn't a ton for fun — it's enough to impulse buy and feel like life is a little richer.

In summary:

Everyone's budget is unique

I have crazy cheap rent

If you're thinking about doing a PhD, your budget will take planning, discipline, and work on top of your research to be financially independent

A PhD can add to your debt