Retirement for Academics
Okay, I know that most of us aren’t even close to being done with school, but it is never too soon–or too late–to think about saving for retirement. I recently found out about an option for graduate students who receive a paycheck, any kind of paycheck, from the university.
The 403 (b) is an option for those of us who are employed by a public university to save our pre-tax dollars for retirement. If you have ever heard of a 401 (k) a 403 (b) is much the same. It works like this: you decide how much money you want taken from your paycheck–you can put in as little as $25 per month, and it is PRE-TAX–and into which funds you want to invest. The money is taken from your check before you even notice it is gone, and you don’t pay taxes on it until you retire. You can roll-over a 403 (b) just like a 401 (k). If you decide not to go into academia, the 403 (b) rolls over into a 401 (k) fairly easily. Some universities will even match a percentage of the employee’s contribution, so it is like getting free money.
Unfortunately, this is not something that many departments or schools are very proactive about telling their students, so we have to go do it ourselves. I went to the Office of Human Resources Employee Benefits office and asked them about retirement options, or many schools will have documents on their websites.
I am starting an account this year, with $50 a month put into it. My school does not match any part of the contribution, but that is okay. Any money saved is a good thing.
Think about this option–we all need to think about the future, no matter how hard it is to see that we really do have one!
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Many times magazines try to be helpful and let us know how we can “Double our salaries!” or how to “Get the dream job you’ve always wanted…today!” I’m not going to do that. We graduate students need to know how to survive on a small percentage of what we really should be making for what we are doing. I’m not going to tell you all the funny stuff like “eat lots of cookies that you steal from the talks you go to” or anything like that. Supporting just one person on the salaries we get isn’t easy, and I don’t have all the answers here. I’m going to let you know what has worked for me and hopefully you’ll leave comments on what works for you!
1. Watch out for number 2! Stay with me on this one. Having a second job that takes up about 10 or so hours a week can be really helpful when it comes to paying your bills! It does take up 10 hours you could be reading, writing, teaching, grading or WHATEVER else you need to do–and I do think about that sometimes–but if you find a place that doesn’t take brain power it can be good for your brain to rest.
2. Cut out the rif-raf!! Digital cable rules–but is expensive. Basic cable can be just as good, or you can just NOT have a TV–what a concept! If you can use the internet in your on-campus office, why do you need it at home? Use the university gym instead of buying a membership off campus–you pay all those freaking fees for a reason! Cook more at home. Do you REALLY need to dry clean those pants every time you wear them?? A BIG one: get a roommate! Having someone around to help pay rent and bills is a huge relief, and a captive friend (hopefully…) The point is: things you THINK you need, you may not. Re-evaluate what you are spending your money on and try to either find a cheaper way to do the same thing or cut it out all together. Every little bit helps.
3. Garage Sale! Really, any way of selling the used things you don’t need any more is a good way to get extra cash. Old books, furniture, CDs, clothes can be sold for a little extra dough. Some bookstores buy used books and movies.
4. Bargain shop. For grocery shopping, try the Valu-Foods or Wal-Mart instead of the specialty import grocery store that has the really expensive Italian coffee shop inside. If you actually compare, discount stores sell the same stuff for sometimes half the price. If you have a large enough freezer, shop at Sam’s club! Their meat and produce is really good! I know, some people are against “the man,” but, be honest, do you have the money right now to take up that fight? I’m not saying ignore your principles, but you can venture into Wal-Mart or Cosco without being a huge sell-out.
5. Be smart about your debt. Some debt is inevitable when you are a student, so don’t fret TOO much about it. If you make AT LEAST your minimum payments each month on your credit card, your credit will still be fairly good. Don’t miss payments or default! Try saving $10, $25, even $100 a month if you can–but don’t go into debt to do it. If you have money in savings and can pay off your credit card with it, empty out that account to do so! The 3.5% you’re earning in savings is much less than the 18.99% that your card is charging.
6. Remember that you are poor–but not forever! Look to the light at the end of the tunnel. It is there, faint, maybe microscopic, but it is there. One day, you’ll be able to pay for a better apartment, have furniture that you bought yourself, NOT live paycheck to paycheck. That is a positive thing.
I know this is a lot of information to take in. Please leave your own advice and take mine with a grain of salt. It applies to me for sure, and hopefully some of it to you!
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I think both sos’s are appropriate at this point. Save our ship because, well, do I have to explain? Sinking under waves of bibliographies of books to read, committee members to decide on, languages to learn, papers to write, I am sending out an SOS to the world. Yep, I went to the cheesy Police lyric. Same old s— because I feel like I am ALWAYS sinking under these things. I know I am not alone, so please don’t think I’m having a one person pity party. Everyone is invited!
On the non-school side of things, it is summer! The first unofficial weekend of summer, Memorial Day, is coming up. I am going out of town with my boyfriend for four days. Hang on–I was just gone for a week, maybe I shouldn’t go. I have an office at school and at home full of things for me to do. I also started a job which will take up a majority of my I-should-be-doing-schoolwork time. What should I do? Have a mental breakdown but still go on the trip, or totally let down the boy and stay at home? I think neither. I am going to do what I have set out to do–I am going to be a grad student AND have an enjoyable life. I am not going to breakdown (let’s be honest, not today, anyway, maybe after I get back) and I am going on the trip. I will shop and eat and hike and swim and enjoy the weekend–because for the rest of the summer, I work. Actually, I should get back to work now…
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PhD Living–the start
I’m Kate and I’m a graduate student at the University of Oklahoma. As I go through the student life–not to be confused with undergraduate life–I find that there are very few resources about how to actually live outside of The Department. There are tons of blogs, comics, websites, books, devoted to how to survive graduate school in the context of the actual school work, professional preparation and similar things. I wanted to talk about how to survive graduate school while still maintaining a life, a home, and relationships outside of the context of my work. This is just a start–there is much more to come. Please keep reading and enjoy! Plenty of comments are welcome.
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