bedalia Posted October 3, 2011 Share Posted October 3, 2011 why save when interest rates on my loans are higher than interest rates on savings? I'm spending as little as possible and if I end up with extra money I'll make payments on my loans. You are absolutely right - as long as your loans are accruing interest, you best pay that off as quickly as possible. But if you have no debt, or your loans are not accruing interest while you are in school (which is the case for provincial government loans in Canada), its best to hold off paying them off until you finish school. Mind, interest starts accruing on these loans as soon as you are done school, not after the six-month grace period before payments are required, so the time to drop a lumpsum payment against that debt is actually just before your program ends. I put a chunk of my lump sum payment in a savings account, but interest rates are terrible right now. I get a much better return on my TFSA (tax free savings account, a Canadian thing) which is invested, but because I opened the account in my home province, I can't transfer funds into it from my grad school province. Which is extremely frustrating because I could be making a much higher return on some of this money I'm also in Canada and also keep money in a TFSA. Why can't you transfer money from your grad school province - is there a rule that prohibits this? I'm genuinely asking; I'm not aware of one, but I haven't changed provinces, so I haven't needed to know. Or do you just not have the necessary bank information? In which case, you could get this from your home bank. Or could you not open another TFSA in your grad school province, or in an online bank like INGDirect (which is where mine is)? You will get a T5 from any bank in which you have an account, so it should be fine come tax time. (In fact, if you know you won't need a portion of the money for a longer period of time, consider a TFSA GIC; you might be able to get an even higher interest rate if you can lock in you money for long enough.) Link to comment Share on other sites More sharing options...
ktel Posted October 3, 2011 Share Posted October 3, 2011 I'm also in Canada and also keep money in a TFSA. Why can't you transfer money from your grad school province - is there a rule that prohibits this? I'm genuinely asking; I'm not aware of one, but I haven't changed provinces, so I haven't needed to know. Or do you just not have the necessary bank information? In which case, you could get this from your home bank. Or could you not open another TFSA in your grad school province, or in an online bank like INGDirect (which is where mine is)? You will get a T5 from any bank in which you have an account, so it should be fine come tax time. (In fact, if you know you won't need a portion of the money for a longer period of time, consider a TFSA GIC; you might be able to get an even higher interest rate if you can lock in you money for long enough.) It has something to do with the banking regulations being provincial, I think. I went to another Scotiabank branch here and they couldn't touch those investments because they were made in Alberta. My dad (an accountant) thinks it sounds funny, but my boyfriend encountered similar issues when trying to set up an RESP in Alberta for his little sister in Ontario. I think I might have a TFSA GIC...not sure. I am not very good at this whole investing thing and just did what my dad told me 3 years ago. Besides I don't want to lock in a ton of cash, because I will need it later. I need to look at how much money I can put away and then I'll deal with it when I go home. Link to comment Share on other sites More sharing options...
smaturin Posted October 4, 2011 Share Posted October 4, 2011 (edited) I'm having a really difficult time understanding how it's possible to avoid taking out loans, let alone save anything, on the pittance of a stipend I get in the social sciences. My stipend is just under $14,000, paid over 9 months, biweekly. It gives me about $1300/mo. Of that: $500 to rent $100 to internet, water, electrical bills $300 to food (As an endurance athlete - I need high quality food and lots of it - this is non-negotiable). $50 to incidentals - contact solution, toothpaste, new towel, bike lock, etc. - things that just come up $150 to student fees ($700/semester, includes a bus pass) $100 to running-related expenses - shoes, race entries $60 to phone bill $100 to trying to enjoy life at least a little - beer, coffee, occasional meal out, etc. And that's all I've got. I haven't a penny left over. In fact, this puts me over-budget by $60/mo. And it doesn't even include paying for heat once it gets cold, which will add another $50/mo at least. How do people live on this much money? Edited October 4, 2011 by smaturin quicksort 1 Link to comment Share on other sites More sharing options...
eco_env Posted October 4, 2011 Share Posted October 4, 2011 Just trying to clarify: I'm assuming you're currently taking out loans to finance your education? This option, for example, isn't available to me since I paid off all my undergrad loans and am not currently taking out any for grad school. I have loans from undergrad. Link to comment Share on other sites More sharing options...
robot_hamster Posted October 4, 2011 Share Posted October 4, 2011 Wow! You get $1300 a month? I wish! Link to comment Share on other sites More sharing options...
ktel Posted October 4, 2011 Share Posted October 4, 2011 Wow! You get $1300 a month? I wish! The money you receive is all relative to where you're living though. That's very doable in some places, and others have a much higher cost of living. Link to comment Share on other sites More sharing options...
robot_hamster Posted October 4, 2011 Share Posted October 4, 2011 I know it has to do with where you live, but it would still be nice. Like I said, I have to work a part-time job on the weekends just to make ends meet. Link to comment Share on other sites More sharing options...
smaturin Posted October 4, 2011 Share Posted October 4, 2011 I know it has to do with where you live, but it would still be nice. Like I said, I have to work a part-time job on the weekends just to make ends meet. My program doesn't allow this. Even if it did, there's no way I'd have time. I've just got to question why there isn't a more concerted efforts to bring stipends in line with reasonable living expenses. Graduate students should not be rich, but a situation like yours is very far from ideal in many ways. Having to work extra on the weekends really cuts in to your ability to participate fully in a Ph.D program. Wouldn't it be in your department's interest to offer your three or four hundred more per month so that you didn't have to work on the side? Wouldn't it be in all of our departments' interests to help keep us just a little bit more securely afloat? Link to comment Share on other sites More sharing options...
rising_star Posted October 4, 2011 Share Posted October 4, 2011 How much I save depends on how much I know I'll need for summer. We get paid from late August to mid-May. That means I have to set aside money for expenses in June, July, and August, and I do so assuming that I won't have a summer paycheck. In reality, I often end up teaching a summer class so the summer savings pile gets used for conferences and whatnot. I don't know what the percentage is, so I don't know how to answer the question in the poll. Suffice it to say, I get paid twice a month, and I set aside money from each paycheck for savings. It's a necessity given my contracts. Link to comment Share on other sites More sharing options...
long_time_lurker Posted October 5, 2011 Share Posted October 5, 2011 (edited) I'm having a really difficult time understanding how it's possible to avoid taking out loans, let alone save anything, on the pittance of a stipend I get in the social sciences. My stipend is just under $14,000, paid over 9 months, biweekly. It gives me about $1300/mo. Of that... How do people live on this much money? The money you receive is all relative to where you're living though. That's very doable in some places, and others have a much higher cost of living. My program doesn't allow this. Even if it did, there's no way I'd have time. I've just got to question why there isn't a more concerted efforts to bring stipends in line with reasonable living expenses... Wouldn't it be in your department's interest to offer your three or four hundred more per month so that you didn't have to work on the side? Wouldn't it be in all of our departments' interests to help keep us just a little bit more securely afloat? I don't know how someone lives on 14 grand. Then again, when my wife and I made about 100K (before I went back to school and she got laid off), we didn't feel rich, and on the other hand there are billions in this world who would feel rich with 14 grand. Then there's the Congressman the other day who lamented only having 400K to invest in his businesses after "feeding his family" on 200K. It's all relative. My stipend and fellowship are about 25K, also in the social sciences, so yours is comparatively low. I have a part-time job (if I were you I would ask about this, my department doesn't allow it either but you can get permission from the Dean), and my wife is underemployed so we're under 60K, but housing with utilities is on average about 1500/month for us (this is averaged out, winter is much higher). Don't know where you are smaturin but please double check the heat, because here in the winter it's about 1500/mo. to heat the place in the depths of winter. I don't want you to freeze! Finally, I look at it that we're lucky to be paid to go to school. Really, I wonder sometimes if it's even worth it to the school or the professors. TA's are expensive compared to adjuncts, and I'm sure researchers can be found for cheaper than the combined cost of a stipend and tuition. The only way we would get higher stipends is if there was suddenly a higher demand or lesser supply. (edited to remove some potentially identifiable info and recalculate housing cost) Edited October 5, 2011 by long_time_lurker Link to comment Share on other sites More sharing options...
robot_hamster Posted October 5, 2011 Share Posted October 5, 2011 My program doesn't allow this. Even if it did, there's no way I'd have time. I've just got to question why there isn't a more concerted efforts to bring stipends in line with reasonable living expenses. Graduate students should not be rich, but a situation like yours is very far from ideal in many ways. Having to work extra on the weekends really cuts in to your ability to participate fully in a Ph.D program. Wouldn't it be in your department's interest to offer your three or four hundred more per month so that you didn't have to work on the side? Wouldn't it be in all of our departments' interests to help keep us just a little bit more securely afloat? They don't care at my school. My adviser is fully aware of what I do on my weekends. Not too many people are funded in my program. The positions that do exist, do not pay very much. So it isn't unusual for people to have "2nd jobs". I am currently working on a MS though, not a PhD. I'm not sure if it is really in their best interest. Haha! I mean, they are getting cheap labor. But yes, I can definitely see where it can start to interfere with progress in the program. Believe me, I have a hard time keeping up with stuff and often wish I wasn't stuck at work on the weekends. At least none of my classes have exams this semester, just papers. Link to comment Share on other sites More sharing options...
StrangeLight Posted October 5, 2011 Share Posted October 5, 2011 I'm having a really difficult time understanding how it's possible to avoid taking out loans, let alone save anything, on the pittance of a stipend I get in the social sciences. My stipend is just under $14,000, paid over 9 months, biweekly. It gives me about $1300/mo. Of that: $500 to rent $100 to internet, water, electrical bills $300 to food (As an endurance athlete - I need high quality food and lots of it - this is non-negotiable). $50 to incidentals - contact solution, toothpaste, new towel, bike lock, etc. - things that just come up $150 to student fees ($700/semester, includes a bus pass) $100 to running-related expenses - shoes, race entries $60 to phone bill $100 to trying to enjoy life at least a little - beer, coffee, occasional meal out, etc. And that's all I've got. I haven't a penny left over. In fact, this puts me over-budget by $60/mo. And it doesn't even include paying for heat once it gets cold, which will add another $50/mo at least. How do people live on this much money? i have lived on $1300/month for two years. it sucks but it's manageable. the first thing to cut is the $100 for eating out and having a life. sad, but true. next is to see if there's any tuition's remission or small scholarship you can get to cover your $700/semester fees. third is to apply for summer funding to do research abroad or to apply for TAships in the summer. in my own program, we can scrape together anywhere from $1000 to $4500 extra each year in summer funds. now, you actually need to spend that money on researching, but you can sublet your apartment while you're gone and end up saving a bit of money overall. see if it's possible to bundle your phone and your internet together to bring the cost down. $60 is a cheap bill in the world of smartphones and an expensive bill in the world of pay-as-you-go cheapy flip phones. if you really feel the strain month to month, consider downgrading your phone to a very basic necessity. also, plenty of grad students work without telling their advisors. i know social science and humanities students that tutor people in foreign languages, that pick up freelance journalism or museum work, that work at the gap, that train people in martial arts or running or swimming or yoga. just don't tell your professors that you're doing this. it's an open secret that students work other jobs, and they won't be mad that you're making extra money, they'll be mad that you're spending time on something other than school, but if it's only 2-3 hours a week (at $20/hr for tutoring gigs, for example) then you should be fine. Link to comment Share on other sites More sharing options...
StrangeLight Posted October 5, 2011 Share Posted October 5, 2011 (edited) also, cut the coffee from your budget. always make your own, never buy it. if you buy a cup a day and suddenly start making it yourself, you're already saving around $45/month. use skype to contact people by long distance. rather than getting your own internet connection, see if someone in another apartment in your building will give you the password for their wifi connection and offer to pay them $10/month or something for the cost. while you'll be dependent on them to reset the modem when it acts up, you'll also save money on your would-be bill. Edited October 5, 2011 by StrangeLight Link to comment Share on other sites More sharing options...
ktel Posted October 5, 2011 Share Posted October 5, 2011 My stipend and fellowship are about 25K, also in the social sciences, so yours is comparatively low. I have a part-time job (if I were you I would ask about this, my department doesn't allow it either but you can get permission from the Dean), and my wife is underemployed so we're under 60K, but housing with utilities is on average about 1500/month for us (this is averaged out, winter is much higher). Don't know where you are smaturin but please double check the heat, because here in the winter it's about 1500/mo. to heat the place in the depths of winter. I don't want you to freeze! I sincerely hope you mean your heating costs you $150/month, not $1500. Unless you're leaving all your doors open. Link to comment Share on other sites More sharing options...
long_time_lurker Posted October 5, 2011 Share Posted October 5, 2011 Unfortunately, no. 2 oil deliveries a month, about 180 gallons each time, and $4/gal or so for oil. My house is about 60 years old. The only good thing is I like the heat, so in the summer I have way lower electric bills (rarely more than $125) than most people because if I put an A/C in (I don't always d0) I use it very sparingly. Link to comment Share on other sites More sharing options...
ktel Posted October 5, 2011 Share Posted October 5, 2011 That's insanely expensive. I'm living in an old building right now and have lived in older buildings before and it was never that expensive. We also use natural gas. All my utility costs are luckily included in my rent. Even so I wouldn't expect heating to be much more than $150 a month. Link to comment Share on other sites More sharing options...
runonsentence Posted October 6, 2011 Share Posted October 6, 2011 long_time_lurker: do you own the house? if so, have you looked into installing better/more insulation? grad school isn't the optimal time for home improvements I know, and the cost is all frontloaded which strains a grad student budget, but it seems like better insulation would surely save you $$ in the long run. Link to comment Share on other sites More sharing options...
StrangeLight Posted October 6, 2011 Share Posted October 6, 2011 60 years old isn't that old for a house. if you own it, then consider investing in better insulation, new windows, and/or an efficiency heater. and if you're renting, MOVE. holy hell, $1500 a month for heat is more than my monthly paycheck. Link to comment Share on other sites More sharing options...
runonsentence Posted October 6, 2011 Share Posted October 6, 2011 and I know I live in the Midwest, but $1500 is not only larger than my monthly paycheck, but almost 3x my rent! Link to comment Share on other sites More sharing options...
robot_hamster Posted October 6, 2011 Share Posted October 6, 2011 (edited) Wow, I am speechless. I cannot imagine paying that much for heating. When it is REALLY cold, my gas bill will shoot up to $175. This is with the thermostat turned way down too, so I suppose it could be a little higher. My husband sets it at 60 degrees at night, then I found out he was letting it drop to 57 degrees at night. I wanted to strangle him! No wonder I was waking up in the morning and my nose would be ice cold. Edited October 6, 2011 by robot_hamster Link to comment Share on other sites More sharing options...
Behavioral Posted October 6, 2011 Share Posted October 6, 2011 57F ice cold? I'm from California and even I can tolerate chillier temperatures than that Link to comment Share on other sites More sharing options...
robot_hamster Posted October 6, 2011 Share Posted October 6, 2011 It feels pretty darn cold when it is the indoor temperature in the middle of winter. I often have difficulty studying because all I can think about is how cold I feel. The temperature outside is way colder than that though. I'm talking about the middle of winter when it is single digits outside and the snow refuses to melt. Link to comment Share on other sites More sharing options...
ktel Posted October 6, 2011 Share Posted October 6, 2011 57F ice cold? I'm from California and even I can tolerate chillier temperatures than that That's a very cold indoor temperature, definitely not comfortable at all. 14 C for us Canadians, which has me wearing a jacket for that kind of outdoor temperature. Link to comment Share on other sites More sharing options...
eco_env Posted October 6, 2011 Share Posted October 6, 2011 That's a very cold indoor temperature, definitely not comfortable at all. 14 C for us Canadians, which has me wearing a jacket for that kind of outdoor temperature. it should be fine for when you are sleeping, though. this site recommends setting the thermostat to 55 at night, and it's pretty generous for the day- 68, which is higher than what I would use- 65. Link to comment Share on other sites More sharing options...
Behavioral Posted October 7, 2011 Share Posted October 7, 2011 In California, I typically slept with my window open year-round, and during the winter, the temperatures would drop down to 50F outside, which would of course cause the indoor temperature to approximate towards that, too. I think I've been relatively good at acclimating to more extreme climates because I try to minimize the polarity in temperatures in- and outside by not relying on AC and heat TOO much. I also tend to go on walks a good amount, whether it's hot or cold, sunny or raining outside. Now that I'm in the midwest, I might eat my own words, but I seem to already be doing better than some of the students from around here when temperatures drop at night. Link to comment Share on other sites More sharing options...
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