Read along to find out what money saving tips to use in graduate school (or in any stage of life, really). I spent most of my life in school. In fact, the only time I wasn’t in school was during a 6-month internship in South Dakota. Though, I do aspire to purchase a home in my lifetime and retire one day, too, these require considerable savings. Being a graduate student is not known as a money making profession.

Below, I listed some tactics that I use to save money as a graduate student.

1. Don’t buy the “next best thing”

We live in a consumerist society. We are constantly bombarded with advertisements for the next best camera, phone, fashion trend, etc. I try to avoid falling into the trap of buying the newest and next greatest thing.

When I was in college, I always bought the new iPhone when it came out and it took a toll on my savings. With phone prices as high $1,000, I decided to stop buying brand new phones when they were released. Now, I wait until I absolutely need a new phone to purchase one. And even then, I wait until newer models become old and are discounted.

I purchased my current laptop when I was a freshman in college, which was 2013. My laptop is now 8 years old and a little outdated, but it runs all the software I need and is still responsive. So, there is no need for me to purchase a new laptop until this one kicks the bucket. (I’m hoping we make it to year 10!)

I also try to focus on saving money for experiences rather than material goods. Being able to go backpacking, traveling, etc. are things that bring me true joy and fulfillment. Joy from buying new clothes or electronics is fleeting for me.

I find that cutting the amount of time that I spend on social media has also helped me avoid the FOMO of not buying the next best thing.

2. Buy used

So many of my belongings were purchased used. My trusty car had 80,000 miles on it when I bought it. Sixty thousand miles later, it is still reliable and fit for all of my needs. Though, unlike my laptop, I will likely upgrade my car before it reaches the end of its life. There are practical safety features that have evolved in the car market that my car doesn’t have but that I want to have for when I start a family.

Thrifting was a fad when I was in high school, but I still really enjoy it today. I love finding great deals at thrift stores and secondhand stores. It’s amazing how much good backpacking gear is hiding in secondhand stores. You can find packs, sleeping pads, athletic wear, etc. for 30% of their retail price!

In the last few years, I purchased only one brand new book. The only reason I purchased it new was because I was stranded in Burlington, Vermont during a snowstorm that grounded my flight for two days. Since my undergrad, I purchased all of other the novels I read for fun and the textbooks I need for class used. Most college courses will recommend new editions of a textbook. Though, if you ask your professor, it is likely that you can use a previous recent edition instead. This, in itself, can save you hundreds of dollars per book.

3. Sell used

Building off the above point, there is a market for used goods. With services like Facebook Marketplace, Poshmark, and Mercari, it is so easy to sell used clothing, furniture, and electronics. In fact, when we were moving from Montana to California, we were able to sell all of our furniture on Facebook Marketplace or Craigslist. We thought we would be lucky if we sold only a few pieces.

If you don’t want to list your items online, you can also take clothing and shoes into resale shops like Buffalo Exchange. You may even have a local secondhand sporting goods or consignment store that will take other items.

Though you won’t make back all of the money that you spent, you will leave with some money in your pocket.

4. Eat and drink at home

This point was relatively easy to follow the last year and a half with the pandemic closing local restaurants and businesses. Though, with the advent of delivery services like Uber Eats, Grubhub, etc., eating at home can mean different things.

Personally, we try to only go out a few times a month and we try to make these occasions. By that, I mean we only go out with friends or on dates. We don’t default to getting takeout just because we are tired of cooking. In fact, we recently started meal prepping so we would have meals for the nights that we are feeling lazy.

If you want to hang out with friends and share a meal, try hosting a potluck! It’s so fun to see what your friends will bring, whether you have any chefs in the midst, and it’s a great way to save money.

According to a survey, millennials spend about $300/month ($56 per outing) on alcohol. I, personally, don’t drink alcohol – it doesn’t agree with my stomach – so this is a place I am saving.

Though I don’t drink alcohol, I do spend a fair amount of money on kombucha and coffee. Paying for coffee from coffeeshops has recently been sucking money from my bank account. To nip this in the bud, I am working on a perfecting a homemade dirty chai latte. Similarly, I want to brew kombucha at home, so I can stop spending money at the grocery store on it.

5. Walk to your destinations, ride the bus, or carpool

I know that many people don’t live in walkable areas. However, if you do live in walking distance to your work, the store, or other places you frequently visit, you can cut down significantly on your gas bill. Not to mention the costs of maintaining your vehicle and parking as well.

I currently live about 20 minutes away from my office and I always plan my day around walking to and from the office. At one point when was living in Montana, I lived about 50 minutes away from my office on foot. This was a bit far for me to walk daily so I would take the bus every other day. Or I would walk one direction and take the bus in the other direction.

In addition to saving money, walking and riding the bus prevents the stress of having to look for and find parking. The few times I paid to park on campus, I found myself spending more time looking for parking than I would have taken to walk to campus.

With restrictions from the pandemic starting to loosen, carpooling can soon become an everyday occurrence again. Splitting mileage and gas costs with another person can save hundreds over the course of a year.

6. Get a side hustle

Obviously, it isn’t always possible to get a side hustle. If you struggle to make it through the work week normally, then you probably don’t have time for a second job. However, if you find yourself with a few hours of down time every day, these can translate to supplemental income.

I wasn’t looking for a side hustle when I first started my PhD. But my PhD advisor recommended me as a high school math tutor for a family friend. I previously tutored math when I was in high school, so I was happy to do it again. I only tutor 2-3 times a week depending on my student’s needs. Monthly, this supplements my income by about $200. This may not seem like a lot, but it covers the cost of groceries.

If you have a skill that you can share with others, then it can be turned into a side hustle!

7. Open a high-yield savings account

Interest rates on high-yield savings accounts are low right now. But that doesn’t mean they aren’t worth putting your money in. For example, Nerdwallet reports a few high yield savings accounts ranging from 0.2%-0.5% APY. This sounds very low but compared to the 0.01% APY of many standard savings accounts, it is high. Let’s take $10,000 for example. An APY of 0.01% would result in $1 whereas an APY of 0.5% would result in $50 at the end of the year.

Some credit unions offer higher yield options for educators. For example, Schools First Federal Credit Union offers a summer saver option that has 2.5% interest. With that initial $10,000 example, that’s saving $250 a year.

8. Make realistic budgets

By realistic budgets, I mean budgets that you can feasibly accomplish. Don’t say you’re only going to spend $10 on groceries a month – that isn’t sustainable. Or say that you won’t stop by a coffeeshop or restaurant if you know that you will. Just like a diet, you want this to be a sustainable lifestyle. You don’t want to skimp heavily for a month and fall off the wagon the next month.

I always make sure that I budget for some fun, too. I am an avid crocheter/knitter, so I budget some money every month for a few skeins of yarn. Crafting keeps me sane. So, it is important for me still have the option to buy supplies every month, but also keep myself accountable.

9. Live with roommates or a significant other

Rent or a mortgage is often the largest monthly expenditure for many people. If you are able to share this cost with roommates or a significant other, it can give you room to breathe. There were a few months when I was living in Montana that I had my own studio apartment. These months were the only months that I wasn’t able to save money. I was coming out even every month because the rent and utilities ate so much of my income.

However, when I lived with roommates and since I started living with my boyfriend, I have saved every month. With the exception of the summer months. (I don’t get paid a full stipend over the summer – more on this in later posts.)

Living with roommates is not an ideal situation for many people. Though, if your desire to save money outweighs your desire to live alone, then it is definitely worth it. Obviously, if you live in a toxic situation with another person or persons, no money is worth the emotional stress of feeling uncomfortable in your own home.

10. Utilize on-campus housing options if possible.

Many universities will offer graduate student/family housing. Unlike undergraduate housing, graduate housing might be subsidized and cheaper than living off campus. Our 2 bedroom, 1 bath apartment on campus is $1186/month. In comparison, other 2 bedroom, 1 bath apartments in the area are listed at $3500/month. However, these other apartments are larger and have amenities like granite countertops, air conditioning, and in-unit washer/dryer.

11. Put money aside for your savings at the beginning of the month

Determine a base amount of money you want to save every month. Then, take the money from your checking and move it to your savings as soon as you receive your paycheck. For example, I set aside $500 at the beginning of every month to go into my Roth IRA and $200 into my brokerage account. (I will follow up with another post on my investments in the future.)

After pulling out this initial $700, I pay my bills and then if I have anything left over, I put it into my high yield savings account. I already have a sizable emergency fund saved up, so I prioritize saving for my retirement first.

12. File Your Free Application for Financial Student Aid (FAFSA) [Domestic Students Only]

International students are not eligible for FAFSA so the following information only pertains to domestic students.

Filing for FAFSA is something that my parents always encouraged me to do. Most of the time, I get offered loans from filing my FAFSA which I always turned down because I am striving to not take money out to pay for my graduate studies. However, there are fellowships like the Graduate Assistance in Areas of Need that may cross your path during your graduate studies that require FAFSA completion.

These fellowships require that you filed your FAFSA for the time period that the fellowship will fund to demonstrate financial need before you can be considered for the award. Not all schools or programs have these fellowships readily available, but it is always good to be prepared when your program might receive funds from a program like this.

Do you have any other tips or recommendations that helped you save money as a graduate student? Please share in the comments!