At a mellow surf spot near the campus of the University of California, Santa Barbara, Paige Hoel smiled to herself; as an oceanographer, she understood why the waves were breaking just so. Between 2014 and 2024, she had earned her undergraduate degree, a master’s and a doctorate. But her passion for the field did not come without financial strain.

“I spent my 20s pursuing this,” says Hoel, who adds that her father lived on a “shoestring budget” during his own time as a PhD student. “I knew I had to hustle to support myself.”

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PhD candidates do not just commit to long hours and intense research, but also to the financial uncertainty that comes with low stipends relative to high costs of living, especially in urban locations. As a PhD student at the University of California, Hoel earned US$30,000–36,000 per year, along with the benefits of waived tuition, health care and a gym membership. The financial strain can persist into early-career training and result in a limited capacity to save and invest in the future.

“This is the time to plan and build a foundation for yourself, one that sticks,” says Brian Skinner, a financial planner at Skinner Wealth Strategies in Milford, Connecticut. Specialists such as Skinner say that completing a PhD and feeling financially stable are not mutually exclusive. Here are five personal financial strategies for before, during and after a PhD programme that students and financial advisers say could help individuals to feel more secure.

**Create and stick to a budget **

Financial management begins with identifying your goals, then creating a budget that reflects them. Generally, a well-planned budget is a blueprint for how to control costs and make informed decisions each month as income arrives and expenses flow out.

First, identify all regular costs, such as rent, food, debt and savings. The rule of thumb, according to financial advisers, is to allocate up to 50% of your take-home pay to essential expenses, 15–20% to retirement funds and savings accounts, and 5% to an emergency fund. PhD students should focus on covering fixed expenses and building accessible savings, financial planners say.

“You need to break down what your priorities are and then budget to live within your means,” Skinner says.

When Rodrigo Dios completed his PhD in zoology in 2020 at the University of São Paulo, he was living in one of the most expensive cities in Brazil. (During his master’s studies, he lived in his family home to save money.) “I received one of the biggest grants in Brazil and things were really tight,” he says.

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Dios received a monthly stipend of about 3,600 reais (the equivalent of around US$553 at that time) — for comparison, the average monthly income for 2024 in the state of São Paulo was 2,662 reais. Roughly 50% of his income went towards rent and utilities, including water, electricity and access to the Internet, 30% went towards food and 10% to other essential items, such as transport. Anything that was left, he tried to put into savings. Although Dios could have earned a higher salary after his master’s, he says that taking the lower pay as a PhD student is worth it in the long run because of the skills acquired. “You might feel undervalued, but you are investing in yourself,” Dios says.

During his studies, Dios maintained an ‘essentials only’ lifestyle, which felt a little restrictive at the time — he didn’t go out to eat and avoided impulse buys— but it meant he had financial wiggle room. For Dios, every Brazilian real had a purpose, which follows the popular zero-based budgeting strategy. As part of this mindful method, individuals assign all their income to financial goals, such as paying off debt or saving for a house deposit. Every dollar, or real, is ‘spent’ but not wasted.

When making a budget, ask the question: will it actually work? Before starting a PhD, financial advisers suggest that individuals try to live off their potential income for a month or two to see whether they can stick to it.

Several online budgeting tools can help, including Monarch, EveryDollar, Rocket Money and, often, banking apps. Breaking down a budget using a pen and paper or on a spreadsheet also works. But remember to stay balanced — it is important to go out for dinner or to see a film with friends occasionally.

Create a savings safety net

Rules around saving for retirement vary between countries, but setting up an account early on means that researchers can put a small amount of money aside each month for when they retire. The European Union, for example, offers plans such as the Pan-European Personal Pension Product (PEPP). Those under 30 can contribute up to 15% of their annual income to this voluntary scheme. In the United States, a Roth IRA — a personal after-tax account that grows investments tax free — is open to PhD students with an income. In 2025, those under the age of 50 can make maximum annual contributions of $7,000. However, depositing as little as $100 a month at age 22 until 65 years old would lead to a sum of more than $250,000, assuming a 7% rate of return. “If you’re a PhD student, especially full time, you’re probably at a very low tax bracket,” in countries with progressive tax systems, such as the United States, the Netherlands and Brazil, Skinner says. Saving modestly now means “you will be better off down the road”.

Some types of savings account, such as a money market or high-yield, enable you to earn interest but with the convenience of being able to withdraw funds before retirement age.

“You want to be building your foundation of strong financial habits like maintaining your credit and even automating your savings and retirement accounts to stash some money away,” Skinner says. Whether it’s $1,000 or $10, putting away a little each month can help with large purchases in the future, such as a car.

Manage debt

Education is an investment in the future, so taking out loans to pay for undergraduate, master’s and PhD courses or living expenses, is not necessarily a bad idea — but proceed with caution and borrow only what is needed, Skinner says.

Graduate students should investigate whether they are eligible for subsidized government loans, for which interest might not accrue until after courses have finished. If they are not, they might need an unsubsidized government or private loan, which accrue interest right away. “You need to choose what you are comfortable with,” says Karim El Khaldi, who finished his master’s in global health at the University of Barcelona in Spain in July.

Many PhD programmes offer free tuition, including in Europe, South America and the United States. But not all of them pay a stipend. “I’m from Lebanon and I’ve been actively seeking PhD positions [in places] like Belgium that will pay me because I simply cannot pay for a programme myself,” says Khaldi.

For students who begin a PhD programme in considerable debt from their undergraduate or master’s studies, Skinner advises them to develop a plan based on expected income, field and type of employer. For example, if a student is not going to be working in the US public sector or in underserved areas in education and health care for which loan forgiveness is an option, then they might opt to pay back the interest-only portion of their loan while they are pursuing a PhD.

Online tools such as a student-loan planner can help individuals to navigate current or future debt. Students should also plan for extra costs, such as visa application fees, travel and relocation costs that could increase debt.

“I hustled to manage my expenses and avoid coming out of school with debt,” Hoel says. “I graduated with some savings, but I am still living on a tight budget.”

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