Countdown

My defense date has been set. Now the research clock is ticking....

The dissertation is in review. I'm defending in a few weeks. This raises all sorts of anxiety, in part, because I am out of publishable data and I remain unemployed. I've written a few postdoctoral fellowships, but I don't have much hope that I will land them...in part, because my publication record is wanting. This is partially my fault and partially the fault of my graduate program, which sells itself on a strong research component but, in practice, prefers that students teach 12-20 hours a week to earn their "fellowship". I've spent much of the last year asking myself why I didn't jump ship in those first 6 months and join a program where students were encouraged to do research.

As I finish up these two papers to be submitted to journals, and make the revisions my committee requests of my thesis, I finally have the time to really search for a job. H and I have decided to cast the net far and wide for a bench position. At this moment, I really don't know what two months from now will look like. Our new strategy to reduce college debt, have kids etc are all in flux. While I'm trying very hard to regain some semblance of normal work hours, my validity as a potential researcher has an expiration date. I'm aware that the day after my defense, the clock starts ticking. While my P.I.s would like me to searching various published data to find potentially interesting areas to study, I've decided that I would rather get ahead on a few publishing projects, find another lab to work in and maybe finally get to the top of the Empire State Building. Whatever I do, it can't cost much because my bank balance is pretty low.

It's a strange time. I'm wishing days away and begging for more time simultaneously. I've found myself considering volunteering as a postdoc just to get ahead on projects - a situation that would almost certainly leave me broke and as well as not valued in a lab. I'm a mass of contradictions this month :) Ah well.

Stay tuned.

Friends and money: surviving the dinner out when you are broke

You don't have to eat meals alone just to stay on budget

I am now indeterminately broke. My contract just ended. I am not eligible for unemployment and I'm not sure when I will land a post doc. I will now be perpetually surrounded by people who make more money than I do. Every opportunity to socialize will be laden with possible over-expenditures. I am not, however, about to live in a hole - so how to handle nights out and no income?

Well, here are a few things I have tried in the past that seem to work. Remember, I'm not a financial planner. I'm telling you what I have done to stay on budget.

I plan splurges

I actually stole this cash budgeting idea from the old school Weight Watchers Points plan (I lost 20 pounds 14 years ago and haven't gained it back, so this idea works). On the points plan a person has so many caloric points a day/week to spend. They have to hit a minimum number of calories everyday, but they can't exceed a maximum. If they have a special event coming up, they can eat the minimum points (or just above it) and bank the remaining available points for another day. The only rule is that all of the banked points have to be consumed by week's end.

Being on a budget means planning weekly and monthly expenses just like planning caloric points. I plan "excessive" days, set a fixed amount that I will spend and then stay under budget "banking" the surplus money for that special "excessive" day. Friend wants to go to dinner this Friday? Great! If it's Tuesday, and I have a few days to underspend so that I can afford dinner on Friday. If my friend calls Friday and I don't have "points" to spare? I decline and suggest I'll meet them later for something lower cost (i.e. post dinner drink) or I invite them to my apartment (I do this most frequently). I can always bank for dinner out with my friend the next week.

Make back up plans for splurges

I can't emphasize this enough. It makes sense to have some "points" in pocket just in case. I often underspend during the week, anticipating weekend nights out. On the weekends where I do little, I figure out what to do with the excess. Sometimes I put the money on debt, sometimes I buy much needed clothes or order food in. It's my "excess" and I use it by the end of the week.

I am up front about what I am willing to spend

When I meet with a group of friends I am very up front about what I can afford. The earlier my budget is introduced into the planning conversation, the better. I have had to skip a few 30th birthdays and nights out because I've been on a strict budget. I usually make plans to meet up with my friends at a cheaper location after they have enjoyed the place I can't afford. I don't mind missing the experience, because the expense will stress me out and they don't mind because we get to spend some time together.

Don't let shame get in the way of your financial happiness

I am never ashamed of being budgeted. I am budgeted because I am a graduate student. I have worked very hard to finish this degree and part of that means working long hours without compensation. Anyone who would make me feel bad about that is not worth my time. When a friend tells me that everyone is going to the Landmarc and I can't afford it, I wish them well and tell them I'll meet them later.

I don't share food or buy rounds

This is a killer. Shared bills rack up charged very quickly, especially when drinks are involved. When I am strictly budgeted, I simply don't do it. When there is a group of people rotating in and out of a waitressed, seated area a bar I either ask for a separate cheque, close out a tab immediately or I get my drink at the bar and come back.

I alternate water with drinks

This slows the drinking, keeps me from being hungover and leaves my wallet intact. Usually have a club soda, which can be easily disguised as a vodka soda-like drink if I am pressured to have a drink in front of me.

If all else fails, I leave

If I am already out with friends and my attempts to keep the evening low cost are unheeded, I simply step out. The bar hours in this city run until 4:30...and then there are after clubs and diners. A 7 pm after work drink can turn into my key slipping into my front door at 8:30 am the next day. It has happened before - so if my friends really want to go someplace very expensive, and I can't negotiate another location, I let them go without me. My friends are pretty awesome though, so this rarely happens.

Any other tips that might be helpful?

One income - let the challenge begin

The sun goes down on my income generating years, for now

We are now officially down to one income. I am, of course, extremely nervous. I have been employed since the age of 13. I have my own money my entire teen and adult life. Now, I have to rely on someone else to parcel out cash to me. Given that I spent most of my last pay cheque preparing Go bags and an emergency pantry, H will be rolling out money to me faster than he might think.

This period is supposed to be temporary for us. I am defending soon and desperately searching for a post-doctoral position. If all goes well, I will have landed a job by January. Still, I've been on 4 interviews already and nothing has stuck. I keep getting offers and new potential employers contact me almost every day, but none of the positions are the right ones. The P.I.s are unfocused, or are looking for someone who can pipette without thinking. While most grad students work for their advisors for a few months after they graduate, this is not an option for me. My bosses are abusive, unproductive and have gotten a taste for free labour. I might feel better about it if my bosses could get off their butts and respond to any of my emails about finishing the paper. That is a drama for another day.

I would be lying if I told you that the thought of me never finding a postdoc position had not occurred to me. My anxiety about this is such that I have started dreaming about P.I.s that have rejected me hugging me. That's messed up, right?

In anycase, whether I am ready or not, whether I want to or not, I am now completely at the mercy of someone else's income and job performance. H is great at what he does, but I've never been in this position before. I bought some almonds and dried mango on the way home today. It occurred to me that I will have rethink every little pit stop like that.

So onward and upward. I planned on this day, but have decided to make the following immediate emergency measures to make life easier. From now until January I will

a) limit restaurant visits

b) enjoy a drink or food when I go out with my friends, but not both

c) I will eat before going over to a friend's, running errands, or attending meetings so as to not have a painful discussion about why I can't get a bite to eat

d) I will not split courses at a restaurant with anyone other than H

e) shop grocery sales

f) be more vigilant about power usage

g) use Skype more often to speak to family and complete post-doc interviews

h) limit the purchase of special drinks i.e. coconut water, skinny water etc.

i) set a budget and list of new clothing items for the Fall/Winter and not stray from it

j) make more $5 meals

k) limit house parties to a single small one in four months

l) still put 10% of whatever H gives me each month into savings :)

Any other ideas? I still have this last semester of tuition to pay :(

I'll be back Sept 1, 11

Hurricane Gilbert, 1988 Landscaping and lawn decor
Photo credit: Newscom

It's looking like NYC will be out of power for a few days. H and I are making a few preparations and then will be hunkering down to hang out in our hallway until the storm passes. As a last post, I thought I'd feature my favourite hurricane photo. I know that sounds grim - who has a favourite photo of a mass disaster? Well, people about to undergo a mass disaster I suppose. This particular shot is brilliant, if not just because it looks like a giant hand picked up a boat and dropped it on this guy's front yard.

In anycase, all the best to you. H, I'll see you in a few minutes.

LPC

Natural disasters

Irene, extraordinary, expensive - high maintenance lady

As anyone has likely heard, hurricane Irene is on its way. It will hit the coast of North Carolina today as a category 2 hurricane - but, will pretty itself up for a trip to Manhattan, where it will pull out all of the stops as at least a category 1, possibly a category 3 storm.

Why is this a problem? Well, New York is low lying, and in the Northern end of a well traveled storm path known as the Gulf stream. We are particularly susceptible to storm surges - which are arguably the most dangerous part of a hurricane. Thing is, we get tropical depressions and Nor'Easters, but we haven't seen a landfall hurricane possibly ever...and certainly not one close enough to do serious, serious damage since 1938....and that was a glancing blow.

Irene promises to be different. It is a very large and slow moving storm that will move over, what I now understand, to be unusually warm water surrounding the city. As you likely know, warm water = hurricane speed up.

Irene is special for another reason. New York is in the direct path of her crapness. What does this mean? It means the stuff you saw in the ill thought out godzilla remake in the mid-90s is actually happening. The city is simultaneously shutting down mass transit and ordering mandatory evacuations AT THE SAME TIME. I'm not sure if you will see people running back and forth around a big green foot, but the situation is serious enough that we've had to do three I didn't think I would have to do.

We had to make a "Go bag", an evacuation plan and an emergency connection plan

H and I are still working on the evacuation plan. His employers and I are in disagreement about the risk of this hurricane. Right now, they want him to report to work. If he insists on being there, maybe we will hole up in that building.

We made an emergency connection plan - if we are separated, we will meet at specific, public location.

The Go bag - unexpected expense - we dropped about $80 on it yesterday. I'm budgeting it into "household expenses". Our go bag contains

a) all important ID
b) water
c) first aid kit
d) all portable hard drives
e) toothbrush, toothpaste
f) energy/granola bars and tin goods
g) pet food
h) cash
i) my laptop = my dissertation
j) underwear
k) flashlight, spare batteries
l) medications

Beside that, we stocked up on food and water, and have a blanket and pillows ready for an evacuation.

Now we just need to settle that evacuation plan. So far, leaving the city and living this out in inland Connecticut is very appealing, but will cost a pretty penny.

Short post today - Thank you Steve Jobs

Steve Jobs will stay on as Apple's Chairman

...but alas has given the CEO seat to someone else. I do feel bad for Jobs and his family - particularly since I can see his clavicle under his sweater in this photo. I deeply suspect, like many others, that he is stepping into the chairman position because he will soon be too ill to continue as any executive. An intermediate move to chairman will help keep the company stable during what will be a very rocky end of week and months for the market.

He has been lucky. While most patients with a pancreatic cancer diagnosis get a few weeks, he has been very fortunate to have nearly a decade. I didn't think I would feel like this, because, well, I don't know him. I do genuinely feel remorse for Jobs and his family.

While Mr. Jobs and his family and company are preparing for his move to the backseat, I can't help but wonder what this will do to the markets Thursday and Friday. Apple is a cornerstone of the American markets right now (more money than the U.S. Treasury apparently). Thursday was predicted to be a swell of trading and setting up positions ahead of Bernanke's speech Friday. The Jobs resignation might change that - hasten it, introduce additional instability. It's odd to think that such a horrible event for one person and their family could actually affect what the exchange rate will be....how much money I will be able to put aside...what my retirement savings will be worth next month.

I'm not very consumerist, but I do enjoy having a stable and speedy laptop, a simple and tiny machine that carries my music, an apple store that I can walk into 24/7 to fix my computer problems no questions asked. My work life is easier because of simple perceptions of ease and subsequent alterations to personal electronics. It's kind of sad to see the master of taking the complex and sophisticated and making simple and accessible, step away from the helm.

Dear Mr. Jobs - my best wishes to you. In the last ten years, you have changed my life for the better. Thank you, and Mr. Wozniak and Wayne.

Breaking up on a really, really small budget

"You won't be needing that"

I've spent a lot of time writing about food and weddings on this blog. H and I are pretty tight with a couple who broke up a little while ago. The break up deeply shocked at least one member of the couple. I reminded me that I once broke up with someone I lived with in this city....and that, that break up almost financially ruined me.

Renting in NYC is damn pricey

It's no surprise that living in NYC costs a pretty penny. Rent is especially high, and tends to dictate a person's monthly allowance for "luxuries" like gym memberships and cable. I spend more in my rent monthly than my sibling spends in mortgage payments and insurance every month. Why would anyone ever do that?

Well, 55% of all New Yorkers rent their apartments. I would buy my apartment if I could, but alas a mere 350 sq feet in the cheapest neighbourhood South of 96th street will cost a body at least $200 000. Those 350 sq feet will cost you a lot more if you plan on living in any neighbourhood you heard about on Sex and the City or any other number of fluffy, syrupy television shows about New York. It costs a lot to buy here, about as much to rent. If you are low to middle income, it can be very difficult to gain financial ground. Many people live hand to mouth just to put aside an emergency fund, let alone a down payment.

Add to that the cost of moving - a minimum $500 for movers to schlep your stuff from 5th floor of the walk-up you can afford to the top for floor of the next walk-up you can afford, along with basic moving supplies, and the dreaded first and sometimes last and sometimes even an additional month's rent as security for the new apartment and a traditional move in New York for the lowest end studio or 1 bedroom apartment costs at least $2.5K, usually more.....definitely more if you include a broker's fee.

High rent +break ups = more to worry about than who is keeping the apartment

It's very hard to find affordable housing here. Until the 2008 market crash, most apartment dwellers earned their apartment by being taken to town by countless real estate brokers (15% broker's fees for low end apartments). It's even harder to find an apartment with a few desirable features like a partial kitchen, southern exposure or on site laundry. When you find that big apartment, with the echoey kitchen, short number of flights, southern exposure and maybe even a closet you can convert into an office, and slam down those broker's fees and down payments well...you'll fight to keep that apartment.

Most articles about apartments and breaking up in New York focus on exactly that - who gets the apartment? Such articles gloss over the harsh reality of live-in couple break ups - that is the end of a long term relationship can be financially devastating, even if you don't share any assets.

High rent + sudden break up = WTF do I do now?

What do you do when the break up is sudden? In the case of our friends, one simply left the other with literally minutes worth of notice. Moreover, the one that left makes many fold the income of the other and had been paying the majority of the rent. What do you do when you are mid-lease and caught completely unawares? What do you do when you don't have an emergency fund?

I found myself in very similar circumstances 6 years ago. In my case, my ex and I were olympian credit card users as well. For me, the problem became managing consumer and student debt on 1/3 of my previous year's income AND keeping the apartment. My solution was pretty simple - pack and move to cheaper digs until things emotionally and financially settled down.

How I broke up on a budget in NYC

For me (and I'm not a financial advisor) the best approach was to cut losses and cut losses fast. How do you do that? I took a long hard honest look at my money and fought to preserve it. Here is what I did that first week.

1) Listed all of my basic costs

It was painful, but I sat down and listed out every monthly expense I had

2) Listed all debts and assets - shared or otherwise

This was a really awful but necessary experience. I owed well ~100K on my own. He owed money as well. If I intended to financially survive after this hiccup, I needed to know what debts were due right now and how much I owed for the remainder

3) Listed all of my income coming in.

I listed all income actually coming in..not income I thought might come into my hands

4) Basic costs + debt payments - income = could I financially get by without him?

Nope. I very quickly realized that I couldn't financially survive for very long without some support.

and then over the 1-2 months I...

5) spoke to my landlord about breaking my lease

I told my landlord what had happened and offered to help find a new tenant for a few months down the road. They were very understanding and I was spared the cost of my security deposit.

6) found a considerably cheaper apartment - without a broker

This is important - I skipped using a broker. That meant a lot more footwork for me. In the post-2008 real estate market, many management companies are simply renting directly to the consumer - no fees attached. I stayed in the new digs for about 6 months while I got back on track. The switch to a cheaper place made a big difference in my ability to financially recover. Had I been really been with it, I would have found someone looking for a roommate - still, my new digs were cheap enough to let me pay the immediately bills and get my footing.

7) did not use a mover

I needed that $500. Are you kidding me? I borrowed and rent vehicles and enlisted friends to help move what remained of my destuffed stuff. On the odd chance that my friends could not help me, I threw out or sold well over half of what I owned.

8) cut unnecessary costs

I dumped gym memberships, stopped eating out and (after a brief spurt of insane consumerism) I stopped shopping. It was time to gird the wallet

9) did not ask my ex for specific property...in the beginning

I did not want to have to hire and pay a lawyer to fight my ex for my property, so I made the property a non-issue. I was not, afterall, fighting for the custody of a child or a major asset. I temporarily adopted the view that most everything could be replaced. Everything was packed up in storage and when we calmed down a few months later, we methodically went through shared property and decided who would get what.

10) sold and destuffed as much of my property as possible

Apart from being immensely therapeutic, selling some of the items that were just mine lessened the cost of my move (supplies, gas, vehicle rentals).

11) separated all bank accounts

I actually didn't do this right away. Perhaps I should have. It was done eventually though.

12) made a list of I owed him, and what he owed me

We were both very poor and very much in debt at the time, but we had both paid 1000s of dollars to each other for various expenses over the years. I had paid more to him than he to me. I knew that I needed to be repaid to settle some of the debt I still held from the relationship, so I made a list. When things calmed down a little between us I spoke to him about the debts and we set a repayment plan in place. This plan was only possible because our break up stayed above board - and very friendly.

13) increased my income

I quickly took on additional jobs so that I could repair the financial damage of my relationship and our break up. I searched craigslist, asked my current employers and aggressively put my name in at every place I could think of that offered pay and flexible hours. I took on odd jobs, contract work...you name it, I did it.

14) started my emergency fund

Yup, it took nearly being homeless and bankrupted by a relationship gone wrong for me to do - but that's when I start paying myself that 10% a pay cheque.

And eventually, I....

15) read up on personal finance - specifically for single ladies

Along with various "For Dummies" books about stock investing and value investing, I read "The Everything Guide to Personal Finance for Single Mothers". I am not a single mother, but it was the only version of the "Everything" personal finance series that I could get as an ebook from the New York Public Library. It might be the best thing I ever did. I had been given most of the financial advice made in the book at other times. I can't say I followed all the advice the book gave. What really change my life was the book's bottom line descriptions of poverty stats - that most desperately poor people are women (often widowed women). It is worth reading just for the wake up call. It also contains descriptions of how wealthy people manage their own finances (i.e. buy used, not new etc.).

16) started aggressively decreasing my debt and conservatively investing

This took a little longer for me to get rolling on that I thought it would. Eventually, I started taking a more active hand in lowering my debt and preparing for retirement.

How did I break up on a budget? In short, I ditched the apartment, cut costs and increased income as quickly as possible.

Have I recovered? Emotionally - yes....years ago. Financially - almost. It took me about 6 weeks to recover from the immediate costs of a the break up (moving, the many phone bills etc), in part because I immediately moved to reduce day to day and break up costs. It has taken me a few more years to recover from the debt acquired during the relationship...but that's a story for another time.