Powered by ConvertKit Why Are Irregular Expenses a Problem for PhDs?
#REGULAR MONTHLY EXPENSES FREE#
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Medical copays, deductibles, and insurance. Insurance premiums (health, dental, vision, car, renter’s, life, disability). Car (maintenance, repairs, parking permit, registration, taxes). However, if you had an irregular expense of $500, how could you pay for it without wrecking your budget?Ĭertain categories of expenses tend to occur irregularly and in large amount, though the exact list of irregular expenses in your life is individual. The irregular expenses that call for a solution are large ones that your typical monthly cash flow cannot absorb in stride.įor example, if you have a Miscellaneous line item in your budget of $25 and could find another $25 of wiggle room by cutting back if necessary, one irregular expense of up to $50 in a month does not on its own call for an involved solution. When you have a small irregular expense that can be easily absorbed by your ‘Miscellaneous’ budget line item or within the normal fluctuations of your monthly spending, they don’t pose a problem. Typically their frequency is once per year or a few times per year they definitely do not occur every budgeting period (month). Irregular expenses are expenses that occur infrequently. When I present this solution during my personal finance seminars, I find that it really excites the PhD students and postdocs in the audience because large irregular expenses are such a common problem with this population. I ran into this problem during graduate school and found a workable solution: targeted savings accounts (or sinking funds). 
Imagine this: A spending opportunity arises (your friend’s destination wedding, a non-functioning car or computer, a conference, a tax bill) and as much as you scrimp that month and the next you just can’t cover the expense with cash.
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