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Financial Strength Through Unity

By Frugaling 9 Comments

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Union Strikers
Photo: Kheel Center/Flickr

We get paid to go to school?!

I had this misconception about graduate school. See, I thought that when I worked for the university, added to the research landscape, and taught undergraduate courses, my own tuition and student fees would be paid. Even when I entered the University of Iowa for graduate school, I didn’t completely understand the financial obligations that are placed on students.

My first year as an instructor and employee of the university, I was quarter-time. That meant I would get 25% of a salaried employee (just over $10,000 per year). Additionally, because of my graduate student status, I’d receive a “tuition waiver.” This benefit sealed the deal and made graduate school sort of “affordable.”

Across the graduate colleges at the university, the majority of students received a 100% tuition waiver. Inexplicably, my college didn’t receive that benefit. That meant that around $2,000 per year of my tuition would come from the “paychecks.” To make matters worse, student fees cost about $2,400 per year.

If you’re doing the math with me, that means that I was getting paid in my first year of being a graduate student: about $10,000 minus $2,000 for tuition and $2,400 for student fees. It equaled roughly $5,600. Now, that quarter-time salary was decimated. Money for rent, food, and regular budgetary expenses disappeared. I had to take out loans to live.

Aren’t we trying to “better” ourselves?

As the years passed, I was afforded more opportunities and a semi-living wage. I was able to pay off my debt with my side income and stay away from student loans through a better “paycheck.” But the tuition waiver gap and student fees meant that I still paid much of it back to the school.

Those pursuing higher educations and degrees for more competitive employment should be commended. Unfortunately, our society and system doesn’t necessarily allow for all those to succeed.

Considering the cost of a graduate degree and the years of minimized/lost wages, it is an expensive proposition. Inherently, that means that only a select class of privileged individuals are more able to pursue this education. The consequences of pursuing a graduate degree without funding and few assets can be horrific, and lead to massive student loans.

That’s why students sometimes need to collectively bargain, unionize, and ask for better treatment.

Hope for a more respectful future

Last week, the union for graduate students at the University of Iowa accomplished something amazing. After months of consternation, threats to the tuition waivers, and proposed student fee increases from higher ups, the union demanded respect. They wouldn’t budge.

They asked for a 100% student fee waiver. While they didn’t receive that, the bargain was a 25% student fee cut for those on assistantships (working for the university).

They asked for a real 100% tuition waiver for all graduate students across the colleges. And they received that! Now, certain colleges within the university system that charged more tuition will be equalized.

Additionally, the union lobbied to provide better health coverage for transgender individuals, single-parent households, and much more. It was a moment of hope — of acceptance for diverse populations and classes.

And just like that, I received a nearly $3,000 raise! Without the union, I would still be bitterly explaining — to everyone who’ll listen — that my $22,000 ($18,000 after taxes) salary doesn’t actually equal what I take home.

The importance of collective goals

Unions have been villainized recently. Take Governor Tim Pawlenty of Minnesota, who said, “In many cases, [unions] exploit and abuse the taxpayers.” These disparaging remarks undercut the importance of unions for actors, on-air talent, auto-workers, politicians, teachers, students, professors, and countless others.

Historically, collective bargaining and unionization helped employee wages, voting rights, and improved safety in some of the most dangerous industries. Businesses weren’t interested in helping workers, and they didn’t have incentives to change.

When workers came together, worked towards similar goals, and collectivized, employers listened. If history repeats itself, then we ought to reflect on this lesson. Change and respect for students and others across the world will come from the bottom-up — not the top-down.

Filed Under: Make Money Tagged With: college, employees, graduate school, higher education, Salary, Students, taxes, unions, university

Entering My 3rd Year Of Graduate School

By Frugaling 8 Comments

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Target Semester School
I really liked these pillows (Target calls them “Poufs”). Not buying one at $45 — that’s for sure!

As the upcoming academic semester approaches (now two days away), I can’t help but notice how much worse my body feels. Nervousness affects me in atypical ways — mostly subconscious and physiological. But it’s this same undercurrent of stress that can sometimes lead to outsized spending. I need to be careful during these periods.

Yesterday, I saw sweaty, dew-soaked windows of the frozen food aisle and thought, “This is a perfect reflection of my toiling stomach.” I was a young whippersnapper when I first realized I had lactose intolerance. Then there were strange “allergies,” the removal of certain food groups, and tests to see what was wrong with me.

The best answer that doctors ever gave me was that I have Irritable Bowel Syndrome (IBS). This cantankerous medical condition wreaks havoc on my insides. I can feel food traveling through my system and doing battle with my intestines — harmony be damned. At the beginning and end of every semester, I have horrific flare-ups.

Like Drake’s recent single, life goes from 0 to 100 real quick when the semester starts. The world seems to enter hyperdrive, and I begin to notice significant changes:

  • I spend less time in the mirror (good).
  • I don’t floss as often (bad).
  • My hair gets crazier (take it or leave it).
  • I drink more coffee (probably exacerbating the hyper feeling).
  • I pack lunches (good).
  • I’m surrounded by people all the time (as an ambivert, a pleasure and challenge).
  • Procrastination increases, as academic projects feel less important when compared to working with clients (ambivalent).
  • I’m distracted by due dates (bad).

This semester will be the busiest schedule of my life, and I must trek all over the city to make it happen. I’ll be on the westside to eastside to southside of the city almost every day — and all by bike. The responsibilities and hours won’t cease for the next 3.5 months.

At the beginning of every year I panic, apply to/fantasize about other jobs, and think about whether I can handle it. My insides erupt and argue with me; screaming, “not again.” Despite these physical, emotional, and psychological challenges to come, life has never been more full.

I’m lucky to have incredible friends around me. They give me a positive energy and purpose. Likewise, I have this website, which is a wonderful distraction. I love being able to write to you all, save money together, and share our successes and failures. I paid off all my debt this year, and completely revamped my financial life. The stress of debt is no longer!

Graduate school is a challenge — every day — and I wouldn’t change it for the world.

Good luck to all of you who are headed back to school!

Filed Under: Save Money Tagged With: Academic, bike, graduate school, Job, Life, school, Semester, Stress, Work

How To Fundraise $25000 In 12 Months

By Frugaling 4 Comments

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Sam Lustgarten Always Remember Speech

In search of hope amidst great pain

To save money on housing and food, I decided to become a resident assistant as an undergraduate student. That decision put me on a collision course with residents dealing with serious mental health concerns. The transition to college was always different — some people eased right into it and others struggled.

I loved my residents, and thought we had an incredible academic year. It was April when everything changed. A resident died by suicide. As one of the first responders to the scene, the visuals caused an aching, grinding weight over my chest. Over the course of the next six months, two more people in my life would die by suicide.

It shattered me. There were many days in which getting up was a trial. I’d leave classes early to go into a bathroom and cry. I remember feeling lonely and isolated in my pain. It took that heartache and tragedy to find hope for something better.

Always Remember Fundraise Plan
Part of my proposal to administrators.

Finding, honing an inspiration

I was desperate for action. Then, a flash of energy hit me in one sleepless night nearly a year after the first suicide. I wanted to start a scholarship to fund undergraduate students who wanted to pursue suicide prevention and/or work with those suffering from severe mental health concerns.

Over the course of the next month, I created a proposal for the university and told them how I would fund an endowment (a self-supporting — through interest — scholarship). I explained that I had been talking to friends and family. Altogether, we could scrounge up about $2,000 to start.

They told me I could try, but I’d need to fundraise $25,000 within 5 years.

I said, “Deal.”

Make the first donation

When I started the scholarship I had about $500 in my bank account. I had few assets. Still, I sold everything I could and donated a couple hundred dollars to start the scholarship. It was less than 1% of what I’d need to raise, and it hurt to give that much (especially since I’d need to take out student loans soon after that). No financial advisor would say it was wise.

I had to give everything I could. My head and heart were sucked into this powerful idea — hope through tragedy. I don’t regret giving as much as I did then or over the years. It fueled my passion to seek donors and encourage others to join me.

Realize your connection to community

With almost every cause, there’s a community of support behind it. I realized I wasn’t alone in my distress and desire to make an impact. In fact, the community around my alma mater was incredibly supportive. They were eager to make a difference, as well. They had been affected by this issue.

I heard stories about lost loved ones — brothers, sisters, fathers, mothers, children. It hurt to hear the stories, but I only grew more connected to those around me. Eventually, students at a local high school started fundraising for the scholarship. It brings tears to just think about how meaningful that felt. A cynical part of me died when others began to donate. I didn’t know if anyone would support the cause.

Inspire yourself and others

Suicide Prevention Fundraiser
Group of supporters spent a day in the plaza providing information about the scholarship and suicide prevention.

The $2,000 wasn’t enough, and I felt a pressure to make this happen. I told everyone about the scholarship. Donations began to trickle into the scholarship account.

I shared on Facebook and Twitter — all over social media. Each time led to others sharing. The positive feedback was unmatched in my life. It felt amazing to be channeling such a dark period in my life.

Others were inspiring, pushing me to continue. Likewise, I seemed to inspire others. This shared, symbiotic relationship appeared to benefit everyone. My energy, which had long been depressed and negative, shifted.

That first summer, a massive, $5,000 donation was made. The idea of a scholarship to prevent suicide and provide awareness to this issue struck a chord with many who were affected in the community.

Throw away modesty, seek media attention

This is the trickiest part for some people. Seeking attention is something that society generally says is inappropriate. Unfortunately, far too many people think media will just come to you when they’re ready. I threw that lesson away as fast as I could.

Seek out media outlets! Talk to local papers, zines, and websites about your story and propose times for interviews. This has a tremendous snowball effect to getting donations and finding supporters. Media can be your best friend. You never know, you might just get the biggest paper in your state covering the scholarship and linking to it.

Endowed status!

After about 12 months — the fastest a scholarship has ever been fully endowed in the college — over $25,000 was raised. Whatever you’re looking to fundraise for, know that you can. Follow your passion, link others, connect with a community, give until it hurts, and seek some old fashioned media attention. You can do this.

If you would like to donate to the Always Remember Never Surrender suicide prevention scholarship I founded, head on over to: https://advancing.colostate.edu/arns

Filed Under: Make Money Tagged With: college, endowment, graduate school, scholarship, school, Student Loans, university

Find A Roommate And Financial Freedom

By Frugaling 4 Comments

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IMG_4288

As a student, I feel like a pinball getting smacked around from location to location. I’ve moved about 9 times in my adult life. I’ve lived with significant others, friends, acquaintances, and even by myself. I trekked across campuses, cities, and the country. After two years living alone, I found a roommate and will make my tenth move this summer. Today, I wanted to spend some time reviewing my current and future living situations, a hesitancy regarding roommates, and the effect on my budget.

My Man Cave

Two years ago, when I received my admission to graduate school and decided to move to the Midwest, I was ecstatic, but clueless about housing. I didn’t need much – just a roof over my head and basic utilities. I jumped at an opportunity to live in the university apartments. I hadn’t seen the outside or inside of them, but the price ($435 a month for a one bedroom) was unbeatable.

Look at these digs!
Look at these digs! Perfect for a window air conditioner.

What I found was both decrepit and lovable. The apartments bubble with rust. A perma-dirty linoleum floor greets my toes when I slide out of bed each morning – you never get used to the cold. The faucets run a yellow/red when they’re not run regularly. My circular thermostat doesn’t account for certain parts of the apartment, which seem to be unprotected from the harsh, Midwestern cold. Cinder blocks are stacked high on the walls, painted over in what can only be assumed to be lead paint. A thick coating of asbestos lines the ceilings.

Despite misgivings, it’s my home, and I love it. Actually, I find it comical how much I don’t want to leave my current apartment, and I’m only leaving because the university is demolishing them.

Forced to move again, while balling on a serious budget with severe time constraints, seemed impossibly difficult. Then, the university notified everyone that new apartments were being built in time for my departure from the old ones. I could just move right into them!

Luxury Living At A Price

Over the last decade or so, the university considered a construction project to repair and rebuild the flood-damaged, aged, asbestos-filled apartments. Year after year seemed to pass without resolution. When I moved in summer 2012, I heard the whisper of change – a private bidder on public lands.

Then, a resolution quickly swept over the university apartment system. New buildings, contractors, and contracts would be drawn. The private company would revitalize this community with opportunity, design, and (supposedly) affordability. Tenants would see a brightened exterior and feature-filled interior. The costs would unfortunately need to increase, but we were assured they’d be manageable.

Something seemed askew about allowing private bidders onto public, university property, but the messages seemed positive. A few months later I found out the price: $875 per month for a one bedroom. In other words, more than 100% what I paid when I first moved!

Despite balling on a budget, I resigned to the fact that my 60-70 hour workweek wouldn’t enable me to tour many places. I would accept whatever they required. I signed a lease last year, much to my dismay and confusion. How could the university charge $875 per month for student housing?

Wake Up And Smell The Budget

Even though the price of rent was steep, I relished my independence, at the expense of my budget. I wanted to be frugal, but not that frugal. This new rent would decimate everything I worked towards over the last 10 months. I balanced my budget and created a tiny surplus for each month. But paying $875 a month would mean losing about $3000-4000 per year, plus student loans with at least 6.8% interest APR. I can’t even calculate the true cost of this decision.

Over the course of this semester, I’ve been working hard at not working. Essentially, I reached burnout, and to counteract these notoriously awful feelings, I decided to spend more time going out with people. Being able to socialize and meet new people has been one of the best experiences of my life. It’s kept me sane amidst my crazy-busy life.

Thankfully, meeting people also meant finding those in similar situations: looking for roommates. Over time I found someone that was excited about living together and could afford to split a two-bedroom apartment. The mental math was easy: rent would be $550 per month.

The challenge for me was realizing my prejudices towards having roommates. In the end, I realized that opting for the expensive rent was a cop-out to finding a roommate and managing my delicate budget. The reality was that I didn’t have independence until I was free from debt. I’m looking forward to having a new roommate, paying off even more student loan debt, and freeing myself from the burden of an unbalanced budget.

What have you done to save on rent, housing, etc.? What do you think about living with roommates? Any recommendations for me?

Filed Under: Save Money Tagged With: apartment, Budget, Burnout, Finances, freedom, Frugal, graduate school, housing, moving, rent, roommate, Student Loans, university

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