Four years ago, I waved goodbye to my 9-to-5 job and said hello to grad school. Why? Well, it hit me that money is just a tool, and I was craving more purpose in life. So, I dove into a PhD program to learn up new skills and change the course of my future. Little did I know that it was going to be my trial run for early retirement.
Although, you might be wondering, how can grad school be a taste of FIRE (Financial Independence Retire Early) life? Here’s the scoop:
Find your way around:
Living on a Tight Budget:
If you’re in grad school, don’t expect to stockpile cash for FIRE. But if you want to practice living on a tight budget like you would in retirement, then grad school might just be the ultimate trial run for early retirement. Stipends are usually puny, and raises can barely keep up with inflation. Still, after years of enjoying a healthy paycheck, my 70% pay cut was an excellent rehearsal for financial independence.
Flexible Schedule:
Once you’re done with coursework, your schedule is all yours. The academic world is super flexible about when and where you work. Want to work from home? Grad school’s got your back. Sure, there’s loads to do, but running errands on a Wednesday morning is a breeze.
Exploring New Hobbies:
In grad school, you’ll hit roadblocks, like waiting for your committee to return from vacation or server maintenance. That’s when you’ll need new hobbies to keep you from going stir-crazy. Think of it as a perfect time to start a blog, guest on podcasts, or record some YouTube videos.
Self-Motivation:
Apart from exams, most of grad school relies on self-motivation. Advisors won’t be breathing down your neck to meet deadlines, and if you’re pushing for something, there’s often an extension lurking around the corner. Ever heard of the legendary 10-year PhD? If you want to graduate in a reasonable time, you’ve got to be in the driver’s seat, setting goals and creating a feedback network.
Rolling with the Punches:
Another crucial lesson from my PhD? Adaptability. Just like in FIRE, your plans might go sideways in grad school, forcing you to pivot. Grad school is no stranger to setbacks, so you’ll become a pro at adapting or risk getting left behind.
Side Hustles:
Before fully embracing FIRE, consider having a side hustle for that financial buffer. Grad school’s flexible schedule and modest income make it perfect for side gigs. I graded papers for a few semesters and even started my coaching business. The best part? Each semester is a new opportunity to try something different.
Soul Searching:
Grad school gives you plenty of time for deep thinking. You’ll question the meaning of life after hours of research, literature review, and writing. If you haven’t had a midlife crisis yet, grad school’s here to help. You can mentally check out for weeks, and it’s considered “all about the process.”
Taking Care of Your Health:
While the pay might be low, health insurance is often fantastic. Chances are good that you’ll be near a research hospital, and healthcare costs next to nothing. This is the time to address those nagging health issues you never had time for during your busy working years. I had a full month off for surgery with “full” pay and could ease back into work during my recovery.
Addressing Mental Health:
Mental health is vital. Many grad students admit to facing mental health challenges during their program. This is your opportunity to work through repressed emotions. A mental breakdown or two may be part of the process, but with great health insurance, you can afford those therapy sessions to keep you on track.
Conclusion
In a nutshell, grad school will test you financially, physically, and emotionally. It’s not for the faint of heart, and if you don’t at least once think “I just want to quit,” you’re probably not in the United States.
Why is grad school like a dress rehearsal for early retirement?
It’s the ultimate test, teaching you to manage on a tight budget, stay self-motivated, adapt to life’s curveballs, explore new hobbies, and dive into deep introspection. You’ll learn to roll with the punches and even develop side hustles to keep the financial wheels turning. Grad school is a boot camp for financial, mental, and physical fitness. If you can survive it, early retirement may just be your next big adventure.
Want to follow along with our journey?
