Labiofy

When I was in high school, I received a stipend of 1000€ twice. Being a teenager, receiving that amount of money felt like I was a millionaire, and let me tell you – I spent it like one. Gifts, clothes, classes… suffice it to say, it didn’t last long.

The next big chunk of money wouldn’t come until seven years later during my Masters degree, where I was one of those lucky students being paid for lab work. Living with my parents meant zero responsibilities, so I spent the whole month dreaming about my end-of-month salary. The result? Shopping sprees where I bought every single piece of clothing I liked (don’t worry, the salary wasn’t huge enough to break the bank). It felt awesome. While my subsequent spending wasn’t quite as lavish, I still wasn’t saving. Let’s just say I have a weakness for splurging on my loved ones, and savings didn’t enter my vocabulary until I moved out and got married.

Looking back at that lavish lifestyle from my first paychecks, what do I have to show for it today? Literally nothing remains except the memory of how awesome I felt. But you know what? I don’t regret it. Some experiences belong to specific ages, and your teenage years are the time to make mistakes (small mistakes, not illegal mistakes, ok?).

Now that I’m wiser (or at least I like to think so), I understand the importance of financial planning. This is especially crucial for researchers like me, who often rely on fellowships with clear start and end dates. While no job is completely secure, academics face a unique challenge: our salaries come with expiration dates right from the start of a project. This assumes everything goes smoothly – fellowships get renewed properly and nothing triggers early termination. It’s a far cry from the comfort of a steady paycheck and guaranteed vacation days (and no, I’m not diving into academic exploitation here – that’s a topic for another post).

This is why planning for rainy days is crucial. Trust me, they will come: maybe you’ll need to replace all four tires at once while your pet decides to eat something weird and needs emergency vet care. Or perhaps you’re facing that gap between fellowships, or – dare I say it – planning for retirement. Retirement, Mariana? I’m too young to think about that! Don’t worry, I’ll prove you wrong in a later post.

Here’s the harsh truth: if you’re living in the moment and spending every last dime, you’re setting yourself up for a rough ride. Emergency expenses will hit hard, and when that fellowship ends, paying rent becomes a real challenge. (Want a nightmare scenario? Imagine having to move back in with your parents and explain why you’re stumbling in at 3 am on a Friday night.)

Making a plan isn’t just important – it’s essential. Understanding how much of your fellowship you can save and invest for your future is crucial. The real transformation happens when your mindset shifts from YOLO to actually caring about your future self. Suddenly, investments don’t look like gambling anymore (trust me, I used to think the same), and you find yourself having meaningful conversations about your portfolio with friends. You start spotting where you’re leaving money on the table in your salary and discovering job perks and banking system benefits you never knew existed.

Remember, personal finances are exactly that – personal. Everyone’s circumstances are different, and these differences multiply across countries. There’s no one-size-fits-all formula here. But here’s what I know for sure: no one will take care of you if you don’t start taking care of yourself. This applies not just to money, but to every aspect of life where self-kindness matters.

Want a sobering thought? Remember that 2000€ I received over two years in 2010 and 2011? If I had invested it in the S&P500, it would be worth more than 10,000€ in 2024. That’s the power of saving, investing, and being willing to learn and talk about money. I let many opportunities slip through my fingers, but not anymore.

Have a great day,

Mariana