We decided to automate our finances. After figuring out our monthly expenses, setting our budget in Buckets, and consolidating our bank accounts, we’re finally at a point where we feel comfortable automating everything. Here’s what we did.

We used YNAB for years, but the current subscription price increased to $99 a year. So we canceled that after I found a new budgeting software called Buckets. It costs $49 total (price is increasing in September 2023), with no subscription, and has similar features to YNAB except for syncing with bank accounts and credit cards.

I’ve been thinking more and more about financial independence and retirement, even in my early career as a postdoc. It’s important to think about retirement while you still have time at your advantage. Time in the market beats timing the market, because of the magic of compounding. It’s even more important to take investing in your retirement in your own hands as a grad student as there are several things working against us when it comes to retirement savings and investing.

If you are a postdoc or newly minted faculty working in academia, or if you’re working for a non-profit, you may be able to contribute to a retirement savings account known as a 403(b). It is similar to the 401(k) in terms of contribution limits and benefits. You can contribute to it using pre-tax income, lowering your taxable income. You pay taxes when you withdraw the money after retirement age (59.5 years). Or, if the institution offers it, you can contribute after-tax money to a Roth 403(b). When you withdraw after you turn 59.5, and as long as the account has existed for at least 5 years, you can withdraw the money tax-free.

I have brokerage account with Vanguard. I use it to save up for a car in 10-15 years. It’s a longer-term savings goal, so I didn’t want to put it in a high-yield savings account. A brokerage account is perfect for financial goals that you want to meet in 10 years or so, but still want to be able to access it before traditional retirement age.