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You have probably been offered admission to a graduate program and you are wondering if your stipend will be enough. First, congratulations on your admissions and no, your stipend will never be enough but the good news is that it will cover your basic expenses. In case you are unfamiliar with the term stipend, it is a form of payment given to graduate students who have teaching and research assistantships. A stipend is not a salary and does not compensate for the work students do but it is rather intended to support their education in a nominal way.

Stipend rates vary depending on the program, university, location, and budget and students typically earn between $9000 to $34000. Most students have expenses such as housing, food, transportation, books, health, utilities and these costs can quickly pile up leaving students with little or nothing at the end of each month. However, you can do the the following to stretch your stipend.

Plan and Budget

Create a plan for your money. Grad students have meager stipends so you want to know where your money goes. Begin by setting out your financial goals and then calculate your income and expenses. Use a money tracking app to record every cent you spend. A plan would save you from impulse spending and enable you plan for important things.

Save

Saving might feel like a challenge on a low income but it is the best way to achieve your financial goals. I recommend the 50/30/20 rule which allocates 50 percent of your income for needs, 30% for wants and 20% for savings. You probably wouldn’t be able to afford that trip to Cancun if you don’t save for it.

Find discounts

There are tons of discounts for students so take advantage of them. Ask your university for students benefits that might include discounted car rental, insurance and restaurants. If you are big shopper, plan for major shopping around sales season and get membership to wholesale stores. Companies like Nike, Apple and Microsoft also offer student discounts. For student deals, check out Studentbeans and UNiDAYS.

Cut expenses

One of the best ways to save money is to cut unnecessary expenses. Nonessential expenses like entertainment should be lessened or replaced with free alternatives. Cancel subscriptions you don’t use often and lower housing expenses. That daily lunch trip to Chipotle might put a dent on your finances so consider making lunch at home.

Invest

Investment is your pathway to financial stability so learn to grow your money. You can invest in ETFs, stocks, and mutual funds. Start out with a small amount of money and build your portfolio over time.