Financial Update Post

So, I have not made as much progress on my student loan repayment as I would have liked. I had to use my emergency fund (EF) to pay for some stuff back home and I have been rebuilding it back up. My EF in the U.S is only $1000.00, but I am trying to build an EF here in Sweden of about 25,000 SEK or about 2500 USD. This would be used for moving expenses and first months rent and deposit when I move out of my current apartment.

I also might have made a mistake when it comes to my U.S. taxes. I recently found out that because I have been putting money into my IRA I might not be eligible for the foreign income exclusion on my U.S taxes. So, I am going to hold off on putting more money in until I know exactly what is going on. I have also heard that I might be eligible for a tax break on my Swedish taxes because I have been using my Swedish income to pay my US student loan. I know it is not the best move when it comes to accruing interest loans but I have decided to only pay a little more than interest accrued once a month. Just to see for sure where I stand in the tax situation in both countries. So, that means I'll be saving my money, instead.

I was considering putting my money in a Swedish brokerage account especially since savings accounts here don't accrue interest right now. I went to my bank here and I asked about opening a savings account, and I was told that it was essentially negative interest, but they are so kind they just bump it up to 0% interest. So, I am just leaving it in my free checking account for now until I figure out what I can do.

The good news is that I am helping my mom run a  Poshmark page, a Mercari page (which I will add the hyperlink later), and an Etsy page. So, a portion of the money earned from here are going towards our Financial goals. I will make a specific post about my goals specifically.

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PhD in Sweden

Some of you may be aware but I recently started a PhD in Sweden. Now as an American this is a great thing.

I always wanted to pursue a PhD and had been searching for programs for a couple of years. I considered going back to the U.K. but I decided to look elsewhere in Europe since I knew some did not require tuition payments and paid a stipend.

I decided to apply to a university here in Sweden and it was the best decision I made. Unlike many universities in the U.S. you'll need a grant or hold a position as a graduate assistant for a tuition reduction or coverage. I also know a lot of people who pursued and are pursuing PhD's in the U.S. that took out more student loans. This was NOT the route I wanted to take. I already have student loans and I did not want to add to them, just pay them down.

Pursuing a PhD here has many benefits. To be honest, I do not understand why more Americans are not taking advantage of them.

1. You are treated as an employee and an early-stage researcher. 
2. You earn a salary, granted you have to pay taxes on it. However, I find the after-tax pay very similar to an entry-level banking position in the U.S. 
3. Great healthcare and very low cost. Seriously, I broke my arm my first week here and had to have surgery. So far, I've only had out-of-pocket expenses equate to 1000 SEK (~$110.00), which is supposed to be reimbursed once I no longer have to go to P.T. Another benefit!

There are other benefits but these are the only ones that come to mind.

Now, for the fun part. I am currently on an Income-Repayment for my student loan (SL) back home. This means that every year I tell the company my current salary and they calculate my discretionary income and 10% of that is my monthly payment. Now, that I am in Sweden my take-home pay in USD is now $0.00. This means that I don't have to make a payment but it still accrues interest. 

I have been working on paying it down by wiring money home and paying for it that way. So far the wire transfer fees from my bank here are not too bad but I am looking for cheaper options, like TransferWise. I've had other friends studying in Europe who wired money home that way.

Like I said, I am writing this as a way to follow my personal progress and for other Americans to see that pursuing a PhD in Europe is an option. Especially, if you can still pay your student loan. Since, I do not see a lot of blogs about that right now.

Anyway, if you have any questions or suggestions, let me know!

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