If you got to this part of the Applicant journey, it means you are Accepted as a Microverse student, congratulations! Now we need some information from you to finalize your student registration, and it's essential to be as honest as possible with yourself and with us when sharing your financial situation.
You might be wondering why you need a financial plan to join Microverse. The answer is simple: although you won't pay us anything until you get a job that pays you $1,000 USD or above, you still need to support yourself for seven months of going through the Program's technical curriculum plus five months of searching for, and landing, your dream job 🎉
When filling out the Financial Plan form, organize your expenses based on all the items you need to survive and how much you pay for them. We all need shelter and food, but how much we pay for that varies according to our country and disposable income. If you live somewhere with unstable internet, you should include the price of your backup plan, like a mobile data plan to hotspot the internet so you can join your daily activities.
Can you provide an example?
The following is an example of a fictional Microverse student from Brazil. They will need to convert their expenses from Real, the currency where they live, to US dollars - this is a requirement so that we can analyze the financial plan. The student has the following monthly costs:
🏠 Housing/Rent = $240 USD
⚡️ Electricity = $20 USD
🌍 Internet = $40 USD ($30 for fiber + $10 for mobile)
🌮 Food = $80 USD
🚌 Transport = does not apply (They will be studying from home)
💊 Health items and other essentials = $50 USD ($20 prescription medicine + $30 clothes/books)
Total = $430 USD
Please note that each situation is different, so if you pay for a coworking space every day to attend classes, you need to add that monthly cost and the transport to that place. The important part is to think critically about everything you will need financially for 12 months from starting the Program.
What if someone is financially supporting me?
If you live with your family, they might be covering most of your expenses, especially rent and food. If that is the case, maybe you aren't aware of the cost and how much they pay for these items. However, please ask yourself: what will I pay for? Sometimes students contribute by paying the electricity bill, the mobile phone plan, or the internet. You need to add these items to the financial plan.
What if I have multiple sources of income?
It's important to analyze different ways you are getting income every month. Let's go back to the fictional student from the example above. You may recall they have $430 in expenses every month. Here is how they earn their income:
Family support = $250 every month ($50 USD from uncle, $100 USD from a sibling, $100 USD from parents)
Passive income from a property rental = $200 USD a month
$600 USD in savings
How long would you be able to sustain yourself financially?
To calculate that, sum up all the money you have and will get during the program. Add any savings you currently have and all the earned income you will get from passive income, support from your family, or any other way you will earn money. Returning to the example, here's how that looks:
$250 USD every month from family x12 months = $3000 USD
$200 USD property rental x12 months = $2400 USD
$600 USD in savings
Total = $6000 USD
Now divide this total by the monthly amount you spend ($430 USD in our example) = 14 months of income. This student has more than enough money to cover their expenses during the course because they can support themselves for 14 months.
Be honest: are there any upcoming expenses you're not considering? An annual bill or tax? Maybe you will be moving from one apartment to another? Are you buying a car? Do you have plans to have a baby next year? All of these should be added to the list if applicable.
What if I lose part of my income?
Asking this question would scare anyone, and we tend to avoid thinking about it. However, when analyzing finances, it's essential to consider the risk of losing your financial support. If you lose your financial support, Microverse cannot help you. You must have a Plan B for your income during the course. Questions to consider for the need for a Plan B: If just one family member supports you, is it likely that they will lose their job? Is your part-time job temporary?
In this case, we recommend that you consider alternatives like speaking to another family member beforehand and letting them know you might ask for their financial help if something happens. If you live alone, you might consider relocating and living with your parents to cut expenses or adding a roommate to share the monthly costs.
All these are good Plan Bs if you have a difficult time financially. Of course, you need to apply reasonable solutions for your situation. Still, the more you think about it, the easier it will be to manage it before you start your Microverse journey so you can focus only on learning.