Cheryl Haines, MPH, MSc, BSN, RN
This article originally appeared in the October 2024 issue of Vital Signs.
Learning to manage your finances is crucial to building independence. Nurses sometimes face unique financial challenges (called-off shifts, unpredictable paychecks, heavy student loan debt) that can affect their security. While money management skills aren’t typically taught in school, we can often learn through friends and family. The collective knowledge of those who have experienced similar situations is often the most valuable.
Budgeting Basics
Brittany Khoury, a psychiatric nurse in Austin, Texas, says the most important advice she could give would be to “live within your means.”
She says, “If you find yourself short every month, you need a budget. Find an app you like (You Need a Budget and Credit Karma are popular) and track your spending.”
Budgeting is essential to financial health. But how do you do it? All budgeting apps have similar underlying approaches:
Start by determining your monthly income. If your income varies each month, create a budget using the lowest possible income.
Gather and add up essential and nonessential expenses, including savings.
Subtract your expenses from your income. If you’re in the negative, cut back on your nonessential expenses.
Track your expenses all month to keep yourself accountable. Put any extra income toward savings or debt repayment.
“Consistently being and feeling broke is demoralizing. Stick to your budget to break out of the pattern,” says Khoury.
Setting Financial Goals
Mary Richard, an endoscopy nurse in Lake Charles, Louisiana, also has her own business. When asked for tips on financial security, she said, “Set a goal and keep your eyes on the prize. Having both short-term and long-term goals can help keep you on track.”
To set financial goals, use your budget to determine where you can improve, such as paying off high-interest debt first, reducing small daily expenditures, or even changing jobs. Awareness of your spending is key to setting and reaching financial goals. For example, paying off debt and creating an emergency fund may be necessary before making a big purchase, like buying a house.
Smart Saving Strategies from Nurses
Raphaella Rodriguez-Williams is a travel nurse from Beaumont, Texas. When asked about saving tips, she explained, “First, start saving early and maximize contributions to any employee-based saving schemes, such as a 401(k). One of the most important things I did was—when I became a two-income household—we continued to live off only one income. This allowed us to save substantially and provided security in case of job loss. We already knew how to live on one income.”
Richard added, “Connecting with others who were a bit further in their financial goals really motivated me to be disciplined and save substantially more. Without that connection, I don’t think I would have saved as much.”
The road to financial success can be challenging, but with budgeting, planning, and smart saving, nurses can achieve financial security. Learning from our fellow nurses about how they have succeeded in reaching their financial goals can make the road seem less daunting.
Author Bio
Cheryl Haines, MPH, MSc, BSN, RN, is a registered nurse with a diverse background spanning science, epidemiology, and education. Combining experiences in public health, molecular biology research, and education with her nursing experiences, Cheryl brings the unique perspective of a scientist, nurse, and teacher to her writing. She specializes in cardiac nursing, with experiences in cath lab and the cardiovascular operating room.
