It’s important for everyone to know how to manage their finances well, including things like paying off debts, building savings, and having a fund ready for emergencies. But it’s even more essential for nurses because your budget plans can get complicated based on things you can’t control.
In this article, we’ll guide you through the basics of managing your money as a new global nurse in the US. The more you understand about finances, the smarter choices you can make with your money.
In a recent survey, 61 percent of nurses shared that they struggle to find time for retirement planning due to other priorities. Additionally, 59 percent admitted feeling uncertain about where to start managing their finances, while 6 percent expressed confidence in their knowledge about investing.¹
These findings shed light on the common financial challenges within the nursing community.
Getting a handle on your finances helps you secure financial stability and freedom. To check your financial status, consider these four elements of financial health:
Managing your finances comes with its own set of challenges. As a nurse, you often work long hours and juggle various responsibilities. With the demanding nature of your schedule, finding time to check, track, and take steps to improve your finances can be quite the task.
Here are some factors that may hinder your financial well-being:
Working irregular hours and having unpredictable schedules can leave minimal room for financial planning. One of the challenges of hourly pay and shift work is the mindset it cultivates.
Planning a vacation? Pick up an extra shift. Faced with expenses like your child’s braces? Clock in for overtime.
Thinking you can always work extra shifts or find a per diem job can cause problems. It’s important not to get into the habit of thinking, “I’ll just work more to pay for things.” While it might help in the short term, it’s not a practical or long-term solution. This mindset, while offering solutions for immediate financial needs, may not be sustainable in the long run.
If you don’t have sufficient healthcare benefits, retirement plans, or other job perks, it can leave you financially vulnerable. This means you might face difficulties, especially when unexpected medical expenses arise.
That’s why you must also consider seeking employment with a good employer offering comprehensive benefits. A workplace with solid benefits can provide the necessary financial safety net, making it easier for you to handle unexpected financial challenges and secure a stable future.
Related Reading: You Don’t Have to Leave Your Family Behind to Be a Global Nurse – Bring Them to the US!
You must keep learning and staying updated on medical advancements through continuous education. However, the cost of these nursing programs might stand in your way, making investing in your professional growth challenging. This financial barrier can limit your ability to enhance your skills and knowledge in the healthcare field.
Related Reading: Is Continuing Education Worthwhile for Global Nurses?
You might have to cover the cost of work essentials like uniforms and stethoscopes. On top of that, the hectic schedule might end up spending more on meals at work or grabbing food on your way home.
It’s understandable that, with all these costs, there might not be much left for savings. But even with unexpected expenses, debts, and bills, you can still work towards building an emergency fund, paying down your debt, and growing your savings.
While you start spending your working years taking care of others, take a moment for yourself by going through this guide. It’s time to make sure your financial future is secure.
Creating and sticking to a budget is a powerful way to improve your finances. Whether you’re used to living paycheck to paycheck, trying to improve your spending habits, or saving up for something special, a budget can be the vehicle for reaching your goals.
Here’s how to do it:
Saving money is like having a safety net for unexpected events like car trouble, medical emergencies, or losing your job. So, you should create an emergency fund that can cover 3-6 months of your expenses. Once you have that safety net, you can also save for specific goals like a vacation, wedding, education, or a new car.
As you consider your nursing education and career, find ways to increase your earning potential. Here are some ways to increase your earnings as a nurse:
Borrowing responsibly and keeping a good credit score is an essential part of managing your money. Having a good credit score can help you get better interest rates, increase how much you can borrow, lower your home and car insurance rates, and qualify for rewards on credit cards.
Here are some tips to improve your credit:
Although you may not need to use your insurance often, it gives you peace of mind and can be priceless when unexpected things happen. You can also ask for help from a financial advisor to help you set up plans that align with and contribute to your financial goals.
As a quick reminder, here are some insurance types you might need:
Additionally, as a nurse, it’s important to consider malpractice insurance or liability coverage. Having malpractice insurance can help protect your license and assets. It also helps with legal fees if a patient, their representative, or the state board of nursing takes legal action against you.
Planning your finances takes time and effort but doing it with purpose can really make a difference in how well you’re doing now and in the future. Financial planning is like a roadmap that helps you reach your short and long-term money goals, whether that’s going back to school or buying a house.
And remember, your financial planning should be flexible and adaptable as your life and career change. Instead of only focusing on big-end goals, tracking the small progress you make is powerful. These little wins help you reach your main goal and make you feel good and motivated to keep going. It’s a reminder that every little effort adds up and brings you closer to financial success.
Related Reading: Top 5 Reasons Why Nurses Pursue a Career in the US
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Reference
1 Matt Stewart, CFP®, ChFC®. “Financial Planning for Nurses.” forestviewfp.com, 06 May 2019, www.forestviewfp.com/blog/financial-planning-for-nurses.