For nurses ready to start balancing their finances, we recommend starting to focus on three main things—your budget, your debt, and your savings.
Transcript
Whether you just graduated, or are enjoying a successful nursing career, it’s never too late to get a handle on your personal finances. To get started, focus on three things—your budget, your debt, and your savings.
First, set up a way to track your income and expenses using the 50/30/20 rule–50% of your income for needs; 30% for wants; 20% for savings. Whether you use a budgeting app or a simple spreadsheet, it’ll help you live within your means, avoid overspending, and save for the future.
Next, pay down your debt, starting with the highest cost accounts, such as high-interest credit cards. For student loans, refinancing might be a smart move, especially if you qualify for a lower rate or shorter term.
Finally, build your savings. Set aside 3 to 6 months’ worth of essential expenses in an emergency fund and dedicate 10% to 15% of your income for retirement. If your employer matches contributions to a retirement account such as a 401K, get in on this benefit right away. Take care of your finances the way you take care of your patients and you’ll maximize your earning potential before you know it!
