A lot of the time, the Q&A on travel nursing jobs usually involves how much money nurses make and how they can get that money and save it, maybe even multiply it, since money is essential to have when you are traveling. Are nurses financially stable? Other nurses have a hard time trying to handle their money, so here are a few tips on how nurses can invest with confidence.
How do nurses manage their money?
- Pay off any credit card debt immediately
Your first priority should be taking control of your financial well-being and being able to pay off any of your credit card debt. You need to maintain a good credit score, so you have to pay minimum or else it would go plummeting down. The more you procrastinate in paying any of your credit card debt, the high-interest rates that the bank gives you could and could be your financial downfall.
- Consider refinancing your nursing school loans
Nursing student loans are obviously high, with an estimate if $30,00. Now this might be the reason why you have loans in the first place but you should consider refinancing all of your loans that you are sure would be financially burden free.
- Save an emergency fund
Expect the unexpected, they do say. There might be times where you would be put in a situation that you never expected to happen, like your car broke down, would you be able to repair it? No. You have to save at least 3 months of expenses before you go and splurge your money out. This would make your life easier, and would give you the comfort that you need in case anything else happens.
- Create a monthly budget
Having a monthly budget helps you track all your expenses, so you know where you need to cut down on. Saving for the future highly involves getting into a routine by creating a monthly budget and the like. You need to add up all your monthly expenses..
- Consult with a financial planning professional
As a nurse, you might not have time to actually sit down and create a plan, you could always just go and consult with a financial planning professional.
Why is it important for nurses to understand health care financing?
- The cost of care is skyrocketing
Health care is a safety net. Many Americans right now cannot afford and/or do not qualify for an insurance, and they go about their days without the needed preventative care so their safety net is the limited emergency, high cosy care because their rights to this care are protected by the Emergency Treatment and Liability Act despite not having the means to pay.
- More than half of health dollars go to hospitals and providers
31% of the health dollars goes to hospital care, while 20% of it goes to clinical services.
- Medicare and medicaid reform is inevitable
Medicaid and medicare are the safety net programs for both adults, children, and persons with disability.
- Reimbursement is now based on performance
The new model of reimbursement right now is to pay for performance. It means that you have or the hospital that you have been working for, would have good outcomes and penalize those who fall into the lower 10%
- Keeping patients out of the hospital is the future of care delivery
Many healthcare leaders think that we will have 20-30% fewer hospital beds by the end of this decade. Hospitals with Heart Failure, Acute Myocardial Infarction and Pneumonia are allowed to be readmitted within 30 days.
How much should nurses save for retirement?
One thing that nurses need to take in regarding their retirement fund planning, is to aim to save 15% of your salary each year and save it for retirement. This way, you would have a decent amount to live your life once you decide to hang the towel and retire from your job. But if 15% is too hard for you, you could start at a percentage that you could handle, then slowly increase it by 1% each year.
It is never too late to start saving, if you are having a hard time starting, you could slowly start saving up until it becomes a habit. You should start planning and coordinating your plan with all your other goals and risks in order to have a much stable life beyond your nursing career.