Travel nursing is a very demanding profession that can leave little time for anything outside of work and family responsibilities (let alone sleep!). As a result, travel RNs often find themselves scrambling when it comes to personal finances or long-term financial stability.
As precious as free time is, it’s important for travel nurses to take time out to focus on the financial component of their lives on a regular basis or we suffer the consequences later! In order to help, we’ve compiled these 3 tips for travel nurses to help manage personal finances more effectively.
Travel Nurse Financial Management Tips
1.) Don’t do it on your own:
Use a combination of technology and a financial advisor to help get financially organized. Utilize technology to get organized and utilize the help of a financial advisor. There are numerous financial organizational software programs available on the market. Most of these do a good job helping you to stay organized. At a minimum you need a program where you can input all of your data and accounts. Additionally you should have a program where you can link your accounts so that values gets updated daily. This will help you see where you are at in regards to having enough short term liquidity, building adequate long term investments and all areas in between.
Becoming and staying financially organized will help you as you transition between jobs and will help you stay on track to becoming financially independent.
Now, technology is great but you will also need some human interaction as well to help you make the right financial decisions. So be sure to team up with an advisor where technology and human touch goes hand in hand. This gives you have someone to call when questions arise and someone who can coach and guide you during both good and bad economic times.
2.) Set up automatic savings plans as a financial platform
It is very difficult to save money consistently if there is no automatic system in place. Relying solely on having the discipline to not spend all of the money in your checking or savings account can be difficult and stressful task. On the other hand, it’s easier to have savings automatically allocated towards different accounts every month and have the money taken straight out of your paycheck or out of your savings/checking account. By having automatic deductions in place, two things occur that will ease your mind.
First, new savings and wealth is being built. Second, it gives you the freedom to spend everything that is left in your checking/savings account. By doing it this way you will have less stress around what you can afford and what you cannot spend money on and you know that you are saving for the future as well.
3.) Don’t stick your head in the sand – be engaged when it comes to your money!
You shouldn’t have to meet with your advisor and talk to your advisor all the time. However, it’s critical that you are aware of how, where, and why your money is invested the way it is. You must have an investment policy statement and a profile set up that fits with your investment allocations. It’s also important that it fits with your overall financial plan and risk comfort level.
Make sure you talk or meet with your advisor at least two times a year. Make sure that the advisor is aware of job & family changes in addition to any other events that might affect your overall plan.
As a general rule, you should be fully aware of why the plan is set up the way it is. Consider understanding allocations, industries, geographies, etc. This is not only true when it comes to your investments but also holds true in regards to:
- your insurance portfolio
- your debt reduction plan
- savings rate (more on this in a future article)
- overall financial plan.
2016-25878 Exp. 7/18
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