As a nurse, you know a lot about physical health, but managing your finances might seem tricky. The earlier you start learning, though, the more your money can work for you.
You don't need a degree in economics to manage your savings. With a good advisor and a focus on financial stability, you can build a strong portfolio no matter where you are in your career.
Let's take a closer look at financial planning for nurses.
New Grad and Early Career (20s-Early 30s)
Starting your career can be overwhelming with planning, night shifts, and other challenges. Fortunately, financial planning is often straightforward at this stage.
Build a Starter Budget
Create a simple monthly budget to keep track of your spending. Begin with these main categories:
Rent
Food
Transportation
Loan payments
Leisure
This will help you develop good money habits and prevent overspending.
Tackle Student Loans
If you don't have a repayment plan yet, consider these options:
Income-driven repayment plans
Loan forgiveness programs for nurses
Refinancing options
Paying even a small amount extra can reduce the interest you pay over time.
Start an Emergency Fund
Aim to save at least one month's expenses in your savings account. You don't need to do it all at once. Start by setting aside $25 to $50 each week.
Put Something into Retirement
It's smart to start saving for retirement early. Even small contributions to your employer's 401(k) can make a difference. If your employer matches your contributions, be sure to take full advantage since it's free money.
Mid-Career (Late 30s-40s)
By now, you're likely earning more, and life may be busier with children or a new home. This is a good time to strengthen your financial plan to protect your family and your future.
Increase Retirement Contributions
When you get a raise, try to put more into your retirement savings. Many people aim to save 10 to 15 percent of their income at this stage.
Protect Your Family
Make sure you have enough life and disability insurance. As a nurse, your income often supports your household, so it's important to keep it protected.
Plan for College Costs
If you have children, consider opening a 529 plan. Even small monthly contributions can grow over time.
Pay Down High-Interest Debt
Credit cards and personal loans can hold you back from reaching your long-term goals. Try to pay off these balances as soon as possible.
Build Home Equity
If you own a home, making extra mortgage payments when you can may improve your finances and lower future costs.
Late Career (50s+)
As you approach retirement, your financial goals might shift. This is the time to save as much as possible and learn about your benefits. The decisions you make now can shape your lifestyle for years ahead.
Maximize Retirement Savings
If you're over 50, take advantage of catch-up contributions to add more to your 401(k), 403(b), or IRA. This is often when you're earning the most, so it's a great time to save extra.
Plan for Healthcare in Retirement
Health care costs can rise as you get older. Review your employer's retiree coverage, learn about Medicare, and think about extra insurance plans.
Update Your Estate Plan
Estate planning includes updating your will, choosing beneficiaries, and making your medical wishes clear. You may also want to set up a living trust. Keeping these documents current can help your family avoid probate.
Think About Your Transition
Start thinking about what you want your retirement to look like. It might include:
Part-time work
Volunteering
Travel
Your investments and financial plans should help you enjoy the retirement activities you want.
Contact HEFCU to learn more about our financial planning services.
Financial planning for nurses is often easier with professional help. You can do it on your own, but it's easy to miss out on valuable opportunities.
HEFCU's financial advisors can help you create a strong plan for every stage of your nursing career. Get in touch to see how simple financial planning can be.
Image credit: // Shutterstock // khunkornStudio
