Financial Independence And Nursing

Nurses General Nursing

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Are there any RNs here (or former RNs) who have been able to become financially independent or close to it after being an RN? The reason I ask is because I've been reading a lot of stories online about people who have become financially independent and able to retire before the age of 65 (some at the age of 35-40) and I admire that, like that, and find that to be inspirational. The thing is, many of these stories have been from people who were in the engineering field.

Is there anyone here who was able to take this path with past experience as an RN?

Specializes in Critical Care, Education.

One of the problems for my generation (Boomers) is that so many of are also caught in a financial 'sandwich'... providing support for elderly parents as well as children who can't/wont achieve independence or (worse yet) boomerang back home with the grandkids after ending up as a single parent. I don't know if anyone accounts for all of these events in their long-term plan. But it is reality. Many of us could retire earlier if we only had to support ourselves, but that rarely happens these days.

A more frequent scenario? Retirees returning to the workforce due to unexpected changes in their financial situation. Worst case scenario? Getting stuck with a child/grandchild's student loans because you co-signed and they can't or won't pay them...

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It's about been responsible with what you earn. My past career I have met enough Physicians struggling with debt even with a 250K job.

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You can become FI at a reasonable age > mid 50's if you LBYM, invest wisely, and most importantly, start early. I'm 58, 33 year career, DW had a megacorp job with a defined pension benefit plan and a 401k. She went PT at 55 and retired at 60. I got laid off a year ago. Our home ($288K) is paid for. DW has a $59K pension, $20K in SS and combined we have $2.4 + million invested in a 50/50 blend of index and bond funds. My SS which I will take at 62 is $20K so without touching a penny from our investments, we will have $99K as a base, no dogs, no kids. You wouldn't have a clue that we were worth near $3M if you met us in the cul-de-sac or at Target. I drive a Honda Civic (love it !) and shop at Costco. We have a cell phone through Ting.com, less than $20 a month. We live within our means and have a nice life. We've been all over the world and vacation in Hawaii for 2 weeks every year. I would recommend a visit to the bogleheads web site for advice on how to get started and how to properly invest in low cost, diversified index funds. I started investing at 23, the earlier you start the more likely you will enter the realm of financial freedom.

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The opposite. I expect to be joining the ranks of those nurses I have met who found it necessary to work well into their 70's. Nursing has not turned out to have been a wise career choice for me. I expected to be employed as a nurse, not depending on unemployment benefits that are well below the minimum wage, in order to pay my rent and other living expenses.

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Specializes in Critical Care.

Nursing pays a living wage, but you would have to live very frugally or put in lots of overtime to be able to retire early! Also you will work very hard for your money and risk getting injured and probably end up in chronic back pain if you go into nursing. Is it really worth it? I would look for something easier, like accounting.

It is become harder to make a good living in nursing because of the large student loans many nurses owe and the BSN adds even more debt to be paid back, while benefits like pensions are rarer than ever! Whatever you decide to do, the best thing you can do for yourself is minimize student loans. It is hard to save for retirement when you are saddled with debt from student loans!

If you can, starting your retirement savings in your 20's can really give you a bump start. Time really matters more than how much you put aside. The sooner you start the sooner time will allow the money to capitalize and compound! I can't emphasize that enough. If you can, do a Roth IRA as that money grows tax free and in an emergency you could take out the principal without penalty!

Lastly it's not just how much you make but how you spend it. You really need a personal financial education to make the best use of your money so you don't end up overpaying from bad student loans, credit cards and even mortgages. Some good books I recommend Personal Finance for Dummies by Eric Tyson, All your Worth by Elizabeth Warren, Liz Weston such as Deal with Your Debt, Your Credit Score and Easy Money. Also the Rich Dad/Poor Dad series has good info and books by David Bach like Smart Women Finish Rich. I'm also a fan of Suze Orman and recommend watching her PBS Specials and her weekly finance show on CNBC. Also read about personal finance on yahoo and MSN and check out money magazine.

Your credit score is very important and impacts all sectors of your life from the interest rates you are offered on credit cards, auto loans, and mortgages to the price you pay for insurance and even if you are chosen for a job. You need a budget that includes saving. The biggest temptation facing Americans is overspending. Credit cards make it very easy to buy anything you desire, but that doesn't mean you should or even can afford it. You have to live below your means to be able to save and live a full life.

All your worth offers a sensible budget 50% needs, 20% savings & debt repayment & 30% wants. If you can keep your needs like rent/mortgage down to 50% it makes it much easier to survive a crisis whether injury/illness or layoff.

I know so many people, even nurses, that have bad credit and end up overpaying for everything from car loans to mortgages. A bad credit score can literally cost you thousands over your lifetime!

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Nursing pays a living wage, but you would have to live very frugally or put in lots of overtime to be able to retire early! Also you will work very hard for your money and risk getting injured and probably end up in chronic back pain if you go into nursing. Is it really worth it? I would look for something easier, like accounting.

It is become harder to make a good living in nursing because of the large student loans many nurses owe and the BSN adds even more debt to be paid back, while benefits like pensions are rarer than ever! Whatever you decide to do, the best thing you can do for yourself is minimize student loans. It is hard to save for retirement when you are saddled with debt from student loans!

If you can, starting your retirement savings in your 20's can really give you a bump start. Time really matters more than how much you put aside. The sooner you start the sooner time will allow the money to capitalize and compound! I can't emphasize that enough. If you can, do a Roth IRA as that money grows tax free and in an emergency you could take out the principal without penalty!

Lastly it's not just how much you make but how you spend it. You really need a personal financial education to make the best use of your money so you don't end up overpaying from bad student loans, credit cards and even mortgages. Some good books I recommend Personal Finance for Dummies by Eric Tyson, All your Worth by Elizabeth Warren, Liz Weston such as Deal with Your Debt, Your Credit Score and Easy Money. Also the Rich Dad/Poor Dad series has good info and books by David Bach like Smart Women Finish Rich. I'm also a fan of Suze Orman and recommend watching her PBS Specials and her weekly finance show on CNBC. Also read about personal finance on yahoo and MSN and check out money magazine.

Your credit score is very important and impacts all sectors of your life from the interest rates you are offered on credit cards, auto loans, and mortgages to the price you pay for insurance and even if you are chosen for a job. You need a budget that includes saving. The biggest temptation facing Americans is overspending. Credit cards make it very easy to buy anything you desire, but that doesn't mean you should or even can afford it. You have to live below your means to be able to save and live a full life.

All your worth offers a sensible budget 50% needs, 20% savings & debt repayment & 30% wants. If you can keep your needs like rent/mortgage down to 50% it makes it much easier to survive a crisis whether injury/illness or layoff.

I know so many people, even nurses, that have bad credit and end up overpaying for everything from car loans to mortgages. A bad credit score can literally cost you thousands over your lifetime!

How is becoming an accountant wiser ?

They make less money, less benefits, and you need a masters degree (more college loans) to become a CPA.

Pretty much everyone is going to have college loans these days, a bachelors degree is effectively a highschool diploma. So its not like just nursing needs a BSN so only theyll have student loans.

Id much rather be a nurse with a BSN's student loans, then a kid with a bachelors in liberal arts or marketing with the same amount of loans.

I agree with the book recommendations though, lotta good stuff you mentioned (+1 on rich dad/poor dad) though id never watch Suze Orman. Her advice is catered to a different kinda folk

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Specializes in Nursing Professional Development.
DW had a megacorp job with a defined pension benefit plan and a 401k. She went PT at 55 and retired at 60. I got laid off a year ago. Our home ($288K) is paid for. DW has a $59K pension, $20K in SS .

While I agree that nurses can live a comfortable lifestyle if they manage their money well ... you had a lot of help from your wife, who has earned a lot more than you in your nursing career. A lot of people don't have a spouse who earns that much.

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Specializes in CCU, SICU, CVSICU, Precepting & Teaching.

Depends upon what is meant by "financial independence."

I've been financially independent of my parents since I was 17. I own my own home, drive reliable cars and take nice vacations. I'm also planning to retire at age 59. Of course, I'll be dramatically reducing my standard of living to retire at 59. I'm selling everything I own to live on a boat with my husband and travel around the world taking my home with me. I guess that would be pretty darned financially independent!

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My grandmother stayed at home with her children till I believe the youngest was in high school, then spent the rest of her working years as a textile factory worker. She retired at age 65. My pappy (yes, I called him pappy) was a bootleg coal miner who's "career" ended early, mid 50's?, due to black lung. They scrimped and saved and lived below their means and were both able to not only live a comfortable retirement into their 80's, but also left a nice amount to their 5 children.

God bless them. I miss them terribly.

I truly believe it is what you do with it that counts.

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Specializes in ER.

It depends on the lifestyle and how you save your money. I know people who live comfortably off of being a part-time Wal-mart employee however they do not have the nicest things in life. I also think it depends on how you save your money, how much you invest, and how much school loans you take out. There are people taking out over 100,000 just for undergrad.

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you need a masters degree (more college loans) to become a CPA.

You only need a bachelors to become a CPA. A masters will allow for advancement options but it is not entry level.

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You only need a bachelors to become a CPA. A masters will allow for advancement options but it is not entry level.

Im not an accountant so I dont know how accurate this is, but this is consistent with what ive read multiple times

Most state boards of accountancy require a minimum of 150 hours of post-secondary education from a regionally accredited institution. This typically equates to a Master’s degree. Most state boards also require a minimum number of college credits in various accounting topics and business law. So if you want to become a CPA by first passing the CPA Exam, plan on obtaining a Bachelor’s degree in accounting (typically at least 120 semester hours) as well as a Master’s degree in accounting or taxation (typically at least 30 semester hours). In some states, having a Master’s degree in accounting or taxation and a Bachelor’s degree in another subject will suffice, however this depends on each state board’s core course requirements. Visit your state’s board of accountancy website for specific information.
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