I'm a neurotic planner and I like researching the hell out of things before I commit to them (that's how I switched from physical therapy to nursing, and so glad I did).
So I hear a lot, a LOT about the issue of paying back loans. I've considered maybe a nursing corps loan forgiveness program but I wanted to explore other options, mostly because I've seen a lot of people frustrated with the state of under-served areas. As a new baby nurse, I'd rather my first couple years be in an environment that isn't so frustrating.
This is a lot of math guesstimation if you want to skip it.
I'm from Hawaii and I'd like to go back, and according to the research I've done the take home for BSN is 1,500 dollars a week (1,600, but lets leave room just in case). I'm a low maintenance person and will probably share a house and use public transit or a scooter for getting around. Craigslist has a lot of shared houses at around 600-700 a month and I estimate no more than 400 a month on groceries. I spend 200 a month now, but food is more expensive on the islands. That leaves me with more than 3000 dollars a month. I'm expecting no more than 30k in debt, most likely closer to 20k but again, let's leave room just in case. These loans are mostly government. I'm storing 600 a month away for taking my parents on a trip after my first two years. What am I forgetting? I'm left with 2,500 a month for loans and whatever else. After my trip with my parents I'm going to give travel nursing a shot and then start putting away money for later.
What I'm doing now is using about 8,000 to pay for school that I had in a fund, plus half my tuition is covered via scholarship, and I'm living at home. I'm working, but all of that money goes straight to travel, because that's how I keep my sanity.
I mean I'm in my 20's, I don't have kids (nor expect any, ever), I don't have any commitments- should I be bracing myself for a nightmare? What other costs am I not factoring in? Should I be looking at loan forgiveness programs?
You're right, 100k does seem awfully high, that's why I was suspicious about how easy it looked to pay off loans! I don't think I'm going anywhere as a new grad, because I want to stay with my University hospital for at least 6 months at first.
I'm wondering how people in my social circles are getting there and managing to have a home when they're all in their early 20s, some without degrees.
The past few weeks I've been hearing really good things about Colorado, which is just a state over, which looks like a better idea every day.
Thank you so much, this is really helpful- I barely pay for half of these on my own right now and I don't realize how expensive living in general can get!
You're right, 100k does seem awfully high, that's why I was suspicious about how easy it looked to pay off loans! I don't think I'm going anywhere as a new grad, because I want to stay with my University hospital for at least 6 months at first.
I'm wondering how people in my social circles are getting there and managing to have a home when they're all in their early 20s, some without degrees.
The past few weeks I've been hearing really good things about Colorado, which is just a state over, which looks like a better idea every day.
Thank you so much, this is really helpful- I barely pay for half of these on my own right now and I don't realize how expensive living in general can get!
I am from Colorado and live in Washington (WA has no state income tax), both are great states, but don't come here we are full .
Your social circles are probably living paycheck to paycheck and have a lot of debt. I travel a lot now as a nurse but I moved back home for grad school and just work per diem. My money goes to school and travel. I worked 3 full years before going per diem so I saved a lot.
Is going back home an option? You don't need to jump right at getting a home at your age. It's nice but not necessary. I love travel (going to Italy in 3 weeks and was in Germany 2 months ago) and would never give it up.
"Also realize that a "baby nurse" is a specialty. And that more than likely the new grad positions you may find are not specialties."
Thank you, this is super helpful! Oh, and by baby nurse I mean a new nurse, not NICU or anything- that's what all my instructors have been calling us. I'm a very antsy person and I like the idea of traveling now, all the time, without waiting, and I get too excited about it. Getting 2 or 3 years of experience is really good and reasonable advice.
Tangent, how did your research direct you to nursing versus physical therapy?
I was on a pre-PT forum for a while, and did a lot of newbie obnoxious posting about PT schools. I had my heart set on something out of state, regardless of cost- at this point, I was completely unconcerned with debt. No one had told me how paying off debt 30 years ago was so different than paying off debt now with the rise in tuition.
A really experienced poster was warning everyone about debt. He sort of called me an idiot for wanting to go to school in Seattle just because it was pretty even though it would leave me 100k in debt- which is the honest truth, that is a pretty dumb idea.
From what I understand, PT used to be a bachelors, then it turned to a masters, and now it's a doctorate, but the salary for PT apparently hasn't been keeping up with the cost of getting a doctorate. Also, I would be going straight into a 4 year program after my bachelors, something I didn't want to do. I also find myself getting bored with things after a while, and knew if I became a PT, paid $xx,xxx to go to school for it, and then wanted to try something new, I'd be kind of screwed. Nursing turned out to be a magic bullet because I love learning about medicine and the human body, it offers a lot of different fields, and I can go to grad school later in life if I choose to, no pressure to go straight into it at 22.
The nursing school I'm at is dirt cheap compared to lots of PT programs.
The cherry on top was shadowing at the PT clinic. It was relaxing and seemed like a great job, but it was a little too slow and peaceful for me. I like a little more chaos!
I encourage you to start saving NOW for your retirement, home, emergencies, etc.
Let the miracle of compounded interest work for you.
If at age 25 you were to put $2K in a mutual fund, you would have over $43K at age 65 assuming an 8% growth rate. (Over the history of the stock market, stocks average 8%.)
If you were to wait until you were 35 to invest that same $2K, it would be worth only $20K when you turned 65.
If you waited until 45 to invest $2K, it would be worth only $9K when you turned 65.
If you started with $2K at age 25 and put in just $200/month for the next 40 years, you would have $665K at age 65.
Depending on your rate of return, your investment will double every 7-10 years, so the earlier you start the less you have to save.
There are a lot of financial calculators on the internet. investor.gov is one by the federal government. A lot of the brokerages (e.g. Fidelity) and financial magazines have calculators too. You can estimate how much money you will need to retire, how much you will need to buy a house, how your money will grow if you save x amount starting at y age, etc.
Since you are a planner, start planning for big expenses and your retirement.
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TravelRhythm
19 Posts
Ok, I can see how I read that wrong. It probably wouldn't be a bad idea to make sure some of the money I make is at least going to books and fees.