Financial Independence And Nursing

brandy1017, ASN, RN · Aug 9, 2014

I suggested accounting, not bookkeeping because I have a friend who is a VP at a bank making six figures and lives very well. I don't think too many nurses can say they make six figures. Only those with lots of overtime or a few lucky NP's! Plus it is simply much easier on your body, both physically and emotionally. You wouldn't have to worry about getting a back injury and being unable to work and then scraping by on disability! You wouldn't be in harms way with all the crazy viruses like SARs, H1N1, and now Ebola!

mhy12784 · Aug 10, 2014

I suggested accounting, not bookkeeping because I have a friend who is a VP at a bank making six figures and lives very well. I don't think too many nurses can say they make six figures. Only those with lots of overtime or a few lucky NP's! Plus it is simply much easier on your body, both physically and emotionally. You wouldn't have to worry about getting a back injury and being unable to work and then scraping by on disability! You wouldn't be in harms way with all the crazy viruses like SARs, H1N1, and now Ebola!

But how many accountants become VPs at banks ?

You could say nurses could become CNOs, DONs, or other executive type nursing/hospital positions making 6 + figures as well

The health issue I agree with. SARs, H1N1, Ebola not so much. More like Hep C, HIV, TB, MRSA and those kinda of things

Soliloquy, MSN, APRN, NP · Aug 10, 2014

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.

I mean, I guess i can see that since medical school is NOT cheap. I can't think of what else they're doing with their money but I know med school is not the cheapest thing in the world. I went to a private school for undergrad and could've ended up having to pay well over 60k in student loans when I graduated but I had academic scholarships and grants and so I only have to pay about 28k back. That's not bad IMO, but I know that I could've ended up paying less if I went to a public school...it just wouldn't have been a 4 year school.

SmileyNurse1 · Feb 15, 2016

I have been investing the extra money from my paychecks since I started nursing 4 years ago. I invest in may things such as stocks (which are doing terrible right now).

Hoosier_RN, MSN · Feb 15, 2016

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.

I have an ex-spouse who earned quite a bit. He cleaned out $120,000 from our accounts, now he and new wife live very comfortably. Oh, and he also left me $80,000 in debt, by opening credit cards in my name the last 6 months we were married (after I ran my yearly free credit report), and he and she ran them up. He got the mail every day, so I never knew these accounts existed. At 50, I'm starting over from what should have been a really good retirement. Yes, he got half of my 403b, but I didn't get any of his retirement. I had a great lawyer, but his family are big shots with big $$ in our town. The judge just basically let me be slaughtered and left to die. I will be working forever toward a decent retirement. I've worked 2, sometimes 3 jobs, paid off the debt he left, but my credit is ruined. I have some tax issues this year, and want to go finish my MSN, so still working like crazy. I didn't ruin myself so to speak, but was done in. So you can have the best plans in the world, if the wrong situation occurs, you may well be in the same boat. My plan was to retire at 57, and I was very well on my way there, but life happened. And to those who keep speaking of pension, many places don't offer them anymore. A former local hospital did have them, but decided if you had not worked there a minimum of 5 years, you were not qualified for their pension plan (this was about 10 years ago). Anyone interested in retirement savings had to go to 403b. Just some food for thought. Remember that just because you plan it, doesn't mean it will always work out that way

BittyBabyGrower, MSN, RN · Feb 15, 2016

I will be retiring at the age of 53, I could retire now, but with kids in college, I have chose to stay and give them some help.

I work I for a PERS system, have a deferred comp account also. Even without my husband, I would be comfortable. I would still have to pay for some of my healthcare and a few other things, but living money-wise for 30 years had paid off.

flying_ace2 · Feb 15, 2016

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.

Thank you for sharing this - your life is my goal. My husband and I are currently following Dave Ramsey's total money makeover, will have ALL our debt paid off within the next 1.5 years, and then plan to invest and live how you have described in order to achieve our dream of retiring early. We WILL do it, and stories like this reinforce to me how possible it is. Thank you :up:

ThePrincessBride, MSN, RN, NP · Feb 15, 2016

Retiring early is achievable if you start early and save often. Compound interest is a powerful thing.

I am debt free and sharing living expenses with my mom. I am putting twenty percent per paycheck to a 403b. I am maxing out my Roth every single year. I have several years in a pension and will have more working prn. I plan to drive my car until the wheels fall off. I won't marry especially to an irresponsible person. I plan to have no more than three dependents.

I plan to be able to scale back at fifty and be fully independent by 55. At 24 with more than 25k in retirement and a savings rate of 30 percent, early retirement is a real possibility for me...if I keep it together.

Hoosier_RN, MSN · Feb 17, 2016

Retiring early is achievable if you start early and save often. Compound interest is a powerful thing.
I am debt free and sharing living expenses with my mom. I am putting twenty percent per paycheck to a 403b. I am maxing out my Roth every single year. I have several years in a pension and will have more working prn. I plan to drive my car until the wheels fall off. I won't marry especially to an irresponsible person. I plan to have no more than three dependents.
I plan to be able to scale back at fifty and be fully independent by 55. At 24 with more than 25k in retirement and a savings rate of 30 percent, early retirement is a real possibility for me...if I keep it together.

How will you know if they're irresponsible? Irresponsible people don't wear a sign, and clues to that aren't always there

calivianya, BSN, RN · Feb 17, 2016

How will you know if they're irresponsible? Irresponsible people don't wear a sign, and clues to that aren't always there

You can try your best to avoid it, at least. There's no avoiding a situation like what happened to you, unfortunately - sometimes people stab you in the back and that can't be planned for. I'm sorry that happened to you.

While you can't plan for that, you can have the conversation about financial goals before you get married to someone and marry someone who is already saving money, also maxes out a 401k/403b/IRA, etc. instead of someone who lives paycheck to paycheck and can't handle money to save his/her life.

wannabeny · Feb 17, 2016

I tell myself my quality of life is a better long term goal than my material life.

I did buy a new car. My last car lasted me 8 years..had 241,000 miles, so new was needed.

I have a small student loan, a secured credit card that only autopays my cellphone, which then gets paid off right away..other than that it stays in a drawer.

I cobtribute to my companys 401k and a 529.

other than that i utilize free to low cost activites, splurge occasionally.

calivianya, BSN, RN · Feb 17, 2016

I think people who don't use credit cards and are responsible people are throwing money down the toilet. I make at least $300-$400/year plus a free hotel night or two off my credit cards, because I put everything from gas to groceries to $1.25 soda at the vending machine on my credit cards. And that's a low earning - I know plenty of people who churn cards for the sign-up bonuses who make well over $1000/year on their cards, but I haven't got the time and energy to do all of that.

There is nothing wrong with credit cards if you pay them off in full every month. I always wonder why people say they avoid them in threads like this where people talk about saving money - you are literally throwing free money away if you don't use credit cards.

Not to mention - if you don't use credit, your credit score is not going to be great, since your credit score is determined by how you use credit. Unless you have the cash to pay for a house/car up front, you are going to get hit with a higher interest rate because lenders aren't going to trust you, so you will pay extra money that you wouldn't otherwise have to pay into a loan, so there's another place not using credit is going to cost you.