Staying afloat on a nurse's salary?

TheCommuter, BSN, RN · Jul 16, 2014

I meant like what type of homes can you buy, cars can you afford, vacations, shopping, etc.?

I can only speak for myself. . .

I live in a 1,900-square foot single family house in a safe neighborhood that was built in 2004. Although I can afford a significantly more expensive place to live, I prefer to live within my means.

I drive two used vehicles. Although I can afford a luxury vehicle, I prefer to not spend my money on depreciating assets, monthly car payments or expensive insurance premiums. A wise person once said, "The road to middle class poverty is paved with car payments."

I can afford to take multiple vacations per year. My only problem is being approved to take time off from work due to issues with lack of staffing. I can also afford to shop where I want and dine at expensive restaurants; however, I prefer to save for a rainy day. At this time I have enough money saved on which I can live for several years if I were to be laid off or fired today.

Katie71275 · Jul 16, 2014

Look up Dave Ramsey. There is at least one FB group as well. I am married with 4 kids and we budget on paychecks. So there are certain bills that come from each paycheck(the big bills from mine b/c I make about 3x his salary)...and then any extra goes towards savings. You need at least 1000 in an emergency fund...and need to be working towards 6 months of income in savings for the event you lose your job, etc.

Editorial Team / Admin · Jul 16, 2014

I meant like what type of homes can you buy, cars can you afford, vacations, shopping, etc.?

Well, that's nowhere near what you stated in your first post. I own a 3 bedroom townhouse solely on my salary, have no kids, drive a brand new SUV, take a vacation 1-2 times per year, and recently splurged on a couple specialty lenses for my camera (and I'm not talking cheap- I saved up for several months). The key is making a budget and then sticking to it. Yes, it does indeed go back to budgeting. Stay within your means, understand that the bank will approve you for a mortgage more than what you should pay, and treat credit cards as cash rather than a source of "limitless" funds. That house I own on my own salary? I saved for 5 years while living in a one-bedroom apartment so that I had a hefty down payment. I also didn't take the max mortgage the bank approved me for- I stayed within my means and had a little left over to save up for the fun stuff. That brand new SUV? Friends and family discount, plus actually costs less to insure than what I paid for my 10-year-old car (which was replaced because it needed to be replaced, not just for the heck of it). Those specialty lenses? Saved up for months and paid with a credit card that was then immediately paid off.

As for buying a house, check out this thread: https://allnurses.com/general-nursing-discussion/nursing-salary-buying-934517.html

I still highly recommend a personal finance course, first time homebuyers course, or consultation with a financial planner. They can look at you and what you can realistically afford; not pre approve you for some random amount that may be okay, but then again might not be and have you living paycheck to paycheck and running up the credit card debt.

Student Mom to Three · Jul 16, 2014

Wow, Commuter. $400/month for 1900 sq feet?? Seriously? I think that's awesome....and lucky!! Where I live you can buy a dump for $150k, a decent house is at least $300k. I don't think the pay difference makes up for it either (I make $30/hr in outpt after two years).

If we didn't have my husband's income we'd be screwed. We have no debt except the mortgage...but my pay covers the mortgage and health insurance and that's it!! Oh....I also have three teenage boys....and have some healthy investments.

I think living comfortably on a nurses salary is totally doable. I know I felt like I was living in style a gazillion years ago when I was a bartender working my way towards my first degree.

klone, MSN, RN · Jul 17, 2014

Although I can afford a significantly more expensive place to live, I prefer to live within my means..

This. We could afford, based on the numbers, a house 3x what we bought ours for last year. Instead, we want to buy a home that works just fine for our family, which will be getting smaller in 2 years. We got a 15-year mortgage and pay an extra couple hundred each month. Our goal is to be mortgage-free in less than 10 years. We do not buy new cars, only cars that are a few years old. On the other hand, travel is a priority for us, and we take 1-2 biggish vacations each year, one of which is outside the country. We save up for that.

We also put a significant amount into retirement, as we hope to retire between 55-60.

melizerd, ASN, RN · Jul 17, 2014

I meant like what type of homes can you buy, cars can you afford, vacations, shopping, etc.?

Also cost of living. We live in a 4bed 3 1/2 bath ranch house. We put work into it when we bought it. It's nice and comfortable. Nothing fancy.

We we drive cars til they die, saving that car payment that we did pay once they are paid off for either repairs or for the next car. We never have more than one payment at a time either. I bought an older car for cash since I don't go as far to work as the husband did at the time.

Altra, BSN, RN · Jul 17, 2014

I meant like what type of homes can you buy, cars can you afford, vacations, shopping, etc.?

What is your local real estate market like?

What is your income?

What kind of vehicle meets your needs vs. what are you willing/able to spend?

What kind of "shopping" are you referring to?

What is a typical nurse salary in your area relative to your area of specialty and level of experience?

These are questions that none of us can answer for you, but you have the ability to sort them out.

joanna73, BSN, RN · Jul 17, 2014

Track your fixed and variable expenses for a couple of months as closely as possible. You'd be surprised how much you're spending. Buy a notebook, use a calendar or whatever works best for you.

Once you've determined how much you're actually spending, it's easier to make a budget. It's easy in theory: pay yourself first and live within your means.

How do I budget? I've tracked my spending for years so it's now routine. I put money into savings as though I'm paying a bill. Savings is automatic, and I use credit sparingly.

RNsRWe, ASN, RN · Jul 17, 2014

I meant like what type of homes can you buy, cars can you afford, vacations, shopping, etc.?

I answered your first post based on the interpretation that you did not know how to budget expenses based on income. That, however, is a far cry from this rather silly post. How on earth can you possibly expect people across the US (if that's where you're from) to tell you what kind of home YOU can buy, what kind of home YOU can afford, what vacations YOU can take, what kind of shopping YOU can do.

I mean, seriously....I can tell you you should be able to take luxurious vacations, live in a beautiful home, always shop the new season in Milan, and drive expensive vehicles. But that's just my life, LOL.....

Do you work full time? Hold any per-diem jobs? have a spouse who pulls in an income? Children? Pets? Aging parents or sibling care? Own a home now or rent? Need a commuter car or take public transport? Enjoy expensive hobbies or sports, activities?

Bottom line? YOU have to figure out what you earn, and then spend less than that.

pmabraham, BSN, RN · Jul 18, 2014

Good day:

A general rule of thumb is that housing should be

What I do recommend is looking at the various tools at Crown Financial Ministries > Resources > Personal > Calculators and Crown Financial Ministries > Resources > Personal > Downloads along with finding a local financial planner you can trust. I also recommend considering working on a plan (preferably with a trusted financial planner) to become and stay debt free. Being debt free does take hard work, but once you get there and develop habits to say there, the rewards are phenomenal.

Thank you.

mtngrl, ASN, RN · Jul 19, 2014

All this talk of brand new cars. Am I the only nurse whose vehicles are 15 yrs old? I too read Dave Ramsey and that's a big no-no with him (new cars). But I also have a hubby that can fix anything. I have been laid off before and was sooooo glad I didn't have a car payment!!!

vintagemother, BSN, CNA, LVN, RN · Jul 19, 2014

I don't really budget anymore. Used to, but have found it grossly unnecessary with my nurse paycheck. If you have kids or debt, you may need to budget, but if you are single, childfree, and debt-free, I wonder how you are living if you are having trouble managing your money as a nurse.
I say that coming from one of the lowest-paid areas of the country, so if I'm saving out the wazoo, I'm pretty sure others can do it too.

I intentionally kept my overhead required bills low after I graduated. I am single with 1 kid at home and I'm also able to live well on my salary as a new grad. But I'm pretty sure my area pays better than most-then again, I'm in a high cost of living area.

My friends from school are buying new cars, but I'm not. Debt is bad.