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Perhaps the following scenario sounds familiar: You’ve graduated from nursing school and landed your first job as a nurse. The salary isn’t quite what you were hoping for, but with some extra shifts or overtime—or maybe by furthering your education—your financial future looks pretty good.

Or…

Let’s say you’ve just gotten a promotion and with seniority you have that nice salary increase to boot. You’re feeling pretty comfortable and heck…what with the nursing shortage you’ve got some job security, right?

It’s tempting to spend your money as you get it—after all, you’ve worked hard to get to where you are, and if you’re like many nurses, you probably scrimped and did without a lot of things while in nursing school and while working your way up the ladder. Plus, you may have student loans to pay off and your salary may not leave you with that much of a monthly cushion.

So why are financial advisers telling you that you should start paying yourself (i.e., saving) right away?

Why you should save

• Good habits die hard. We all know that bad habits are difficult to break, whether it’s chewing your nails or snapping gum. So the best way to avoid a bad habit is not to begin it at all. In fact, why not start good habits? Unlike bad habits, you won’t want to break these! Amy Buttell, coauthor of Personal Finance: The Missing Manual, explains that saving money for yourself and for your future is a way of taking care of yourself—something nurses do well for other people, but not always for themselves. “Saving money can help you feel psychologically secure, even feel more empowered,” she says. Knowing that you have money to fall back on can take a lot of stress out of your life.

• Rainy days will come. When you start putting money aside into an emergency savings account, you’re preparing for anything that may pop up, such as a car accident, where you may have to pay a $500 deductible. Having some savings means you don’t need to use your credit card or take out yet another loan. “Saving money is a bulwark against catastrophe,” says Buttell. “Something always happens. Spending every dime means you’re always on the financial edge when something bad happens.”

Once the emergency fund reaches a certain point, you’ll see that saving works, and because you’re now in the habit, you can continue saving for something fun, such as a vacation, a wedding or even a new home.

Three tips for saving

1. Save even when you don’t have much to spare.

Buttell says that it doesn’t matter how much money you start putting aside—it’s the act of putting something aside that helps you get into the savings habit. Whether you call it an emergency fund or just a savings account, the whole idea is to help you get used to setting aside $10 or $20 a week, if you can. If even that is too much, $20 or $30 a month is better than nothing.

2. Have the money automatically rerouted into a separate account.

Instead of physically moving the money into a savings account, Buttell suggests that you “set up a payroll savings account, if that’s possible, to have the money deducted from your paycheck. If that’s not possible, have your bank or credit union do it.” Just as we arrange to have bills automatically paid from an account, we can arrange for automatic savings withdrawals. “Sitting in the checking account, [the money is] going to be spent,” Buttell says. Also, she points out, if the money is automatically rerouted, “it gets a little rewarding when you check your [savings] account online or you check your bank statement and you can see, gradually, over time, that account accumulate into something.”

3. Don’t try too much too fast.

When starting a new phase in life, it’s easy to get overly enthusiastic and maybe try a bit too hard. Just like joining a gym and burning out because you go too often and do too much, trying to do too much with your money too quickly may get discouraging. “When people are on very tight budgets and try to do too much, they’re going to end up giving up and it’s not going to work,” Buttell explains. So, set a realistic goal of how much you will save. You can always increase the amount of money you set aside, but it’s harder to decrease it without being left with the feeling that you’ve gone backwards.

What about paying off loans?

Paying off your student loans and other debts is important, but there isn’t a lot that is satisfying about paying off loans while you’re doing it. By setting up a small savings account on the side, you can see what you’re saving, and this can be very satisfying. If you save $100 a month for two years, that’s almost $2,500. Not too shabby for money you’re not touching.

Bite-size tips for saving money

• When you’ve saved enough to open a certificate of deposit (CD), get one. The money stays yours, but you can’t spend it on the spur of the moment. It also gains a bit of interest while it’s in the CD.

• Consider using an online bank, like ING, for your savings. When your money goes into an online bank, it takes a few days to get it back into your brick-and-mortar bank. Therefore, you may think twice before withdrawing the money.

• If you’re using your regular bank for the savings, don’t allow the staff to connect that account with your bank card or allow checking privileges. You need to make the money as inaccessible as possible.

• Set goals. If you’ve already built an emergency fund, set goals for your money. When your bank account gets to your first goal, treat yourself to something as a reward.

• Play mind games with yourself. I know of one nurse who would take an extra $20 from the ATM whenever she withdrew money. That extra cash would go into an envelope in her filing cabinet, and by December, she had plenty of money to do her Christmas shopping and pay for everything in cash.

Do you have any special saving tricks?

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I’m 24 and new on the job… so why am I getting lectures about my retirement funds NOW?!?

That’s what I was thinking all during orientation until they told us that by just putting in the minimum amount every month into your 401K, but 65 you can be a millionaire.

Wait, hold the phone, WHAT?  A millionaire? SWEEEET!  I can spare a few bucks a month, right? Now, I am really not good when it comes to math, so I really don’t know if this estimation is true, but it sounds really cool, right? I mean, who wouldn’t want to be rolling in the big bucks.

But now, is this a millionaire because you have millions? Or because you saved about a million dollars. Because, while that is still really neat and a TON of money, if you think about the cost of living nowadays, that’s not going to be all that much. Like maybe a new house and all its furnishings? That kind of puts a damper on the situation…so, for the sake of imagination and the thought that maybe in a few years I can afford to contribute more than the minimum amount per year – what would I do with that retirement?

After I frame my golden stethoscope given to me by my grateful employer to thank me for my years of service, I would go somewhere tropical and sit out on the beach (for the sake of imagination here, we’re going to pretend that I still look good in a bathing suit).  A mai tai in one hand and a book in the other, I want to lounge out on those chairs that are part way in the water already, or out on a cabana. And that’s just during the summer time – a new place every year.

I want to see the colors change in the fall.  I want to spend my autumns in a small colonial village in New England, and enjoy a REAL fall season. Crispy air and hot coco with leaves crunching under my feet.

I want to spend the winter in the SNOW! For at least the first winter I want to see snow, feel snow, freeze a little and then warm up by a fire place and snuggle up to hear the wood crackle.

And in the spring… somewhere – anywhere with LOTS of flowers. I’ll load up on Claritin and run through fields of flowers (because, duh, I’ll be a better runner at 65 than I am now…).  I want to watch flowers bloom and listen to birds chirp, see the world through rose colored glasses… and find someplace that actually has a may-pole to dance around.

And then repeat. Different places every time, see the world, take my family along with me.  Why not?

Well, chances are I’ll still be a nurse somehow, even  just part time, staying close to family and still being very content with life, but hey, a girl can dream, right?

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It could be that you’re planning a special vacation, your child needs braces or you have to do some home renovations. Maybe you simply want to save a little more for your retirement.

The good news is there are a number of things nurses can do to make extra cash. Here are eight for you to consider.

1. Extra Shifts
Let your supervisor or unit clerk know that you’re willing to take on extra shifts. Some hospitals have web-based systems that you can log onto and sign up for extra shifts. Some organizations that administer several hospitals have web-based systems that allow nurses to sign up for extra shifts at any hospital within that organization.

Next: Per Diem Shifts →

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We’ve pulled the most up-to-date hourly and yearly salary reports for the top nurse jobs and are wondering…are they accurate for your job title, your location and your years of experience?

For a more in-depth look at the top-paying nursing jobs, click into our top 10 highest paying nurse specialties article.

For a peek into the most sought after workplaces, see our 6 hospitals with the best nursing benefits.


Top Results for Nurse Salaries
RN
CNA
LPN
Staff Nurse
Charge Nurse
Nurse Practitioner
ER Nurse
OR Nurse
Psychiatric Nurse

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How much of your salary are you spending on clothing every month? On groceries? On your car? On going out? How much of your salary are you saving every month? If your money just goes—and you’re not quite sure where it goes—maybe it’s time to examine your spending habits.

Here is one classic example for divvying up your salary in a financially responsible way, and getting on track in terms of financial stability. As a nurse, you have a relatively good salary, and it will keep going up as you stay in this profession. There’s no reason why you can’t enjoy life and save for the future at the same time.

List your fixed costs
First, you need to get a handle on what you’re currently spending, so start by making a list of those items you absolutely must allocate a chunk of your income to every month—and record how much you spend on each of those items. These are your fixed costs, and they include rent or mortgage payments, utilities, childcare expenses, home and vehicle insurance, cable and Internet services, etc. Sometime it’s hard to remember what all of your fixed costs are, so go through your bank statements to make sure you’ve listed all of them.

List your variable costs
These items change from month to month, and include things like groceries, toiletries, clothing, dining out, gasoline for your vehicle(s) and gifts for special occasions. These are even harder to remember than your fixed cost items, so have a look at your bank statements and credit card bills over the past several months (or over the past year if you can) to get an idea of what your variable costs tend to include. Determine an average cost per month for each category of items.

The breakdown
Out of your monthly income, you should be able to cover your fixed costs plus your variable costs, plus you should have some money left over for savings and investments. To make this simple, here’s a snapshot of how a net monthly income of $4,000 could be responsibly divvied up.

$4,000 Net Monthly Income
40% ($1,600) – Fixed Expenses
20% ($800) – Variable Expenses
10% ($400) – Savings for Unexpected Emergencies (This could, for example, include vehicle repairs, replacing an appliance that breaks down or fixing a leaky roof—all very costly. You should build up this savings amount until it can cover at least three to six months of fixed plus variable expenses. You will keep dipping into it and will therefore need to constantly be replenishing it, so putting a fixed amount into it every month is a good idea. If you have a period with very few unexpected emergencies and this savings amount gets very high, you can move some money from here into your other savings streams.)
10% ($400) – Retirement Savings
10% ($400) – Other Savings (for vacations, to buy a cottage or a sailboat, etc.)
10% ($400) – Other Investments (education funds for children, stocks, bonds, etc.)

The bottom line is that you should spend no more than 60 percent of your after-tax income on the expenses of daily living, and you should allocate at least 40 percent of your after-tax income to a variety of savings streams.

Now it’s your turn. Look at your fixed and variable expenses and determine if there are places where you need to make changes. If you have a family, this is an awfully tight budget to work with—and you’ll really have to work at achieving that 40 percent savings per month. Maybe for some months—in September, for example, when you have to pay school fees and buy school clothes—you’ll have to decrease what you allocate into savings. That’s a good time for you to hold back on buying new scrubs for yourself. So, do some advance planning about when to buy certain items. And whenever you skimp on saving one month, try to make up for it in future months.

Maybe you’re currently in a situation where you can save more. You may be single with a good nursing income, and you may not currently have a vehicle. You should be able to allocate less money for expenses and put more into savings.

This formula is just a guide to get you started. You have to tailor it to work for your situation, and the 60/40 balance won’t always be easy to achieve, but if you at least aim for it, you’ll be on the right track.

We’re curious—where are you in your career and what’s your method of divvying up your nursing paycheck?

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Tax prep is about as fun as getting a physical or renewing a driver’s license. Sorting through a year’s worth of receipts and paperwork can be confusing and leave you with the nagging feeling that you’ve missed out on meaty refund dollars or paid more than required.

Here are five insightful tax deduction tips from experts and fellow nurses that may reduce your tax pinch and ease your future filing events.

1. What do I keep and what can I toss?

2. Am I eligible for a travel deduction?

3. Why should I itemize?

4. Can I get a deduction for my education?

5. Why does this have to be SO HARD?

What to keep –>

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It’s hard to be a good nurse if you haven’t taken the time to be good to yourself once in a while. But with a limited budget and vacation times that may be out of sync with everyone else’s, how can a nurse manage to get away from reality? Here are some tips to help you do just that—get away on a budget.

Tip #1 –>

You see, even in tough economic times you can seek a package that works for you. And remember…it’s a whole package, so take time to look beyond straight hourly pay. What is the amount offered in tuition reimbursement? What are the benefits, retention bonuses, CEU/CME reimbursement, recognition incentives, quality bonuses and pay differentials for shifts?

Tip #1: Yes, your years of experience, specialty and shift are all factors in how much you’ll earn, but consider this: More focus is now being placed on nurses as the “mid-level” provider position or assisting in the OR. Certain specialties and certifications, such as Certified Registered Nurse Anesthetist (CRNA), Certified Nurse Midwife (CNM), Nurse Practitioner (NP) and Doctor of Nurse Practitioner (DNP), get higher compensation than other specialties. Of course, these specialties take more time and schooling to achieve, but these and other mid-level providers are stepping in to help fill the growing void of PCPs or support OR functions.

Tip #2: A nurse’s pay difference can range from $0.50 to $10.00 per hour. This is tied to specialty, shift and certifications, so if you want to increase your bottom line, look for in-demand shifts (typically nights or weekends) and high-need specialties (which typically include critical care specialties like ICU, CICU, CVICU; labor and delivery; operating room; catheterization lab; oncology; and other sub-specialties, depending on the area), and get additional certifications like Critical Care Registered Nurse (CCRN), Certified Nurse Operating Room (CNOR) or Trauma Nurse Core Certification (TNCC). Many facilities also work on a sliding scale for their hourly pay based on years of experience. These differentials are where the manager or facility has some leeway with straight hourly compensation.

Tip #3: Evaluate benefits as another compensation area when looking at overall take-home pay. As costs rise, some facilities shift more of the health care cost to employees, increasing out-of-pocket costs and ultimately lowering what is actually taken home. My recruitment agency works with many facilities that offer an 80/20 split with the employee. In a few instances, employers pay 100 percent of premiums to make up for a rigid pay scale. This makes an offer more attractive.

Tip #4: Sign-on bonuses are not only used to attract you, but to keep you around. If you find a facility with a generous sign-on bonus, you may be given a payout over a period of time that boosts your pay, instead of just one lump sum. Additionally, some facilities offer annual bonuses when they meet KPIs such as patient satisfaction, quality measures or even financial viability. Look for a facility that shares its financial success with its employees.

Tip #5: Reimbursement for CEU/CMEs and/or actual college courses to advance training and degrees can really impact take-home pay in the short and long term. In the short term, the obvious benefit is that you don’t have to incur the cost of continuing education. In the long term, you’ll be eligible for higher pay across the board when you complete an advanced degree or specialty training. This can help lead you into a new direction, whether it be teaching or moving into an administrative or a mid-level provider role.

Tip #6: Document ahead of time the value you added to your unit: being on time, not calling out, patient letters or documented comments on the great care you provided. Have these ready and submit them along with hand-washing reports or other quality initiatives for your floor or unit that you can access. These are not only helpful in the review process, but also in the event you choose to change jobs or apply for a management or supervisory role in your system. Anything positive that you document can help you with your resume and provide talking points for your interview.

Tip #7: If, despite your efforts and evaluation, you can’t reach a mutually beneficial outcome in your review, salary or raise negotiation, you may decide to look for a different position. There are free nurse recruitment services that offer relocation assistance (if needed) and will work as advocates for you and your career advancement. These services can take the hassle and worry out of the equation and present a number of opportunities that meet your financial needs, offer professional interview coaching, provide any travel arrangements and offer interview pre- and post-interview assessments. They’ll also support your contract negotiation so you can do what you do best: care for patients.

Tips and advice are provided by Bill Wisinski, divisional vice president of nurse recruitment at Martin, Fletcher. He is responsible for overseeing the recruitment activities of more than 70 nurse recruiters and works directly with nurses and health care facilities across the country. Bill’s team works with an average of 2,800 qualified candidates each month, recording and tracking information and trends in the company’s database. His insight and knowledge of nursing recruitment trends, including compensation and benefits analysis, are featured in the 2008 Compensation and Benefits Report, an annual compilation of the health care marketplace. Bill is an active member of the company’s leadership team and has developed tools for Martin, Fletcher employees to better support their roster of nurses and health care facilities.

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Whether you’re between nursing jobs or diligently cutting back spending because it’s, well, smart to do, there are lots of alternative ways for nurses to do your shopping without feeling the pinch! Here are three ways to save big:

1. Grocery Shopping
2. Clothes Shopping
3. Fun


First, find out how to save on one of your biggest expenses…

I’ve been a nurse for almost 27 years and have spent the past 20 of those years in recruitment. From the employer side, I can say that hospitals and other facilities have very little flexibility in what they’re able to pay you—especially if they’re unionized.

Corporations, agencies and specialty clinics may be more flexible and may be willing to pay more for hard-to-fill positions. In most cases, though, your pay will be determined by a set salary scale based on experience and education.

However, getting “more” doesn’t always have to mean more money. I’ll give you a few suggestions here to help you get more from your nursing career. Once you really focus on it, you’ll come up with many ideas on your own.

• DO: Be determined to learn! Enroll in continuing education in a specialty area you’re potentially interested in working in. On the job, ask your supervisor for different assignments. Or pursue an advanced degree.
• DO: Lead the way! Join or form committees to help make changes in your workplace.
• DO: Explore! If you really need a change, think about moving to a new arena. Nursing offers so many choices! You can work in acute care at a large urban teaching center, a small community hospital or a rural clinic. Offices, corporations, ambulatory care facilities, educational institutions and independent practices are among the many settings from which you can choose.
• DON’T: Complain! Not to be cliché, but personal satisfaction really counts. Do you still wake up in the morning and like what you do? If not, then do something about it besides complain to your family and friends!

If it’s really more money that you want, your options may include:

• DO: Work overtime, work an off shift for the differential or put in extra weekends.
• DO: Take steps to move up the clinical ladder at your hospital (if they offer a clinical ladder).
• DO: Seek a position at a facility where your specialty is in greater demand.

Like most of us, I could always use a raise. But I didn’t go into nursing for the money. Although I knew early on that other careers would pay much more, I stuck to nursing all these years. Sometimes it’s easy to forget the real reasons why we became nurses in the first place.

The one thing I can say at the end of the day is “I am making a difference in someone’s life.” When you consider that, my fellow nurse, you may decide that you’re already receiving more than you could ever get anywhere else.