We often get questions from prospective travelers about how to budget as a travel nurse. They’re switching from staff nurse to travel nurse and as a staff nurse, they’re paid weekly or biweekly. As a travel nurse, you will experience lag time between pay as you change assignments. Before heading out on your first assignment, we recommend having money already saved for expenses along the way. We don’t recommend taking an assignment if you do not have the money saved.
In this article, we offer tips for budgeting while on the road, so you always have what you need and when you need it.
How to Budget as a Travel Nurse
One of the reasons we recommend having savings before going on assignment is that you will have expenses as you travel as well as when you arrive. In addition to plane fare or gas money, you will have to set up your new home. At the very least, you’ll need groceries. Not only that but there will be a lag time before you receive your first paycheck so you will need to cover expenses.
Track Income and Expenses
As you settle into your new routine, make note of how much your take-home pay is. Then you can start tracking expenses. Apps like You Need a Budget (YNAB), Mint, and EveryDollar can simplify tracking expenses including savings (pay yourself first), housing, transportation, utilities, groceries, dining, and monthly subscriptions. It can be eye-opening to see where you’re spending money.
We put saving as the first expense because you will need that cushion for future assignments. Not only that, but it’s also good to develop the habit of paying yourself and then others. As a travel nurse, you won’t have benefits like retirement savings automatically deducted from your paycheck so you will need to be disciplined about saving. Ask a financial planner about other options like Roth IRAs and similar where you can save for retirement.
While you are earning more as a travel nurse, there are expenses that may not be paid for like medical insurance. You will want to research the cost of private insurance. You will be able to make your own schedule, but you won’t have paid time off which means you have to cover expenses while you’re not working.
Create a Budget
There are different strategies and ways to create a budget. The key is to know your income and expenses. Be honest with yourself. If you grab a coffee before your shift every day, include that in the budget. If you like going out with friends every week, add that to the budget. Whether you write it down and use cash in envelopes marked for each expense, use a spreadsheet, or download an app, create a budget. Find which method works best for you to stay on course.
Globetrotting Nurse uses a 50/30/20 rule for her expenses. She adjusts the dollar amount for income and expenses as she moves assignments but always uses these percentages.
- 50% to needs including housing, utilities, and food.
- 30% to wants including dining out, memberships, subscriptions, vacations, and entertainment.
- 20% to savings and debt repayment, emergency fund, and retirement planning.
Using this method is simple and translates well as you move. It also allows you to spend and save in a way that is comfortable for your lifestyle and needs.
As a travel nurse, you will have different expenses than a shift nurse. In a rural area, groceries and other necessities may be more expensive. The reason is those items must be brought in from other places. Housing will be a big expense in larger cities, so you will adjust the budget accordingly.
Ways to Save as a Travel Nurse
We should note that saving and paying off debt should be priorities and done simultaneously.
The reason is that you don’t want to continue the habit of going into debt because you don’t have savings. If your car breaks down and you put the expense on a credit card but never save for repairs, you will be stuck in a never ending cycle of using credit cards for repairs and constantly paying off the debt plus interest. That’s why it is good to save while paying down debt.
If you’re struggling to save, we offer these tips:
- Stick to your budget. The biggest expense for many people, not just travelers, is food. Make sure you have enough for monthly recurring expenses like housing and limit the entertainment and dining out to help you stay on budget.
- Prepare your meals. Meal preparation will save you a lot of money. Make enough for your week so you’re not spending money on dining out. That way when you go to a restaurant, it’s a treat.
- Experience free entertainment. Head outdoors where it costs nothing to go for a hike or walk through the downtown of your new city. There’s likely a website or app for cheap or free activities like Charlotte on the Cheap for your location.
- Drive yourself. Take your own car if your contract allows. It will save you the expense of renting a car. Ask your recruiter about transportation options for where you’re going.
- Review expenses every month. You will see spending trends and can change them or update your budget so you’re still meeting goals.
We know it can be overwhelming to learn how to budget as a travel nurse. It isn’t the same paycheck or frequency of pay as it was. As a travel nurse, income and expenses will be different than when you were a shift nurse. They will also change every 13 weeks as you move from one assignment to the next. That means your budget needs to change too. Understanding your income and expenses and sticking to a budget will go a long way to creating financial stability for you. That way you can focus on patient care and enjoy your new surroundings!
