Nursing is more than just a profession—it’s a calling that requires compassion, dedication, and resilience. Nurses make a profound impact on patients’ lives every day, often going above and beyond to provide care, comfort, and support.
Being a travel nurse is a lucrative career with other perks, such as the ability to live and work all over the U.S. in various places. But the money is good too, and there are other financial benefits that can help you make enough money, such that when you settle down in one place, you can do so comfortably. And while the COVID-19 rush is over, spending a few years as a travel nurse can make a long-term difference to your financial health.
Why is Travel Nursing so Lucrative?
In the U.S., registered nurses make about $86,070 a year. Travel nurses, meanwhile, make an average of $101,132. That’s about a $15k difference. Why? Because not everyone wants to travel and take on short-term positions all the time. Travel nurses also often have to work holidays or travel quickly to take on a “crisis” assignment.
This limits the pool of people willing to be travel nurses (for example, 70% of travel nurses are single), but if the lifestyle suits you, you can make much more money. Certain nursing specialties do even better, with the most lucrative being registered nurse anesthetists, some of whom can make as much as $399,000 a year. ICU nurses, corrections nurses, and nurse practitioners can also make a very nice living. You may also get bonus pay, crisis pay, and overtime. Extending a contract can save also save you money.
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Understanding Tax Breaks and Housing Stipends
Travel nurses get tax-free stipends or untaxed per diem. This money is on top of your salary and is designed to cover your housing costs in the location and incidentals, such as eating out more. If you can find something cheaper, you can pocket the difference. Because of IRS rules, stipends are determined by the GSA and vary by city or state…from as low as $300 a week in states like Mississippi to $1,000 a week in California. Living frugally can result in taking home quite a bit tax-free.
Stipends are only tax-free if you are away from your tax home. This is the city or general area where you regularly live. You have to be far enough away to stay overnight away from your home to get a stipend, so if you take an assignment close to home, even if it is technically a travel assignment, your stipend may be taxable, or you may not receive one. However, taking local assignments some of the time can help you maintain your tax home.
You should maintain a home there and live there when not working. If you do not have a home, your stipend will be taxable because you are not duplicating living expenses and are considered an itinerant worker.
On top of that, you can’t stay in the same area for more than 12 months at a time without changing tax home to that area. So be careful with contract extensions unless you intend to move permanently.
Saving and Investing Tips for the Traveling Professional
When traveling, it can be tempting to spend all of that money. After all, you are in exciting new places with exciting new attractions and restaurants to try. It can also be tempting to max out your per diem.
Avoid both of these temptations. While you should absolutely enjoy your lifestyle, make sure to set aside money for savings. Remember that your salary is likely to drop when you stop working as a travel nurse and settle down in one location. If you have also been enjoying per diem, you may find that you have to tighten your belt. The more money you save while traveling, the better your lifestyle will be, especially if you plan on starting a family.
Many travel nurses work for agencies, but some may change employers frequently. If you do so, then consider creating an IRA or 401(k) independent of your employer. Your agency may also have a retirement plan. Pay into it as much as you can, and be ready to roll it over when you change to a more permanent employer.
If you are frugal and working in a more lucrative area, you may want to speak with a financial advisor to help you invest in your future.
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Budgeting for Irregular Income and Maximizing Earnings
Another issue that travel nurses can have is time spent between assignments. Spending time at home, whether or not you are working, has tax benefits, but it can leave you with a highly irregular income. Also, travel nurses on contract may be paid less frequently than staff nurses, especially when you change assignments.
This can make budgeting a challenge. Start by making sure you have enough money to get to your first assignment and live in that location until you receive your new paycheck. Make sure you have enough money to cover basics such as:
- Plane fare, train fare, or gas money. Driving your own car is almost always best, but an assignment across the country may require you to fly (ask if your agency will cover it in these cases).
- Setting up your new home. Even if you rent a furnished apartment, you may need to add a few touches. You might, for example, need to buy more silverware or décor to make it more like home.
- Groceries and essentials until you get your first paycheck.
Consider using an expense tracking app to track savings, housing, transportation, etc, so that you know where you are spending your money. Always make sure you save money as a priority so that you don’t end up living on ramen or, worse, between assignments.
Adjust your budget by location. Housing will likely be cheaper in a rural area, and groceries will be more expensive than in a city. Eating out will also be cheaper and likely less frequent if there are fewer cool places. Some travel nurses fall into the trap of eating out every night instead of preparing meals.
Maximizing earnings is another challenge travel nurses face. Your specialty impacts your earnings a lot, but there are some other things you can do. These include:
- Choose your contracts carefully. Consider the cost of living, especially if you are not eligible for a tax-free stipend and the actual pay so you can work out your “profit” for the trip.
- Keep your resume up-to-date so that you can get better assignments. Review at least every quarter when you’re a staff nurse and after each assignment once traveling.
- Read the contract and ask questions before signing anything. Travel nurses are not considered exempt employees. Never sign a contract that calls you an independent contractor…all contracts should be temporary W-2s.
- Always ask about OT both when signing the contract and during the contract. You don’t necessarily have to take all the OT you can, but OT can make a lot of money.
- Offer to work weekends and holidays or be on-call. If you’re traveling on your own, you can be more flexible and make your weekend Wednesday and Thursday if you want.
- Ask about float pools. Float pool means that you are available to take shifts at other locations nearby.
- Consider taking contracts in less pleasant places. A nice winter contract in New Mexico is going to pay less than something in, say, Idaho or Minnesota in February. You can often earn higher pay by taking assignments in less popular or underserved locations.
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Find Your Next Travel Nursing Job
If you are looking for your next (or first) travel nursing job, we can help. Call AB Staffing today to get help from our travel nursing and travel correctional nursing recruiters. Let us help you find your perfect assignment, whether you are looking for a corrections job in Georgia, an LPN job in New York, or any other contracts we have available.
