Nurse’s guide to managing your money and implementing one simple plan
Do nurses having a challenging time to manage their budget?
Yes, they do!
They enjoy having a great lifestyle and that includes traveling, shopping and eating out on a consistent basis.
This can create budget problems and can put pressure on the monthly cash flow.
We have seen many situations where this pattern shapes up a situation where credit card debt suddenly builds up.
With added credit card debt cash flow suffers even more and without changes to the current lifestyle, it becomes a vicious cycle.
So what can be done to combat spending more than one is earning.
The solution is to simply spend less going forward but it can be difficult and requires tremendous discipline and it can be difficult since there are money flowing towards retirement accounts, college savings accounts and money potentially going towards an emergency fund.
At CreativeNurse, we often incur nurses who have a good salary but they still incur credit card debt and they have a hard time budgeting.
So one simple plan that can be put in place follows below:
1. Create systematic savings plans
that each month move money from the account where paychecks get deposited into a separate savings account. The amount that gets moved should equal all of your fixed expenses and also include money that has to go into investment accounts, short-term emergency funds or money that pays for insurance premiums.
2. Create automatic drafts
from this new account so that all bills are paid from here and all savings/investment accounts pull from this newly created account.
3. Spend the rest of your money.
Since you have already allocated money away from your bank account you can now without worry spend the rest of the money within this account.
Retirement has already been taken out, short term savings is being redirected to another account and all your fixed bills are taken care of.
This is an easy setup and you can allocate more accounts if needed.
Adding a travel account can be helpful so that you don’t build up credit card debt every time you wish to have a vacation.
As always make sure you understand where your money is going and make sure you have a financial plan in place.
Written by CreativeNurse Team
2016-23795 Exp. 5/18