Nursing is a demanding profession, often characterized by long hours, caring for patients, and ensuring their well-being. While the focus on patient health is paramount, it’s essential not to neglect your financial health either. Investing is a fantastic way to make your hard-earned money work for you. In this blog post, we’ll explore how nurses can get started with investing in a relatable and easy-to-understand manner.
The term “investing” along with “stock market” intimidated me for the longest time! As someone who grew up in household that never talked about money, when I first heard the term investing- my initial thoughts were “I don’t want to do it because I don’t want to lose my hard earned money”
So even though, I KNOW I SHOULD DO IT, I put it off to do for the next day..
And then the next day turned into next month then turned into next year..
Until 8 years into nursing, I said “I really need to get my sh*t together* LOL. I was pregnant at that time with my daughter and although I wouldn’t consider myself financially irresponsible, I know I had to learn how to manage my money better.
Here’s what I did:
1. Setting the Foundation
Before we dive into investing, let’s talk about the basics of finances. This includes budgeting. Nurses, like many others, have to manage their finances efficiently. Start by tracking your income and expenses. Knowing how much you can comfortably invest is crucial. Create a budget that considers both your immediate needs and your long-term goals.
READ: Budgeting for Beginners
2. Your Financial Health Check-up
Just as you assess your patients, it’s time to perform a financial health checkup. Evaluate your current financial situation. Pay off high-interest debt and build an emergency fund. This sets the stage for stress-free investing.
READ: Why Emergency Fund is Important
READ: How to Pay off Student Loans
3. Understanding what your Investment Options are
Now, let’s get to the fun part – investing. Nurses have a variety of investment options to choose from. Here’s a quick rundown:
- Stock Market: *MY FAVORITE* Dive into the world of stocks. There are so many reasons why I teach nurses how to invest in the stock market. There are a lot of investing opportunities out there and I recommend investing in different assets (diversify!) but one of the many reasons why I love stock market investing is because I can do this WHILE I work my full-time job.
READ: Why I love investing in the stock market as a busy nurse
- Bonds: Explore the more stable world of bonds, which can provide consistent returns.
- Real Estate: Consider real estate investments, like rental properties or Real Estate Investment Trusts (REITs).
- Mutual Funds and ETFs: These are a great way to diversify your investments across different assets.
- Retirement Accounts: Don’t forget to max out your retirement accounts like 401(k)s and IRAs. Opening a ROTH IRA and HSA may also be beneficial
4. Investing for Busy Nurses- the smart & lazy way
Being a nurse can mean erratic schedules. Opt for low-maintenance investment options like index funds and robo-advisors. They require minimal supervision and can grow your money steadily. If you want to understand more how to do this:
Sign up for my FREE Investing Class
5. Nurse Investor Mindset
Just like in nursing, patience and discipline are key in investing. Stay focused on your long-term goals. Remember that investing isn’t a sprint; it’s a marathon.
6. Diversification- The Nurse Best Medicine
Diversification is like administering different treatments to various patients. It spreads the risk in your investment portfolio. Never put all your eggs in one basket.
7. There’s Help!
If you’re feeling overwhelmed * which is normal* finding a mentor may help! (HI :D) — I would like to also say that I am also not against consulting with a licensed financial advisor – but I do want you to be aware of the fees that is associated with this and also finding the right person for you (Please be very diligent)
In my opinion, learning how to invest on your own and investing in the knowledge to take control of your finances is the best way to go about investing.
Here are some books I recommend to get started!
8. Stay Educated and Informed
In nursing, you’re constantly learning and updating your knowledge. The same applies to investing. Stay informed about market trends, new investment opportunities, and changes in financial regulations.
9. Reap the Benefits – now and in the future.
Investing isn’t just about money; it’s about securing your future. With time, your investments can grow, providing financial security and the freedom to pursue your passions.
I created a Nurse Investor Starter Toolkit to get you started with investing.
In Conclusion,
Nurses, you’re used to making a difference in the lives of your patients. Now, it’s time to make a difference in your own life by securing your financial future through smart investing. By budgeting, setting financial goals, and understanding your investment options, you can embark on this journey with confidence. Remember, just as you heal others, you can heal your finances too!
About the Author:
Ellaine NP is a nurse passionate about both healthcare and personal finance. I’m on a mission to make investing accessible and engaging for fellow nurses. Follow their journey and tips for nurse investors on their blog and social media.
