Navigating Your Nursing Finances for the New Graduate

In this video, I discuss the important aspects of understanding your income as a new graduate nurse. I break down the components that affect your pay, starting with the hourly rate, which can vary based on location, specialty, and experience level. I provide an example of how to calculate your gross income based on the hourly rate and number of hours worked per week. We also explain differentials, such as bonuses for working nights or weekends, which can significantly increase your earnings. Additionally, we touch on the benefits that your employer may offer, such as health insurance, retirement plans, and paid time off. Tune in to gain a clear understanding of what to expect in terms of income as a new graduate nurse.

If you are still job searching, I highly recommend use the external link to help narrow down what specialty you are interested in, as this has a huge impact on your income and overall well-being!

Loan Repayment:

"Some hospitals will pay off student loans in exchange for a commitment to work for that hospital for a certain period. Cleveland Clinic and Rush University Medical Center are two of the largest hospitals that pay student loans for eligible nurses".

This course only provides a high-level overview of federal repayment programs since it is a crash course and the information would be overwhelming (think Nurse Corps or PSLF), however, I am including some resources!

Please refer to the article attached to this lecture for a more in-depth understanding.

Relocation bonuses:

If you plan to move for a new job, even as a new graduate nurse, you should ask for the hospital or company to cover your moving expenses.

You also need to be mindful of TAXES. These are taxed as bonuses and not earned income, so it is taxed at a higher rate.

Check out this discussion board from Incredible Health (external resource linked.T

Sign-on bonuses:

If you are offered a sign-on bonus, be cautious. Make sure you understand the terms and conditions. For example, if you quit or are terminated before a certain amount of time (dependent on the employer) you will likely have to pay the money back.  In some cases for new graduates employed in a nursing residency program, they may have to pay back between $2,000-$15.000!

You also have to ask yourself: "why is this hospital or company offering such a large sign-on bonus?" This could be due to understaffed facilities, inadequate resources, etc. It is not necessarily a bad thing! Just do your research. Look for company reviews on Glassdoor.com. Try connecting with employees on LinkedIn to ask about their experiences.

With all of these reimbursements and bonuses, just be careful you understand the terms and conditions to avoid paying severe penalties. You do not want to feel trapped in a miserable job because you are indebted!

In some cases, taking a higher-paying job with less "up front" perks may be worth it in the long run. You just have to understand how to manage your personal finances so that you can independently fund your health insurance, retirement, etc. 

With over 70% of nurses having student loan debt, creating a plan to pay back the debt is essential in financial prioritization. First, establishing an emergency fund is key! (See the external resources for this lecture ).

Then paying off highest highest-interest debt is crucial. Factoring in these components to managing your personal finances will allow you to start planning for your future as a nurse and beyond. Section 3 will provide resources for the fundamentals of retirement planning and investing.

Please watch the video that covers 4 Essential Money Moves to make as a new graduate (that I sure wish I would have done!).

It is also essential to understand the power of compound interest how this works to both our advantage and disadvantage. The video at the end of the course is a great resource.

But KNOWLEDGE of how this works is POWER! Small changes you make in student loan repayments or your savings rate can have significant positive impacts on your financial health.

Now that you understand core budgeting concepts, it is important to start good financial habits that will help you thrive financially as a nurse:

• living within your means.

• resisting large impulse buys.

• establishing passive income.

• practicing self-care, which is critical to avoid burnout.

Congratulations on starting your nursing career! As a new graduate nurse, it's essential to start thinking about your future and your retirement. Retirement planning is essential because it allows you to maintain your standard of living once you stop working. In this lesson plan, we will cover the basics of retirement planning and how you can maximize your financial gains.

A critical piece of this planning is employee matching.

Employee matching is when your employer contributes a certain amount of money to your retirement savings plan based on the amount you contribute. It's like getting free money, so it's definitely worth taking advantage of! Let's say your employer offers a 50% match and you contribute $200 to your retirement plan each month. Your employer will add $100 to your account, giving you a total of $300 per month. That's an extra $1,200 per year!

It's important to note that if you quit your job or get fired, you may lose the money that your employer contributed to your retirement plan. However, you will always keep the money that you contributed yourself. So, it's important to consider this when making decisions about your career.

As a nurse, it's important to take care of yourself both physically and financially. By taking advantage of employee matching programs, you can secure a better financial future for yourself while you focus on your rewarding career. Be sure to check with your employer's HR department to see if they offer employee matching and what their specific program entails.

In summary, don't leave any free money on the table! Take advantage of employee matching programs and start planning for a secure financial future.

In the next lecture, I have created a quick video to demonstrate the power of compound interest and how this plays into retirement planning, as well as savings and student loan payoffs.

1. There are many factors affecting your income as a nurse. You are not forced into picking up extra shifts or working overnights to increase your income. Creating income other income streams (i.e. a fun side hustle, high-yield savings accounts) are another great way to supplement income.

2. Budgeting is essential for you to break down complex financial situations to better understand and maintain. Your budget becomes the foundation for you to see where you are overspending, where you could save more, and help you to begin to think about your future.

3. Establish an emergency fund.

4. Create a debt payoff plan for your student loans and other high interest debt. This is especially important if you are going on for your Master's in Nursing!

5. Take advantage of employee benefits, namely employee matching! Don't leave any free money on the table! BUT also be diligent in researching employee assistance like bonuses for new graduate nurses' residency programs to avoid hefty financial penalties.

6. It is not to early to start saving for retirement. The earlier you start, the better!

7. With compound interest, making small changes in contributions to retirement, paying more than the minimum payment on student loan debt, or increasing your savings rate can have significant positive impacts on your financial health.

   
   

Remember to give yourself GRACE. Budgeting and managing your personal finances take practice, just like you are adjusting as a new graduate nurse with prioritization and time management skills. Additionally, I recommend giving yourself 6 months on the job to really dig into your financial goals. It is important to get adjusted to your new workplace and make sure it is sustainable. You can also look back at these months to see how your income and expenses have changed. This will give you a more accurate picture of extra income from working overtime, for example. While you do not want to include that into your budgeting on a regular basis since it is irregular income...

The financial goal worksheet I created is a fun, visual way to incorporate this course's material into your own financial action plan!

I also offer digital downloads and coaching for salary negotiation for nurses, fundamentals of investing, and beyond.

Thank you kindly for enrolling in this crash course. Please submit a review. I am here to support you on your financial wellness journey as a new graduate nurse and beyond!