Working as a traveling nurse practitioner for the past 6 years has enabled me to save a lot of my income and grow my net worth tremendously. In fact, I have been able to save more than $100,000 of my income per year working in locum tenens.
These are the following reasons I have been able to save this much.
-Housing: A nice perk of working in locum tenens, is that housing is provided. This allows me to save on rent or a mortgage. The average American spends 30% of their income on housing. Fortunately, I am able to save that expense and invest instead. Personally, I rent a room from my sisters’ house in Miami, so that I have a place to stay when I go home and to keep my belongings. This only costs me a few hundred dollars per month. Eventually I may get my own place and rent it on Airbnb when I am gone.
-Car: I had a beautiful audi s5 convertible during my first 3 years of being a traveling nurse practitioner. Even though the agency provided me with mileage to bring the car with me, I often left it at home if my assignment was too far. This ended up being a waste of $800/mo for a car payment, not even including the car insurance. Although I was sad to let go of my car, I have benefited from saving over $11,000 per year being carless. The agency provides me with a rental car while on assignment, and it’s easier flying to sites instead of driving long distances.
-401k: I often work with Comp Health because they provide benefits such as health insurance and a 401k. I max out my 401k each year and take advantage of the match offered by Comp Health. In 2021, the current maximum to contribute to a 401k is $19,500 which also allows me to save on income taxes too.
-Taxes: I like to mix up the agencies I use each year so that I can get some 1099 work. By working as a sole proprietor, this allows me to deduct a lot of my expenses during tax time. I can deduct license costs, CEUs, work related travel, books, uniforms, etc.
-Budgeting: Working as a traveling nurse practitioner I often take one month off at a time. If I am not working, I am not getting paid. There is no PTO in locum tenens. This has forced me to budget so that I can cover my expenses during the months I am off and not having money come in. I am not super strict with my budget but it gives me an idea of my monthly expenses which are minimal. It’s difficult to save if you do not keep track of your expenses.
-No debt: I was able to pay off $50k of student loans my first three years working as a nurse practitioner. I do not carry and consumer debt such as credit card debt or a personal loan.
Being able to have a high savings rate as a traveling nurse practitioner does have its challenges. I make sure to constantly network so that I have an assignment lined up up to 6 months in advance. That way I have income coming in when I want to. I also choose not to have a car or my own place back home, even though I can afford to. This allows me to save 90% of my take home pay.
