When I first became a traveling nurse practitioner, I remember easily profiting $30k from one 3-month assignment alone (after taxes and expenses). $30k was enough money to cover my expenses for one year. After having this amount in savings, I felt invincible. I no longer felt pressured to work to earn income. If I didn’t like a job or the agency wasn’t giving me what I wanted, I threatened to leave. And this was not an empty threat. Why put up with a stressful environment when I could afford to take time off?
Years later, I learned that there is a term for this. Those in the financial independence space call it an “F-You fund.” Once you have enough money in savings to cover your expenses for at least a year, you are more comfortable asking your employer for things you want. For instance, if you ask your employer for a 3-month sabbatical and they say no, in your head you say “F-you” and can choose to quit on the spot. You feel empowered to do what you want because you can afford it. At the same time, once an employer sees you do not NEED to be there, they are more willing to work with you.
For example, let’s say you want to work remotely and your employer says no. When you give your two week’s notice and your employer is surprised, they may be willing to work with you after all and grant your request to work remotely. Having that F-You Fund enables you to ask for what you want without being afraid of repercussions. The worst your employer can say is No, and if you do not want to accept their no, you have the option to leave.
Besides having 3 to 6 months of emergency savings, I think having a year’s worth of expenses saved up is very beneficial. It allows you to feel more empowered in the workplace. You don’t have that pressure that you NEED to be working in order to make ends meet. It provides a lot of freedom. It allows you the option to take a mini-retirement or go part-time for a certain period of time. It also makes people feel more comfortable asking for a raise. Having an F-You fund as a traveling nurse practitioner is powerful.
