The Basics of Financial Planning

 

I read an article recently discussing financial planning for nurses. Trust me, I understand that planning for retirement can seem daunting, especially with a MOUNTAIN of student debt staring at you! “A 2011 Fidelity Investments Nurses Study revealed that although 79% of nurses interviewed feel secure in their jobs and their financial futures, 71% do not think they are saving enough to fund their retirements”(Quinn-Szcesuil, 2013, p11). Anyone else see a problem with that?

Where do you start?

1.       Make a plan for loan repayment. This is the first priority, and possibly the most difficult, for new graduates. Pay more than the principle balance to help reduce interest and shorten the repayment period.

2.       Determine what you want from your future. It is important to determine if you want to return to school, travel, have children, or be mortgage free.

3.      Once you have indentified what your personal goals are, meet with a financial planner (or take a class). “A 2008 WISER survey revealed that only about 6% of nurses thought they had a strong grasp of financial planning issues, but nearly all thought it was important” (Quinn-Szcesuil, 2013, p12). It is important to choose somebody you trust. Examine all of your accounts, insurance plans and benefit packages to ensure that all data is up to date.

4.       Start slowly! While repaying loans it can be difficult to focus on saving money. By starting slow you begin to familiarize yourself with the retirement saving process. Even $10 per week into savings will add up to big results!

5.       Plan an emergency fund! Experts agree that an emergency fund is a necessity. Plann to save 3-6 months worth of income into an accessible fund to be prepared for financially difficult times.

6.       Save first! Saving for retirement should be a top priority! By saving now you can ensure stability and a quality of life for your future, and the future of your loved ones!

 

Quinn-Szcesuil, J. (2013). Financial planning 101: know your worth. Minority Nurse. Springer Publishing Company. Winter 2013.