Although the news of a recession can be disheartening, there are ways for nurses to help manage their finances during this time. One of the most important things to do is to create a budget. This will help you keep track of your spending. Additionally, it is important to save money wherever possible.
What is a Recession?
The definition of a recession is a hard-economic time for a country or a region in which unemployment increases, and wages decrease while general market prices increase, making it more difficult to obtain basic goods.
It is a popular belief that nursing is a profession that is not affected during a recession, given that even if there are economic problems, hospitals must continue to operate, and healthcare must remain intact. However, the US Bureau of Labor and Statistics analyzes that although nursing jobs don’t diminish during a recession, wages should also be considered, given that many times they are affected during a recession and simply not analyzed.
Are We in a Recession?
In general, there have been no signs that we are currently in a recession, i.e., there have been no changes in the financial stability of the country. However, there are economic analysts who foresee a recession during the second part of this year. Many analysts perceive that there will be a mild recession, which could also influence small businesses and the overall economy. In any case, it never hurts to have a few small tips to help nurses’ finances.
9 Finance Tips for Nurses to Save Money
- Have an emergency fund. During a recession, having a small (or big) fund that nurses can use for unexpected expenses is very important. If they have money set aside in case of emergencies, they can always live more comfortably for a longer period of time and enjoy the peace of mind that comes with knowing they have money saved.
- Try to generate extra income. There are many ways nurses can generate extra funds before and during a recession, but having a backup plan or a job that generates extra money is important. Per diem nursing jobs is a very useful way to generate extra income without having to engage in other activities while at the same time improving their resume, keeping the license active, and choosing their hours.
- Look for ways to save money and stretch their dollars further. Many times, something that seems like a necessity may be a treat, or we may be buying things we don’t need, but especially saving on major expenses is extremely important when there’s a recession.
- Manage the economy and household finances wisely. It wouldn’t hurt to seek professional support, generate more knowledge about home economics and finances, and improve the household economy. Asking questions like “Do I have a plan for my retirement?” or “How can I improve my household finances?” are smart ways to start improving finances.
- Plan for the worst. When nurses have an idea of how bad it can get, they can better plan how much to save or what measures to take during a tough period. In the event of a severe recession, nurses will generally still have jobs, but the best they can do is to make themselves indispensable by always doing their job well.
- Eliminate as much debt as possible. Looking for plans to pay off as much debt as quickly as possible or paying as many installments as possible while they have a steady income is a very wise choice. If they have less debt when there is a recession, they can have more peace of mind and use all of their salary on themselves.
- Make your health a priority. It’s not really a much talked about topic, but physical and mental health is highly important in any period of life. Recessions cause a lot of stress to the population, so many diseases arise precisely when the country goes through hard times. Eating healthy, getting some physical activity, getting enough sleep, and having time to yourself or to relax is extremely important.
- Learn to cook from home. Cooking from home is perhaps one of the first things we should do when faced with a period of recession. Nurses can choose to eat healthier, and more importantly for the economy, it saves a lot of money to cook at home, plus it is a skill that will last a lifetime.
- Feel positive. For both mental and physical health, as well as overall well-being, staying positive in the face of a recession and thinking that it is a period that will soon pass helps nurses move forward.
How Much Money Do Nurses Make?
Registered nurses make an average of $77,600 a year (a figure that varies by region and cost of living), while licensed practical nurses make $48,070 a year. While there are many ways to deal with a recession, it is important to ask how nurses can make more money, either to prepare for a recession or during one. One of the best ways to make more money for nurses is through the Nursa application, which connects hospitals and nurses to work per diem shifts, which generally have a higher hourly wage.