Contract Series #2: Stacking Cash Before You Travel
Your Financial Runway
The Paycheck Blur
September 2019.
There I was, holding my first big paycheck as a real nurse. Two weeks of work — six 12-hour shifts — had earned me more than $2,000. I felt like the richest man in the world.
To celebrate, I ate at a few restaurants, bought a couple of new pairs of jeans, and even went to a movie with friends. Nothing crazy, but once rent, car payment, taxes, and basic life expenses hit, that check started looking smaller and smaller.
I wasn’t broke because I didn’t make enough; I was broke because I didn’t have a plan — or a budget.
Why You Need a Runway
Imagine booking a flight to your dream destination. You click “Purchase,” and a red box pops up:
“The flight you chose will not have a runway to land on.”
Flight canceled, right?
Your financial life can be the same. Instead of barreling toward debt and instability, you need a runway — a solid stretch of savings that lets you land safely when life or work gets bumpy.
Before You Build Your Runway
There are three things every nurse should do before stacking cash.
1. Get the Free Money
Most hospitals offer a retirement plan — a 401(k) (for-profit) or 403(b) (non-profit).
These are tax-advantaged accounts that grow for decades. You contribute a portion of your paycheck; the money grows tax-deferred, and you pay taxes only when you withdraw in retirement.
Some hospitals also offer a Roth 401(k) option — you pay taxes now, and the withdrawals later are tax-free.
The magic is in the match.
If your hospital matches up to 5% and you contribute 5%, they’re literally handing you a 5% raise. My first hospital did exactly that: I put in $2,400 that year, and they dropped in another $2,400 for free.
Take the match. It’s the easiest money you’ll ever make.
After that, pause extra contributions until your runway is built.
2. Pay Down High-Interest Debt
If you have loans or credit cards with interest ≥ 8%, treat them like an emergency.
An 18% APR on a $30,000 credit-card balance adds $5,400 in interest per year.
An 8% auto loan on a $40,000 car adds $3,000 per year.
That’s wealth in reverse.
Two proven payoff methods:
Snowball Method – Pay off the smallest balance first, then roll that payment into the next debt. It builds momentum.
Avalanche Method – Pay off the highest-interest debt first. It saves the most money mathematically.
Pick one. The best method is the one you’ll actually do.
3. Track Your Expenses
No one loves tracking, but it’s the foundation of financial health.
If you don’t know where your money’s going, it’s already gone.
Use tools like YNAB, Empower, Monarch, or Mint, or go old-school with a spreadsheet or notebook.
Right now, just observe your spending for a month. Don’t change anything yet — get an honest baseline.
Building Your Runway
So, how much do you need? It depends.
A healthy runway covers six months of expenses — savings that let you pause work, survive a canceled contract, or move without panic.
Keep it in a high-yield savings account, not the stock market.
At this stage — your first one to two years as a nurse — your main lever is your savings rate.
Savings Rate = Money Saved ÷ Take-Home Pay
You can’t boost your income much yet, so focus on expenses.
Every dollar you don’t spend increases your savings rate.
Budgeting, Self-Control & Frugality
Budgeting isn’t punishment — it’s awareness.
Use your tracking app to plan future expenses and adjust monthly.
Small tweaks compound:
Cut $100 from restaurants.
Skip one $6 coffee per week.
Cancel a forgotten subscription.
Each win raises your savings rate.
Before the small stuff, tackle the Big Three: housing, car, and food.
They decide whether you’re saving 10% or 60%.
Housing — The Roommate Hack
Keep roommates a little longer.
Splitting rent between two or three people saves thousands per year.
Being an adult doesn’t mean living alone; it means making hard, smart choices.
Cars — Avoid the Trap
Don’t buy a new vehicle.
That $400–$1,000 monthly payment becomes an anchor while the car loses value.
Try this:
The Hourly Exchange Exercise
If you earn $35/hr, a $40,000 car costs 1,143 hours — almost six months of full-time work.
Ask yourself: Is it worth that trade?
Food — Intentional Enjoyment
You don’t need to cut joy; just cut autopilot spending.
Eat out with people who fill your soul, not out of boredom.
Frugality isn’t deprivation — it’s intentional living.
The Frugality Debate
Lately, some in the FIRE community say extreme frugality is out of style.
That’s easy to preach after you’re already financially independent.
If you’re still grinding, frugality is your secret weapon.
A few years of focused saving can buy you decades of freedom.
Yes, it’s worth it.
Call to Action
Get your 401(k)/403(b) match.
List every debt with balance & interest rate.
Create your first budget and track 30 days.
Calculate your runway (6 months of expenses).
Start saving toward it today.
Freedom starts before you travel.
It starts when you stop living paycheck to paycheck.