At first glance, becoming an investor can be intimidating and overwhelming. Many people, including nurses, worry about investing because financial loss is a very real possibility. But investing is one of the best ways to grow wealth to achieve your financial goals.
We spoke with Savannah Arroyo, MSN, RN of Networth Nurse. As the company’s Cofounder and CEO, she has great advice for the basics of investing for nurses and other methods of growing wealth.
Are Nurses Good Investors?
Savannah: Nurses literally make the best investors! We have excellent organizational skills, we know how to do a thorough assessment, we decide on interventions and make a plan to move forward from there. We also have a lot of work flexibility—we can pick up overtime, we can work full-time and pick up per diem gigs, and more. We have the flexibility and power to put ourselves in a great financial position down the road.
Why Are Some Nurses Scared of Becoming an Investor?
Savannah: There are lots of types of financial planning. I’ve talked with nurses who want to save for retirement, but many are adverse to investing. They think simply saving money is the way to grow wealth. But that’s really not the way to do it. Putting your money into investments and other income-producing vehicles that can make you money is the key to wealth.
Right now, with the way inflation is going, saving will actually cost you. Say, for example, you have $100,000 in your bank account now. You’ll actually lose some of that money down the road thanks to inflation’s current effect on the economy.
How Can Nurses Get Over Their Fear of Investing?
Savannah: It’s really important to have a community of resources you can tap into when you’re learning about becoming an investor. But say you’re the only person in your family that’s doing it. Fortunately, there are so many resources online that can help.
Beyond our own website, check out websites like NerdWallet and Investopedia. There are also so many networking groups online where you can chat with other investors and get advice. Talking to other people who already invest is a great way to become more financially literate.
How Can Nurses Weed Out Investment Scams?
Savannah: It’s definitely a concern—nobody wants to get sucked into a scam and lose their hard-earned cash. In reality, there are many legitimate investments online. It’s important to talk to others about potential investments, but it’s also a good idea to thoroughly check out the opportunity itself.
Nurses should ask themselves, does this investment opportunity make sense? What’s the reputation of the person or company offering the investment? Honestly, a lot of stuff can be pretty transparent thanks to social media. You can poke around and see what people have done for the past five to 10 years to get a sense of their track record. Start there and see where it takes you.
What Should Financial Planning for Nurses Look Like?
Any nurse who’s interested in becoming an investor needs to know and understand what that specific investment looks like. If you’re putting money somewhere, how is that money going to make you more money? Each type of investment will be different—crypto currency, forex trading, real estate, even stocks and bonds will all be different.
You should also study the investment operators’ strategy and business models, because that can help you better understand what they’re doing. If there’s one thing you take from this, you absolutely have to understand how your investment will make you more money.
It’s also important to understand investment terms and how they relate to investment vehicles. For example, nurses should familiarize themselves with terms like ROI (return on investment), cash-on-cash return, and more. Then, you should be able to apply those concepts to different investment vehicles so you can understand how they work. Once you have better insight, you can compare different investment strategies and make a more informed decision.
Is it Possible to Pay Off Student Loans and Invest at the Same Time?
Savannah: When you’re thinking about financial planning for nurses, it really comes down to assessment. Your situation is likely completely different than someone else’s, and the road to wealth will be different for everyone. You should absolutely take the time to understand where you are financially, and then decide if becoming an investor is for you. That helps determine whether a nurse can invest while also paying off loans.
Sarah Handzel, BSN, RN began writing professionally in 2016 as a way to use her medical knowledge beyond the bedside. She obtained a Bachelor of Science in Nursing degree and worked as a registered nurse in multiple specialties, including pharmaceuticals, operating room/surgery, endocrinology, and family practice. With over nine years of clinical practice experience, her unique insights into the healthcare industry help her craft compelling content that targets both healthcare consumers and clinicians.