Finance Tip Friday #25: The Recipe for Financial Freedom as a Nurse Practitioner

Money Umbrella Rain Cartoon  - mohamed_hassan / Pixabay

The recipe for financial independence and wealth creation is quite simple and can be broken down to 3 things:

  1. Avoid bad debt (remember, there is GOOD debt and BAD debt… understand the differences!).
  2. Live on less than you earn (if you like a more extravagant life, then you better earn more!).
  3. Invest whatever is left over.

If you do these 3 things, you will become one of the few rich ELITE nurse practitioners. The equation to financial independence really is that simple friends.

In my opinion, the most important component of this equation is living on less than you earn. Living below your means is extremely important because it allows you to be happy with less. Now, don’t get me wrong here: I love fancy toys, expensive vacations, and going out to dinner… But to become financially independent, you need to learn how to be happy WITHOUT these things. Additionally, your earning potential is critically important to the equation…

Anyone of us can go make $100,000 a year. That is easy money. We can pick up shifts as a travel RN, work at an urgent care as an NP, and so forth… There is no reason why any nurse practitioner can’t make at least $100,000 a year, but that is chump change if you truly want to accelerate your wealth and retire early. Real wealth generation begins when you start making $300,000 or more a year. The only way to do this is by owning your own business/practice if you want to remain a nurse practitioner. Factor that in with living below your means, and you have now accelerated your wealth generation by a significant factor!

Whatever money is left over by living below your means and generating a solid income should be invested heavily into CASH FLOWING assets that PROTECT your wealth: real estate and a solid market portfolio. You would be amazed at how fast this can grow by investing CONSISTENTLY. You should easily be able to invest $50,000-$150,000 a year and live a solid lifestyle as a business owner. This takes many years to build though, so remain patient if you are not there. Remember, you must actively be trying to GROW YOUR BUSINESS if you want more income. It doesn’t just magically happen.

Now, you must live life too… so, go on the fancy vacation or buy the sports car. But just don’t buy it if it STRETCHES you thin. That is idiotic and is a recipe for living paycheck to paycheck which is the EXACT OPPOSITE of financial freedom.

I am on track to be totally done with work (if I choose to, but I enjoy Elite NP too much so I doubt I will ever be 100% done) within the next 7 years. How have I been able to do this so quickly? By following the recipe folks:

  1. Avoid bad debt.
  2. Live on less than you earn and try to earn as much as you can.
  3. Invest whatever is left over.

It is not complicated!

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