FIRE stands for Financial Independence, Retire Early. The idea is simple: save and invest as much as you can now, so you can live off your investments later. Nurses can use it to stop trading every hour for a paycheck.
Here’s how Monica and I are planning our future with FIRE, and what it looks like if you’re starting from zero.
Why nurses need a plan
Nursing is one of the largest healthcare jobs in the U.S. There were 4.35 million active RNs as of 2021, and about 600,000 new nurses joined in just the last few years.
Nursing gives you stable work, but a lot of nurses carry heavy student debt. According to HRSA, 64.7% of RNs still owe money from school.
Monica and I know what it’s like to owe hundreds of thousands of dollars. We learned from our mistakes. With careful investing, our net worth is now hundreds of thousands of dollars in the plus column. You can see how in our net worth after 12 years as nurses.
How FIRE works
FIRE might sound intense, but it works because of compound interest. Your money earns returns, and then those returns earn returns too. Over time, the growth speeds up.
Let’s look at our own numbers, then compare them to someone who starts with nothing.
Our FIRE plan
Right now, Monica and I have a net worth of $772,844.96. Say we keep investing $60,000 a year for 10 years, and returns average 10% a year. Our net worth would grow to $3,056,431 by the time we retire.
Under the 4% rule, we could then take out $122,257 a year and not run out of money.
| Year | Net worth |
|---|---|
| Year 0 | $772,845 |
| Year 5 | $1,647,611 |
| Year 10 | $3,056,431 |
If our investments keep growing, we could hit our retirement goals without working extra hours.
Starting from zero
Now say you start with $0 but follow the same plan. You invest $60,000 a year for 30 years, with the same 10% return.
After 30 years, your net worth would be $10,856,605. Under the 4% rule, you could take out $434,264 each year.
| Year | Net worth |
|---|---|
| Year 0 | $0 |
| Year 10 | $1,051,870 |
| Year 20 | $3,780,150 |
| Year 30 | $10,856,605 |
Even if you start at zero, compound interest can do amazing things for your future. Keep in mind that returns go up and down from year to year, so these numbers are a guide, not a promise.
What makes the difference
Monica and I have added to our investments every year since we moved to California. With a net worth of nearly $773,000, we can retire sooner. We need just 10 years of investing, compared to 30 years for someone starting from zero.
Whether you’re in a spot like ours or starting fresh, the key is the same. Stay consistent and let compound growth do the heavy lifting.
Why you should plan now
According to a 2023 Consumer Sentiment Tracker reported by U.S. News, 60% of retirees say they would change how they planned for retirement. Their biggest regrets were not saving enough, starting too late and guessing too low on costs, especially healthcare.
Two simple rules help you plan:
- The Rule of 25: Save 25 times what you spend each year. If you expect to spend $72,000 a year in retirement, you’d need $1.8 million.
- The 4% Rule: Once you’ve saved enough, you can take out 4% of your savings each year, and your money should last through retirement.
If you have a pension, it changes the math. Read whether a nursing pension is worth it and how nurses build wealth beyond a pension.
Start today
- Invest now so compound interest has more time to work.
- Figure out how much you need to save for retirement.
- Add money on a steady schedule, so your money works harder than you ever could.
Retirement might feel far off, but it sneaks up on you fast. Whether you’re already saving or starting from scratch, it’s never too early or too late to start. The sooner you save and invest, the better off you’ll be.
Your next move
See what you’d take home, then make the move
Map My Pay shows what nurses take home after taxes and rent at 465+ hospitals and in 21,000+ cities. It’s the app I co-founded so you can compare cities before you pack a single box.
The Nurses to Riches Accelerator is the plan Monica and I used to go from $37 an hour in New York to $143 an hour in California: license, city, hospital, and what to do with the money after.
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Every Accelerator plan is a one-time payment with a 30-day money-back guarantee.
Written by Jason, RN. I went from $37 an hour in New York to $143 an hour in California and paid off $128K of debt in under a year. I share our numbers in the Nurses to Riches newsletter and on YouTube.