Travel Nurse Financial Reset: New Year Money Makeover

Introduction: A Clean Financial Slate

January is a reset button. The contracts you worked last year are done. The income is earned, the taxes are (mostly) settled, and whatever happened with your money in the past 12 months — good, bad, or somewhere in between — is behind you. What matters now is what you do with the next 12 months.

Most travel nurses earn well above the national median income. The problem is that high earnings do not automatically translate into financial progress. Without an annual review and intentional reset, it is easy to drift — spending more as you earn more, neglecting savings goals, carrying the same debts year after year, and never quite getting around to the retirement account or the insurance audit or the budget overhaul you promised yourself last January.

This guide is your annual financial reset checklist. It walks you through a complete money makeover: reviewing last year, setting this year’s goals, resetting your budget, auditing your insurance, checking your credit, and positioning yourself to actually build wealth over the next 12 months. Block out two to three hours, pour a cup of coffee, and work through each section. By the end, you will have a clear financial plan for the year ahead.

Step 1: Review Last Year’s Financial Performance

Before you plan the future, you need an honest look at the past. Pull up your bank statements, credit card statements, and pay records for the last 12 months.

Income Review

Total compensation. Add up your total earnings from all agencies, including taxable wages and non-taxable stipends. How does this compare to the previous year? To your expectations? If your income went up, identify why (higher rates, more weeks worked, overtime, holiday contracts). If it went down, understand the cause (market softening, longer gaps, lower-paying assignments).

Income utilization. How many weeks did you actually work last year? If you worked 46 out of 52 weeks, you utilized 88% of your earning capacity. If you worked 40 weeks, that is 77%. Time off is important, but understanding your utilization rate helps you project income for the coming year more accurately.

Effective hourly rate. Divide your total annual compensation (taxable plus non-taxable) by your total hours worked. This gives you a more honest picture of what your time is worth than looking at any single contract’s rate. Track this number year over year to see whether your earning power is growing.

Spending Review

Where did the money go? Categorize your spending for the year. Most budgeting apps can generate a year-end spending report. If you do not use an app, review bank and credit card statements and sort expenses into categories: housing (at tax home and on assignment), food, transportation, insurance, debt payments, entertainment, shopping, subscriptions, and savings.

Spending surprises. Most people find at least one category where they spent significantly more than they realized. Subscriptions, dining out, and Amazon purchases are common culprits. Identify your biggest spending surprises and decide whether that spending aligns with your values and goals.

Savings rate. Calculate what percentage of your take-home pay you saved last year. This includes contributions to savings accounts, retirement accounts, and investment accounts. A healthy savings rate for travel nurses is 20% to 30% of take-home pay. If you are below 20%, your reset should prioritize finding ways to increase it. If you are above 30%, you are building wealth effectively.

Net Worth Snapshot

Calculate your net worth: total assets (savings, investments, retirement accounts, property value) minus total liabilities (student loans, credit card balances, car loan, mortgage). Write this number down. You will compare it to next year’s snapshot.

Net worth is the single most comprehensive measure of financial progress. Income tells you how much money flows through your hands. Net worth tells you how much sticks. If your net worth grew by $20,000 or more this year on travel nurse income, you are doing well. If it barely moved or went backward, something needs to change.

Step 2: Set Specific Financial Goals for the Year

Vague goals produce vague results. “Save more money” is not a goal. “Save $15,000 in my high-yield savings account by December 31” is a goal. Make your financial goals specific, measurable, and time-bound.

Goal Categories

Emergency fund. If your emergency fund is not at your target level (three to six months of essential expenses), set a specific dollar goal and deadline. Example: “Build emergency fund from $8,000 to $18,000 by September 30.”

Debt payoff. If you carry high-interest debt, set a payoff target. Example: “Pay off remaining $4,200 credit card balance by June 30.” Use the debt avalanche method (pay off highest interest rate first) for mathematical efficiency, or the debt snowball method (pay off smallest balance first) for psychological wins. For student loan strategies, see our student loan guide.

Retirement. Set a specific contribution goal. Example: “Contribute $7,000 to my Roth IRA by December 31” or “Increase 401(k) contribution from 6% to 10%.” Even small increases compound dramatically over time. See our retirement planning guide for contribution strategies.

Short-term savings. Identify anything you want to save for this year: a vacation, a down payment, new gear, continuing education, or a license in a new state. Assign each goal a dollar amount and timeline, then build it into your budget.

Income goals. Set targets for your earning side too. Example: “Negotiate a base rate increase of at least $3/hour on my next contract” or “Work at least 48 weeks this year.” For negotiation strategies, see our contract negotiation guide.

The Priority Stack

You cannot pursue every goal with equal intensity. Rank your goals by priority:

Non-negotiable: Emergency fund minimum, debt minimums, basic retirement contribution
High priority: Debt acceleration, retirement goal, essential savings
Medium priority: Short-term savings goals, lifestyle upgrades
Lower priority: Nice-to-have goals that can wait if needed

Fund goals in priority order. Only move to lower-priority goals when higher-priority ones are funded or on track.

Step 3: Reset Your Budget

Your budget from last year may not fit this year’s reality. Contracts change, expenses shift, and your goals have (hopefully) evolved. January is the time to rebuild.

The Travel Nurse Budget Framework

Use the three-bucket system adapted for travel nurse income:

Bucket 1: Fixed expenses (40% to 50% of take-home pay). These stay roughly constant regardless of your assignment location: tax home rent or mortgage, car payment, insurance premiums, student loan payments, phone, subscriptions, and minimum debt payments.

Bucket 2: Variable expenses (20% to 30% of take-home pay). These change based on your location and lifestyle: groceries, dining out, gas, entertainment, personal care, and assignment-specific costs.

Bucket 3: Savings and goals (20% to 30% of take-home pay). This is the money that builds your future: emergency fund contributions, retirement contributions, investment transfers, debt payoff above minimums, and short-term savings goals.

If your savings bucket is below 20%, look for cuts in Buckets 1 and 2. Common areas where travel nurses overspend include housing (taking agency housing or expensive short-term rentals when cheaper options exist), dining out on assignment, and subscriptions that accumulate and go unused.

For a detailed budget template, see our budget guide and budget template.

Automate Everything

The most reliable budgets run on autopilot. Set up automatic transfers for every financial goal:

Payday: Automatic transfer to high-yield savings (emergency fund and short-term goals)
Payday: Automatic transfer to investment/retirement account
Monthly: Automatic bill payments for all fixed expenses
Monthly: Automatic extra debt payments above minimums

When saving and investing happen automatically before you can spend the money, you remove willpower from the equation. The money moves on payday, and you budget your lifestyle around what remains.

Step 4: Review Your Credit Report

Your credit score and credit report affect your ability to rent housing, get approved for credit cards (important for travel rewards), secure car financing, and eventually qualify for a mortgage. Review it at least once a year.

Pull Your Free Reports

You are entitled to a free credit report from each of the three major bureaus (Equifax, Experian, TransUnion) once per year through AnnualCreditReport.com. Pull all three in January and review them for accuracy.

What to Check

Personal information. Verify your name, addresses, and Social Security number are correct. Travel nurses often have multiple addresses on file, which is normal, but make sure they are all addresses where you actually lived or received mail.

Account accuracy. Confirm that every account listed is one you recognize. Check that balances, payment histories, and account statuses are accurate. If an account shows a late payment that you know was on time, dispute it.

Inquiries. Review hard inquiries (credit checks from applications). If you see inquiries you do not recognize, it could indicate identity theft or unauthorized credit applications.

Negative marks. Look for collections, charge-offs, or public records. If any are inaccurate, dispute them. If they are accurate but old, understand when they will fall off your report (most negative marks drop off after seven years).

Improve Your Score

If your credit score needs work, focus on these high-impact actions:

Pay every bill on time. Payment history is the single largest factor in your credit score (approximately 35%).
Reduce credit utilization. Keep your credit card balances below 30% of your credit limits, and ideally below 10%. If you have a $10,000 limit, keep your balance under $1,000.
Do not close old accounts. The age of your credit history matters. Closing your oldest card shortens your history and reduces your available credit.
Limit new applications. Each hard inquiry can temporarily lower your score by a few points. Space out credit applications if possible.

For a comprehensive credit strategy, see our travel nurse credit score guide.

Step 5: Audit Your Insurance Coverage

The new year is the right time to review every insurance policy you carry and make sure you are adequately covered without overpaying.

Health Insurance

If you enrolled during open enrollment, confirm your plan is active and your ID cards are accessible. Verify that your primary care provider and any specialists you see are in-network. If you deferred your health insurance decision, address it now — being uninsured is a financial risk you cannot afford.

Disability Insurance

Disability insurance replaces a portion of your income if an illness or injury prevents you from working. For travel nurses whose income depends entirely on their ability to work contracts, disability coverage is critically important and often overlooked. Review whether your current coverage (if any) is adequate. See our disability insurance guide for recommendations.

Life Insurance

If anyone depends on your income — a spouse, children, aging parents — you need life insurance. Review your coverage amount against your financial obligations. A common guideline is 10 to 15 times your annual income. If your income has increased since you last purchased coverage, your policy may be undersized. Our life insurance guide covers the options.

Malpractice Insurance

Most staffing agencies provide malpractice coverage, but the limits and terms vary. Consider supplemental malpractice insurance for additional protection. A personal policy typically costs $100 to $300 per year and provides coverage that follows you regardless of which agency you work for. See our malpractice insurance guide.

Auto and Renter’s Insurance

Review your auto insurance annually. If you have moved to a different state or changed your driving patterns, your rate may need adjustment. Renter’s insurance for your tax home (and potentially your assignment housing) is inexpensive ($15 to $30 per month) and protects your belongings.

Step 6: Increase Your Retirement Contributions

If you are already contributing to retirement accounts, January is the time to increase your contribution rate. Even a small increase compounds significantly over time.

The 1% Increase Strategy

Increase your retirement contribution by 1% of your income each year. If you contributed 8% last year, bump it to 9% this year. On a $70,000 taxable salary, that 1% increase is $700 more per year — roughly $58 per month. You will barely notice the difference in your paycheck, but over a 20-year career, that single 1% increase (invested at 7% average annual return) grows to approximately $29,000.

Do this every January, and in five years you will have increased your savings rate by 5% without ever feeling a dramatic lifestyle change.

Max Out If You Can

If your income supports it, aim to max out at least one retirement account in the coming year:

Roth IRA: $7,000 ($8,000 if 50+) = $583/month
401(k): $23,500 ($31,000 if 50+) = $1,958/month
HSA: $4,300 individual ($8,550 family) = $358/month individual

If maxing out everything feels impossible, prioritize in this order: agency 401(k) up to the match, then Roth IRA, then HSA, then 401(k) up to the max. For the full retirement strategy, see our investing guide.

Step 7: Update Your Financial Systems

Review Your Bank Accounts

Are your accounts still serving you well? Check that your checking account has no monthly fees and offers convenient ATM access nationwide. Check that your high-yield savings account is still offering a competitive rate. Banks frequently change rates, and switching to a higher-yielding account can earn you hundreds of extra dollars per year on your savings.

Review Your Credit Cards

Are you using the right cards for your spending patterns? Travel nurses who drive between assignments should prioritize gas rewards cards. Nurses who stay in extended-stay hotels benefit from hotel rewards cards. Review your card lineup and consider whether a different card would earn you more rewards on your actual spending. Our best credit cards for travel nurses guide is updated with current offers.

Update Beneficiaries and Emergency Contacts

Review the beneficiaries on your retirement accounts, life insurance policies, and bank accounts. Life changes (marriage, divorce, new children) may require updates. Also update your emergency contact information with your current agency.

Organize Your Financial Documents

Create or update a secure digital file with your important financial information: account numbers, login credentials (stored in a password manager), insurance policy numbers, and your CPA’s contact information. If something happened to you, could a trusted person access your financial life? If not, create an emergency financial document and share it with someone you trust.

FAQ

How long should my annual financial review take?

A thorough annual financial review typically takes two to four hours. You can do it in one sitting or spread it across a few days. The income and spending review (Step 1) takes the longest because it requires pulling data from multiple sources. The goal-setting and budget reset steps go faster once you have the data. After the first year, subsequent reviews are quicker because you have systems in place and only need to update rather than build from scratch.

What if I discover I barely saved anything last year despite good income?

This is more common than you might think, and the fact that you are reviewing and recognizing it is the first step. Lifestyle inflation is the usual cause — as income goes up, spending rises to match. The fix is automating savings before the money ever reaches your checking account. Set up automatic transfers to savings and investment accounts on payday, then live on what remains. Start with a savings rate you can sustain (even 10%) and increase it by 1 to 2 percentage points each quarter until you reach your target.

Should I hire a financial advisor or can I do this myself?

Most travel nurses can handle their annual financial review and goal setting independently using guides like this one and the tools available on this site. However, if your financial situation is complex — significant investment assets, real estate, business income, or multi-state tax complications — a fee-only financial advisor (one who charges a flat fee rather than earning commissions on products they sell you) can provide personalized guidance. The key is finding an advisor who understands the unique aspects of travel nurse compensation, including stipends, variable income, and tax home requirements.

How often should I check my credit report?

Pull your full credit reports from all three bureaus at least once per year through AnnualCreditReport.com. Between annual pulls, use a free credit monitoring service to track your score and receive alerts about new accounts or inquiries. Credit monitoring is especially important for travel nurses because your personal information (Social Security number, addresses) passes through multiple agencies, facilities, and credentialing services throughout the year, increasing your exposure to potential identity theft.

What is the single most impactful financial action I can take in January?

Automate your savings. If you do nothing else from this entire guide, set up an automatic transfer from your checking account to your savings or investment account on every payday. The amount matters less than the consistency. Starting with $200 per paycheck and never touching it builds $5,200 per year — and that is before any interest or investment growth. Automation removes the decision and the temptation, making financial progress inevitable rather than aspirational.

Key Takeaways

Review last year honestly. Calculate your total income, spending by category, savings rate, and net worth change. You cannot improve what you do not measure.
Set specific, measurable financial goals for the new year across emergency savings, debt payoff, retirement contributions, and income targets. Prioritize them in order.
Reset your budget using the three-bucket framework (fixed expenses, variable expenses, savings) and automate every transfer and payment you can.
Pull your credit reports from all three bureaus and check for errors, unauthorized accounts, and opportunities to improve your score.
Audit all insurance coverage — health, disability, life, malpractice, auto, and renter’s — to ensure you are adequately covered without overpaying.
Increase retirement contributions by at least 1% this year. Small annual increases compound into life-changing wealth over a career.
Automate everything. The most reliable financial plans are the ones that run without requiring willpower on a daily basis.

Your annual financial reset is not about perfection — it is about intention. Travel nursing gives you the income to build real wealth. This review ensures that income is actually working for you, not just passing through your hands. Do the work now, and December 31 will look very different from last year.

Affiliate Placement Notes

Budgeting app affiliate links in the spending review and budget reset sections
High-yield savings account links in the bank account review section
Credit monitoring service affiliate links in the credit report section
Investment platform links in the retirement contribution section
Insurance comparison tool links in the insurance audit section