If you want to build wealth and achieve financial freedom as a nurse, remember that it’s not just about earning money, but also about managing and growing your money wisely. It doesn’t matter how much you make if at the end of the day, you spend all of them. One of the ways to set yourself up for success is by setting up the right financial accounts.
Here are four accounts that will help you build a solid financial foundation and create long-term wealth.
Four Accounts to Build Wealth as a Nurse
1. High-Yield Savings Account (HYSA) – Your Safety Net
Life is unpredictable, and having a financial cushion is crucial. A high-yield savings account (HYSA) gives you a safe place to store your emergency fund while earning more interest than a regular savings account.
Why You Need It:
- Covers unexpected expenses like medical bills, car repairs, or job transitions.
- Prevents you from relying on credit cards or loans in emergencies.
- Provides financial peace of mind.
How Much to Save:
Aim for 3-6 months’ worth of essential expenses in your HYSA.
I use ALLY BANK and Capital One Savings for my HYSA. Last year alone, I have gained over $1500 from interests just by keeping my money in these accounts.
2. Retirement Accounts – Your Future Wealth Builder
Retirement might seem far away, but starting early is key to long-term financial success. I really wish I started investing early. I wish I started when I was a new grad. If you are a full time nurse, you have access to employer-sponsored plans like a 401(k) or 403(b) and can also contribute to an IRA (Traditional or Roth).
Why You Need It:
- Helps you take advantage of compound growth over time.
- Many employers offer matching contributions, which is free money!
- Roth IRAs allow tax-free withdrawals in retirement.
How Much to Contribute:
- At minimum, contribute enough to get the full employer match.
- Aim for 15-20% of your income for retirement savings.
3. Taxable Brokerage Account – Your Wealth Accelerator
A brokerage account allows you to invest beyond your retirement accounts. This is where your money truly starts working for you, generating passive income through investments in stocks, ETFs, and index funds.
Why You Need It:
- Gives you financial flexibility since there are no age-related withdrawal restrictions.
- Grows your money faster than a traditional savings account.
- Allows you to build generational wealth outside of retirement plans.
Investment Strategy:
- Focus on low-cost index funds like S&P 500 ETFs for steady growth.
- Avoid high-risk speculation—think long-term wealth building.
If you want to learn how to invest beyond your retirement accounts, I have a class for nurses about this: Investing 101 for Nurses
4. HSA (Health Savings Account) – Your Hidden Wealth Tool
If you have a high-deductible health plan (HDHP), an HSA is a powerful tool to save for medical expenses tax-free while also investing for the future.
Why You Need It:
- Contributions are tax-deductible, grow tax-free, and withdrawals for medical expenses are tax-free.
- After age 65, funds can be used for anything (like a retirement account) without penalties.
- Can act as a stealth retirement account if you invest and let it grow.
Pro Tip:
- Max out your HSA contributions and pay for medical expenses out-of-pocket when possible, allowing your HSA to grow for decades.
Final Thoughts: Set Up These Accounts & Build Wealth
Having these four accounts—HYSA, Retirement Accounts, Brokerage Account, and HSA—sets you up for long-term financial success. Each serves a specific purpose, from providing security to building long-term wealth. As a nurse, you dedicate your time and energy to caring for others—make sure you’re also taking care of your financial future!
Which of these accounts do you already have? What steps will you take today to start building wealth?
