California new grad nurses can make about $60,000-$100,000 a year, and with money comes more responsibility, so this is my simple and straightforward way to budget money. This is the YouTube video that has the clearest explanation of the potential financial lifestyle of any salary in California! This blog article doesn’t only focus on nursing, but this is applicable to everyone with a salary.
Use Percentages to Budget Your After-Tax Income
I use Google Notes to write down my budget, so I have access to it on my phone and laptop. According to the YouTube video, the example states using 50% of your after-tax income on needs, 30% on wants, and 20% on savings. The percentages are flexible, so you can put, for example, 50% towards savings, 20% toward wants, and 30% toward needs, as long as it adds up to 100%. The calculations are the same for different percentages, so pick the percentages that best fit your current lifestyle! Since I’m early in my nursing career, I plan to save as much as I can, so I save around 30% of my savings.
I like to set weekly budgets for my needs and wants so I have a rough estimate of how much I can spend on groceries, eating out, entertainment, etc. For example, on a $70,000 after-tax salary, my budget allows me to spend about $200 per week. I keep a mental estimate of my purchases, but I don’t write down every single purchase since it saves some of my mental sanity. However, if you enjoy tracking all your expenses, check out the Personal Budget Spreadsheet I’ve used before.
Use a Spreadsheet
If you’re the type of person who prefers to track every expense, I used this Personal Budget Spreadsheet. It automatically calculates your numbers, so it’s efficient and useful! However, if you don’t have your savings/wants/needs percentages from the previous section, it may be harder to set boundaries for your money.
Live Below Your Means
Nowadays, everything is expensive: rent, food, gas, the list goes on. Also, lifestyle inflation can cause you to live paycheck to paycheck. Even if someone has a $100,000 salary, they can be living paycheck to paycheck from debt, loans, mortgages, car payments, etc. Try not to buy a new car or house, or go out constantly. Live with roommates, or stay with your parents a bit longer if you can tolerate it. Buy used cars, and learn how to cook!
In my case, I’m lucky enough to live with my parents and pay rent to them instead. The two things I love to spend money on are eating out and traveling, so I spend most of my wants money on these things. As long as you have the money percentage boundaries for investments/savings and expenses, it’s okay to spend your fun money on the things you love!
Thank you again for reading my post! If you made it this far, I truly appreciate your time and welcome you to the introverted nurse community :-)) Reach out to me here for any comments or questions you have!