7 Ways Supplementing Your Income with Locum Tenens Can Lead to Lasting Financial Fitness
For physicians, nurse practitioners (NPs), physician assistants (PAs), and certified registered nurse anesthetists (CRNAs) who already have full practices, the benefits of working locum tenens as well can be quite compelling. For some, the idea of mixing up clinical settings is motivation enough. For others, the benefit could be the satisfaction of delivering healthcare services to communities where the need is highest. And for many providers, the financial incentives associated with short-term assignments are the inspiration. With regard to the latter, what you do with that supplemental income today can make a big difference in your fiscal tomorrow.
Here are just a few examples of how investing some of your downtime in locum tenens jobs pays off for long-term financial well-being.
Paying Down Student Loans
The Education Data Initiative reports that between 76 and 89 percent of medical school graduates carry student loan debt, including funds used to pay for undergraduate degrees. In fact, it states that the average student debt for medical school graduates totals nearly $242,000.
PAs also accumulate hundreds of thousands in student loans, per the National Commission on Certification of Physician Assistants. The American Association of Colleges of Nursing reports NPs carry between approximately $40,000 and $55,000 after completing their advanced education and training. And the average CRNA graduates with a large debt load, too.
That amount of financial weight takes years to pay off. However, income from locum tenens contracts can be directed toward extra payments on principal only. Even just one or two temporary assignments each year allow providers to make progress toward paying down student loans faster.
Saving for Large Purchases
Whether you are looking to buy your first home, a vacation home, investment properties, or remodel your current residence, real estate can be real expensive. Perhaps you finally want to buy that car, boat, or other large-ticket item you’ve been dreaming of. Big purchases come with big price tags. Additional income from doing locum tenens can help grow funds allocated for major transactions much faster without subtracting money from recurring expenses or spending.
The extra dollars earned through temporary assignments could be allocated to pay off additional debts, like car loans or credit cards. Bonus: Eliminating revolving balances increases monthly cashflow. Supplemental income also could be designated to make extra house payments, thereby shortening the life of your mortgage.
Covering College Costs
Even if you are a parent who deposits funds into your children’s college savings programs every month, you minimize the likelihood of their own student debt by boosting accounts with income earned through locum tenens contracts.
Between paying off past debt, covering current financial commitments, and saving for children’s education, setting aside funds for retirement may seem like another bill rather than an investment for the future. Diverting locum tenens earnings toward individual retirement accounts allows you to achieve long-term financial goals without compromising short-term cashflow.
Preparing for a Rainy Day
No one is immune from unexpected expenses, such as home or car repairs. Depending on the extent of such events, the bill could deplete your nest egg or at least put a dent in it. A few locum tenens assignments may earn you enough to replenish those funds or build up a substantial emergency savings account.
Accruing Vacation Pay
Not only could locum tenens opportunities finance family vacations, these temporary assignments could be turned into working vacations. Talk with your All Star Healthcare Solutions consultant about bringing your spouse or family along. Being together allows your loved ones to sightsee while you are on duty, and you get to spend downtime and days off as a family. Also, confer with us about adding days to your stay so you all can partake in tourist fun in the locums assignment location.
If you want to learn more about how to fit locum tenens into your schedule, call 800-928-0229 to speak with an All Star consultant right now, or contact us online!