Most financial planners suggest the average working family should build and maintain a savings equal to three to six months income. For traveling nurses, I would recommend the latter amount.
While it is true that most traveling nurses are going to find work as long as we are willing to relocate, it is also true that the unexpected can easily appear and being away from home can prove costly.
What I prefer to do is build a savings net. A savings net is what I call more than one form of savings woven together to create a strong network of personal savings options.
This first of two parts is about the traveler using credit. I have included this first because any one interested in saving must first take control of their spending. The second part will be about weaving your own savings network.
Eliminate Credit Card Debt.
As you read on, you will see that my suggestions are not the standard stuff you've read before. I highly recommend you use credit and use it a lot, but to your advantage not the bank's.
Credit is leverage, it is either leverage for you, or to the banks benefit. When used wisely, leveraged credit can make an astounding change over time. So first be sure you are on the power end of the credit leverage by paying the full balance of your credit card every month.
If you unable to pay the full balance on all your credit cards by the end of the month, this will be your first goal.
Follow this simple system.
Pay as much as you can on the smallest card balance until it is paid off then apply that amount to the next smallest balance card and continue this until they are all paid off. Trust me, this system works and what is used by most credit help agencies.
Use Only One Card.
After all your cards are paid off, keep and use one. I suggest using a card with a good reward plan that pays out both travel miles and or gifts, mine even offers $100 gift cards than can be used for cash. By using only one card I am maximizing the number of points earned on the one card.
Many of these cards still have no annual fee and since the card is paid off every month, I am not concerned about the interest. Here is an address to compare cards; http://www.credit-cards-info.com
Some folks might argue that using store cards that offer limited time interest free months is a smart move. This may be true, but not so much for travelers. What would a traveler need to purchase that would be so expensive it would require several months to pay off?
Oh yeah, that fancy laptop you've had your eye on! Just remember, those offers are made to lure you into their credit trap by getting you used to monthly payments and the best way to limit your purchases and build self control is to pay off your card every month. No matter how much it hurts.
Use That One Card For Everything Possible.
I know, I know. I'm gonna get slammed for this one, but this is about credit for Travelers. Most advice you read tells you to cut up your cards and pay cash only. Good advice for someone at home near their local bank, shops and neighborhood; not convenient at all for travelers.
Every purchase I can make; groceries, meals, gas are applied to my card. I am even checking into making mortgage and utility payments at my legal residence through my credit card.
Here are the benefits since I have started this;
* Bonus points accumulate quickly by running most expenses through it.
* I don't actually debit my account but once a month for the purchases.
* I carry very little cash as most businesses accept Visa or Mastercard
* Because I pay the full amount every month there is no interest charge.
So what about when I need cash?
These times do occur from time to time, that is why I have an account that offers a debit card that can be used at any ATM machine without charge. At the machine, I simply check that I accept the charge but the bank account credits that amount back to me the next day.
Since there is no fee for using ATM machines, I can limit the cash I'm carrying to a small amount. A smart move while visiting unfamiliar places.
On the next post I will talk about the elements of a savings net.
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