CRNA Money, Now What?
Graduation day is exciting for all students who have worked hard and are on the verge of starting their career as a CRNA. The day is joyous until the realization that student loan repayment is beginning. I had multiple classmates comment on their new six-figure Grad PLUS loans that were now added to their existing debt. Their attitude was indifferent towards this insurmountable mountain of debt. Many stated, “I don't even know where to start so why both?” CRNA school felt the same way. Climb the mountain one test—one class—one semester—one rotation at a time. The following is the first step.
You are a new CRNA making CRNA money. What to do now? No one wants to hear this, but I’ll make the recommendation anyway. Start working and don’t start living like a CRNA until you have a CRNA’s net worth. It is tempting to make a big purchase with that sign-on bonus but resist the urge. Financial discipline towards debt paydown is a great way to build a strong financial base. There is a time and place for leverage and “risky” investments, but now is not that time. Similarly, there is a time for a big house and a new vehicle, but again, not yet. When you have the money, income, and freedom to pay for all of the magnificent experiences and possessions life has to offer, that is the time.
I ran the numbers and with the high salaries and high demand for CRNAs, the time to pay off debt is short. What is a couple years in the scope of a career? In the scope of a lifetime? I understand the path to school delays pleasure and is a great sacrifice, but see it through. Surround yourself with people who support this goal. Ensure your significant other and family see the tradeoff for living well below your means to make financial progress. I promise vacations, shiny things, charitable giving, and financial security are not far away. Timing is the difference between a blessing and a curse.
The credentialing period usually takes 8-12 weeks, which presents an opportunity for a much-needed vacation. This means 8-12 weeks of no studying and no anesthesia. Hopefully vacation go-ers already have their sign on bonus in hand and don't feel the need put it on the credit card. Don't get me wrong, the weeks following graduation are well deserved and should be used to the fullest. This time away from the responsibility of anesthesia is a perfect opportunity to spend time with the spouse, kids, or simply put yourself back together. Society says you are now a CRNA and make CRNA money. Therefore must live like a CRNA. Society says a beginning a new job and a new career means it is time to build a new house and buy a new SUV. This is the point in which I bring down heavy rainfall on this figurative parade. Society does not have a firm grasp on financial literacy and achieving financial independence. 1 in 3 households making $250,000+ lives paycheck to paycheck – unable to cover a $1,000 expense. Don’t be this person or family. There is nothing wrong with a “staycation” as a form of rest and recovery.
Common thought: Live the lean and mean SRNA lifestyle for 3 years, get a job, and never go back to that lifestyle again! I respect the decision and discipline to cut expenses during school, but if you are graduating with debt, hold on just a bit longer. The faster you get on the right side of compounding interest, the better off you will be. For those graduating with debt, try your hardest to maintain the standard of living that you had during anesthesia school. I know — that sounds bleek and boring. Perhaps it is some advice your parents would give you. But that doesn’t apply any longer because you’re an adult, right? Not quite. If you are in debt like a broke graduate student, I recommend living like a broke graduate student. It may not sound fun now, but it will be fun before you know it.
If you are without personal and student debt, CONGRATS TO YOU!! This is a rarity among the profession where $200,000 in loans is not uncommon. Negative net worth is the norm. To those debt free CRNAs, you are on the fast track to financial freedom. Feed the investment accounts and watch them grow.
So, what did I do after completing CRNA school? My now wife and I celebrated our wedding, which led to a two-week honeymoon in the southeast United States and the Caribbean. My wife and I had no debt at the time (we have a mortgage now). We both paid for our undergraduate and graduate degrees. We have no credit card or vehicle debt. No debt of any kind. Not only that, but we also paid cash for the lavish fiesta called our wedding and the two weeks to follow. The sign-on bonus went towards the house we purchased. We made it with cash to spare.
To round out the story, the hospital agreed to emergency credentialling, which meant I would begin working just 4-5 weeks after graduation. This was just enough time considering the job required a 24+ hour relocation. Take away message: Enjoy the time off, but don’t dig a deeper hole.
