Embracing COAST FI: A Practical Guide for Nurses

The healthcare sector is a challenging environment, with its long, demanding hours, strenuous schedules, and high-stress situations. These factors are especially true for nurses, whose role forms the backbone of patient care. With this level of responsibility, it's crucial to focus not only on physical well-being but also on financial health. A concept that can make this journey easier is COAST FI or Coast Financial Independence.

COAST FI refers to the stage where you have enough invested that, without additional contributions, your investments will grow to support your desired lifestyle in retirement. At this point, you are free to "coast" in your career. This can mean working less, changing careers, or pursuing passion projects without the worry of meeting aggressive savings goals.

Let's delve into how nurses can apply COAST FI to enhance their financial wellbeing and overall lifestyle.

Understand the Concept

The first step is to grasp the COAST FI concept thoroughly. Traditionally, financial independence involves saving and investing until you have 25 times your annual expenses. With COAST FI, you aim to reach a smaller amount earlier in life, let it grow, and then make lifestyle choices that allow you to cover your expenses with less stressful or more fulfilling work.

Define Your Retirement Goals

What does retirement look like for you? Do you envision a quiet life in a small town or an adventurous journey across the globe? Your goals will dictate your COAST FI number, which is the amount you need in investments now that will grow to cover your future expenses.

Take Advantage of Employer-Sponsored Retirement Plans

Many healthcare institutions offer retirement plans like the 403(b) or 401(k). Contributions to these accounts are often tax-deductible, reducing your current taxable income, and some employers offer matching contributions, which can supercharge your savings. If available, make sure to take full advantage of these options.

Establish an Emergency Fund

As a nurse, you're well aware that life can take unpredictable turns. Financial emergencies are no different. An emergency fund serves as a financial safety net that allows you to navigate these surprises without hindering your journey to COAST FI.

Invest Wisely

Remember, COAST FI is all about letting your investments grow over time. Adopt a long-term investment strategy with a diversified portfolio that matches your risk tolerance. A mix of low-cost index funds or exchange-traded funds (ETFs) can be a good starting point.

Live Within Your Means

COAST FI is easier to achieve if you minimize your expenses. This could mean adopting a more frugal lifestyle, focusing on needs over wants, and avoiding lifestyle inflation as your income increases. The less you spend, the smaller your COAST FI number will be, and the quicker you can reach it.

Reassess Regularly

Like in healthcare, regular check-ups are crucial in finance. As you move through different stages in life, your expenses, income, and goals may change. Regularly reassess your financial situation to ensure you're on track towards your COAST FI target.

Consider a Side Hustle

Many nurses turn to side hustles, such as per diem nursing, teaching, or blogging about healthcare. This can generate additional income to accelerate your savings rate, helping you reach COAST FI quicker.

The journey to COAST FI doesn't need to be a solitary one. Remember, COAST FI is not just a financial strategy but a lifestyle change. It's about gaining freedom and flexibility to live life on your own terms - a worthy goal for all nurses, considering how hard nurses work for every dollar.