How to FIRE as a Travel Nurse: The Early Retirement Playbook

Travel nursing offers something most careers don’t: the ability to dramatically accelerate your path to financial independence. The combination of high pay, tax-advantaged stipends, and geographic flexibility makes FIRE (Financial Independence, Retire Early) genuinely achievable.

Here’s how to build your travel nurse FIRE playbook.

Why Travel Nursing Is Ideal for FIRE

The math works in your favor:

A staff nurse saving 20% of income needs 25+ years to reach FIRE. A travel nurse saving 50% can get there in 12-15 years.

The FIRE Numbers

FIRE is based on a simple formula: accumulate 25x your annual expenses, then withdraw 4% per year.

Example Calculation

Monthly expenses in retirement: $4,000

• Annual expenses: $48,000
• FIRE number (25x): $1,200,000

With travel nursing income:

• Net income after taxes: ~$95,000
• Annual savings at 50% rate: $47,500
• Years to $1.2M (at 7% returns): ~15 years

Compare that to a staff nurse:

• Net income: ~$60,000
• Annual savings at 20%: $12,000
• Years to $1.2M: ~35 years

Phase 1: Foundation (Year 1-2)

Emergency Fund

Before aggressive investing, build 6 months of expenses in cash:

• Target: $24,000-30,000
• Purpose: Gap between contracts, emergencies
• Location: High-yield savings account

Eliminate High-Interest Debt

Pay off anything above 7% interest:

• Credit cards
• Personal loans
• Car loans

Keep low-interest debt (mortgages, federal student loans) for now.

Tax-Advantaged Accounts

Max these out first:

• 401(k): $23,000/year (plus employer match)
• Roth IRA: $7,000/year
• HSA (if eligible): $4,300/year

Total: $34,300 in tax-advantaged space

Phase 2: Acceleration (Year 3-7)

Maximize Savings Rate

Target 50%+ savings rate through:

Income side:

• Take high-paying contracts
• Work overtime strategically
• Claim all tax deductions

Expense side:

• Housing hack (live below GSA stipend)
• Choose low-cost-of-living assignment locations
• Avoid lifestyle inflation

Investment Strategy

Keep it simple:

• 80-90% in low-cost index funds (VTSAX, VTI)
• 10-20% in international funds (VXUS)
• Rebalance annually

Avoid:

• Individual stocks
• Crypto speculation
• “Hot tips” from anyone

Tax Optimization

Current Income:

• Traditional 401(k) to reduce taxable income
• Tax-free stipends (maintain tax home)
• HSA triple tax advantage

Future Flexibility:

• Roth IRA for tax-free withdrawals
• Taxable brokerage for early retirement bridge

Phase 3: Coast Phase (Year 8-12)

At some point, your investments grow faster than you can save. This is the “coast” phase where you could stop contributing and still reach your number.

Coast FIRE Calculation

If you have $600,000 at age 35:

• At 7% annual growth
• Reaches $2.4M by age 55
• Without any additional contributions

This provides options:

• Work less (PRN, part-time)
• Take lower-paying but preferred assignments
• Pursue passion projects

The Travel Nurse FIRE Advantages

1. Geographic Arbitrage

Take contracts in high-pay, moderate-cost areas:

• California pay, Nevada living
• NYC/NJ pay, Pennsylvania living
• Massachusetts pay, New Hampshire living

2. Housing Arbitrage

Pocket the difference between GSA stipend and actual rent:

• GSA: $2,500/month
• Actual rent (shared housing): $1,200/month
• Monthly savings: $1,300 ($15,600/year)

3. Tax-Free Income

Tax-free stipends mean more money compounds:

• $25,000 tax-free = $25,000 invested
• $25,000 taxable (24% bracket) = $19,000 invested
• Difference over 10 years at 7%: $60,000+

4. Career Flexibility

FIRE doesn’t mean never working. Options include:

• PRN local assignments
• Seasonal travel contracts
• Part-time CRNA/NP work
• Healthcare consulting

Sample FIRE Timelines

Aggressive Path (10-12 years)

• Income: $130,000/year
• Savings rate: 60%
• Annual savings: $78,000
• FIRE target: $1.2M

Moderate Path (15-18 years)

• Income: $100,000/year
• Savings rate: 45%
• Annual savings: $45,000
• FIRE target: $1.2M

Conservative Path (20-25 years)

• Income: $90,000/year
• Savings rate: 30%
• Annual savings: $27,000
• FIRE target: $1.2M

Common FIRE Mistakes

1. Ignoring Tax-Home Compliance

Losing tax-free stipends retroactively can destroy FIRE plans. Maintain proper documentation.

2. Lifestyle Inflation

Earning $130K but spending $100K still means slow FIRE. Keep expenses stable as income grows.

3. Overconcentrating Investments

Don’t put everything in one stock, crypto, or investment property. Diversify.

4. Neglecting Insurance

A disability or major illness can derail FIRE. Maintain:

• Health insurance
• Disability insurance
• Umbrella policy

5. Being Too Aggressive

Burnout from constant crisis contracts isn’t sustainable. Balance income with sanity.

Healthcare in Early Retirement

The big question: what about health insurance?

Options Before Medicare

ACA Marketplace:

• Subsidies available based on income
• Can reduce costs significantly if income is managed

Part-time Work:

• PRN hospital shifts often include benefits
• 20-24 hours/week may qualify

Health Sharing:

• Not insurance, but lower cost
• Religious or secular options

COBRA:

• Temporary bridge from last employer
• Expensive but comprehensive

ACA Strategy

Control your taxable income in early retirement:

• Withdraw from Roth (tax-free, doesn’t count as income)
• Tax-gain harvest strategically
• Keep income low enough for subsidies

Tools and Resources

Tracking

• Personal Capital or Empower (net worth tracking)
• YNAB or Mint (budgeting)
• Spreadsheets (custom modeling)

Investing

• Vanguard, Fidelity, Schwab (low-cost brokerages)
• M1 Finance (automated investing)

FIRE Community

• r/financialindependence
• ChooseFI podcast
• Mr. Money Mustache (blog)

Calculate Your Path

Use our Savings Goal Calculator to model your personal FIRE timeline. Input your income, savings rate, and target to see when you could reach financial independence.

The Bottom Line

Travel nursing provides one of the clearest paths to FIRE available to healthcare workers. The combination of high income, tax advantages, and lifestyle flexibility creates ideal conditions for building wealth quickly.

The key is being intentional: live below your means, invest consistently, and let compound growth do the heavy lifting.

Your FIRE Checklist:

• Calculate your FIRE number (25x annual expenses)
• Set a target savings rate (aim for 40%+)
• Max tax-advantaged accounts first
• Invest in low-cost index funds
• Maintain tax-home compliance
• Track progress monthly
• Stay the course through market volatility