E4: How Much Money Should CRNAs Be Saving?

Savings Rate for CRNAs

In today’s episode, we’re going to talk about one of the most important financial concepts in retirement planning: your savings rate. Why is savings rate important for CRNAs? For me, it tells me if you’re living a life to the maximum point on your income.

Are you always spreading yourself thin, or do you have flexibility to make money decisions?

Just this morning, I was analyzing a client, and I had to make a decision. Can this person afford to save more money?

Because if they could save more money and qualify for a higher tax deduction on their retirement plan, it would bump them into a different tax bracket. In fact, they’d save almost $75,000 in federal and state income taxes if they could make the larger retirement plan contribution.

Now, that’s all great, but I’m worried about them being able to afford to do that, because their lifestyle is also increasing. That’s because they’re moving into a new house, stretching their savings.

There are actual consequences to having a low savings rate.

And it’s not just that you’re saving less money or accumulating less for retirement.

The consequences are you also pay more taxes when you don’t save as much money, especially if you’re not saving in the right places. Plus, you also have more stress in your life because your money’s just not piling up.

And the psychology of that is super important. I think if you have liquidity, and every year when you make money, you know that a good portion of that is going to be left over. And every month, as your deposits continue to grow in your accounts, it’s such a different life. The psychology of living that way is so different than how most people live.

So, back to why savings rate is so important for CRNAs. I believe measuring someone’s savings rate is one of the biggest indicators of the stability of their financial situation and the number of options available to them.

Let’s dive in.

Episode Highlights

[03:29] How to know whether to invest or pay down debt based on your savings rate.

[09:31] The impact of real estate investments on your savings rate.

[13:53] Brett’s philosophy on balancing savings and lifestyle goals.

[16:07] Where to allocate your savings to maximize the potential financial benefits.

Looking for more financial planning tips and resources for CRNAs? Check out the MoneyRx for CRNAs Podcast home page for additional podcast episodes.

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