Advice from Ventura MedStaff’s Controller
Managing money as a healthcare traveler can look a little different than managing money in a traditional job. Your income can fluctuate, your taxes are different, you’re adjusting to varying expenses from different cities, and more. The way you plan financially has a direct impact on how much you actually keep from your paychecks. We sat down with Ventura MedStaff’s Controller, Garret M., to talk through some of the most important financial tips for travelers. Here’s what he emphasized.
Understand How Tax Homes and Stipends Work
When asked what he wished every healthcare traveler understood before starting their first assignment, Garret didn’t hesitate to say tax homes and stipends. “One of the biggest benefits of travel healthcare is receiving tax-free stipends,” Garret explained. “But there are rules attached to them. If you don’t understand those rules, you could end up with an unexpected tax bill later.”
Stipends can make up a large part of your weekly pay, so it’s critical to know what qualifies as a tax home and how to maintain it. For many travelers, this means consulting with a tax professional who understands travel healthcare. Garret emphasized that following the proper protocols is the best way to make sure you keep as much of your pay as possible.
The Truth About Pay Packages
Another point Garret stressed was around misconceptions about pay packages. “The most common misconception is believing that the big weekly number that gets advertised, say $2,000 a week, is guaranteed and straightforward,” Garret said. “In reality, that number is often a blended rate.”
That “blended rate” usually includes:
- A taxable hourly wage (typically on the lower end)
- Tax-free stipends (housing, meals, etc.)
- Possible overtime or shift differentials
The catch? Not all of these are guaranteed unless stated in your contract. If you don’t hit all your hours, if the facility doesn’t offer overtime, or if there’s no shift differential included, your paycheck may look different than the number you saw advertised.
The other thing to keep in mind is that those estimates can’t take your personal tax situation into account. Two travelers making the same gross pay can take home very different net amounts depending on their benefits and deductions.
Garret emphasized that travelers should never look at weekly pay packages as “one size fits all.” Instead, he recommended reviewing your pay package in detail with your recruiter to understand what’s guaranteed vs. what’s variable.
Automate Your Savings
When it comes to building long-term financial security, Garret highlighted automated savings as one habit to practice above all others. “It’s easy as a traveler to fall into the trap of saving only what’s left over at the end of an assignment,” Garret said. “But with fluctuating income and lifestyle inflation, there can often be nothing left.”
Lifestyle inflation happens when you start spending more simply because you can, only to find that the next assignment pays less and you’re stretched thin again. The key, Garret explained, is to benchmark your lifestyle on an average income, not on the highest paycheck you’ve received.
“Automating your savings is one small habit that makes a huge difference over time, especially for travelers,” Garret emphasized. When you automate savings deposits, it removes the temptation to spend and ensures consistency. “Even a small amount makes a big impact over time,” Garret explained. “For example, setting aside just $75 a week adds up to almost $4,000 a year. In five years, that’s nearly $20,000, without factoring in investment growth.”
Garret suggested putting your automated savings into buckets like:
- An emergency fund
- A “downtime” fund for gaps between assignments
- Retirement accounts, like a Roth IRA or an HSA
Remember, the habit matters more than the number. Start small and stay consistent to help meet your financial goals.
Other Smart Financial Tips for Travelers
Before wrapping up, Garret shared a few more key financial tips for healthcare travelers:
- Keep your documents organized. Pay stubs, contracts, and proof of where you lived during assignments are crucial for tax season, especially if you’re filing in multiple states.
- Maintain your tax home. This ties back to stipends. Without a valid tax home, those stipends may become taxable income.
- Plan assignments like a business. You are essentially running your own business. Treat each contract with a long-term strategy in mind.
- Maximize your 401k match. If your staffing company offers a 401k with a match, take full advantage; after all, it’s free money for your retirement.
- Treat your recruiter like a business partner. You may view traveling as a one man band operation – but your recruiter is there to work for you and make your job easier. Staying in communication with them ensures smoother transitions and better opportunities. Plus, Garret pointed out that while you’re focused on your current job, a good recruiter is already helping you line up for the next one. “Let your recruiter find you your next assignment while you enjoy the current one.”
Travel With Ventura MedStaff
Financial success as a healthcare traveler doesn’t happen by accident. It requires an understanding of travel healthcare’s unique pay structure, staying compliant with tax rules, and building consistent money habits. If you need help understanding it all, Ventura MedStaff is here to help. Find a recruiter today to get started!
