Money Matters: Budgeting and Other Money Life Lessons

From Scrubs to Financial Success, Our Nurses Know How To Invest…

In Rich Dad Poor Dad, author Robert Kiyosaki offers valuable insights into the fundamentals of money. This year, we’ll reference his lessons as we explore the path to financial success. Beyond an introductory high school money class or what our parents or guardians may have taught us, most people follow a familiar cycle: earning a paycheck, paying bills, and saving for retirement, a vacation, or a luxury purchase. However, financial growth begins with your mindset and how you approach money. The first step? Evaluating your self-talk about finances and taking control of your budget.

Money Life Lessons - Self Talk

We have talked about the power of self-talk and positive affirmations. Kiyosaki also mentions this is related to money and how his rich dad, even when he was broke, referred to himself as rich. 

Another noted difference in self-talk is that poor Dad would say, “Money doesn’t matter,” in contrast to rich Dad, who would say, “Money is power” (p. 13). 

This sentiment that money is power has been noted in some form by different people throughout history. We all know that without money, you don’t get very far in life. 

Money Life Lessons - Emotions and Responsibility

Do you let your emotions control how you react to things? Keeping your emotions in check and using them to your advantage can lead to better financial decisions. Fear and greed can also negatively affect money matters. Take responsibility for yourself and don’t blame your boss, place of employment, or anyone else for your financial concerns. 

Keeping your emotions in check and using them to your advantage can lead to better financial decisions. 

Money Life Lessons - Lifelong Learning

Just as we will continue to learn and grow as nurses, so must our knowledge of money. We cannot afford to let ignorance dictate how we manage our financial well-being. Taking control of our monthly expenses, planning for the future, and preparing for unexpected financial needs are essential steps to ensure a secure retirement without financial worry. These life skills should be taught early, but often are not. However, it’s never too late to start or to reassess your current financial strategy.

Budgeting

Managing your finances effectively starts with a solid budget. Without one, it’s easy to lose track of spending, fall into debt, or struggle to save for future goals. Budgeting isn’t about restriction—it’s about taking control of your money so you can make informed decisions, reduce financial stress, and work toward financial freedom. Whether you’re looking to pay off debt, save for a big purchase, or simply better understand your expenses, a well-planned budget is the foundation of financial success. 

In The Infographic Guide To Personal Finance by Cagan and Lariviere, they start by developing a budget. If you like visual explanations, this is a great book to buy. 

Here are some key points to consider when making a budget:

1. Understand Your Income – Know exactly how much money you bring in each month, including salary, side jobs, and passive income.

2. Differentiate Needs vs. Wants – Prioritize essential expenses while being mindful of discretionary spending. Cutting back on non-essential items can free up money for savings or debt repayment. Needs are items you must have to survive. 

3. Set Financial Goals – Whether building an emergency fund, saving for a home, paying off debt, or planning retirement, a budget helps you allocate money toward your goals.

4. Create a Realistic Spending Plan – Allocate a set amount for each category, ensuring expenses don’t exceed income. Adjust as needed to avoid financial strain.

5. Plan for the Unexpected – Include a buffer for emergencies and unexpected expenses to prevent financial setbacks.

6. Review and Adjust Regularly – Life circumstances change, so revisit your budget often to make necessary adjustments.

7. Avoid Lifestyle Inflation—As income increases, resist the urge to spend more on unnecessary items. Instead, direct extra funds toward savings or investments.

8. Stay Disciplined and Consistent – A budget is only effective if you stick to it. Practice mindful spending and make financial decisions that align with your long-term goals.

Below is a table that can be used to Track Your Expenses. Identifying where your money goes by categorizing expenses (housing, utilities, groceries, debt payments, entertainment, etc.) is crucial.

	January	February
Income:
Salary - take-home pay
Investments
Other
Total =
Living Expenses:
Rent/Mortgage
Home/Renters Insurance
Maintenance
Property taxes
Other
Total =
Utilities
Gas/heating oil
Electric
Internet
Cell phone
Cable/NetFlex/Other
Water
Trash
Other
Total =
Transportation
Car Payment/Lease
Fuel
Car Insurance
Bus/Transit Pass
Tolls/Bridge Fees/other
License/Registration/Year Inspection
Maintenance e.g. oil changes
Total =
Medical
Health Insurance
Dental Insurance
Prescriptions/Supplements
Glasses/Contacts
Life Insurance
Other
Total =
Financial
Credit Card Repayment
Interest Payments
Bank/Credit Card fees
Emergency Fund Savings
Retirement Savings
Other
Total =
Family:
Childcare
School Supplies
Tuition
Books
Activities
Allowance
Pet Care
Other
Total =
Routine Expenses
Groceries
Pet Food/Treats
Clothing
Other
Total =
Fun/Enjoyment
Entertainment
Vacations
Hobbies
Eating out
Gifts
Holiday Expenses
Other
Total =

Many sources recommend, including Cagan and Lariviere, that your budget be:

• 50% Needs

  • Rent/Mortgage

  • Food

  • Car payment

  • Utilities

• 30% Wants

  • Clothing

  • Vacation

  • Entertainment

• 20% Savings or Debt

  • Emergency Fund

  • Retirement

  • Additional debt payments

  • Children’s Education

Take some time to fill out the budget table above. Be honest with how you calculate each item. This will help you determine where each dollar you earn goes and keep you focused on reaching financial success. You may need a couple of months to evaluate your current financial situation. As you fill in the chart, you will be able to see trends and, from there, make informed choices on how to reallocate your money better.  Just as we have a physician or NP to help manage and guide our healthcare, we should not rule out working with a financial planner. We all have our specialties, and economic expertise is no exception. Seeking guidance is not a weakness but a way to accelerate financial freedom.  

Next month, we will explore assets and liabilities. 

References

Bank of America. (2025). Better money habits. https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/creating-a-budget

Cagan, M., & Lariviere, E. (2017). The infographic guide to personal finance. 

Simon & Schuster.

Federal Trade Commission. (n.d.). Making a budget.  https://consumer.gov/your-money/making-budget

Kiyosaki, R. (2022). Rich dad poor dad (25th ed.). Plata Publishing.