This Nurse is Striving to Make Work Optional- Ep. 21
Erin is a married mother of two working as a Labor and Delivery nurse for the last 12 years. Erin and her husband Brandon have experienced foreclosure, marital strife and now financial success. Personal finance is Erin's hobby and passion. Erin and Brandon plan to make smart investments today to have better options tomorrow.
Please join me here, and follow me on social media, Instagram and Facebook.
Join the Financially Intentional community and get access to resources to guide you on the path to Financial Freedom.
Oh and please subscribe and leave a review on whatever app you're using to stream this podcast.
Affiliates:
Blooom
Student Loan Planner
Stay connected:
Join the NOF Facebook group
To read the full show notes, visit www.financiallyintentional.com/nof/21
How to share a podcast
How to subscribe, rate and review a podcast
When you post that review please make sure to take a screenshot and send it to naseema@financiallyintentional.com
Subscribe & Review
Love this episode? Please subscribe and leave a review on your favorite podcast platform.
TRANSCRIPT:
Naseema McElroy (00:03:43): All right. Nurses on Fire community, I am super stoked to have Erin Hamilton here on the podcast because me and Erin go way back. Erin has been rocking with me since day one and I am super excited for you to hear about her journey to financial freedom and what she's been up to. So Erin, say hey to everybody and let us know what you're all about.
Erin Hamilton (00:04:09): Hello. I am a registered nurse of 13 years. I live in the Sacramento area. I've been in the labor and delivery area for 12 of those years. I have two kids and I've been married for 14 years and just for the last few years, gotten really passionate about budget, finance and real estate investing.
Naseema McElroy (00:04:30): That is awesome. Yes, and I'm excited to talk about all of those things. Erin, the first thing I want to talk about is your path to becoming a nurse because I think that unlike me, you didn't have to go into millions of dollars in debt to do it. Let's talk about how you entered into nursing.
Erin Hamilton (00:04:47): Well, I got really, really lucky. I always tell people, I was born under a lucky star. I became a phlebotomist as a college job. I had no intention of being a nurse. I was kind of intimidated. It was something that intrigued me, but I was just nervous. So I had actually completed all of my prereqs to be a teacher and I got a job at a hospital that had a program where if you finished your pre-reqs they would drop you into the RN program, pay for it and hire you afterwards. And this was about five hospitals in the Fresno area did this and it was called the paradigm program. And they all had a similar philosophy where they would put their employees through nursing school and this could be people like nurses aides, you know, it could be people to answer the
phone, it could be anybody and then they would retain their employees. And so we did that and I did an accelerated 18-month RN and it just worked out really, really well for me to get into that and then have a job right afterwards 'cause I kinda got in right at the right time where there was still sort of a shortage before it turned into where you couldn't get a job as a nurse.
Naseema McElroy (00:05:50): Man, all those things were super duper lucky cause that was around like a couple years, just a couple of years proceeding me. And when I came out of nursing school in 2009 it was tough out in the streets to get a job. So let's talk about what inspired you to start doing better with your finances.
Erin Hamilton (00:06:13): It was probably about 2013 we had had a, this is a long story, we had had a foreclosure in 2009. We lost our house right in that housing crisis. It was probably right about after my daughter was born. My husband's company slashed their pays across the board like 40% overnight. I mean, we just watched the market literally tank on TV and I had just had a baby and it was just a really crazy time. And so we ended up foreclosing that house and you know, lots of hardship, you know, after that foreclosure and then eventually, you know, we were able to purchase a home again and I blood, sweat and tears did over time to buy that house. I did not borrow money from anybody full-on 22 days in a row, you know, overtime, like crazy, you know, and bought a house that I was super proud of.
Erin Hamilton (00:07:01): It was a small house. It wasn't anything crazy but it was something I was really proud of that I did with the support of my husband. He was also working on a part time basis and he was pretty much Mr. Mom during this time and so bought a house and then after that I remember thinking, wow, I'm looking at my W2 and I can't really even take a vacation. Like, I look at my friends that were going to Mexico and going all these places and think I'm looking at how much I make per year and I literally can do nothing. So, I had just literally Googled what the baby steps were of Dave Ramsey, but I never actually read the book. And I just was like, okay, this is what I need to do. So that was like step one, you know? And then about a couple of years later, maybe 18 months later, then I got really serious about reading the book and getting more out of debt and not having car payments and those kinds of things. And that really was a benefit to me when it came time to purchase another home and I had no other debt except a mortgage. That really helped me.
Naseema McElroy (00:07:58): So let's rewind a little bit and you said that you lost everything to foreclosure. How long did it take you to rebuild from that?
Erin Hamilton (00:08:07): So we foreclosed in 2009 and we were able to purchase again in 2013 and that was, you know, due to us, you know, me having a job where I had a long standing, you know, employment with the same employer and also you know, having a good income and those kinds of things. And there was some programs are out there trying to get people to buy again, you know, like, Hey, we want people to buy homes again. So we're willing to try to put this out there to people. And so that was that. But as far as rebuilding, I will say, I mean side note here, long story, after that foreclosure, you know, we had a lot of marital strife. I mean financial stress is really hard on a marriage. So that was rough times up in there, rough times. But we are super blessed that we were able to kind of come out of it on the other side. But I will say, I mean managing your finances is so critical to your mental health and your marital health, like so critical. And I really didn't realize that because I was just really young and didn't even know what I was doing. I was making enough money but I just was not managing it correctly. So it was like not the income issue. It was an issue of money management on our end.
Naseema McElroy (00:09:13): Thanks for sharing that, Erin. Because a lot of people don't talk about the role that money has in their relationships and it's super crucial because I mean we know the number one leading cause of divorce is finances, you know? And as a society we don't talk about it enough and this is something that we need to talk about more. And I think it goes both ways. Like you know, if you're in discord with your finances then it's gonna cost drive with your partner. And especially if you guys aren't on the same page, but the opposite way, if you guys are on the same page with your finances, the things that you can do are limitless. Like there is no stopping you guys in the acceleration and where you can reach your goals. But it's super important. But people don't know how to have those money conversations. Do you remember where in your relationship that kind of shifted and you guys got better communicating about money?
Erin Hamilton (00:10:10): Yeah, I would say, you know, we got a really better, truly, it hasn't been that long. Maybe, it's only been truly two years because it was kind of a gradual process of me starting to do a written budget, starting to save money and starting to do things like that. And we would discuss here and there. We have actual budget meetings every week that we call sync and slay. And so we sit down and we have what we call a weekly sync meeting and we literally talk about all the things, whether it's scheduling and my husband's in the military, he may have to leave at any time. What does he have on deck? What's coming on that he knows about? So I can plan for childcare and then what's our plan for our finances? Are we planning a big vacation? What do we need to set aside in savings? What's going on with our savings, what purchases are we planning? And we do that on a weekly basis and it truly has brought us closer together as a married couple. I don't think our marriage has been in this good health and a really long time. Truly it's made a world of difference.
Naseema McElroy (00:11:07): Oh my God, that is incredible. Like you should patent that.
Erin Hamilton (00:11:13): It's sync and slay TM. Trademark.
Naseema McElroy (00:11:15): Right. Exactly. Thank you. Because that is crucial. I mean, and it's not just about money, it's about communicating like everything that's going on in your relationship. Because I can't tell you the number of times that I get into it just over who's going to pick up the kids and who's going to be home for the kids. You know? But like you guys, I mean part of it is that by necessity you guys kind of have to figure out what to do with the kids when your husband is away. And part of it is because your husband's, you know, employment or what do you call the military, is that career?
Erin Hamilton (00:11:52): That is actually his full time job. But I think too, it's, it's also like, you know, even when he's home and it's like, okay, what's our plan? Let's say he's going to be home for a week or whenever. And his job is typically local, you know, not always, but most of the time in the local-ish area. But it's like, you know, you want to be able to sit down and say, what's your plan for your finances? What are we doing? You know, are we having a family get together? And you know, he's really plugged in on that. Like he might be home and you know, he'll forego sleep to take the kids to school to, you know, really be plugged in and engaged as a partner. And for me that's crucial. Like, we're, you know, out here, we've been talking about investing in real estate for years.
Erin Hamilton (00:12:32): And honestly I'm like the play it safe girl, like, don't do anything, don't do anything risky. It's going to, you know, husband is like, you know, driver personality, you give him 1% of the information, he's ready to pull the trigger right now. Like, bam. And I am like, you know, I need to do all the research, like up, down and all the way around. And so, you know, we've been able to really come together and make this work for us, especially with real estate because I want the option to maybe not work 'til I'm 65 you know.
Naseema McElroy (00:13:00): So let's talk about your real estate journey that you've been on lately.
Erin Hamilton (00:13:05): So the first thing that happened was, you know, we lived in a home that was just a regular home right outside of Modesto and we loved it. It was great or you know, great, great little area. And I probably, you know, had a very little comfortable mortgage there. And it was great, except my husband was working really far away from us and not seeing the kids. And so we made a decision to move closer to his employment. And that's fine because you know, as a nurse you can just work anywhere, which is great about that profession. So I said, okay, let's do that. But then when we got up here to the Sacramento Area, the prices were kind of high. And I thought, if I'm going to spend over a certain amount, how can I maximize, you know, my opportunity here. So, we decided to buy something that had a mother-in-law's quarters and that was crucial. So I did that because I was like, you know, I can buy a regular house for the same price or I can buy this and then rent that out. And then you know, my mortgage is way less. And so I bought the house and I closed on January 6th of this year and I already had a renter in that apartment before I got keys to this house. I already had someone who had given me deposit on it before I got keys to this house.
Naseema McElroy (00:14:14): So walk me through that a little bit. Like when you decided to buy this house, did you already have in mind how much you were going to charge somebody for rent? Did you already know where to look for the person to rent it out? Like walk me through that.
Erin Hamilton (00:14:27): So really what I had heard, and you may know this, is for many years we've had travel nurses off and on. At the hospital and they'll tell us their woes of where they're living. And sometimes it's like horrific conditions, like bad areas of town, sketchy people. And I thought, you know, my husband and I are both background checked individuals for our employment and I thought, you know, we're safe people to live with. You know, we already background checked for them to feel comfortable. And also, you know, as nurses, if you're renting to another nurse to work in the state of California, you also have to be background checked. So it's not like some axe murderer off the street, you know. So what I did was I started stalking the Facebook pages of travel nurse housing and looking at what they were charging and asking people that, you know, I worked with what are they charging you and what are you getting for that amount? Is it all inclusive? Do you have parking, you know, do you have utilities included, do you have wifi? And I started kind of just compiling this information that was pretty easy to get in our industry. And I kind of came up with my pricing and it worked out really well for us because I was able to get a renter right away, you know, and they needed housing and I had it and it was clean and it was safe and it was, you know, perfect little fit for us.
Naseema McElroy (00:15:37): Yes. And I love it and I love that you looked at buying your house as an investment, your primary residence as an investment. And that's what most people don't do nowadays. And most people think that they're looking at it as an investment. But unless you can look at it as it's bringing you returns in some kind of way, it's not an investment, but you know, we're sold on this American dream, like Oh, owning a home and all this kind of stuff, but we don't do the calculations around it. So I love that you were like, this is going to be expensive, is one more than we used to spend in Modesto. Like we have to look at this strategically. And you were just like, yup, where about to rent this out and you have a new construction, right? Or a newer home.
Erin Hamilton (00:16:21): Yes.
Naseema McElroy (00:16:22): And so a lot of these newer homes that they're building are a multigenerational, just because of the housing prices, especially in the Bay Area. It's like we have to combine generations in order to be able to afford housing. And so you have extra space in your home, which you can rent out. And you looked at it like, and you said the prices aren't even that different, you know, between just a regular single family house and a multi-generational house, right?
Erin Hamilton (00:16:49): No, correct. I had a girlfriend who bought a house for the same exact price. She was in another neighborhood that was an older home that was an established neighborhood, but spent the same amount of money for a home that was not multigenerational, did not have a mother-in-law's quarters or anything like that, and spent the exact same amount I did. So I was like, this is the way to go. And there's a lot of options. I mean, when my kids grow up, let's say 10 years from now, they're out of the house and then I move into the apartment and I run out the whole entire house to somebody else and I'm the landlord living in the small part and they're renting the big part, you know, or I use this mother-in-law's quarters from my parents who were aging at some point. They're still very independent, but I'm not a fan of, you know, putting my parents in a nursing home.
Erin Hamilton (00:17:31): So I'm like, this is an option for me and to give them, you know, my parents have done so much for me and my dad has actually helped me fix up another property that I purchased this year. So I purchased another property in August and my dad was crucial in helping me fix that. So I mean I got to pay it forward and house them as they get older. But now I have this in place where I don't need to go drive all over town and see them. They're right at my house when I need them to be.
Naseema McElroy (00:17:56): That's awesome. So what's going on with this other property? Is it just a straight up rental?
Erin Hamilton (00:18:01): It is a straight rental. It's a condo. I grew up in the Fresno areas where I went to nursing school, Fresno city college. So my parents live in Fresno still and there was a condo that was priced under value in their complex and it was the biggest model that they make. And I thought, you know what, it was probably about $25,000 under value. It was, it needed a little bit of work, but it was very little work. I needed like a new appliances and like touch up paint and little things and a few little carpentry things. And my dad is like handyman by trade. He is newly retired and he grew up on a ranch, oldest of five boys. So he installed all of my appliances for me and there and got it all ready to go. And I also had a renter in that house before I ever had keys to it and that just happened to be another lucky star moment for me.
Naseema McElroy (00:18:49): Was it another nurse or how did you find this tenant?
Erin Hamilton (00:18:52): No, actually one of my friends from high school was moving back to the area and is a newlywed and needed somewhere to live and he's had a career in the military and is now out doing other things like entrepreneurial type things and needed to get back into a rental and you know, and he put out there on Facebook, Hey, does anyone have anything? And you know, social media is just a great area to find your renters. I found actually all of my renters on social media and so anyway, and got in touch with him, said, Hey, I'm going to have this, he's familiar with my family 'cause we grew up in the same town and knows them. And so it works out perfectly. My parents live in the same complex so they actually manage the property for me. So I'm not paying for handyman, I'm not paying for property management. You know, there's an HOA that takes care of a lot of the big things, but anything that's little, you know, my dad's done all the little electrical things, carpentry, installed all my appliances for me. And so I've had that all done. You know, at basically free, you know, I just have to buy this stuff and he takes care of it. So it's been a big blessing for us and we just got that late August this year.
Naseema McElroy (00:19:56): Oh my God, that is so awesome. I love it. And do you plan on doing any more real estate investing?
Erin Hamilton (00:20:02): I do. I just went out of state and I just looked at real estate in Idaho like two weeks ago. So, we're actually considering a few other States, want to branch out and just get a little more diverse in our portfolio. So I'm considering a few other States right now and I'm actually, she also considering Mexico, we've been on vacation there and we've also looked at real estate there as like a Airbnb type situation where you buy in a really popular tourist area. So looking at areas like Idaho, Nevada, and also Mexico. And I actually have a brother in Pennsylvania, an area outside Philadelphia and another area in Kansas I'm contemplating as well.
Naseema McElroy (00:20:42): That is awesome. So you are debt free outside of your mortgages, correct? [Erin Says "Correct."] How do you feel like that plays a role in you achieving financial freedom?
Erin Hamilton (00:20:54): Well, you know, you have a lot more, you know, leverage because you're not bound down by these other debts. You don't have credit card debt where a lender is going to tell you you can't borrow because you have these other things. And is also makes it easier to save for things like down payments or you know, if you want to take a vacation. Because that was actually a breaking point for me was when I felt like I couldn't even take a vacation and I was clearing, you know, 130K a year and in some years 150K and not able to take a vacation. I was like, you gotta be kidding me. So being able to sit down and really budget your money and say what's important to me and having real estate is important to me. What am I willing to forego at this point? So I don't need to have, you know, the nicest, newest clothes. I don't even have the nicest, newest cars, but I do want to be able to, you know, be able to buy a condo when I see it. And so that has played a huge role in me budgeting and being more financially, you know, intentional, truly. That's your tagline, but being intentional with your money.
Naseema McElroy (00:21:53): Right. Just to dive a little bit deeper into like your investment philosophy as far as like real estate, are you just doing buy and hold a single family and just doing straight up 20, 30% down, but how are you doing? You're investing.
Erin Hamilton (00:22:08): So I am doing, you know, buy and hold real estate. I'm not a flipper and that's something that I don't think I want to get into. There are some people that are very successful with that, but it is a risky business. So I'm just doing buy and hold 20% down on most of my investments. Some of mine I do not have 20% down on. My last one, I did have 20% down. But anyway, that is definitely the plan of buy and hold because you know, real estate, definitely your ability to grow your money over time is there. So if you hang onto it, it's kind of like that compound interest idea. You just leave it alone and don't start messing with it and then you know, 20 years from now you can sell it and make a lot of money if you need to.
Naseema McElroy (00:22:49): Yes. And another thing is is that, especially if you're on the path to retire early, instead of having it wait until you can tap into your retirement accounts or a draw down from your less liquid investment accounts, you get monthly income from your end. And so you can build a portfolio that just covers your expenses with your rent. So I think that that's a genius strategy. I love it. Yeah.
Erin Hamilton (00:23:14): Yeah, that is definitely a big part of it, of being able to retire early to amass properties in a portfolio where I can retire when I want to. I still love doing what I do. I can't really imagine not working because I'm kind of hyper so I can't really imagine just not working. But, I think there comes a point. I have seen friends who they get tired and they're, you know, maybe they're not 65 yet, but they're tired and they want to retire. I want that option there when I decided to say I'm done that I can be done.
Naseema McElroy (00:23:42): But Erin, I think this, just like going back into our roles as nurses and we're both L and D nurses and I often say that I could probably do my job of just a 24-hour shift a week, two days a week, give up, you know, some shifts to the newbies every once in awhile, you know, but just to have like have those benefits and just be able to do the job that we both love our jobs, like our jobs are super rewarding. Just delivering these babies and taking care of these moms is a super rewarding job. I'll often say I can do that forever and you are super blessed like you said, to have that 24-hour shift already. Can you talk about that and having that flexibility and having the flexibility to scale up when you want to, but also just what other benefits you've had just in being a nurse that has helped you on your path to financial independence?
Erin Hamilton (00:24:38): So I definitely think that the ability to be, you know, in California what we would be considered, you know, high, high paid nurses in the nation. And so definitely having that ability. And then when you like put your eye on something, I kind of, I'm like really an odd duck over here. So I'll go full on, you know, 24 hours a week. They offer low census, I'll just stay home and then I'll get wild and I'll be like 10 days in a row, 12 days in a row, 20 days in a row, 12 hour shifts, double shifts. So when you, you know, decide, you know, you want to do something, then you know, if the hours are there, you can definitely scale up. And I think, you know, it's kinda like the job that keeps giving, right? So you get these patients, and I mean not every day is like this.
Erin Hamilton (00:25:20): So you get someone who you're just really bonded to. You get to be part of these amazing deliveries and then it just continues to feed you almost like that, you know, that high that you get from just loving your job. And so if you have those kind of days, it makes it much easier to stay over. Like if they say, Hey, do you want to stay over and you really want to see your patient deliver, you're like, yeah, I want to stay. I want to be here. And so that really kind of, it makes it go full circle of obviously you're gaining income, but you're getting to really, you know, stay in your practice. You know what I mean? Stay in your practice and not just, Oh, I'm earning money, but I'm loving what I do while I do it. You know? So that's a plus.
Erin Hamilton (00:25:57): But, having the flexibility is crucial because then, you know, on my days off I can just be mom. You know, I have six days in a row off every other week. So I can just be mom, I can go, you know, clean the house, go grocery shopping and then work on what I do at home so I can be, you know, busting out my calendar, talking to real estate agents, working on my finances, doing my written budget, having my, you know, think meetings with my husband and just really out there tearing it up on my days off and then be fully committed when I go back because I have that downtime and I pretty much do a lot of planning on my days off. So like if I know I'm going to go to work and I'm really planning on being there a lot of hours on my days off, I will do like all my laundry, all my meal prep, all my stuff so that I am ready to go when I have to work.
Naseema McElroy (00:26:42): That is super important. Also along with the salaries that we get, being nurses in Northern California, talk about some of the benefits that you've been able to partake in.
Erin Hamilton (00:26:54): So I am again super blessed and born under a lucky star. I tell people all the time and my health care is covered by my employer. So at this point, I'm just paying for copays and stuff and I've had, you know, major surgery, I've had babies all covered by my employer and I'm just, you know, paying for the copays. I'm very, very blessed to have that. And then I also have a 401k with my employer. It's not maybe as lucrative as other people, but it's a good thing to have. You know, you have, I have a pension on, I also have a 401k with the employer. So you know, you know that when you get older you're really wanting to secure your future with those things. And outside of my employer I have, you know, IRA accounts. But you know, those are things you want to have. You know, you have your insurance, you have your pension, you have 401k. You really want to be planning out your future when you're young, not waiting until the last minute to do it. And healthcare's crucial. It's one of the biggest things going on in our country right now. And so having healthcare with your employer that's covered is like major deal right here.
Naseema McElroy (00:27:51): Yeah, I took that for granted and until I, you know, was depending on my partner's health insurance. Then when I moved to Reno and I was like, Oh no honey, $1,600 a month. Well what, for crappy coverage? No, never again. I was like, we are so spoiled as nurses and this is like in education where they don't make as much as we do, but they have to pay substantially more into their health care. Most people do.
Erin Hamilton (00:28:23): Yeah, no, most people do. And so we're very blessed. So I, you know, really try to just keep that at the forefront of like, you know, we're blessed to do what we do. Not every day is perfect, but you know, you really look at the whole big picture of what I have as a nurse and what I get to do and it's amazing. And so I try to just keep that the forefront of, okay, you are really setting up your future and you're lucky to have what you have. So I try to like really keep that in your mind because the world is always around, you know, with this and that and things aren't perfect and nothing is perfect. You know what I mean? So I try to just really stay balanced on that because I'm one of those people that's like look on the bright side of life most of the time. And I think that benefits me because it's like, you know, if you focus on the negative, it's going to seem negative. You know, if you focus on the positive of this is all the things I have and this is where I'm at, it's going to be good, you know? So I really try not to let myself get negative too often because I feel like it's just is not serving any purpose.
Naseema McElroy (00:29:15): Right. But let's address some of the negativity that certain people have when they say, Oh, you know, Erin can do this because she's a nurse in California and she makes this amount of money or Naseema can do this because, Oh, she had that house to sale, you know, but I can't do that because I have to pay, you know, for childcare or they make up all these excuses. What were some of the things that you had to overcome in order to be able to make better financial decisions and to be able to be better at budgeting and spending and to know how to invest?
Erin Hamilton (00:29:52): So, I really think the written budget is crucial because true story, I have had years where I made more money than I've made in the last couple of years where I was like over time city. I mean you talk about, you know, being at work all the time. There were years that I was that person. But I tell people, if you can't manage a hundred dollars, you're not going to manage a a hundred thousand dollars because I literally was not managing my money at that point. When I look back on that and think how much money could I have saved at that time, I'm a little bit like, you know, disgusted with myself, but I try not to stay there because you know, don't look in the past 'cause you're not going back there. Right. Stay there for a moment and then, you know, make better decisions in the future. But if you can't manage a hundred dollars, you're not going to manage a hundred grand. You know what I mean? So I tell people all the time, you know, I've made more money than I make now. But if you don't manage it, it doesn't matter how much you make because you won't manage it better. So doing a written budget is helpful.
Naseema McElroy (00:30:46): Yeah, that's what I tell people. I'm like, yeah, I've been making six figures for a long time. But it didn't mean anything 'cause I don't remember where that money went. I don't know what I spent that money on because I just, you know, when you don't have a plan for something, you know when you aim at nothing, you hit it every time. Right. It's just like, you know, like, I don't know like, but everybody thinks like, Oh, once I hit this magic number, once I hit six figures, then I can do better financially. But it's not about that. It's really about what you were talking about and you're going more into written budgets. Sorry, and I cut you off.
Erin Hamilton (00:31:20): No, that's okay. So the written budget was critical for me. I had to get into that and then as suddenly I was like, Oh my, I have a lot of money that I can be saving because I'm actually making a plan. And that was critical because there has been a lot of things that have come up in the last couple of years. When we purchased this home, we actually had not yet sold our other home. But because I had a really healthy like you know, savings account, I was able to turn around and purchase this home with the mother-in-law quarter before I sold my other home and I had enough credit to do it. I had an, you know, credit worthiness, I had enough money in the savings account to pull this off, which had I not been doing a written budget that never would have happened. So that was crucial, is have that written budget, set up your savings accounts. I'm, you know, big fan of sinking funds, huge fan because I feel like it makes a big difference for us when we plan out our whole year and you know, something comes up and you have money in there because you're not on zero on your savings.
Naseema McElroy (00:32:16): Can you explain sinking funds?
Erin Hamilton (00:32:18): So sinking funds are, when you're planning for stuff that's going to come up, but it hasn't come up yet. So I use Capital One 360. It's a popular bank that's online that a lot of people use. And basically, I have a lot of funds and I have a lot of sinking funds in there. So I have funds that are like, you know, for my pets and my vet bills because I have pets. And guess what, something's going to happen and you're going to have to pay, you know for that and you're not gonna, it's not going to be in this necessarily your plan. So you have that in there. And then I also save for things like car repairs, because sometimes those, you know, you don't know that they're gonna come up and they come up. So it's pre-planned money for things that you know, we're going to come up or you know, at some point, you know, maybe it's like you have your whole auto one and it and you're encompassing things like car tags and also car repairs and tires. And then when those things happen, you're not all shocked. I remember having to buy tires and we were newlyweds and I was like all like upset because I did go buy new tires and like struts and I was like, you know, this really shouldn't be a thing. I was making plenty of money, but I just did not plan for it.
Naseema McElroy (00:33:20): What was the turning point like? Was it when you lost the house?
Erin Hamilton (00:33:23): So no, shockingly no. That should've been really. Losing a house should have been a major turning point, but it wasn't, if I'm being really honest, is the turning point was when we purchased a home in 2013. It was literally when we went to go see a financial planner and he was kind of just not even all that. I was kind of like, you're wet behind the ears, whatever. I could do this myself. I was like, how am I not literally not able to take a vacation? I have W2 to over $150,000 one of those years around that time. And I'm like, how am I not able to do these basic things? You know, that I should be able to do. We worked super hard and I was like, I should be able to take a big vacation. And so...
Naseema McElroy (00:34:09): Was it because you couldn't pay for the vacation or you just what, you couldn't take the time off because of your work schedule?
Erin Hamilton (00:34:14): I could take a time off. I had a very flexible schedule. It was that, you know, I would've had to go into debt to do it and I'm thinking, why should I have to go into debt to take a vacation that doesn't even seem that expensive, but I should be able to save that money. And so, you know, it actually, my best girlfriend turned 40 a few years ago and we went to Cabo and I paid for it in cash. And you know, I did, I can't remember how many extra shifts to do, what I think I worked like something like, I dunno like 13 days in a row, you know, to go pay for it. And it was a good feeling. You could go on vacation and not feel guilty. You were like, I have already paid for this trip. I'm going to go enjoy my best friend. And it was wonderful. I didn't have to go into debt for it. And it was actually a great feeling and it was very freeing to say I can go enjoy my life and not, you know, be in debt for months.
Naseema McElroy (00:35:04): Yeah. So now you have your investments from work, you have your rental income or your rental portfolio, which you're continuing to grow. What other things are you doing on your path to financial freedom?
Erin Hamilton (00:35:20): So I have IRA accounts on additionally, not just the work 401k but I also have an IRA account which you know, 'cause I really want to be set up. I think we look at society and we're like where is it going wrong? And we see that, you know, inflation things are expensive. You know, senior citizens are having a hard time 'cause you know things are, life is expensive especially in California. So IRA accounts, 401k account. I have two properties. I'm planning to purchase another property in the next hopefully 18 months. And that's really, it is just continuing to max out, you know, the IRA accounts and then get a real estate, you know, property. Hopefully, every couple of years would be ideal. And that way, you know, once I retire I've amassed this portfolio and I'm able to, you know, just be more, have more flexibility with my options of retirement. And again, like I'm not one of those people that wants to retire like at this moment, but you know, maybe when I'm 60 I want that option.
Naseema McElroy (00:36:14): Right. And that was my next question. Like when do you see yourself leaving the workforce?
Erin Hamilton (00:36:19): I think like tentatively maybe age 55. My husband is 10 years older, so maybe 55 if he retires at 65 you know, but if I'm still loving it, I mean I am not hard on that number. Like if I'm still really enjoying my work, I am not hard on that number. I think it's just about having the option saying, you know, maybe I feel like it at 55 and maybe I don't, you know, I have this super flexible schedule right now and I may still have that. I had my last schedule for 10 years. I may have this schedule for 10 years and say this really works for me and it keeps me, you know, having the best of both worlds of being wife and mom and investor and also, you know, labor and delivery nurse having all those options. I kind of love that. You know, that double sided possibility for myself.
Naseema McElroy (00:37:05): You know what? I love that because what most people on the stories that are really touted is like people that hate their jobs and are looking for financial independence so that they don't ever have to work for anyone so they can have that F.U. Money. But it's really not about that. It's really about options. It's really about just having work being optional and that gives you so much power. And I really feel like it makes work that much more enjoyable because you don't have to be there. You're there because you want to be there and where you're somewhere because you want to be there. And because it's not an obligation, the way that you approached that is with so much more positivity and I feel like it's so much more enriching to our lives. And so that's the whole goal of, you know, the platform, especially in Nurses on Fire, is to just show nurses that you don't have to grind forever because a lot of people think I'm going to have to work forever after working night shift, work these salaries to keep up with this lifestyle inflation. It's not about that. It's about putting yourself in a financial position to be able to walk away or to be able to stay as long as you want and let your nest egg just build. And so I love that you had setting yourself up for multiple income streams, but you're also setting yourself up in a position where you can work as much as you want to or as little as you want to or if you want to just walk away at 55 you'll be there. That's incredible, Erin.
Erin Hamilton (00:38:44): Well thank you. Yeah, I'm pretty happy with the progress considering you know, it's been a journey. I think I really didn't get like seriously into the debt-free community until probably like 2015 ,2016 at least. And then I got way more serious about it. As time went on, maybe, you know, 2017 getting really more into it and it just was, you know, very rewarding because like you said, you don't have to do anything but you know that you're going to be set up and that you can do things because you want to do that and you're not forced into it. You're not trying to keep up with the Joneses, you're just doing this because it's something that you actually doing 'cause I don't really want to get out of the game of nursing. I mean I think it's, you know, kind of almost like part of who you are as a person.
Erin Hamilton (00:39:27): And I think if I were to stop doing that, even though I love investing and I love traveling and I love all those things, I don't think I could full on quit the profession of nursing because it's something that I just really love. And so it's, you know, good to have those options though when you get older to know that, you know, maybe I do want to go and just go per diem. Who even knows if 55 what I'm going to do. But I think like you said, it's like you don't have to hate work. It's like just giving yourself those options, building your nest egg and just feeling like you have more options as your future goes on.
Naseema McElroy (00:39:57): Right. That is all about the options. So what about your kids? What are some things that you are putting in place for your kids?
Erin Hamilton (00:40:04): You know, my kids have to do chores at home, period. Like that they have to work and I always tell him, I'm teaching you to work. I think we send these kids off to college and we want to send them to these like crazy four-year universities and they can't even fry an egg. So you know, at home we're building like basic life skills over here and it's, you know, it's cooking, it's cleaning, it's being responsible for yourself, being responsible for your sibling. So my oldest is actually very helpful with my youngest and she knows, you know, how to fold laundry, do everything. My younger one is also learning the same things but obviously on a lesser scale because she's younger. So my oldest can cook full meals at this point where I really don't have to do anything. And so I want them to have life skills 'cause I think we send people into the world.
Erin Hamilton (00:40:47): And then we also talk about budgeting and I talk very frankly with them about money. How much does this cost? And you know, what are you going to use it for. If you want to buy something, do you want it for five minutes? Do you want it for an hour? Is it really worth, you know, getting, so we discuss that when they want to buy stuff because they do get an allowance and then I make them spend their own money on stuff. And it's a little bit more painful when you have to spend your own money instead of mommy's money on something. And so that actually works out well for them to slow down their compulsive buying habits where it's like, well if you want to spend your own money on that, you can. And they are really quick to slow it way down when they have to spend their own money.
Naseema McElroy (00:41:24): I love those money lessons that you share with them. And I love that they have to spend their money because it teaches them early on how to create a budget, how to focus on what their needs are versus like what their wants are. So those are valuable lessons that, you know, once we set ourself up financially, a lot of times people are like, I don't want my kids to have to go through the financial struggles that we went through. But in those lessons is what makes them stronger. A lot of being a parent is about, you know, teaching your kids how to, you know, fail, you know, and how to experience those things. They kind of have to go through that testimony, that story on their own in order to be, you know, successful adults. And so, I like that you are making your kids actually do things, have live skills, but also know how to manage money. How are you going about paying for their education? Or do you believe in paying for their education?
Erin Hamilton (00:42:26): So I do believe in trying to set them up for success, but I'm, you know, I'm a product of a city college. I'm not like, you don't need to go to Ivy League school. Like, you know, I straight went to a school in the ghetto of Fresno and you know what, it was an amazing nursing right program. I'm telling you right now. I came out of there 18 months ready to hit the floor, so ready to work. You know, I was RTG, ready to go. And so I'm not a fan of, you have to go to the best school around. I do want them to be set up. So we do have five to nine accounts for them. But I am, you know, not necessarily maxing them out. I am contributing every single month. It's automatic, which that's another thing that if people want to get really, you know, down and dirty with their budget, I highly recommend having things automatically deducted like that.
Erin Hamilton (00:43:12): Because it's like, if it's automatic, there's no like, Oh, I was gonna contribute to your five to nine. But I went to Chick-fil-A, you know what I mean? Like just have it automatically taken again out. And that is, you know, I do believe in helping your kids, but at the same time if you want to go like be a doctor, then you know, you might have to take out some loans. I don't want to see my kids take out loans if they can't help it. Like my goal is like how can we cashflow this and maybe try city college at first because city college, community college is now free in the state of California. So it's like that may be an option, you know. And I also, before I was a nurse was a phlebotomist and I went to what would be considered like a tech school type situation for that and that, you know, really I use savings bonds from my grandparents to pay for that. I was 18 when I became a phlebotomist and use savings bonds to go to a two-day phlebotomy course. Now obviously it's a lot longer now, but that was, you know, an adult decision I made at age 18 when I could've went and you know, bought clothes with that money.
Naseema McElroy (00:44:12): Right. And one thing I want to touch back on with you is that like you say like a community college education is, it can be just as good as Ivy League. Like yes, I have all those degrees from those expensive schools along with those student loans. But guess what? Me and Erin make the same amount of money. Actually she makes more money than me because she has more seniority than me. And so, like just put that into perspective because I mean that's not a standard across every industry, but once you get into the workforce, a lot of times nobody's really going to ask you what school you went to. There might be some kind of alumni association with like Harvard, even with SC sometimes like to get your foot in the door, but at the end of the day it really doesn't matter where you're coming from. But in the back end, I spent like $200,000 in student loans to be in the same place that Erin's been zero money on.
Naseema McElroy (00:45:08): And so just put that into perspective when you're looking at education for your kids, especially because we are trying to keep with the Joneses all too often and you know there's this pressure where they get into school, Oh what school are they going to? Is your kid going to go to and Oh my kid is getting into this school. It's not about that at the end of the day because I can look at the people that went to more prestigious schools or you know even like private education like in general. And I'm just like how much far better off are they than me or somebody else that didn't at all.
Erin Hamilton (00:45:43): It's totally the racket. And now I will say this in RN game is changing. Like you kind of need your BSN now they're getting really serious about that. So I mean, but I would tell people, I also knew people who wait for three years to go to, you know, a state school where I'm like go ahead and get your ADN, get your associate's degree. And then there are so many programs online that you can get your bachelors in less than a year. Like I would not turn down an ADN slot, you know, to wait on a waiting list somewhere else. I mean obviously if you can get straight into a bachelor's program, that's great. But I tell people don't like, I have some people that go, this is the only school I want to go to. So if I have to wait for four years and four years, you could have already had your associates and your bachelors and you can get your bachelor's online now. There's so many options of these online schools. So it's like there's so many other options than just the traditional path people think of. And so, you know, I was very fortunate to go to school where I did. And so my kids, I'm definitely saving, but I'm also gonna tell him, you know, look like everybody thinks you're going to go somewhere and live in a dorm and do all this kind of stuff. And I think there's also the expectation that they have to have certain grades and things like that to make that happen. Like I'm not going to go ahead and take out a bunch of loans for you to go to a school when I know that you're not mature enough to handle being that far away and all those kinds of things. And if your grades are not such that, you know, I think you can do it, then I'm no problem being the bad cop and laying the beat down and saying we're not doing that.
Naseema McElroy (00:47:05): Yeah. I think that that's super important and I love that you said like you can get the ADA and then go back and do your bachelor's, but I still think that there's still a lot of opportunity for people to kind of be a little bit more creative and it's not even that hard. Like I feel like you can still get into roles with an ADN. You just have to build relationships. I mean like if you worked on the unit as a unit clerk while you're getting your ADN, you know that that nurse manager is going to plug you for that job. If you say, I'm working on my bachelor's degree while I started working, I mean because that's all they kinda need to show and then most of the jobs will pay for your bachelor's degrees. So it's like don't make excuses.
Erin Hamilton (00:47:48): Yeah. And I think it's like be willing to do what other people are not willing to do. Like you know, obviously when I got out of school, I work night shift, you know, be willing. I wanted to get into labor and delivery and it was like, yeah, you can come here and cross train but it's going to be on night shift. So I did it, you know, period. Be willing to do what other people are not doing. You know, for me it was like, you know, I have those opportunities and jump on them. Even if it's not a popular shift, you know, you don't have to it forever. You get your experience, you get your foot in the door, you show that you're reliable, you show that you are dependable. And then when those other opportunities come up to maybe go to another department or do something else, you're going to have good marks from your boss that's going to say, yeah, you should totally take her in this other department because she has all of these things. So I am very fortunate that my first job, you know at my employer was in the ER working every weekend as a phlebotomist and I was young, I was 20 years old. So yeah, I was missing out a little bit on some weekend stuff. But I'm gonna tell you paid dividends all over the place because that is my same employer now and I'd been there 17 years and they paid, you know, for my nursing school and they've already paid for part of my bachelor's as well.
Naseema McElroy (00:48:55): Okay. So what we haven't talked about, and I know that you have some hacks on this is travel hacking.
Erin Hamilton (00:49:04): So I'm fairly like new to the travel hack game, but I will tell you, I've compared prices along a lot of the websites that are like, you know, Expedia, Travelocity, you know, TripAdvisor, all those things. And I have taken five trips to Cabo San Lucas, Mexico in the last couple of years and Costco Travel has beat all of those websites, hands down every single time. Now obviously, do your due diligence, but I compared them because it's, for Costco it was your airfare, your round trip, transportation to the airport and then also your hotel and comparing them, whether it was me trying to book it separately, not including any of those third party websites, using those third party websites or going to the hotels directly, I still could not get as good of a deal as I could get with Costco. So I highly recommend Costco Travel. But also I have miles, I have two credit cards that I am asked miles on.
Erin Hamilton (00:50:03): And so right now I could go to Mexico for free if I wanted to with my miles. I do pay my cards in full, but I personally like using them because I think if you're disciplined, it's something good to have. And you know, I'm in a big city. If you're carrying cash to the store and you lose it, it's gone. You lose your card, you go turn it off and you know that's it, you're done. And the credit in those cards are, you know, you're going to have some type of protection with that. Where with cash once it's gone, it's gone.
Naseema McElroy (00:50:31): Right? Yeah. I'm a fan of using credit cards when you can pay them off in full. But I think that the gamification of being able to use credit cards to pay for travel is super duper awesome. But yes, Costco, I did do that when I took my kids to Disney world in Costco, hands down had the best prices. So I'm a big fan of using Costco Travel as well. So the last thing I want to talk about, Erin, is for those that people considering going into nursing, what advice would you have for them?
Erin Hamilton (00:51:08): I think, you know, getting into a hospital early if can, you know, even if it's just answering phones, being a unit clerk, being, you know, a nursing assistant, because that is like your foot in the door. You know, once you get in there and you're already in it, first of all, you're gonna see, maybe you love it and maybe you don't. If you're already in it and you know, like, I hate this or I don't like blood and guts and all these kinds of things, then maybe you know, it's not for you get out of it before you spend all your time and money on it or if you love it, be that person who you know is making a difference because it's gonna make a difference for you getting a job down the road. I mean for me, every boss I've had has recommended me to my next boss.
Erin Hamilton (00:51:47): So every boss I've had all the way from phlebotomy, telemetry to labor and delivery to my other labor and delivery unit to back has always given me good marks in regards. And it's like if you're putting it out there that Hey, you're a really hard worker and you're a nursing assistant, they're going to tell you and then you're going to have that opportunity to, you know, get a job later, whether it's at that hospital or not. But you know, that speaks volume to your hiring bosses that you've already worked in the field. And I will tell you right now, I graduated with honors. Not that anybody cares, but I think part of that was, you know, I had a good grasp on what was going on because my first job at my employer was in the emergency room and I worked for the lab and I was a phlebotomist. So I had a pretty good grasp on like basic triage, what labs you would order, what values to expect, those kinds of things. And I will tell you, I didn't necessarily realize it at the time, but it made nursing school much easier for me because I already was in the industry. I was already doing part of the work. And so it made nursing school that much easier because I was already familiar with the lingo.
Naseema McElroy (00:52:51): That makes so much sense. And I don't think I ever told you this, but I actually got my phlebotomy license before I went to nursing school too. And I, for the life of me, all I wanted to do was be a phlebotomist while I was about to apply for nursing school, but nobody would hire me cause I already had my master's degrees. So they wanted me to work in different capacities. But man, I was really looking forward to being a phlebotomist just so I can get my clinical skills because what I went to nursing school, it was coming off of after being in healthcare administration for so long. But man, I could see that value. And I was like, if I could just, if I could just get the skills to help me get through nursing school, I would be ahead of the pack. But it never happened. But you know...
Erin Hamilton (00:53:36): Well, I will be honest, one of the crucial factors of my hiring, because I grew up in the Fresno area that came up in my interview at age 20 with my same employer, is I'm bilingual. So I was a Spanish major before I was a nurse. And so that was a big part of hiring. And so I will tell you that I always encourage people if they can, to learn another language. And if you're in California, I highly recommend Spanish because first of all, you're gonna use it. It's super rewarding when you get to help people who no one else can help and made obviously helped me get a job. I was very young when I came to work at that hospital and being bilingual was a huge factor in my getting hired over other candidates.
Naseema McElroy (00:54:19): I love it and it's just like setting yourself up for success. And it did not take that much. I mean I think it's amazing that you understood the value of speaking another language and then how that just helped you. And I'm sure it helps you now. I mean my labor and delivery Spanish is on point, Erin. So...
Erin Hamilton (00:54:38): I think everybody who does what we do is like, you better know. Yeah. In our department you better have the basics down and so it's definitely helpful. And so I actually send my kids to a dual language immersion school so that they learn Spanish at a young age and they've been dual language immersion since kindergarten because I'm like, you have to know this. Whether you become nurses or not, you know, it's just a helpful language to have. And, when you honestly can help people and you speak their language, it is so rewarding. And then for me it really broadens your horizons. If you go to Mexico, you go on vacation and my husband is like, yeah, let's go look at real estate in another country because yeah, I speak the language and I can go talk to people and hang out and totally understand what's going on. And it's pretty amazing.
Naseema McElroy (00:55:22): Wow, I love it. And part of my journey and what I want to expose my kids to is actually living abroad in different countries and learning different languages and they actually go into international schools. So I totally value them learning other languages and me being exposed and learning to other languages because I feel like it opens the world up to you too. So yeah, Erin, this is all been great and you have brought so many gems and I'm just so glad just for my own personal reasons that we got to sit down and talk and I got to kind of dive into your journey. But also to share you with the Nurses on Fire community hat large and because you have been such an impactful member of my group in the Financially Intentional community from the beginning. And so I just want to say thank you so much. I'm super grateful for you and don't take it lightly that you hung around with me for so long. I appreciate you.
Erin Hamilton (00:56:21): No, I am super grateful to be here. Like I've been, you know, obviously longtime follower reading the blog always, you know on the Facebook group obviously got a lot out of it and it's definitely rewarding to, you know, be involved in that group and kind of see how everyone's doing it and that, you know, you're not alone with your goals and those kinds of things. And so it's been an amazing journey to watch and obviously seeing you kind of really come up in Forbes. I mean I'm like, I know her and it's like a fan girl moment. So you know, I'm super, super excited to be here and obviously I think what I'm excited about is like I'm a regular person. Like, I am not, you know, an accountant. I am not a real estate agent. You can be a regular person and still go out there and crush it and smash your goals. And you know, you don't have to be someone who has a degree in finance to do well with finances.
Naseema McElroy (00:57:13): Yes, me too. I'm a regular person, too. I'm just a labor and delivery nurse too, but I think like a lot of it is that people needed to hear my story. And I think it's kind of selfish to keep your testimonies to yourself, even if you think that you're just a regular person, the lessons that you have acquired and the things that you have accomplished, people need to hear about. And so that's why I'm super excited that they get to hear it from you, Erin. So, thank you so much.
Hey there I’m Naseema
My dream is for everyone to know that financial independence is attainable with a little intentionality. Learn how I can help you finally break the cycle of living paycheck to paycheck.
Join the Facebook Community
Join the Financially Intentional community and get access to resources to guide you on the path to Financial Freedom.
Watch these Videos To Learn How to…
Keep Listening
Here are some more episodes you may enjoy…
We dive into the challenges of the traditional credit system and why financial literacy matters.