Why Healthcare Gig Work Feels Different — and Tougher
If you’re a nurse, therapist or tech on a travel contract or short-term assignment, you already know the trade-off: more freedom, but less financial safety.
You may get to choose your hours and where you work, but you also manage the parts full-time jobs usually cover — like taxes, time off and insurance.
Why It’s So Stressful
Healthcare gig work often comes with unique financial hurdles like:
- Unstable income: Hours or contracts can change quickly.
- Frequent moves: Relocating for work means paying for housing and travel.
- No paid time off: A day off usually means a day without pay.
- No retirement plan: You have to set up your own savings system.
- Insurance gaps: Finding affordable coverage can be hard.
- Licensing costs: Renewing credentials in multiple states adds up.
- Canceled contracts: Work can end early, leaving gaps in pay.
Still, gig work has its rewards. It’s more flexible than a salaried job. The hourly pay is typically higher and you get to change locations and experience different work environments. Travel nursing, for example, can be a great way for nurses to try out different settings and locations before committing to an area long-term.
If you take care to build a financial safety net, you can enjoy the benefits of this work without the pitfalls.
Set Up a “Time-Off” Fund
When you don’t have the benefit of paid time off or sick leave, rest can feel like an expensive luxury. But you need days off and vacation time too! Make it easier to take by setting up a fund to cover time off.
Also, it’s not uncommon to have gaps between contracts — a time-off fund will help cover bills when you’re between assignments.
Tip: Automate payments into a time-off fund and build it up to cover expenses while you’re between contracts. The amount you need depends on the amount of time you need, but at least 3 weeks worth of expenses is a good place to start. This is different from an emergency fund.
Plan Ahead for Taxes
As an Independent contractor your taxes aren’t automatically withheld like they would be by an employer. That means more money on your paycheck, but could put you in a tough position at tax time if you don’t plan ahead.
Setting funds aside means you won’t accidentally spend the amount you need for your state and local taxes.
Tip: Prepare for taxes by moving 25–30% of every paycheck into a separate tax fund so you’re not caught off guard in April. Or work with a tax professional
Take Advantage of Tax Free Housing
Many contracts come with housing stipends but they can vary greatly based on the location and the contract.
They are typically tax-free if you’re traveling outside a certain mile range of your “tax home” (your permanent residence).
Taking the stipend ensures you don’t duplicate your housing expenses and can pay for housing tax free.
Don’t Forget Retirement Savings
Just because you don’t have an employer match, doesn’t mean you should stop saving for retirement! When it comes to retirement savings, consistency is key.
You can open an IRA or a solo 401(k) and automate contributions each month or a certain amount from each paycheck, so your retirement savings grow quietly in the background.
Keep a High-Yield Emergency Fund
In addition to your “time-off” fund, make sure to have and maintain an emergency fund that can cover 3-6 months worth of expenses.
Fully funding and maintaining this account could prevent you from going into debt if you encounter unexpected expenses or a contract cancellation.
Tip: Keep it in a high-yield savings account so it earns interest while staying easy to access. Aim for at least three months of expenses.
Have an Insurance Plan
Healthcare gig work often means you’re responsible for your own insurance — and that can feel overwhelming but skipping coverage can be costly if you get sick or injured.
Health insurance: Explore options through the ACA Marketplace, your professional association or even short-term coverage if you’re between contracts. Some staffing agencies offer limited group plans, so ask before signing your next contract.
Disability insurance: If you rely on your ability to work, this coverage can replace income if you’re temporarily unable to work.
Liability and travel insurance: Especially important for traveling healthcare professionals, these can protect you from unexpected lawsuits or trip-related losses.
Live Within Your Means and Avoid Lifestyle Creep
Big contracts and overtime can mean lots of cash up-front. But be wary of upgrading your lifestyle until you’re certain you’ve covered essentials like: a “time-off” fund, emergency fund, insurance, savings and taxes.
Once you’ve set aside what you need for those priorities, calculate what’s left over. That’s your real take-home pay — the amount you can spend freely and enjoy guilt-free.
Conclusion
Gig work gives healthcare professionals freedom that few careers can match — the ability to choose where, when, and how you work. But with that freedom comes responsibility.
By planning ahead for taxes, saving for time off and protecting yourself with insurance and emergency savings, you can enjoy all the benefits of a flexible career without the financial stress that often comes with it.
Building structure into your finances helps you do what you do best: care for others — while also caring for your own future.