How Big Should Your Emergency Fund be as a Travel Therapist?

Written by Jared Casazza, PT, DPT

What is an Emergency Fund?

An emergency fund is an important part of the total financial portfolio for all individuals and families. This is money that you have set aside that is easily accessible, usually in a checking, savings, or money market account, that is there for peace of mind for when the unexpected inevitably occurs. This could include things like a big car repair, an unexpected medical bill, or last minute travel to be with a suddenly ill friend or relative. These things usually seem to happen at the worst possible times, and since they are unexpected, they can’t really be budgeted for on a monthly basis. Even though this money is, hopefully, rarely touched, the security of knowing that it’s there if you need it can be priceless.

The Importance of an Emergency Fund as a Travel Therapist

In addition to the events above, travel therapists have many additional and usually more frequent unexpected expenses, which I believe constitutes having a larger emergency fund than is generally recommended for the typical individual. Things such as canceled contracts, difficulty finding jobs that fit your desired start date, and potential issues with short term housing all mean either less income, higher expenses, or perhaps both during any given month. An adequate emergency fund can smooth out these bumps in the road and mean a lot less stress in the long term.

Whitney and I have certainly had our fair share of costly unexpected circumstances arise during our last four years as travel therapists. These have included: extremely costly truck and fifth wheel repairs (sometimes at the same time…); Whitney’s fall and subsequent broken arm (with many weeks of missed work and lower pay once she was able to work finally); delaying starting work due to our desired contracts and dates not lining up; Whitney’s grandmother passing away; and also a canceled contract for Whitney (this ended up only being a couple of days of missed work, but could have easily been several weeks under different circumstances). This events were all unfortunate but would have been made much worse if we had money troubles thrown in there at the same time due to not having a big enough emergency fund.

So, How Much Should You Have Saved?

Most conventional financial planners recommend about 3 months worth of expenses as an emergency fund for the average employee. For travel therapists, I think that 3-6 months worth of expenses is a much safer goal with the added uncertainty that comes along with the travel therapist lifestyle. Considering the higher incomes that we make as travelers compared to permanent therapists, I think that this is definitely attainable within the first 1-2 years of working as a traveler.

If this sounds unrealistic to you, especially as a student or new grad, don’t worry, that wasn’t even close to possible for Whitney and I when we started working as new grad travel PT’s. In fact, we had almost zero money saved when we started our first contracts. This is one reason that we chose to take our first contracts only about an hour and a half from our hometown. We knew we needed to save up a big emergency fund before feeling comfortable venturing far outside our comfort zones, and in hindsight we’re very glad we did.

If you’re planning to start traveling soon and have a small or non existent emergency fund like we did, be sure to be extra cautious to minimize unexpected costs while you save up. Taking your first contract in your home state, making sure to have a 40 hour guarantee, getting a 30 day cancellation clause written into your contract, asking for up-front reimbursements on your contract, decreasing your monthly expenses, and signing up only for month to month leases (instead of locking yourself into a 3 month lease) are all great ways to minimize the frequency and/or impact of those unexpected expenses.

Once you’ve minimized your risk as a travel therapist and start working, do your best to get to that 3-6 months worth of expenses emergency fund saved up as quickly as possible. The last thing you want to do is rack up credit card debt paying for emergencies!

Do you have an emergency fund? And if so, how many months of expenses do you have saved? Let us know in the comments below!


If you need help getting in touch with recruiters that will have your back and help you avoid the unexpected as much as possible, then fill out this form and we’ll help you out! If you have questions about emergency funds or anything else travel therapy related, feel free to send us a message.

Be sure to follow along with our travels on Instagram (with occasional giveaways!) and tune into our weekly Facebook Live videos on the Travel Therapy Mentor Facebook page. For more finance related content, check out our other website, FifthWheelPT.com.

Travel Therapy: The Path to Financial Freedom (Guest Post)

Written by Jared Casazza, PT, DPT

I recently wrote an article that was featured on the Covalent Careers (New Grad Physical Therapy) website, which provides resources for PT, OT, and SLP. The title of my article is “Travel PT: The Path to Financial Freedom,” and I discuss how I have used Travel PT as a means to improve my financial future.

Here is an excerpt from the article:

With tuition prices continuing to increase each year, it’s no surprise that the amount of student debt that therapists are graduating with continues to rise as well. I talk to students and new grads every day through my site that are upset about the logistics involved with paying off six-figure student loan debt, while also doing their best to build a life after grad school. Some services, such as Fitbux, offer assistance with determining a plan to handle this debt as a new grad. Fitbux is a wonderful resource for developing the most optimal plan for getting to the zero debt finish line, and having a plan is a vital part of the process. But besides having a sound financial plan, another vital aspect is optimizing income. There are many ways to increase your income when coming out of school, including working multiple jobs or opening your own cash-based practice, but in my opinion, the easiest (and most fun) path to financial freedom is pursuing travel therapy contracts. …

You can check out the full article at: 

https://covalentcareers.com/resources/travel-pt-path-financial-freedom/

A big thanks to Covalent Careers for featuring me on their site!

If you have questions about getting started on your career in travel therapy, please send us a message and we will be happy to help you along the way!