The world of work is changing and there are more opportunities than ever to work for yourself.
You don’t need to be bound by location either because there are a lot of jobs you can do remotely. That’s why the digital nomad lifestyle has become so popular.
There are a lot of benefits to living as a digital nomad because you can travel the world and earn a living at the same time.
However, it’s not the most financially secure way to live your life, so it’s important that you learn to look after your money and think about the future.
These are some of the best financial planning tips for digital nomads.
Get a pension
You’re probably not thinking about pensions right now, but you should.
You won’t have a pension pot that is boosted by an employer if you’re a digital nomad, so it’s up to you to start building some retirement savings.
Even though it is still years away, you will be much more comfortable if you start saving now. So, find a private pension and start paying in as much as you can afford, even if it is only a small contribution each month.
When managing your pension, it’s important to think about how you protect it.
When you enter into relationships, think about keeping your pension separate because, in future, if the worst happens and you end up going through a divorce, they may file a pension sharing order and you could lose half of your retirement savings.
These are all things that seem a million miles away right now so you probably aren’t considering it, but if you wait until it’s too late, you’ll find yourself in a tough position.
Take out travel insurance
Travel insurance is so important for digital nomads because you are hopping from country to country.
If something happens to you and you don’t have insurance to cover the medical costs, you could wipe out all of your savings or end up in serious amounts of debt.
Although a comprehensive travel insurance policy is an added expense, it will save you a lot of money in the future if something does happen.
Save for slow periods
When you are a freelancer, you don’t always have a steady stream of work coming in. Once you have built up a good client base, you should be fairly stable, but there will always be slow periods.
Digital nomads often find themselves in a tough situation when this happens and they only have enough money for next month’s expenses.
It’s important that you are ready for these slow periods, so when you are earning a good amount of money, make sure that you are putting some aside for a rainy day.
Having that buffer there is the only way that you will be able to sustain your digital nomad lifestyle for an extended period.
Staying on top of your money is crucial if you want to be a successful digital nomad, so keep these important tips in mind.