5 Essential Money Management Tips for Aspiring Digital Nomads

Money Management Tips

With the coming of the digital age and the era of seamless global connectivity, remote work has evolved from being something you would fantasize about as you’re daydreaming out of your office window, to something that’s now a feasible and lucrative career path. What’s even, being a digital nomad is one of those business ventures that you can start up with little to no money if you play your cards right, but will also allow you to become financially independent and travel the world to boot.

That said, this doesn’t mean that digital nomadism is your golden ticket to a lavish lifestyle, at least not yet, as there are many perils on the road to long-term success, even in an increasingly popular field such as this one. Your biggest concern is, of course, money. With that in mind, here are the essential money management tips you need to follow if you’re an aspiring digital nomad.

Pay off all outstanding debt

First things first, you can’t hope to kick-start a successful career as a working globetrotter if you have any financial debt hanging over your head. What’s more, you might not even be able to leave the country for extended periods of time if you haven’t settled your outstanding payments to the government, or your banking institution. And even if you’re free to travel the world with outstanding debt, this kind of burden might seriously impact your emotional well-being and your career.

This is why it’s imperative to settle the financial score before you leave. Doing this will also allow you to close your old credit card accounts, and switch to a travel-friendly banking option with special benefits and rewards such as air miles, accommodation, low-interest rates, and more.

If you can’t pay off some of your long-term debts such as a student loan or a mortgage, then be sure to create a feasible repayment plan that will allow you to pay the interest while on the road.

Invest in a long-term savings plan

When starting a new life and a new career as a digital nomad, you might feel compelled to think of your short or mid-term goals only, without giving much thought to what might happen decades down the road.

Hey, nobody would blame you for doing so, because this is a big step and you should focus on building your success in the here and now. However, this is also one of the biggest mistakes aspiring digital nomads make. 

Not having a viable savings plan in place to cover you against unforeseen circumstances or certain financially-taxing chapters of your life is a surefire way to drive your career into the ground, so don’t think that you don’t need to have a savings plan just because you plan to be a digital nomad forever.

Life is long and full of unexpected circumstances, so make sure to allocate financial resources to an account that will cover your living or medical costs decades into the future.

Find the right credit card for your nomadic needs

The primary consideration you should keep in mind when planning your transition into digital nomadism is how you’re going to finance your exploits and lifestyle, and how you’re going to use your money while on the road.

Are you going to stick to cash and conversions on the spot, or are you going to use electronic payments? Are you going to save up for flights and accommodation, or are you going to collect air miles via credit card?

These are just some of the questions you should ask yourself, and they are also the main reasons why every digital nomad should compare credit cards in order to find a travel-friendly option that allows them to accrue points and rewards to finance their travels around the world.

Be sure to research credit card issuers carefully, get in touch with them, ask every question about the program that comes to mind, and only then make the decision to get a credit card – it will mean the difference between long-term financial savings and paying high-interest rates.

Research living and travel costs

Of course, you can’t survive out in the world if you first don’t do your research. For a digital nomad, it’s absolutely imperative to research the destination in order gain a realistic overview of the average living costs and other expenses. As a general rule, you’ll first want to travel to countries that are closest, and have the lowest living costs until you build up your brand and start making more money, and are able to pay for more exotic destinations.

Develop numerous income streams

On a final note, always remember that a digital nomad has to have more than one income stream in order to ensure financial safety and stability. Remember, you’re not in your home country, this is not your turf, so if something happens to your main income stream you can’t expect to get a job at a local coffee shop until you get back on your feet. 

No, you will be stranded in a foreign country with no means of getting home until you start earning again. Don’t allow this to happen, rather, be sure to acquire numerous clients or monetize your blog in various ways in order to ensure financial stability at all times and keep your business on the right track.

Parting words

Technology has made it possible to abandon the old 9-5 mindset and choose a lucrative career as someone who travels the world and gets paid in the process. That said, you need to tend to some essential financial preparations before you hit the road, so let these tips help you pave the road to a thriving career as a digital nomad.

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