It’s no surprise that becoming a digital nomad is more popular than ever. After all, what’s not to love about travelling around the world while you work and make money? It’s a lifestyle that people of days gone by could have only dreamed about, and yet today it’s a realistic proposition for millions of people.
With that said, it’s important to note that while there are certainly plenty of benefits to the digital nomad lifestyle, it also poses a few risks, especially ones related to your personal finances. If you’re planning to begin a digital nomad lifestyle, then take the tips we’ve outlined below on board before jumping in. They’ll ensure that your journey into the digital nomad lifestyle doesn’t impact your financial situation.
Build an Emergency Fund
It’s crucial to have an emergency fund wherever and however you work, but when you’re a digital nomad? Then it’s even more crucial. While it’s unlikely that you’ll need it, you never know what might happen when you’re so far from home! You could run into technology issues, fall ill, or experience something else that impacts your ability to earn money (or, in the case of having to take an emergency flight, have to spend money). Since you won’t have the option of turning to friends and family for support, it’ll be your emergency fund that comes to the rescue.
Pay Off Debt
You don’t have to pay off all your debts before you embark on the digital nomad lifestyle, but it is recommended that you tackle any significant debt beforehand. Living and working overseas can feel like a dream, but it does bring pressure — and that pressure will be ramped even further if you’re also dealing with costly debt repayments. Throw in the fact that many digital nomads have an unpredictable income, and it becomes even clearer that tackling debt before jetting off makes sense. If necessary, look at working with a debt relief company that can help you to both eliminate debt and avoid the issue in the future. As Alex Kleyner says, his company “provides clients with the education and resources they need to make informed financial decisions and stay out of debt for good.” Note that you don’t necessarily have to have cleared all of your debt before becoming a digital nomad; so long as you’ve got things under control and have a solid plan, then you should be able to get your lifestyle underway while you’re paying debt down.
Keep Tabs on Expenses
Finally, remember that while living and working in an overseas country can offer an opportunity to save money (if the cost of living is cheaper, that is), it’s also possible to rack up a pretty high monthly bill. After all, it can be pretty tempting to break your budget when there are so many fun and exciting things to do! It’s best to create a budget and make sure that you stick to it — and also to use a foreign currency card to get the best exchange rate.
