Millennials in today’s workforce are demanding both time and financial freedom to quite literally do what they want. Many of them – digital entrepreneurs, writers, designers, bloggers, teachers – choose a lifestyle akin to that of a digital nomad, preferringto work remotely, with the freedom to pursue a line of work without being bound to a desk. The convenience of being able to earn money online and having the earnings transferred electronically to an online personal banking account means that one could be in any part of the world. The trick is to generate a smart and passive income, choose a saving account wisely and exercise financial discipline to make your money work for you and support your lifestyle.
When you’re traveling extensively, opening an online saving account is important. Apart from this, there are some other financial considerations to make. Here’s how to manage your finances when you are away from home.
Tips on Managing Your Finances While on the Go
Cover Your Expenses
Your income will most certainly fluctuate if you’re an entrepreneur or are offering freelance services. However, your expenses are likely to remain fixed each month -travel, housing and food costs, and any other expenses you need to work, such as internet access or a mobile phone with a data plan. Tracking your expenses and being discipled about sticking to a budget are of utmost importance. Carrying any additional debt, such as student loans or mortgages, should either be avoided or taken after careful planning of their repayment schedules.Select a personal banking option that allows you to access your loan account online.
Set Aside Funds
Saving should also be a priority in your budget. Choose a bank that offers a good saving account interest rate. Also, set some money aside into an emergency fund, as this can help cover any untoward medical expenses that you could incur while traveling. Getting a travel insurance policy for the entire duration of your trip and one that covers emergencies such as loss of passport, illness and accidentsin the country you are traveling to can be a lifesaver.
Contribute to Your Future
One of the disadvantages of being an independent contractor or business owner is the lack of an employer’s contribution, so you’ll need to save enough for your retirement.Saving regularly each month by automating contributions from a savingaccount into a fixed deposit is one of the easiest ways to build your retirement corpus. Revisiting your investment picks at least once a year can help ensure that they still conform to your financial objectives and risk appetite.
Choose Your Bank
If you plan on traveling frequently, you will need to have access to your funds online to cover for any payments you need to make back home. So, choose a bank that allows opening and managing of a saving account online and provides services tailored to the digital lifestyle.
The life of a digital nomad can certainly be exciting, but it can also be unpredictable. Make sure you plan, make prudent financial decisions and are disciplined about saving and spending to be successful at leading a worry-free and liberating life.