Digital Nomad communities are sprouting around the world.
In many cases, If you are from a developed country and moved to a developing country, your costs will drop. Alternatively, you'd be able to have a higher standard of living for the same cost in your home country.
The same is true if you are either working for a developed world company or service developed world clients and living in a developing country. This is called geo arbitrage.
However, even with this significant advantage, it seems that digital nomads have very little financial stability. Think about the following examples: A fluctuating income, or having time with no clients if you are a freelancer. These are risks that should be taken into account when you thinking long term as a digital nomad.
So Where Do People Fail to Create the Right Balance between being a Digital Nomad and being Financially Stable?
Here is where most people fail: It’s a lack of planning.
Because if people would plan how they will reach a goal, commit to it, and execute it, that will make that goal a priority. And because they know exactly the plan to reach that goal they feel content and financially stable. Does that make sense?
So, what's the connection between the goal I just mentioned and getting ready for hard times financially as a digital nomad? For these kinds of dead times, with lower or no income you'd want to save some money on the side. Some call it an 'emergency fund'. This emergency fund is your goal!
Whatever you call that money, it won't just show up if you won't prioritize it as a goal. So, you need to save towards that it.
But that's not all, there is another way to get to that stability you are looking for as a digital nomad. This is by generating sufficient cash flow passively from your investments. Such investments can be real estate, crowdinvesting, peer to peer investments, stocks, bonds, etc. It's whatever asset you can buy and generate cashflow.
What's going to happen is that you won't mind as much if you will have a hard month. You'd be able to go through hit easily!
By acquiring basic financial knowledge digital nomads really make a huge difference in their lives and their future. It doesn't have to be that they live paycheck to paycheck and hope for the best.
It will show you the right roadmap to feeling financially stable.