When the benefits of living as a digital nomad are highlighted, many people start asking what the best strategy is for it. In this post, we evaluate the best ways for becoming a digital nomad. The guide extends to explore the pros and cons of each method.
Investing actively in the money market
When you invest money actively, it is very easy to live independent of the location. However, this method comes with its fair share of challenges and, therefore, not for the faint hearted.
- Because you are trading with personal funds. This makes it very easy because you do not require suppliers or clients.
- There is no limitation. If you are very smart, it is possible to make lots of cash (you need the right skills for this).
- Trading in money helps one to stay updated about current affairs in the globe
- The size of personal trade keeps growing so that you can take advantage of more capital intensive opportunities
- It is possible to scale over time by using other clients cash.
- This is one of the most risky ventures. One can lose a lot of money within a very short time
- Trading in currencies can make you feel lonely
Getting started: To start investing your cash directly, it is important to follow various finance sites such as Seeking Alpha and Investopedia. You should also get a forex demo account and limit the losses as you learn the rules of this portfolio. Later you can open a real account.
Investing in passive income
For people with ample investment capital, this is a great option. This means that you invest in other entities where income will simply flow on a monthly basis or upon maturity if the investment. Some great examples at this point include buying high-interest bonds, Buy-to-let properties portfolio, or peer-to-peer lending. Other people prefer the dividend-earning stock portfolio and stockpile resources.
- Stable passive income allows you to focus on other things
- It is a great way to have money flowing for those who do not fancy working
- Passive income comes in handy when building a business
- It is a life safer if you fall ill
- It helps smooth out the experience of having a family
- Though your investments might be paying well now, this might change in the future. Therefore, you need to plan for a crisis
Depending on the nature of the current job, it is possible to work remotely. This is a great method especially for people who work online. For others, this is a great way to transition from the normal work schedule to a fully nomadic lifestyle.
- Workers with good bosses can start immediately
- Staying on the current job allows you to have a salary when starting
- You do not have a lot of pressure when starting (some start with just a few hours daily)
- It is your boss who calls the shots
- You will have to continue remitting tax back at home
- The work schedule might be very restricting
- Network connection can severely limit you
This is a great option for many people with the emergence of top sites such as Fiverr. Indeed, most nomads are in freelancing. Though investing in business would be better, freelancing is good because you can start fast and the risks involved are few.
- Very easy to start
- Those with rare skills can earn more
- Once the profile is established, you will never get out of work
- For those in low-income nations, freelancing can come in handy.
- There is great limitations n whet can be made
- You work at the behest of freelancing sites/companies
- You have to complete most of the tasks on your own
To start as a freelancer, you are required to build a profile on top sites such as Upwork, Toptal, Fiverr, and Freelanmcing.com. The profile should be added together with all details including references, qualifications, and personal history. Then, start taking low paying orders until the profile grows and you can take high paying orders.
Work on a location independent enterprise
Building a business is very healthy. It also helps one to shift from immigration, taxes, and social realms.
- As a business owner, you have absolute control
- You can select those you want to work with
- The risk is high, but rewards are equally high
- Ability to meet a lot of people
- Ability to implement tax optimization strategies
- The business can be passed to kids
- A business can be sold
- Establishing a business is very risky
- You must work very hard
- There is a risk of failure
Note that irrespective of how you advance, it is advisable to take a debt at the onset as opposed to investing personal cash. After confirming that the business will work, you can go ahead and inject more personal capital.
Consider running established business remotely
For people with already established businesses, it is advisable to continue running them remotely. Though the level of risk is still high, people who think they will settle in the country of the business location can continue managing them remotely.
- When handles well, this can provide a reliable source of monthly income
- One might opt to travel back home sometime in future
- It is a great idea if only working as a nomad for a short while
- Many are the times that the business is dependent on the local manager
- You have to continue paying all the required taxes
- High risk of business failure
Volunteering and training
Over the years, volunteers and teachers have been growing in most countries globally. Well, though this is not sustainable, you can consider it as a supplement to other tasks such as freelancing. Because of the high risks involved and the income levels are very low; we will not go into the details of the pros and cons of this method.
Living as a digital nomad is a great method of enjoying a lifestyle free of any stress. It is important to select the method of your entry as well as the main method of operations as a digital nomad. To learn more about digital; nomads and how to adapt to it, contact us for help.