If you’re looking to become a Digital nomad, it’s essential to start investing early. There are many ways to do this, and the Internet is filled with resources. Investing is smart because it allows you to combine travel with work. You can create a YouTube channel, invest in stocks, or even start a vacation rental.
Stock market
One way to invest in the stock market as a Digital Nomad is by buying shares in companies that make sense. You can buy shares through your bank, but this is less profitable than an index tracking fund, as you need to track the shares’ price yourself. This type of investment can be risky, so carefully research your options and check out different investing platforms like Motley Fool vs Seeking Alpha.
You can also invest in privately-held businesses that are looking for investment. Such companies may pay dividends to their shareholders yearly, which is a great way to make a passive income.
Vacation rentals
Investing in vacation rentals is a great way to earn consistent income while traveling. In fact, about one-third of vacation property owners lease their properties as short-term rentals. This is an excellent opportunity for Digital nomads since it helps reduce housing costs. However, certain risks should be considered.
One of the biggest risks of investing in vacation rentals is terrible guests. While most guests are pleasant and respectful, there is always the risk of frequent bad guests. The best way to avoid such a risk is to target digital nomads during off-peak times. As an added benefit, these people will respect your neighbors, fellow guests, and vacation rental property.
YouTube channel
Investing in a YouTube channel is a great way to create an online side hustle as a Digital nomad. YouTube allows you to create a worldwide audience, and you can also choose your posting times. If you’re a traveler, you may be interested in topics such as how to get to your destination without spending too much money. You can also invest in a channel that focuses on your favorite hobbies.
Once you’ve started making videos, you’ll need to decide which niche to target. You can make more money if you focus on a specific topic. For example, YouTube will likely have plenty of travel tutorials if you focus on travel.
Mutual Funds or ETFs
Investing in Mutual Funds or ETFs can be a great way to diversify your portfolio without much work. Passive investing is the best choice for digital nomads and world travelers. A great example is the Europacific Capital Gold Fund, which has returned 47% this year, or 10% more than the S&P 500. However, you should be aware that investing is a high-risk activity that can result in substantial capital loss.
ETFs offer tax advantages, which aren’t available with mutual funds. For example, passively managed portfolios typically realize lower capital gains taxes than actively managed mutual funds. Additionally, ETFs are created and redeemed in a way that makes them far more tax-efficient.
Retirement savings
If you’re a digital nomad, you likely don’t have the benefits of an employer’s pension plan or 401(k). As a result, you’ll have to save for healthcare and retirement separately. And unlike an employee, you don’t have the benefit of matching contributions from your employer or having an HR team set up your 401(k).
As a digital nomad, it is important to establish savings and investment accounts in your home country. Most digital nomads plan to retire in their home country, so setting up an investment account in a country where you’ll have residency rights is crucial. Also, it’s always a good idea to establish an emergency fund in case of an emergency.
Investing in cryptocurrency
You can earn additional money by investing in cryptocurrency if you’re a digital nomad. First, it’s okay to spend a little money to get started. Then, you can start small and gradually increase your investment over time.
While cryptocurrency is a potentially lucrative source of income for digital nomads, it’s essential to keep in mind that there are some risks that you must be aware of.
As a digital nomad, saving money and investing it wisely is important. There are many ways to save and invest money to live a comfortable life while on the road. The Internet contains articles and guides on investing money as a digital nomad. There are also many resources about the lifestyle, including how to combine travel with work.
