By Amy Jones
Being a solo female digital nomad can be a fun adventure as it gives us not only the freedom to roam and earn money at the same time but also encourages financial freedom by not being stuck to a location and locking you in to spending money on mortgages and other long-term commitments. It offers
Without the security of a home and so forth, this financial freedom also means you have to take the same amount of care with your finances; just as you might think you have extra funds to spend, there needs to be some structure in place to avoid overspending and leaving you in uncomfortable positions.
Here are some tips, tools and tricks I strongly recommend to ensure your life of being a digital nomad offers you financial stability and longevity.
Eliminate your debt
Digital nomads who have outstanding debts often do not remain digital nomads for an extended period of time, and that’s why I chose the word eliminate because they need to be gone for good.
Before you embark on your journey, make sure to settle any debts you have, whether it’s $20 on Klarna or a $1,000 overdraft; get that dusted off. The objective is to ensure all your finances are available to support a lifestyle centered around travel and that all of your money is your money.
If you own a home and plan to keep it, consider renting it out to cover your monthly mortgage payments and hire a property management company to handle all the administrative tasks. Consider options that mean you have a security net but also don’t have to pay out of pocket.
Explore landlord insurance options that provide guaranteed rental income during times when you are unable to find a tenant.
Don’t Stay Too Long
Don’t stay anywhere that requires you to pay a lump sum to stay there, and what I mean is that if you need a visa to go there, I wouldn’t bother. There are loads of places that you can visit during your annual leave for a week or two but be strategic with your money and don’t pay out of pocket just to enter a country, as it’s likely not worth the £100+ which is valuable as a digital nomad, unless you are loaded, of course.
If you didn’t care about the visa expenses, then you could always get in touch with an immigration lawyer to discuss your options and application.
Build Savings
While you don’t always necessarily need to have savings, as your entire wage can be used for that month, you aren’t always sure of any unexpected expenses or costs, so it’s better to have a lifeline and a pot of money to be used in case of emergency. It doesn’t always have to be alot, but aim for as much as you possibly can right before you head off.
No Static Budget
What I mean by this is that a static budget isn’t realistic in the sense that during the digital nomadic lifestyle, nothing is going to be the same in terms of new locations and different average costs, etc. Therefore, a more strategic budget makes more sense and allows you to stretch your money a lot further. For example, setting up a budget per location but taking into account the factor of how expensive the location generally is, one place would be more financially better off eating in 6 out of 7 nights, while another would be better off doing the opposite.
It’s interesting that you truly find it different in all places, so be sure you are clued up, and it will allow you to spend more freely but also responsibly in each location you decide to settle in for a little while.
Digital Nomad Tools To Use
Revolut
You must have heard of this banking app already, but the classic Revolut allows you to manage money in multiple currencies with interbank exchange rates, making the whole spending, sending and receiving money from where you are easy and seamless, also without fees, which is a bonus.
It’s key that it works within 30 currencies, but there are certain features that are available in all countries, so it’s best to have a quick Google if you plan on switching locations.
YNAB
Which stands for you need a budget; this financial tool is perfect for those who can never stick to a budget, like myself, most of the time. But this tool basically tells you what you can and can’t spend, which prevents you from overspending and undersaving, which is a lifesaver if you are bad at handling money.
This app allows you to create and track goals and a debt paydown tool and gives you detailed reporting so you can see exactly where your money is going.
TI will say this will come at a cost, which is rather expensive, but can be life-changing – there are, of course, free tools, but they don’t have all the same features. A free tool quite similar is Plum.
Mint
An alternative to YNAB is Mint, which is a free budgeting tool and helps you manage your money and track your credit score. It will send you bill reminders and help you track any investments. This one is pretty simple and doesn’t have any interesting features, but if plain and simple is what you are after, then Mint is perfect for you.
Skyscanner
You surely must know about the best travel app for comparing flights; if you don’t, then it’s, of course, Sky Scanner. As a digital nomad, saving money where you can is essential That’s why Skyscanner is the best, as it’s a free website and pulls in all the information you could need. It’s more than just flights as well; it’s hotels and car hire if you need it.
It’s a great website to know about if you did, and it’s a great website to keep track of, as you could find some absolutely amazing last-minute deals.
Manage Your Money
Overall, managing money as a digital nomad and solo female traveller can come with its struggles, but ensure that you use a tool that suits your needs, you are debt-free, and you will be fine.
Amy Jones is a freelance writer based in Manchester, UK. She loves writing about wellness and investment trends. In her spare time, she enjoys reading mystery books with a cup of tea or planning her next travel destination.
