It is important to invest your money where you are likely to earn good returns or get a safety net for the future when you will not be earning much. The investment may be in a business or tangible asset that is appreciating. Digital nomads such as freelancers need to identify one or a few projects and plan on the investment in the middle and long-term. Here are some of the best ideas to invest the money as a digital nomad.
Consider Medical Insurance
A medical cover comes in handy if you get sick or are involved in an accident. As a nomad, you will be travelling from one corner of the country to the other. In case of an accident or if you catch an illness while travelling, you are sure that you will not have to pay the hospital charges from your pocket. The cover also takes care of your loved ones in similar circumstances. Ensure that you pick a medical insurance provider that covers a wide range of risks involved in travelling.
Invest In Provident Funds
Provident funds are good long-term investments. In essence, they involve keeping aside a small amount out of your monthly income. This amount grows fast in about 15 years. At the end of the provident fund duration, you could use the money to invest in the other ideas in this guide or take part of it for a holiday to your favourite destination.
Join a Retirement Plan
There are a number of retirement investment schemes that digital nomads can join. When you are over 60 years, you may not be in a position to make enough from the job that you are currently doing. The retirement investment may come in handy since it ensures that you have enough for your sunset years. Look for reputable private pension schemes to invest in. You can do it with low amounts and still save significant amounts, especially if you start saving early.
The main advantage of mutual funds is that they are funded by several investors but managed professionally. This saves you from the hustle of having to analyse all the trades that are available for investing. With proper professional management, mutual funds grow rather quickly and bring good returns, making them some of the smart investments to make money. They are also quite flexible and easy to liquidate should you get into financial problems. Instead of saving your cash in the bank, you may pick one or two mutual funds whose managers have a reputation for good fund management.
Recurring deposits are saving schemes where you put in your money for a specific period. This is a great way to fund travelling or events at specific dates in the future. You will only be paying a small amount of your monthly income and will have some significant amounts after a definite period. Most investment periods range from six months to several years. However, you have the liberty to determine the ideal length of time you will invest in the fund.
Investments in Property
A good number of digital nomads do not see the need for investing in the property market since they are always on the move, which is understandable. However, it is good to plan that time when they will want to settle down and maybe have a family. If that is not among your plans, you can invest in rental properties for some income. Across Australia, holiday homes are the next big thing. You can buy a holiday home and make it a commercial accommodation investment for most of the time that you are not around.
Invest in Buying Prize Draws
Prize draws are great ways to invest in communities that you visit around the world. Therefore, consider investing in prize draws run by organisations that support these communities. There is usually a wide range of prizes to be won from these draws.You get a chance of winning a house, trips, car or other worthy prize. When you decide to invest in prize draws, pick one or two so that you do not spend lots of cash on prize tickets.
Investing In Running Businesses
You may also consider investing in running businesses and companies. You can buy stocks and shares from particular companies or even partner with others in setting up businesses. With a broad market and good solutions, you can grow a business while still freelancing. However, you must have a background in business management if you plan to take an active role in the venture. This may also limit your freelancing lifestyle. There are still online business models such as drop shipping that you can invest in without active participation in dealing with clients.
When selecting an investment plan as a nomad, consider the probable returns, the period of the investment and the community around you. Pick a business that promotes your current lifestyle.
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