As expats, we all have different needs and desires. For some, the dream is not about financial success but more about location independence, creative thinking and designing a life that is not bound to consumer and governmental pressures. However, we all want to make sure we have enough capital to live, save and even invest in our future life for safety, peace of mind and quiet prosperity.
Below are Her Expat life's financial advice for expats, digital nomads, and travellers.
The first step is creating a budget. Setting and understanding your budget may seem simple enough. However, you must log and keep track of every aspect of incoming and outgoings of your money.
You have to identify the amount of money you have coming in and track your spending.
The Budget rule "50 20 30" https://thecooltipshub.com/creating-a-monthly-budget/ is a formula that helps you divide up your paycheque; however, it depends on your specific cost of living. The basic rule is in three categories:
50% for the essentials,
20% for savings
and 30% for everything else.
It might be a good idea to start living below your means to put the budget rule into actual practice; trust me, it will be worth it!
2. Build a passive revenue stream
There are many forms of this, and if you are starting out writing an eBook, creating an online course or starting a blog, are some ideas for digital-savvy minded expats.
If you are looking to invest in stocks, this is a great way to create another revenue stream. - Tech software companies increased by 32.9% in 2021 and could be a potential investment sector. https://investmentsforexpats.com/what-to-look-out-for-in-2022/
When it comes to investment, seeking a financial advisor to outline and guide you through investing in stocks strategically or real estate will help you have profitable returns.
3. Build an emergency fund
Are you planning to become an expat, or do you want to travel more?
If you are an expat or digital nomad that likes to travel or move around a lot, then an emergency fund is worth setting up!
Six months of salary is a goal to aim for and will give you peace of mind and freedom to explore, travel, and have fun.
4. Set Financial Goals
Do you have a retirement fund, or are you in need of more savings for your retirement?
Set clear goals on how, why, where and add a timeline to make it easier to obtain the goal.
Lifetime goals or yearly financial goals will enable you to plan and reach them.
Perhaps you want to save for your children and need to plan for their future financially?
Talk to your bank about setting up private savings for the family and work towards your goal.
It can start with small amounts put away every month, and you will reap the benefits in years to come.
Her Expat Life has a range of services to suit all expats needs, and we want to cater to every budget.
We offer sound advice, plan, execute and secure your place in the expat world!
Head over to www.herexpatlife.com for more information and get in touch. We would love to hear from you.