Personal Finance Tips for the Traveling Nomad

It doesn’t always take a fat bank balance to start a business. For businessmen like Ken Langone from Roslyn Heights, all it took was hard work and a keen understanding of what the customer wants. With that, he formed Home Depot, one of the most successful home renovation chains in the world. But for those who plan on being a little more mobile, it will require being savvier with cash to remain in business. For those who run a one-man show which is often the case with nomadic businesses, the personal and business finances are often intertwined. Discover some healthy finance tips for the traveling nomad.

Don’t Work for Free

The lure of traveling is often enough to get traveling nomad off their couch and into a plane, but this lifestyle needs to be sustainable. There are instances where accepting goods in exchange for services work; however, that can’t be the only source of income. Bloggers, journalists, traveling writers, photographers and others who find themselves jetting off to distant locations may find themselves in a financial pickle if the only form of payment is their accommodation.

Know Where to Go When Finance is Needed

As a traveling nomad, it might be a good idea to do some research on the banking options within the country that is visited, especially if the tenure of the project is more than just a few months. There will likely be differences in what is available to you depending on whether you’re based in Asia, Africa or Australasia. For example, when looking for a Loan Singapore based nomads might find a wide variety of financial products with favorable interest rates, but there may be less choice available in parts of Africa. There are many other online loan application options that nomads can try from their home countries as well. Sometimes a little bit of finance goes a long way, especially if it enables that digital nomad lifestyle to grow.

Learn to Save

As with any business, it’s important to realize that some months will be better than others. From seasonal projects to fluctuating budgets, it’s important for the nomad to stay on top of their cash flow. The incorrect use of cash flow kills one out of four businesses every year, which can be avoided if managed properly. A good way to ensure a consistent level of cash in the business is to save the surplus. This will allow a bit of a buffer during those quieter months. If there is no quiet period, the business can then make use of the reserve for better equipment or marketing. Owners who save in their personal capacities will be less of a burden on the business.

The importance of money management is not just important for corporates and those who operate from a fixed premises. Nomadic businesses also need that extra care and attention in order to remain relevant and healthy. Those who have their personal finances in order will also place less stress on the business.