Being a full-time traveler or digital nomad is an incredible lifestyle that offers freedom, adventure, and flexibility. But just because you’re constantly on the move doesn’t mean you should put your financial future on hold. In fact, it’s crucial to keep investing while traveling, as it ensures long-term financial stability and wealth growth.
Whether you’re a seasoned traveler or just starting your journey, this guide will walk you through the best investment strategies and tools that can help you manage your money from anywhere in the world. Learn how to stay financially healthy, even while living a location-independent lifestyle.
Why You Need to Invest While Traveling Full-Time
Traveling full-time as a digital nomad or remote worker is an exciting, adventurous lifestyle, offering the freedom to explore new destinations, cultures, and experiences. But just because you’re constantly on the move doesn’t mean your financial future should be neglected. In fact, it’s more important than ever to continue investing while you travel.
Investing while traveling not only secures your financial future but also enhances your quality of life on the road. By creating a solid financial foundation and growing your wealth, you can ensure that you never have to worry about running out of funds while you’re living your dream lifestyle.
Here’s why it’s crucial to invest while traveling full-time:
- Wealth Growth: Investments, when done right, grow over time, helping you build wealth and secure your future.
- Retirement Planning: Without a traditional job or pension, investing for retirement is crucial for long-term financial security.
- Flexibility: Investing allows you to create passive income streams, providing you with financial freedom to travel without the stress of constantly working.
- Currency Diversification: By investing in assets across various countries, you can mitigate risks associated with fluctuating currencies and markets.
The Power of Investment: Let Your Money Work for You
The true power of investing lies in the ability to grow your wealth automatically. Rather than relying solely on your own work to earn a living, investments allow your money to grow and work for you. As you accumulate wealth, you’ll be able to leverage your growing portfolio to fund even more travel, increase your quality of life, and continue building wealth for your future.
Starting small with investments and increasing your contributions over time can help you take full advantage of compounding, where your returns generate further returns. When you invest in stocks, real estate, or other appreciating assets, you’re building a powerful engine of wealth that can sustain you long after your travels end.
The key takeaway is that investing is not just a way to secure your financial future, but also a means to empower yourself in the present. Whether you’re just beginning your travels or are already deep into the nomadic lifestyle, start investing today and watch your financial independence grow over time.
1. Choose the Right Investment Strategy for Remote Life
When you’re traveling full-time, your financial strategy needs to be flexible and easy to manage from anywhere. Here are some of the most effective investment strategies:
Stock Market Investments
Investing in stocks is one of the most common ways to grow wealth. With an internet connection, you can easily buy and sell stocks from anywhere in the world.
How to Invest in Stocks While Traveling:
- Brokerage Accounts: Sign up for a brokerage account that offers global access to markets. Some online brokers, such as Charles Schwab, Fidelity, and Interactive Brokers, allow you to trade U.S. and international stocks.
- Robo-Advisors: For a more hands-off approach, use robo-advisors like Betterment or Wealthfront, which automatically manage your investments based on your risk tolerance.
ETFs and Index Funds
Exchange-Traded Funds (ETFs) and index funds allow you to diversify your portfolio without having to pick individual stocks. They track a variety of assets like stocks, bonds, or commodities, offering lower risk and lower fees.
How to Invest in ETFs and Index Funds While Traveling:
- Diversification: Invest in broad-market index funds like the S&P 500 or Vanguard Total Stock Market ETF (VTI) to reduce risk while ensuring steady growth.
- Automated Investments: Set up automatic investments to contribute regularly to your ETFs or index funds without having to think about it.
Real Estate Investment Trusts (REITs)
Real estate can be a lucrative investment, but buying property while traveling is complicated. However, you can invest in REITs, which allow you to invest in real estate markets without owning property directly.
How to Invest in REITs While Traveling:
- Publicly Traded REITs: You can buy shares of REITs on the stock market, just like regular stocks. Some popular REITs include Vanguard Real Estate ETF (VNQ) or Realty Income Corporation (O).
- Crowdfunding Platforms: Use real estate crowdfunding platforms like Fundrise or CrowdStreet, which allow you to invest in property projects for as little as $500.
2. Create Passive Income Streams
Creating passive income is one of the best ways to fund your travels while ensuring you’re still building wealth. Passive income allows you to earn money without putting in constant effort, which is essential when you’re always on the go.
Peer-to-Peer Lending
Peer-to-peer lending platforms like LendingClub and Prosper allow you to lend money to individuals or small businesses in exchange for interest. It’s a great way to earn passive income while traveling.
How to Invest in Peer-to-Peer Lending While Traveling:
- Diversify: Spread your investment across multiple loans to reduce risk.
- Monitor: Check your portfolio periodically to ensure it’s performing well.
Dividend Stocks
Dividend-paying stocks give you regular payments in the form of dividends. These payments can be reinvested to grow your portfolio or used as a steady source of income while traveling.
How to Invest in Dividend Stocks While Traveling:
- Dividend Aristocrats: Consider investing in stocks that have a long history of paying dividends, like Coca-Cola, Johnson & Johnson, or Procter & Gamble.
- Dividend Reinvestment Plans (DRIPs): Use DRIPs to automatically reinvest dividends back into your portfolio, compounding your returns.
Online Businesses
Investing in or building an online business can create a continuous revenue stream, even while traveling. Whether it’s a blog, affiliate marketing, or an eCommerce store, online businesses can generate income around the clock.
How to Start an Online Business While Traveling:
- Blogging: Start a blog with a niche you’re passionate about, then monetize it through ads, affiliate marketing, or sponsored posts.
- Affiliate Marketing: Partner with brands and promote their products, earning a commission for every sale made through your referral link.
- eCommerce: Start a dropshipping store or sell digital products that can be delivered automatically to customers.
3. Protect Your Investments While Traveling
Traveling full-time introduces certain risks to your investments, from fluctuating currencies to scams. Here’s how you can protect your wealth and investments:
Use International-Friendly Banking Services
Choose a bank or financial service that is travel-friendly and offers global access. Online banking apps like Revolut, Wise, and Payoneer allow you to access and manage your investments easily from anywhere in the world.
Diversify Your Portfolio
To protect your investments from market volatility, diversify your portfolio across different asset classes (stocks, bonds, real estate, etc.), sectors, and geographic regions. This helps to mitigate risk and increase long-term growth potential.
Tax Optimization for Digital Nomads
As a digital nomad, you may be subject to different tax rules depending on your country of residence and the countries you travel to. Consulting a tax expert who specializes in international taxation for remote workers can help you optimize your tax strategy and avoid double taxation.
4. Tools and Resources to Help You Invest While Traveling
When you’re traveling full-time, it’s crucial to have tools and resources that help you manage your finances, investments, and taxes efficiently. The right tools allow you to invest and monitor your portfolio with ease, wherever you are. Here are some essential tools and resources for digital nomads and full-time travelers:
Investment Apps
Investment apps are a digital nomad’s best friend when it comes to managing stocks, bonds, ETFs, and other assets on the go. They allow you to trade, track your investments, and stay on top of market trends with just a few taps on your phone.
- Robinhood
Robinhood is a popular, user-friendly investment app that offers commission-free trading on stocks, options, ETFs, and cryptocurrencies. It’s a great option for beginners and experienced investors alike, with easy-to-use tools for trading and tracking investments in real-time. - Acorns
Acorns rounds up your everyday purchases and invests the spare change into a diversified portfolio of ETFs. It’s perfect for people who want to start investing with small amounts and build wealth over time. It also offers IRAs and retirement accounts for long-term investing. - Fidelity
Fidelity is a well-established investment firm that provides a robust app for managing stocks, bonds, and retirement accounts. Their app offers commission-free trading for most asset classes, and they have great research tools to help you make informed decisions on the go. - M1 Finance
M1 Finance combines investment management with personal finance. It allows you to build customized portfolios or choose from pre-made ones and automatically invest in them. It’s an excellent option for those who prefer a more hands-off approach to investing while still maintaining control over their portfolio.
Currency Exchange Tools
When traveling abroad, managing currency exchanges and international transfers efficiently can save you time and money. Here are a few tools that help with currency conversion and reduce fees:
- Revolut
Revolut is a digital banking service that offers fee-free international transfers, currency exchange, and global financial services. You can use their app to manage your money, including holding multiple currencies and making investments without the high fees of traditional banks. - Wise (formerly TransferWise)
Wise is a fantastic tool for sending money internationally at the best exchange rates with low fees. It’s widely used for transferring funds between countries, and it supports multiple currencies. You can also use it to open a borderless account and manage your investments globally. - Payoneer
Payoneer offers cross-border payment solutions and allows you to receive and make payments globally. If you’re a digital nomad with international clients, Payoneer allows you to receive payments in multiple currencies and withdraw to your local bank account. - CurrencyFair
CurrencyFair is another tool for international money transfers with low fees. It offers competitive exchange rates and allows you to exchange currencies between 20+ different countries. CurrencyFair also offers peer-to-peer exchange, where you can set your own rates and find a match to reduce fees.
Tax Software for Digital Nomads
When you’re traveling, managing your taxes can get complicated. Many digital nomads have income from multiple countries, making tax filing challenging. Here are some tools to help you optimize your taxes while on the move:
- TaxJar
TaxJar is a tax software specifically designed for U.S. remote workers, freelancers, and digital nomads. It helps you manage sales tax and file taxes across multiple states. TaxJar is a great tool for simplifying tax reporting if you’re running an online business or dealing with international income streams. - Expats Tax Back
Expats Tax Back specializes in helping U.S. citizens who live abroad with their tax returns. The service helps with tax optimization, deductions, and credits for people who are living outside the U.S. or earning income globally. - Taxfyle
Taxfyle offers on-demand tax filing services, including personal and business taxes. It connects you to certified tax professionals who can help you file taxes, even while traveling internationally. Their service supports remote work, expatriates, and digital nomads. - Nomad Tax
Nomad Tax is a tax service specifically created for digital nomads. It helps remote workers with tax planning, filing, and tax optimization across multiple countries. If you’re an international traveler, this service offers expert tax advice to ensure you stay compliant with local and international tax laws.
Portfolio Tracking Tools
Portfolio tracking tools are essential for monitoring the performance of your investments. These apps help you keep track of your asset allocations, performance, and potential growth.
- Personal Capital
Personal Capital is an excellent tool for tracking your financial assets, including investments, retirement accounts, and savings. It provides a clear overview of your portfolio’s performance and helps you plan for future financial goals. - Morningstar
Morningstar is a leading investment research platform that provides detailed analysis and performance reports for mutual funds, stocks, ETFs, and other assets. It’s a great resource for making informed investment decisions and tracking your investments’ performance. - TrackYourDividends
TrackYourDividends is a portfolio tracking tool specifically designed for dividend investors. It helps you track your dividend income and provides valuable insights into your portfolio’s growth and performance. - Sharesight
Sharesight is another portfolio tracking tool that allows you to track your investments across multiple brokers and markets. It provides detailed performance reports and offers features for both beginners and experienced investors.
Digital Nomad Communities and Resources
Being part of a digital nomad community can provide access to valuable investment knowledge, tax tips, and networking opportunities. These platforms can help you connect with other remote workers and learn from their experiences:
- Nomad List
Nomad List is a community-driven resource where you can find the best places to live as a digital nomad. It’s a great tool for finding affordable cities with reliable internet, coworking spaces, and a high quality of life for remote workers. - Remote Year
Remote Year offers curated programs for digital nomads and remote workers, including travel, workspaces, and community living. It’s an excellent option if you want to travel to different countries while working remotely and meet other like-minded individuals. - Digital Nomad Facebook Groups
Join Facebook groups like Digital Nomads Around the World or Digital Nomads Facebook to network with fellow travelers, ask questions, and share resources. These groups often contain valuable discussions about managing finances, investing, and staying financially healthy while traveling.
Final Thoughts
Investing while traveling full-time may seem complicated, but it doesn’t have to be. With the right strategies and tools, you can ensure that your wealth continues to grow, even while you explore the world. Whether you’re investing in stocks, real estate, or building passive income streams, managing your money on the move is an essential part of maintaining financial stability for your future. By planning ahead, diversifying your investments, and using the right resources, you can enjoy the freedom of full-time travel without compromising your financial goals.
